As filed with the Securities and Exchange Commission on July 11, 1996.
Registration No. ________
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
TRITON ENERGY LIMITED
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
CAYMAN ISLANDS None
-------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
Caledonian House
Mary Street None
P. O. Box 1043
GeorgeTown -----------------
Grand Cayman, Cayman Islands (Zip Code)
(Address of principal executive offices)
</TABLE>
TRITON ENERGY AMENDED AND RESTATED 1992 STOCK OPTION PLAN
TRITON ENERGY AMENDED AND RESTATED 1985 RESTRICTED STOCK PLAN
(Full title of the plans)
Robert B. Holland, III
Triton Energy Corporation
Vice President and Secretary
6688 North Central Expressway
Suite 1400
Dallas, Texas 75206
(Name and address of agent for service)
(214) 691-5200
(Telephone number, including
area code, of agent for service)
___________________________
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CALCULATION OF REGISTRATION FEE
Proposed Maximum Proposed Maximum
Title of Securities Amount to be Offering Price Per Aggregate Offering Amount of
to be Registered Registered Share (1) Price (1) Registration Fee
- -------------------------------- ---------------- -------------------- -------------------- -----------------
Ordinary Shares,
$.01 par value per 1,050,000 shares $ 47.69 $ 50,074,500 $ 17,267
share
- --------------------------------
</TABLE>
(1) Estimated solely for the purpose of calculating the registration fee.
Pursuant to Rules 457(c) and 457(h), the offering price and registration fee
are computed on the basis of the average of the high and low prices of the
Ordinary Shares, as reported by the New York Stock Exchange, on July 8, 1996.
Pursuant to General Instruction E of Form S-8, this Registration
Statement incorporates by reference the contents of Triton Energy
Corporation's Registration Statement Nos. 33-4042, 33-29498, 33-46968 and
33-51691.
In addition, pursuant to Rule 429 of the Securities Act of 1933, as
amended, the Prospectus herein also relates to 230,388 Ordinary Shares
registered on Form S-8 (No. 33-27203) issuable pursuant to the Company's 1989
Stock Option Plan and with respect to which the requisite filing fee has
previously been paid; 2,500 Ordinary Shares registered on Form S-8 (No.
2-80978) issuable pursuant to the Company's 1981 Employee Nonqualified Stock
Option Plan and with respect to which the requisite filing fee has previously
been paid; 70,385 Ordinary Shares registered on Form S-8 (No. 33-4042)
issuable pursuant to the Company's 1985 Stock Option Plan and Amended and
Restated Restricted Stock Plan and with respect to which the requisite filing
fee has previously been paid; and 458,000 Ordinary Shares registered on Form
S-8 (No. 33-51691) issuable pursuant to the Company's Amended and Restated
1992 Stock Option Plan, Amended and Restated 1986 Convertible Debenture Plan
and 401(k) Savings Plan and with respect to which the requisite filing fee has
previously been paid.
PROSPECTUS
ORDINARY SHARES*
TRITON ENERGY LIMITED
This Prospectus has been prepared by Triton Energy Limited, a Cayman
Islands company (the "Company"), for use upon resale by certain directors and
executive officers of the Company (the "Selling Shareholders") of Ordinary
Shares, par value $0.01 per share ("Ordinary Shares"), of the Company. The
Selling Shareholders have acquired and/or may in the future acquire the
Ordinary Shares from the Company pursuant to the provisions of the Company's
Amended and Restated 1992 Stock Option Plan, Amended and Restated 1986
Convertible Debenture Plan, Amended and Restated 1985 Restricted Stock Plan,
1989 Stock Option Plan, 1985 Stock Plan and 401(k) Savings Plan (collectively
referred to herein as the "Plans"), including upon the exercise of options and
the conversion of debentures (collectively, "Options") granted to the Selling
Shareholders pursuant to the terms of certain of such Plans.
It is anticipated that the Selling Shareholders directly, through agents
designated from time to time, or through brokers, dealers or underwriters also
to be designated, may sell the Ordinary Shares from time to time on terms to
be determined at the time of sale. To the extent required, the specific
Ordinary Shares to be sold, purchase price, public offering price, names of
any such agent, broker, dealer or underwriter, and any applicable commission
or discount with respect to a particular offer will be set forth in an
accompanying Prospectus Supplement. See "Plan of Distribution." The Ordinary
Shares of the Company are traded on the New York Stock Exchange (the "NYSE")
under the symbol "OIL," and may be sold from time to time by the Selling
Shareholders either directly in private transactions, or through one or more
brokers or dealers on the NYSE, at such prices and upon such terms as may be
obtainable.
Upon any sale of the Ordinary Shares offered hereby, the Selling
Shareholders and participating agents, brokers or dealers may be deemed to be
underwriters as that term is defined in the Securities Act of 1933, as amended
(the "Securities Act"), and commissions or discounts or any profit realized on
the resale of such securities purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act. The Company
will not receive any of the proceeds from the sales by the Selling
Shareholders.
* This figure is an estimate. This Prospectus constitutes part of a
Registration Statement on Form S-8 (No. 333-_____), and constitutes an
amendment to Registration Statements on Form S-8 previously filed by
Triton Energy Corporation (Nos. 33-4042, 33-27203 and 33-51691), which cover
the issuance by the Company of the Ordinary Shares pursuant to the terms of
the Plans. This Prospectus covers the resale by the Selling Shareholders of
an indeterminate number of Ordinary Shares acquired or that may be
acquired by the Selling Shareholders under the Plans, including upon the
exercise or conversion of Options that have been or may be granted to the
Selling Shareholders pursuant to the Plans.
_________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
The date of this Prospectus is ___________, 1996.
<PAGE>
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith, files reports, proxy statements and other information
with the Securities and Exchange Commission (the "Commission"). Reports,
proxy statements and other information filed by the Company with the
Commission can be inspected and copied at the public reference facilities
maintained by the Commission at Judiciary Plaza, 450 Fifth Street, Room 1024,
N.W., Washington, D.C. 20549, and the regional offices of the Commission at
the Northwestern Atrium Center, 500 West Madison Street, Suite 1400, Chicago,
Illinois 60621-2511, and 75 Park Place, Room 1228, New York, New York 10007.
Copies of such material can be obtained from the Public Reference Section of
the Commission, Washington, D.C. 20549, at prescribed rates. The Ordinary
Shares of the Company are listed on the NYSE. Reports, proxy statements and
other information concerning the Company can also be inspected at the office
of the NYSE at 20 Broad Street, New York, New York 10005.
The Company has filed with the Commission, a Registration Statement on
Form S-8 (together with all amendments and exhibits thereto, the "Registration
Statement") under the Securities Act with respect to the Ordinary Shares to be
issued pursuant to the Plans. As permitted by the rules and regulations of
the Commission, this Prospectus does not contain all of the information set
forth or incorporated by reference in the Registration Statement. Copies of
the Registration Statement are available from the Commission upon payment of
certain fees prescribed by the Commission. Copies of the Registration
Statement are available from the Public Reference Section of the Commission at
prescribed rates.
The Company's principal executive offices are located at Caledonian
House, Mary Street, P. O. Box 1043, George Town, Grand Cayman, Cayman Islands,
and the Company's telephone number is (809) 949-0050.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The Company hereby incorporates by reference in this Prospectus the
following documents previously filed with the Commission pursuant to the
Exchange Act: (i) Annual Report on Form 10-K for the year ended December 31,
1995 of Triton Energy Corporation ("TEC"), (ii) TEC's Current Report on Form
8-K filed February 9, 1996, (iii) the Company's Quarterly Report on Form 10-Q
for the quarter ended March 31, 1996, (iv) the Company's Current Report on
Form 8-K filed May 20, 1996, (v) the Company's Current Report on Form 8-K
filed July 2, 1996 and (vi) the description of the Ordinary Shares contained
in the Company's Registration Statement on Form 8-A dated March 25, 1996.
Each document filed by the Company pursuant to Section 13(a), 13(c), 14
or 15(d) of the Exchange Act subsequent to the date of this Prospectus and
prior to the termination of the offering of the Shares pursuant hereto shall
be deemed to be incorporated by reference in this Prospectus and to be a part
of this Prospectus from the date of filing of such document. Any statement
contained in this Prospectus or in a document incorporated or deemed to be
incorporated by reference in this Prospectus shall be deemed to be modified or
superseded for purposes of the Registration Statement and this Prospectus to
the extent that a statement contained in this Prospectus or in any
subsequently filed document that also is or is deemed to be incorporated by
reference in this Prospectus modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of the Registration Statement or this
Prospectus.
The Company will provide without charge to each person to whom this
Prospectus is delivered, upon the written or oral request of any such person,
a copy of any or all of the documents that are incorporated by reference in
this Prospectus, other than exhibits to such documents (unless such exhibits
are specifically incorporated by reference into such documents). Requests
should be directed to Investor Relations, 6688 North Central Expressway, Suite
1400, Dallas, Texas 75206-9926, telephone (214) 691-5200.
ENFORCEABILITY OF CIVIL LIABILITIES AGAINST FOREIGN PERSONS
The Company is a Cayman Islands company, certain of its officers and
directors may be residents of various jurisdictions outside the United States
and its Cayman Islands counsel, W.S. Walker & Company, are residents of the
Cayman Islands. All or a substantial portion of the assets of the Company and
of such persons may be located outside the United States. As a result, it may
be difficult for investors to effect service of process within the United
States upon such persons or to enforce in United States courts judgments
obtained against such persons in United States courts and predicated upon the
civil liability provisions of the Securities Act. Notwithstanding the
foregoing, the Company has irrevocably agreed that it may be served with
process with respect to actions based on offers and sales of securities made
hereby in the United States by serving Robert B. Holland, III, c/o Triton
Energy Corporation, 6688 North Central Expressway, Suite 1400, Dallas, Texas
75206-9926, its United States agent appointed for that purpose. The Company
has been advised by its Cayman Islands counsel, W. S. Walker & Company, that
there is doubt as to whether Cayman Islands courts would enforce (a) judgments
of United States courts obtained in actions against such person or the Company
that are predicated upon the civil liability provisions of the Securities Act
or (b) in original actions brought against the Company or such persons
predicated upon the Securities Act. There is no treaty in effect between the
United States and the Cayman Islands providing fur such enforcement, and there
are grounds upon which Cayman Islands courts may not enforce judgments of
United States courts. Certain remedies available under the United States
federal securities laws would not be allowed in Cayman Islands courts as
contrary to that nation's policy.
USE OF PROCEEDS
The Company will not receive any proceeds from the sale of the Ordinary
Shares offered hereby.
SELLING SHAREHOLDERS
Pursuant to the terms of certain of the Plans, the Board of Directors of
the Company, or a Committee appointed by the Board will determine from time to
time (i) the individuals, from among the Company's full time employees and key
advisors, including directors, to whom Options will be granted, (ii) the
number of Ordinary Shares to be covered by each Option and (iii) the purchase
price of Ordinary Shares subject to each Option, which may be equal to or
greater than the fair market value of the Ordinary Shares on the date of
grant.
Set forth below, as of June 30, 1996, are the names of each Selling
Shareholder, the number of Shares that could be offered for resale by such
Selling Shareholder pursuant to this Prospectus, and the number of Ordinary
Shares to be owned by such Selling Shareholder upon completion of the offering
if all such Shares were sold. To the extent required by the Securities Act,
the information relating to the Selling Shareholders will be updated by
Prospectus Supplement.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
ORDINARY SHARES
OWNERSHIP OF THAT COULD BE OWNERSHIP OF
ORDINARY OFFERED FOR SELLING ORDINARY SHARES
SHARES PRIOR SHAREHOLDERS' IF ALL SHARES
NAME(1) TO OFFERING(2) ACCOUNT ARE SOLD(2)
- ------------------- -------------- ------------------- ----------------
E. E. Cook 98,299 90,000 8,299
N. G. De'Ath 265,231 265,231 0
S. R. Erikson 45,000 45,000 0
R. H. Eubank 107,481 90,000 17,481
T. G. Finck 684,827 677,737 7,090
J. E. Hendricks 90,135 90,000 135
R. B. Holland, III 375,152 367,482 7,670
F. S. Hudson 209,990 75,000 134,990
J. R. Huff 45,000 45,000 0
J. P. Lewis 91,090 90,000 1,090
M. E. McMahon 62,000 60,000 2,000
W. D. Morse, Jr. 90,683 90,000 683
P. Rugg 342,275 341,640 635
J. P. Tatum 326,312 324,691 1,621
A. E. Turner 108,401 108,401 0
E. D. Williamson 47,600 45,000 2,600
</TABLE>
<PAGE>
__________________
(1) The Selling Shareholders are directors and/or executive officers of
the Company.
(2) Includes all Ordinary Shares issuable upon exercise of stock options
and conversion of debentures issued to the Selling Shareholders pursuant to
the Plans, whether or not currently exercisable or convertible, and all shares
held for the account of the Selling Shareholders pursuant to the Company's
401(k) Savings Plan and employee stock purchase plan.
PLAN OF DISTRIBUTION
The Ordinary Shares offered hereby may be sold from time to time to
purchasers directly by the Selling Shareholders. Alternatively, the Selling
Shareholders may from time to time offer the Ordinary Shares through
underwriters, dealers and agents, who may receive compensation in the form of
underwriting discounts, concessions or commissions from the Selling
Shareholders and/or the purchasers of the Ordinary Shares for whom they may
act as agent. The Selling Shareholders and any underwriters, dealers or
agents that participate in the distribution of the Ordinary Shares might be
deemed underwriters under the Securities Act, and any profit on the sale of
the Ordinary Shares by them and any discounts, commissions or concessions
received by any such underwriters, dealers or agents might be deemed to be
underwriting discounts and commissions under the Securities Act. The Company,
however, understands that the Selling Shareholders do not admit that they are
underwriters within the meaning of the Securities Act.
At the time a particular offer of the Ordinary Shares is made, to the
extent required, a Prospectus Supplement will be distributed which will set
forth the number of Ordinary Shares being offered and the terms of the
offering, including the name or names of any underwriters, dealers or agents,
any discounts, commissions and other items constituting compensation from the
Selling Shareholders and any discounts, commissions or concessions allowed or
re-allowed or paid to dealers.
The Ordinary Shares may be disposed of from time to time in one or more
transactions, by sales of the Ordinary Shares or the rights thereto, by the
writing of options on the Ordinary Shares, or the granting of pledges thereon,
all at fixed offering prices, which may be changed, or at varying prices
determined at the time of sale or at negotiated prices. The Selling
Shareholders may effect these transactions by selling the Ordinary Shares to
or through broker-dealers or by pledges of the Ordinary Shares to
broker-dealers who may, from time to time, themselves effect distributions of
the Ordinary Shares or interests therein. The Company will pay all of the
expenses incident to the offering and sale of the Ordinary Shares to the
public other than underwriting discounts or commissions, brokers' fees and the
fees and expenses of any counsel to the Selling Shareholders related thereto.
LEGAL MATTERS
Certain legal matters in connection with the validity of the Ordinary
Shares offered hereby have been passed upon for the Company by its general
counsel, Robert B. Holland, III.
EXPERTS
The consolidated financial statements incorporated herein by reference to
Triton Energy Corporation's Annual Report on Form 10-K for the year ended
December 31, 1995 have been so incorporated in reliance on the report of
Price Waterhouse LLP, independent accountants, given on the authority of
said firm as experts in auditing and accounting.
Certain information with respect to the gas and oil reserves of the
Company and its subsidiaries derived from the report of DeGolyer and
MacNaughton, independent petroleum engineers, has been incorporated by
reference herein in reliance upon such firm as experts with respect to the
matters contained therein.
INDEMNIFICATION
The Company is a Cayman Islands company. Article XXXIII of the Company's
Articles of Association contains provisions with respect to indemnification of
the Company's officers and directors. Such provisions provide that the
Company shall indemnify, in accordance with and to the full extent now or
hereafter permitted by law, any person who was or is a party or is threatened
to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative
(including, without limitation, an action by or in the right of the Company),
by reason of his acting as a director, officer, employee or agent of, or his
acting in any other capacity for or on behalf of, the Company, against any
liability or expense actually and reasonably incurred by such person in
respect thereof. The Company shall also advance the expenses of defending any
such act, suit or proceeding to the full extent now or hereafter permitted by
law. Such indemnification and advancement of expenses are not exclusive of
any other right to indemnification or advancement of expenses provided by law
or otherwise. The Articles of Association also provide that except under
certain circumstances, directors of the Company shall not be personally
liable to the Company or its shareholders for monetary damages for breach of
fiduciary duties as a director.
The Companies Law (1995 Revision) of the Cayman Islands does not set out
any specific restrictions on the ability of a company to indemnify officers or
directors. However, the application of basic principles and certain
Commonwealth case law which is likely to be persuasive in the Cayman Islands,
would indicate that indemnification is generally permissible except in the
event that there had been fraud or willful default on the part of the officer
or director or reckless disregard of his duties and obligations to the
Company.
Directors and officers of the Company are also provided with
indemnification against certain liabilities pursuant to a directors and
officers liability insurance policy. Subject to applicable policy terms,
conditions and exclusions, coverage is afforded for any loss that the insureds
become legally obligated to pay by reason of any claim or claims first made
against the insureds or any of them during the policy period from any wrongful
acts that are actually or allegedly caused, committed or attempted by the
insureds prior to the end of the policy period. Wrongful acts are defined as
any actual or alleged error, misstatement, misleading statement or act,
omission, neglect or breach of duty by the insureds while acting in their
individual or collective capacities as directors or officers of the Company.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers or persons controlling the Company
pursuant to the foregoing provisions, the Company has been advised that in the
opinion of the Commission such indemnification is against public policy as
expressed in the Securities Act and is therefore unenforceable.
No dealer, salesman or other
person has been authorized to
give any information or to make
any representation not contained
in this Prospectus in connection
with the offering made hereby.
If given or made, such information
or representation must not
be relied upon as having been
authorized by the Company.
Neither the delivery of this
Prospectus nor any sale made TRITON ENERGY
hereunder shall under any LIMITED
circumstances create any
implication that the information
contained herein is correct
as of any time subsequent to the
date hereof. This Prospectus
does not constitute an offer to
sell or a solicitation of an
offer to buy any securities in any
jurisdiction to any person to whom
it would be unlawful to make such
an offer or solicitation in such
jurisdiction.
__________________
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
ORDINARY SHARES
PAGE
Available Information 2
Incorporation of Certain Documents
by Reference 2
Enforceability of Civil Liabilities
against Foreign Persons 3 _______________
Use of Proceeds 3
Selling Shareholders 4
Plan of Distribution 5
Legal Matters 6 PROSPECTUS
Experts 6
Indemnification 6 _______________
</TABLE>
_______, 1996
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
The following documents, which have been filed with the Securities and
Exchange Commission (the "Commission") are incorporated herein by reference
and made a part hereof:
(i) Annual Report on Form 10-K for the year ended December 31, 1995
of Triton Energy Corporation, a Delaware corporation ("TEC");
(ii) Quarterly Report on Form 10-Q for the quarter ended March 31,
1996 of Triton Energy Limited, a Cayman Islands Company (the "Company");
(iii) Current Report on Form 8-K of TEC filed February 9, 1996;
(iv) Current Report on Form 8-K of the Company filed May 20, 1996;
(v) Current Report on Form 8-K of the Company filed July 2, 1996; and
(vi) The description of Class A Shares contained in the Company's
Registration Statement on Form 8-A dated March 25, 1991.
All documents filed by the Company pursuant to Sections 13(a), 13(c), 14
and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), subsequent to the date of this Registration Statement and prior to the
filing of a post-effective amendment which indicates that all of the Ordinary
Shares ("Shares") offered hereunder have been sold or which deregisters all of
such Shares then remaining unsold, shall be deemed to be incorporated by
reference herein and to be a part hereof from the date of filing of such
documents. Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Registration Statement to the extent that a statement
contained herein or in any other subsequently filed document which also is or
is deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this Registration
Statement.
ITEM 4. DESCRIPTION OF SECURITIES.
Not applicable.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
Certain legal matters in connection with the validity of the Shares to be
offered hereby have been passed upon for the Company by its general counsel,
Robert B. Holland, III.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers or persons controlling the Company
pursuant to the foregoing provisions, the Company has been advised that in the
opinion of the Commission such indemnification is against public policy as
expressed in the Securities Act and is therefore unenforceable.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.
Not applicable.
ITEM 8. EXHIBITS.
The following is a list of all exhibits filed as a part of this
Registration Statement on Form S-8, including those incorporated herein by
reference.
Exhibit No. Description of Exhibit
<TABLE>
<CAPTION>
<C> <S>
4.1 Memorandum of Association of Triton Energy Limited.(2)
4.2 Articles of Association of Triton Energy Limited.(2)
4.3 Specimen Certificate of Ordinary Shares, $0.01 par value, of the Company.(1)
4.4 Rights Agreement dated as of March 25, 1996, between Triton Energy Limited and Chemical Bank, as Rights Agent.(2)
5.1 Opinion of Robert B. Holland, III.(2)
23.1 Consent of Price Waterhouse LLP.(2)
23.2 Consent of DeGolyer and MacNaughton.(2)
23.3 Consent of Robert B. Holland, III (included in his opinion filed as Exhibit 5.1 to this Registration Statement).(2)
24 Power of Attorney (included in the signature page of this registration statement).(2)
25 None
27 None
28 None
</TABLE>
(1) Previously filed as an exhibit to the Company's Registration Statement
on Form 8-A dated March 25, 1996 and incorporated herein by reference.
(2) Filed herewith.
ITEM 9. UNDERTAKINGS.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by section
10(a)(3) of the Securities Act;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the
registration statement;
(iii) To include any material information with respect
to the plan of distribution not previously disclosed in the registration
statement or any material change to such information in the registration
statement;
Provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply
if the information required to be included in a post-effective amendment by
those paragraphs is contained in periodic reports filed by the Company
pursuant to Section 13 or Section 15(d) of the Exchange Act that are
incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act, each filing of the
registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Exchange Act that is incorporated by reference in the registration statement
shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by
the final adjudication of such issue.
POWER OF ATTORNEY
Each person whose signature appears below authorizes Thomas G. Finck,
Robert B. Holland, III and Peter Rugg, and each of them, each of whom may act
without joinder of the others, to execute in the name of each such person who
is then an officer or director of the Registrant and to file any amendments to
this Registration Statement necessary or advisable to enable the Registrant to
comply with the Securities Act of 1933, as amended, and any rules, regulations
and requirements of the Securities and Exchange Commission, in respect
thereof, in connection with the registration of the securities which are the
subject of this Registration Statement, which amendments may make such changes
in the Registration Statement as such attorney may deem appropriate.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the
Registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Dallas, State of Texas, on July 11,
1996.
TRITON ENERGY LIMITED
By: /s/ Robert B. Holland, III
Robert B. Holland, III
Senior Vice President
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
<S> <C> <C>
Signatures Title Date
- ----------------------------- -------------------------------------------- -------------
/s/ Thomas G. Finck Chairman of the Board and June 12, 1996
Thomas G. Finck Chief Executive Officer
(Principal Executive Officer)
/s/ Peter Rugg Senior Vice President and Chief June 12, 1996
Peter Rugg Financial Officer
(Principal Financial and Accounting Officer)
/s/ Ernest E. Cook Director June 12, 1996
Ernest E. Cook
/s/ Sheldon R. Erikson Director June 12, 1996
Sheldon R. Erikson
/s/ Ray H. Eubank Director June 12, 1996
Ray H. Eubank
/s/ Jesse E. Hendricks Director June 12, 1996
Jesse E. Hendricks
/s/ Fitzgerald S. Hudson Director June 12, 1996
Fitzgerald S. Hudson
/s/ John R. Huff Director June 12, 1996
John R. Huff
/s/ John P. Lewis Director June 12, 1996
John P. Lewis
/s/ Michael E. McMahon Director June 12, 1996
Michael E. McMahon
/s/ Wellslake D. Morse, Jr. Director June 12, 1996
Wellslake D. Morse, Jr.
/s/ Edwin D. Williamson Director June 12, 1996
Edwin D. Williamson
</TABLE>
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description of Exhibit
<TABLE>
<CAPTION>
<C> <S>
4.1 Memorandum of Association of Triton Energy Limited.(2)
4.2 Articles of Association of Triton Energy Limited.(2)
4.3 Specimen Certificate of Ordinary Shares, $0.01 par value, of the Company.(1)
4.4 Rights Agreement dated as of March 25, 1996, between Triton Energy Limited and Chemical Bank, as Rights Agent.(2)
5.1 Opinion of Robert B. Holland, III.(2)
23.1 Consent of Price Waterhouse LLP.(2)
23.2 Consent of DeGolyer and MacNaughton.(2)
23.3 Consent of Robert B. Holland, III (included in his opinion filed as Exhibit 5.1 to this Registration Statement).(2)
24 Power of Attorney (included in the signature page of this registration statement).(2)
25 None
27 None
28 None
</TABLE>
(1) Previously filed as an exhibit to the Company's Registration Statement
on Form 8-A dated March 25, 1996 and incorporated herein by reference.
(2) Filed herewith.
Exhibit 4.1
THE COMPANIES LAW
COMPANY LIMITED BY SHARES
MEMORANDUM OF ASSOCIATION
OF
TRITON ENERGY LIMITED
(ADOPTED BY SPECIAL RESOLUTION OF
THE MEMBERS EFFECTIVE MARCH 25, 1996)
(a) The name of the company is Triton Energy Limited (the
"Company").
(b) The Registered Office of the Company shall be situated at the
offices of Caledonian Bank & Trust Limited, Ground Floor, Caledonian House,
Mary Street, P. 0. Box 1043, George Town, Grand Cayman, Cayman Islands, or at
such other place as the Board of Directors may from time to time determine.
(c) The objects for which the Company is established are
unrestricted and the Company shall have full power and authority to carry out
any objective not prohibited by any law as provided by Section 6(4) of the
Companies Law (1995 Revision).
(d) Except as prohibited or limited by the Companies Law (1995
Revision), the Company shall have full power and authority to carry out any
object and shall have and be capable of from time to time and at all times
exercising any and all of the powers at any time or from time to time
exercisable by a natural person or body corporate in doing in any part of the
world whether as principal, agent, contractor, or otherwise whatever may be
considered by it necessary or desirable for the attainment of its objects and
whatever else may be considered by it as incidental or conducive thereto or
consequential thereof, including, but without in any way restricting the
generality of the foregoing, the power to make any alterations or amendments
to this Memorandum of Association and the Articles of Association of the
Company considered necessary or convenient in the manner set out in the
Articles of Association of the Company all irrespective of any question
of corporate benefit, and the power to do any of the following acts or
things, viz: to pay all expenses of and incidental to the promotion,
formation and incorporation of the Company; to sell, lease or dispose of
any property of the Company; to draw, make, accept, endorse,
discount, execute and issue promissory notes, debentures, bills of exchange,
bills of lading, warrants and other negotiable or transferable instruments; to
lend money or other assets and to act as guarantors; to borrow or raise money
on the security of the undertaking or on all or any of the assets of the
Company including uncalled capital or without security; to invest monies of
the Company; to sell the undertaking of the Company for cash or any other
consideration; to distribute assets in specie to members of the Company; to
carry on any trade or business and generally to do all acts and things which
may be conveniently or profitably or usefully acquired and dealt with, carried
on, executed or done by the Company.
(e) The liability of each member is limited to the amount from time
to time unpaid on such member's shares.
(f) The share capital of the Company is U.S. $2,200,000, divided
into 200,000,000 Ordinary Shares, par value of U.S. $0.01 per share, and
20,000,000 other Shares, par value of U.S. $0.01 per share, which may be
issued in series, all of such shares with power for the Company insofar as is
permitted by law, to redeem, call or purchase any of its shares and to
increase or reduce the said capital subject to the provisions of the Companies
Law (1995 Revision) and the Articles of Association and to issue any part of
its capital, whether original, redeemed, called or increased with or without
any preference, priority or special privilege or subject to any postponement
of rights or to any conditions or restrictions and so that unless the
conditions of issue shall otherwise expressly declare every issue of shares
whether declared to be ordinary, preference or otherwise shall be subject to
the powers hereinabove contained.
(g) The Company may exercise the power contained in Section 223 of
The Companies Law (1995 Revision) to deregister in the Cayman Islands and be
registered by way of continuation in some other jurisdiction.
(h) Nothing in the preceding sections shall be deemed to permit the
Company to carry on the business of a Bank or Trust Company without being
licensed in that behalf under the provisions of the Banks & Trust Companies
Law (1995 Revision), or to carry on Insurance Business from within the Cayman
Islands or the business of an Insurance Manager, Agent, Sub-agent or Broker
without being licensed in that behalf under the provisions of the Insurance
Law (1995 Revision), or to carry on the business of Company Management without
being licensed in that behalf under the provisions of the Companies Management
Law (1996 Revision).
(i) The Company will not trade in the Cayman Islands with any
person, firm or company except in furtherance of the business of the Company
carried on outside the Cayman Islands; provided that nothing in this section
shall be construed as to prevent the Company effecting and concluding
contracts in the Cayman Islands, and exercising in the Cayman Islands all of
its powers necessary for the carrying on of its business outside the Cayman
Islands.
THE COMPANIES LAW
COMPANY LIMITED BY SHARES
ARTICLES OF ASSOCIATION
OF
TRITON ENERGY LIMITED
(ADOPTED BY SPECIAL RESOLUTION OF THE
MEMBERS EFFECTIVE MARCH 25, 1996)
I. INTERPRETATION
1.1 The Regulations or Articles contained or incorporated in
Table 'A' in the First Schedule to the Statute shall not apply to this Company
and the following Articles shall comprise the Articles of Association of the
Company. Unless there be something in the subject or context inconsistent
therewith,
"Articles" means these Articles of Association as originally framed
or as from time to time altered by Special Resolution.
"Board of Directors" means the full board, comprised of Directors
holding office from time to time.
"The Company" means Triton Energy Limited. Where agreement, consent
or other action of the Company is provided for herein, such action shall not
require approval of the Company's Members, except as expressly required by the
Statute or these Articles.
"Directors" means the directors for the time being of the Company.
"Dividend" includes bonus.
"holder" in relation to any shares means the member whose name is
entered in the Register as the holder of such shares.
"Member" shall bear the meaning ascribed to it in Section 37 of the
Statute.
"Memorandum" means the memorandum of association of the Company, as
the same may be amended from time to time.
"Month" means calendar month.
"Ordinary Resolution" has the same meaning as in the Statute.
"Ordinary Shares" has the meaning ascribed to it in Article III.
"Paid-up" means paid-up and/or credited as paid-up.
"Register" means the Register of Members of the Company as
maintained in accordance with Section 39 of the Statute.
"Registered Office" means the registered office for the time being
of the Company.
"seal" means the common seal of the Company and includes every
official seal.
"Secretary" means the secretary of the Company and includes an
Assistant Secretary and any person appointed to perform the duties of
Secretary of the Company.
"shares" means any Ordinary Shares or other shares issued in the
capital of the Company.
"Special Resolution" has the same meaning as in the Statute.
"Statute" means the Companies Law (1995 Revision) of the Cayman
Islands as amended and every statutory modification or re-enactment thereof
for the time being in force.
"stock dividend" means a distribution of shares in lieu of payment
of a dividend in cash.
"TEC" means Triton Energy Corporation, a Delaware corporation.
"written" and "in writing" includes all modes of representing or
reproducing words in visible form.
Words importing the singular number shall also include the plural
number and vice-versa.
Words importing the masculine gender shall also include the feminine
gender.
Words importing persons shall also include corporations,
partnerships, trusts and other entities.
II. CERTIFICATES FOR SHARES
2.1 Certificates representing shares of the Company shall be in
such form and may bear such legends (reflecting or referring to the terms of
issue of the shares thereby represented, or any of these Articles or other
relevant matters) as shall be determined by the Board of Directors. Such
certificates shall be under seal signed by the Chairman of the Board, the
President or any Vice President of the Company and countersigned by the
Secretary or another authorized person. Where a certificate is signed (1) by
a transfer agent or (2) by a transfer clerk acting on behalf of the Company
and a registrar, the signatures of any such Chairman of the Board, President,
Vice President or Secretary may be facsimiles. In case any officer or
officers who have signed, or whose facsimile signature or signatures have been
used on, any such certificate or certificates shall cease to be such officer
or officers of the Company, whether because of death, resignation or
otherwise, before such certificate or certificates have been delivered by the
Company, such certificate or certificates may nevertheless be adopted by the
Company and be validly issued and delivered as though the person or persons
who signed such certificate or certificates or whose facsimile signature or
signatures have been used thereon had not ceased to be such officer or
officers of the Company. Certificates for shares shall be in such form as
shall be in conformity to law or as may be prescribed from time to time by the
Board of Directors. All certificates for shares shall be consecutively
numbered or otherwise identified and shall specify the shares to which they
relate. The name and address of the person to whom the shares represented
thereby are issued, with the number of shares and date of issue and whether
fully paid, or deemed fully paid or partly paid, shall be entered in the
register of Members of the Company. All certificates surrendered to the
Company for transfer shall be cancelled and no new certificate shall be issued
until the former certificate for a like number of shares has been surrendered
and cancelled. Certificates may be issued with the seal and authorized
signatures affixed by some method or system of mechanical process.
2.2 The Company shall maintain a register of its Members and
every person whose name is entered as a Member in the register of Members
shall be entitled without payment to receive within two (2) months after
allotment or lodgment of transfer (or within such other period as the
conditions of issue shall provide) one certificate for all his shares or
several certificates each for one or more of his shares provided that in
respect of a share or shares held jointly by several persons the Company shall
not be bound to issue more than one certificate and delivery of a certificate
for a share to one of the several joint holders shall be sufficient delivery
to all such holders.
2.3 Notwithstanding Section 2.1 of these Articles, if a share
certificate be defaced, lost or destroyed, it may be renewed on such terms (if
any) as to evidence and indemnity and the payment of the expenses incurred
by the Company in investigating evidence, as the Board of Directors or any
officer of the Company may prescribe.
III. ISSUE OF SHARES
3.1 The authorized share capital of the Company shall be U.S.
$2,200,000 represented by (i) 200,000,000 Ordinary Shares, par value US$.01
per share (the "Ordinary Shares"), with the respective rights as set forth in
Article IV below, and (ii) other classes or series of shares with the
respective rights to be determined upon the creation thereof by action of the
Board of Directors from time to time as set forth in Article V below.
IV. ORDINARY SHARES
4.1 Subject to the provisions of these Articles, all unissued
shares for the time being in the capital of the Company shall be at the
disposal of the Board of Directors, and the Board of Directors may (subject as
aforesaid) allot, grant options over, or otherwise dispose of them to such
persons, on such terms and conditions, and at such times as they deem proper.
4.2 Dividends to be satisfied by distributions of property other
than cash will be made or paid (as the case may be) on the same basis (in all
material respects) to holders of Ordinary Shares.
4.3 No holder of Ordinary Shares or any other shares of the
Company (unless otherwise expressly agreed to by the Company) shall, by reason
of such holding, have any preemptive or preferential right to subscribe to or
purchase any shares of any class or series of any shares of the Company, now
or hereafter to be authorized, or any notes, debentures, bonds or other
securities, whether or not the issuance of any such shares, notes, debentures,
bonds or other securities would adversely affect the dividend, voting or any
other rights of such holder.
4.4 In the event of any conflict, the provisions of this Article
IV shall override the provisions of any other Article of these presents.
4.5 The Board of Directors may allot, issue or grant any option,
right, warrant or other security exercisable for, convertible into, or
exchangeable for, or otherwise dispose of, any shares or securities of the
Company at such times and on such terms as it deems proper. Upon approval of
the Board of Directors, such number of Ordinary Shares, or other shares or
securities of the Company, as may be required for such purpose shall be
reserved for issuance in connection with any option, right, warrant or other
security of the Company or any other person that is exercisable for,
convertible into, exchangeable for or otherwise issuable in respect of such
Ordinary Shares or other shares or securities of the Company. Notwithstanding
the generality of the foregoing, the Board of Directors is expressly
authorized and empowered to implement or effect at its sole discretion the
issuance of a preferred share purchase right to be attached to each
outstanding Ordinary Share with such terms and for such purposes, including
the influencing of takeovers, as may be described in a rights agreement
between the Company and a rights agent.
4.6 Unless otherwise specified by the Board of Directors, any
shares which have been called, redeemed or otherwise repurchased by the
Company shall have the status of authorized but unissued shares and may be
subsequently issued in accordance with the Memorandum and these Articles.
4.7 The Board of Directors shall have the fullest powers
permitted by law to pay all or any redemption monies in respect of any shares
out of the Company's share capital and share premium account.
V. OTHER CLASSES OR SERIES OF SHARES
5.1 The Board of Directors is authorized without obtaining any
vote or consent of the holders of any class or series of shares of the Company
unless expressly provided by the terms of issue of such class or series,
subject to any limitations prescribed by law, to provide from time to time for
the issuance of other classes or series of Shares, and in accordance with
applicable procedures of the Statute, to establish the characteristics of each
class or series including, without limitation, the following:
(a) the number of shares of that class or series, which may
subsequently be increased or decreased (but not below the number of shares of
that class or series then outstanding) by resolution of the Board of
Directors, and the distinctive designation thereof,
(b) the voting powers, full or limited, if any, of the shares of
that class or series, including without limitation, the authority to confer
multiple votes per share, voting rights as to specified matters or issues such
as mergers, consolidations or sales of assets, or voting rights to be
exercised either together with holders of Ordinary Shares as a single class,
or independently as a separate class;
(c) the rights in respect of dividends, if any, on the shares of
that class or series; the rate at which such dividends shall be payable and/or
cumulate, which rate may be determined on factors external to the Company and
which dividends may be payable in cash, shares of capital or other securities
or property of the Company; whether dividends shall be cumulative and, if so,
from which date or dates; the relative rights or priority, if any, of payment
of dividends on shares of that class or series; and any limitation,
restrictions or conditions on the payment of dividends;
(d) the relative amounts, and the relative rights or priority,
if any, of payment in respect of shares of that class or series, which the
holder of the shares of that class or series shall be entitled to receive upon
any liquidation, dissolution or winding up of the Company;
(e) any redemption, repurchase, retirement and sinking fund
rights, preferences and limitations of that class or series, the amount
payable on shares of that class or series in the event of such redemption,
repurchase or retirement, the terms and conditions of any sinking fund, the
manner of creating such fund or funds and whether any of the foregoing shall
be cumulative or non-cumulative;
(f) the terms, if any, upon which the shares of that class or
series shall be convertible into or exchangeable for shares of any other
classes, or series, or other securities, whether or not issued by the Company;
(g) the restrictions, limitations and conditions, if any, upon
issuance of indebtedness of the Company so long as any shares of that class or
series are outstanding; and
(h) any other preferences and relative, participating, optional
or other rights and limitations not inconsistent with applicable law or the
provisions of this Article V.
VI. VARIATION OF RIGHTS OF SHARES
6.1 (a) If at any time the share capital of the Company is divided
into different classes or series of shares, the rights attached to any class
or series (unless otherwise provided by the terms of issue of the shares of
that class) may, whether or not the Company is being wound-up, be varied with
the consent in writing of the holders of all of the issued shares of that
class or series, or with the sanction of a Special Resolution passed at a
general meeting with the holders of the shares of that class or series voting
separately as a class.
(b) The provisions of these Articles relating to separate
general meetings shall apply to every such general meeting of the holders of
one class or series of shares.
(c) Class or series meetings and class or series votes may only
be called at the direction of the Board of Directors or the President (unless
otherwise expressly provided by the terms of issue of the shares of that class
or series). Nothing in this Article VI gives any Member or group of Members
the right to call a class or series meeting or demand a class or series vote.
6.2 The rights conferred upon the holders of the shares of any
class or series issued with preferred or other rights shall not, unless
otherwise expressly provided by the terms of issue of the shares of that class
or series, be deemed to be varied by the creation or issue of further shares
ranking in any respect prior to or pari passu therewith. The rights of the
holders of Ordinary Shares shall not be deemed to be varied by the creation or
issue of shares with preferred or other rights, which may be effected by the
Board of Directors as provided in these Articles without any vote or consent
of the holders of Ordinary Shares.
VII. REDEMPTION
7.1 Except as provided in this Article VII, the Ordinary Shares
are not redeemable by the Company. Subject as set out herein, any issued and
outstanding Ordinary Shares shall be redeemable in such circumstances and on
such terms as shall be agreed by the Company and the holder thereof, subject
always to the laws of the Cayman Islands, and the Company may deduct from the
redemption price for such shares the aggregate amount of any outstanding
debts, liabilities and engagements to or with the Company (whether presently
payable or not) by the holder of such shares, either alone or jointly with any
other person, whether a Member or not. Without limiting the foregoing, the
Company may, from time to time, upon the agreement of a Member, purchase or
redeem all or part of the Ordinary Shares of any such Member, whether or not
the Company has made a similar offer to all or any of the other Members.
VIII. TRANSFER OF SHARES
8.1 Upon surrender to the Company or the transfer agent of the
Company of a certificate for shares duly endorsed or accompanied by proper
evidence of succession, assignment or authority to transfer, and otherwise
meeting all legal requirements for transfer, it shall be the duty of the
Company to issue a new certificate to the person entitled thereto, cancel the
old certificate and record the transaction upon its books. Transfers of
shares shall be made only on the books of the Company by the registered holder
thereof, or by such holders attorney thereunto authorized by power of attorney
and filed with the Secretary of the Company or the transfer agent. The
Company shall be entitled to recognize the exclusive right of a person
registered on its books as the owner of shares to receive dividends, and to
vote as such owner, and shall not be bound to recognize any equitable or other
claim to or interest in such share or shares on the part of any other person,
whether or not it shall have express or other notice thereof, except as
otherwise provided by law.
8.2 The holder of any redeemable shares for which the Company has
issued a notice of redemption in accordance with these Articles may not
transfer such shares, whether or not the Company has yet paid the redemption
price to the Member unless otherwise provided (i) by the terms of such shares
or (ii) the Board of Directors in connection with the redemption of such
shares.
IX. NON-RECOGNITION OF TRUSTS
9.1 The Company shall not be required to recognize any person as
holding any share upon any trust and the Company shall not be bound by or be
compelled in any way to recognize (even when having notice thereof) any
equitable, contingent, future, or partial interest in any share, or any
interest in any fractional part of a share, or (except only as is otherwise
provided by these Articles or the Statute) any other rights in respect of any
share except an absolute right to the entirety thereof in the registered
holder.
X. LIEN ON SHARES
10.1 The Company shall have a first and paramount lien and
charge on all shares (not being a fully paid share) registered in the name of
a Member (whether solely or jointly with others) for all debts, liabilities or
engagements to or with the Company (whether presently payable or not) by such
Member or his estate, either alone or jointly with any other person, whether a
Member or not, but the Board of Directors may at any time declare any share to
be wholly or in part exempt from the provisions of this Article X. The
registration of a transfer of any such share shall operate as a waiver of the
Company's lien (if any) thereon. The Company's lien (if any) on a share shall
extend to all dividends, redemptions or other monies payable in respect
thereof.
10.2 The Company may sell, in such manner as the Board of
Directors deems fit, any shares on which the Company has a lien, except as set
forth in this Article X. Unless otherwise permitted in the instrument
creating such lien, no such sale shall be made unless a sum in respect of
which the lien exists is presently payable. Unless otherwise permitted in the
instrument creating such lien, no such sale shall be made until the expiration
of fourteen (14) days after a notice in writing stating and demanding payment
of such part of the amount in respect of which the lien exists as is presently
payable, has been given to the registered holder or holders for the time being
of the shares, or the person, of which the Company has notice, entitled
thereto by reason of his death or bankruptcy.
10.3 To give effect to any such sale the Board of Directors may
authorize some person to transfer the shares sold to the purchaser thereof.
The purchaser shall be registered as the holder of the shares comprised in any
such transfer, and he shall not be bound to see to the application of the
purchase money, nor shall his title to the shares be affected by any
irregularity or invalidity in the proceedings in reference to the sale.
10.4 The proceeds of such share shall be received by the Company
and applied in payment of such part of the amount in respect of which the lien
exists as is presently payable and the residue, if any, shall (subject to a
like lien for sums not presently payable as existed upon the shares before the
sale) be paid to the person entitled to the shares at the date of the sale.
XI. CALL ON SHARES
11.1 (a) The Board of Directors may from time to time make
calls upon the Members in respect of any monies unpaid on their shares
(whether on account of the nominal value of the shares or by way of premium or
otherwise) and not by the conditions of allotment thereof made payable at
fixed terms; and each Member shall, subject to receiving at least fourteen
(14) days notice (or some shorter period of notice as may have been authorized
by the terms on issue of the shares) specifying the time or times of payment,
pay to the Company at the time or times so specified the amount called on the
shares. A call may be revoked or postponed as the Board of Directors may
determine. A call may be made payable by installments.
(b) A call shall be deemed to have been made at the time when
the resolution of the Board of Directors authorizing such call was passed
unless otherwise provided by the Board of Directors.
(c) The joint holders of a share shall be jointly and severally
liable to pay all calls in respect thereof.
11.2 If a sum called in respect of a share is not paid before or
on a day appointed for payment thereof, the persons from whom the sum is due
shall pay interest on the sum from the day appointed for payment thereof to
the time of actual payment at such rate not exceeding ten percent (10%) per
annum as the Board of Directors may determine, but the Board of Directors
shall be at liberty to waive payment of such interest either wholly or in
part.
11.3 Any sum which by the terms of a share becomes payable on
allotment or at any fixed date, whether on account of the non-final value of
the share or by way of premium or otherwise, shall for the purposes of these
Articles be deemed to be a call duly made, notified and payable on the date on
which by the terms of issue the same becomes payable, and in the case of
non-payment all the relevant provisions of these Articles as to payment of
interest, forfeiture or otherwise shall apply as if such sum had become
payable by virtue of a call duly made and notified.
11.4 The Board of Directors may, on the issue of shares,
differentiate between the holders as to the amount of calls or interest to be
paid and the times of payment.
11.5 (a) The Board of Directors may, if it thinks fit,
receive from any Member willing to advance the same, all or any part of the
monies uncalled and unpaid upon any shares held by him, and upon all or any of
the monies so advanced may (until the same would but for such advances, become
payable) pay interest at such rate as may be agreed upon between the Company
and the Member paying such sum in advance.
(b) No such sum paid in advance of calls shall entitle the
Member paying such sum to any portion of a dividend declared in respect of any
period prior to the date upon which such sum would, but for such payment,
become presently payable.
XII. FORFEITURE OF SHARES
12.1 (a) If a Member fails to pay any call or installment of
a call or to make any payment required by the terms of issue on the day
appointed for payment thereof, the Board of Directors may, at any time
thereafter during such time as any part of the call, installment or payment
remains unpaid, give notice requiring of so much of the call, installment or
payment as is unpaid, together with any interest which may have accrued and
all expenses that have been incurred by the Company by reason of such
non-payment. Such notice shall name a day (not earlier than the expiration of
fourteen (14) days from the date of giving of the notice) on or before which
the payment required by the notice is to be made, and shall state that, in the
event of non-payment at or before the time appointed the shares in respect of
which such notice was given will be liable to be forfeited.
(b) If the requirements of any such notice as aforesaid are not
complied with, any share in respect of which the notice has been given may at
any time thereafter, before the payment required by the notice has been made,
be forfeited by a resolution of the Board of Directors to that effect. Such
forfeiture shall include all dividends declared in respect of the forfeited
share and not actually paid before the forfeiture.
(c) A forfeited share may be sold or otherwise disposed of on
such terms and in such manner as the Board of Directors deems fit and at any
time before a sale or disposition the forfeiture may be cancelled on such
terms as the Board of Directors thinks fit.
12.2 A person whose shares have been forfeited shall cease to be
a Member in respect of the forfeited shares, but shall, notwithstanding,
remain liable to pay to the Company all monies which, at the date of
forfeiture were payable by him to the Company in respect of the shares
together with interest thereon, but his liability shall cease if and when the
Company shall have received payment in full of all monies whenever payable in
respect of the shares.
12.3 A certificate in writing under the hand of the President or
any Vice President and the Secretary of the Company that a share in the
Company has been duly forfeited on a date stated in the declaration shall be
conclusive evidence of the fact therein stated as against all persons claiming
to be entitled to the share. The Company may receive the consideration given
for the share on any sale or disposition thereof and may execute a transfer of
the share in favor of the person to whom the share is sold or disposed of and
he shall thereupon be registered as the holder of the share and shall not be
bound to see to the application of the purchase money, if any, nor shall his
title to the share be affected by any irregularity or invalidity in the
proceedings in reference to the forfeiture, sale or disposal of the share.
12.4 The provisions of these Articles as to forfeiture shall
apply in the case of non-payment of any sum which, by the terms of issue of a
share, becomes payable at a fixed time, whether on account of the nominal
value of the share or by way of premium as if the same had been payable by
virtue of a call duly made and notified.
XIII. TRANSMISSION OF SHARES
13.1 In case of the death of a Member who is a natural person,
the survivor or survivors where the deceased was a joint holder, and the legal
personal representatives of the deceased where he was a sole holder, shall be
the only persons recognized by the Company as having any title to his interest
in the shares, but nothing herein contained shall release the estate of any
such deceased holder from any liability in respect of any shares which had
been held by him solely or jointly with other persons.
13.2 (a) Any person becoming entitled to a share in
consequence of the death or bankruptcy of a Member (or in any other way than
by transfer) may, upon such evidence being produced as may from time to time
be required by the Board of Directors and subject as hereinafter provided,
elect either to be registered himself as holder of the share or to make such
transfer of the share to such other person nominated by him as the deceased or
bankrupt person could have made and to have such person registered as the
transferee thereof, but the Board of Directors shall, in either case, have the
same right to decline or suspend registration as they would have had in the
case of a transfer of the share by that Member before his death or bankruptcy
as the case may be.
(b) If the person so becoming entitled shall elect to be
registered himself as holder he shall deliver or send to the Company a notice
in writing signed by him stating that he so elects.
13.3 A person becoming entitled to a share by reason of the
death or bankruptcy of the holder (or in any other case than by transfer)
shall be entitled to the same dividends and other advantages to which he would
be entitled if he were the registered holder of the share, except that he
shall not, before being registered as a Member in respect of the share, be
entitled in respect of it to exercise any right conferred by membership in
relation to meetings of the Company; provided, however, that the Board of
Directors may at any time give notice requiring any such person to elect
either to be registered himself or to transfer the share and if the notice is
not complied with within ninety (90) days the Board of Directors may
thereafter withhold payment of all dividends, bonuses or other monies payable
in respect of the share until the requirements of the notice have been
complied with.
XIV. AMENDMENT OF MEMORANDUM OF ASSOCIATION, CHANGE OF
LOCATION OR REGISTERED OFFICE & ALTERATION OF CAPITAL
14.1 (a) Subject to and insofar as permitted by the
provisions of the Statute, the Company may from time to time by Special
Resolution alter or amend the Memorandum and may, without restricting the
generality of the foregoing:
(i) increase the share capital by such sum to be divided
into shares of such amount or without nominal or par value as the resolution
shall prescribe;
(ii) consolidate all or any of its share capital into
shares of larger amount than its existing shares;
(iii) by subdivision for its existing shares or any of them
divide the whole or any part of its share capital into shares of smaller
amount than is fixed by the Memorandum;
(iv) cancel any shares which at the date of the passing of
the resolution have not been taken or agreed to be taken by any person.
(b) All new shares created hereunder shall be subject to the
same provisions with reference to the payment of calls, liens, transfer,
transmission, forfeiture and otherwise as the shares in the original share
capital.
(c) Subject to the provisions of the Statute, the Company may by
Special Resolution reduce its share capital or any capital redemption reserve
fund.
14.2 Subject to the provisions of the Statute, the Company may by
Special Resolution change its name or alter its objects.
14.3 Subject to the provisions of the Statute, the Company may by
resolution of the Board of Directors change the location of its registered
office.
XV. CLOSING REGISTER OF MEMBERS OR FIXING RECORD DATE
15.1 For the purpose of determining Members entitled to notice
of or to vote at any meeting of Members or any adjournment thereof, or Members
entitled to receive payment of any dividend, or in order to make the
determination of Members for any other proper purpose, the Board of Directors
of the Company may provide that the register of Members shall be closed for
transfers for a stated period but not to exceed in any case forty (40) days.
If the register of Members shall be so closed for the purpose of determining
Members entitled to notice of or to vote at a meeting of Members such register
shall be so closed for at least ten (10) days immediately preceding such
meeting and the record date for such determination shall be the date of the
closure of the register of Members.
15.2 In lieu of or apart from closing the register of Members,
the Board of Directors may fix in advance a date as the record date for any
such determination of Members entitled to notice of or to vote at a meeting of
the Members, and for the purpose of determining the Members entitled to
receive payment of any dividend, the Board of Directors may, at or within
ninety (90) days prior to the date of declaration of such dividend, fix a
subsequent date no later than the date of declaration as the record date for
such determination.
15.3 If the register of Members is not so closed and no record
date is fixed for the determination of Members entitled to notice of or to
vote at a meeting of Members or Members entitled to receive payment of a
dividend, the date on which notice of the meeting is mailed or the date on
which the resolution of the Board of Directors declaring such dividend is
adopted, as the case may be, shall be the record date for such determination
of Members. When a determination for Members entitled to vote at any meeting
of Members has been made as provided in this section, such determination shall
apply to any adjournment thereof.
XVI. VOTING.
16.1 Subject to the remaining provisions of these Articles, at
each election for Directors at a General Meeting, each holder of an Ordinary
Share entitled to vote at such election shall have the right to vote, in
person or by proxy, the number of shares owned by him for as many persons as
there are Directors to be elected and for whose election he has a right to
vote. Cumulative voting, for the election of Directors or otherwise, is
expressly prohibited. Election of Directors need not be by ballot. On all
matters coming before the Members, other than the election of Directors, each
issued and outstanding Ordinary Share shall be entitled to one (1) vote.
XVII. GENERAL MEETING
17.1 (a) The Company shall in each year of its existence hold a
general meeting as its annual general meeting. The annual general meeting
shall be held at such time and place as the Board of Directors shall appoint.
(b) At each annual general meeting, the Directors to be elected
at that meeting shall be elected for the applicable term or until their
respective successors have been elected and have qualified.
17.2 (a) Except as otherwise required by law, and subject to
the terms for any class or series of shares issued by the Company having a
preference over the Ordinary Shares as to dividends or upon liquidation to
elect directors in specified circumstances, extraordinary general meetings of
the Members of the Company may be called only by (i) the President of the
Company or (ii) the Board of Directors.
(b) Any action required or permitted to be taken by the Members
of the Company must be taken at a duly called annual or extraordinary general
meeting of the Members of the Company and may not be taken by consent in
writing or otherwise except by consent in writing signed by all Members having
a right to vote with respect to such action.
(c) Notwithstanding anything contained in these Articles to the
contrary, the affirmative vote of the holders of at least sixty-six and
two-thirds percent (66 2/3%) of the outstanding shares generally entitled to
vote, voting together as a single class, shall be required to amend or repeal,
or adopt any provision inconsistent with, this Section 17.2.
XVIII. NOTICE OF GENERAL MEETINGS
18.1 Written notice of each meeting of the Members stating the
place, date and time of the meeting shall be given not less than ten (10) nor
more than sixty (60) days before the date of the meeting, to each Member
entitled to vote at such meeting. The notice of any extraordinary meeting of
Members shall state the purpose or purposes for which the meeting is called.
Business transacted at any extraordinary meeting shall be limited to the
purposes stated in the notice.
18.2 The accidental omission to give notice of a general meeting
to, or the non-receipt of notice of a meeting by, any person entitled to
receive notice shall not invalidate the proceedings of that meeting.
XIX. PROCEEDINGS AT GENERAL MEETINGS
19.1 (a) No business shall be transacted at any general
meeting unless a quorum of Members is present at the time when the meeting
proceeds to business. One or more Members present in person or by proxy
holding at least a majority of the issued and outstanding shares of the
Company entitled to vote at such meeting shall be a quorum. The Members
present at a duly constituted general meeting may continue to transact
business until adjournment, despite the withdrawal of enough stockholders to
leave less than a quorum.
(b) An Ordinary Resolution shall require the vote of a majority
of such shares as, being entitled to do so, vote in person or by proxy at any
general meeting at which the required quorum is present in person or by proxy,
voting together as a single class; provided that whenever Directors are to be
elected at a general meeting, they shall be elected by a plurality of the
votes cast in person or by proxy at the general meeting by the holders of
shares entitled to vote.
19.2 (a) Subject to the rights of holders of any class or
series having a preference over the Ordinary Shares as to dividends or upon
liquidation, if a Member desires to nominate persons for election as Directors
at any general meeting duly called for the election of Directors, written
notice of such Member's intent to make such a nomination must be given and
received by the Secretary of the Company at the principal executive offices of
the Company not later than (i) with respect to an annual general meeting of
Members, ninety (90) days in advance of such annual general meeting, and (ii)
with respect to an extraordinary general meeting, the close of business on the
seventh (7th) day following the date on which notice of such meeting is first
sent or given to Members. Each notice shall set forth (i) the name and
address, as it appears on the books of the Company, of the Member who intends
to make the nomination and of the person or persons to be nominated; (ii) a
representation that the Member is a holder of record of shares of the Company
entitled to vote at such meeting and intends to appear in person or by proxy
at the meeting to nominate the person or persons specified in the notice;
(iii) the class and number of shares of the Company which are beneficially
owned by the Member; (iv) a description of all arrangements or understandings
between the Member and each nominee and any other person or persons (naming
such person or persons) pursuant to which the nomination or nominations are to
be made by the Member; (v) such other information regarding each nominee
proposed by such Member as would be required to be included in a proxy
statement filed pursuant to Regulation 14A under the Securities Exchange Act
of 1934, as amended from time to time, of the United States of America,
whether or not the Company is then subject to such Regulation; and (vi) the
consent of each nominee to serve as a Director of the Company, if so elected.
The Chairman of the annual general meeting or extraordinary general meeting
shall, if the facts warrant, refuse to acknowledge a nomination not made in
compliance with the foregoing procedure, and any such nomination not properly
brought before the meeting shall not be considered.
(b) Notwithstanding anything contained in these Articles to the
contrary, the affirmative vote of the holders of at least sixty-six and
two-thirds percent (66 2/3%) of the outstanding shares entitled to vote,
voting together as a single class, shall be required to amend or repeal, or
adopt any provision inconsistent with, this Section 19.2.
19.3 The Chairman, if any, of the Board of Directors, or any
Director designated by him, shall preside as Chairman at every general meeting
of the Company, or if there is no such Chairman, or if he or such designee
shall not be present within one (1) hour after the time appointed for the
holding of the meeting, or is unwilling to act, the Directors present shall
elect one of their number to be Chairman of the meeting.
19.4 If at any general meeting no Director is willing to act as
Chairman or if no Director is present within one (1) hour after the time
appointed for holding the meeting, the Members present shall choose one of
their number to be Chairman of the meeting.
19.5 The Chairman may, with the consent of any general meeting
duly constituted hereunder, adjourn the meeting from time to time and from
place to place, but no business shall be transacted at any adjourned meeting
other than the business left unfinished at the meeting from which the
adjournment took place. When a general meeting is adjourned for thirty (30)
days or more, notice of the adjourned meeting shall be given as in the case of
an original meeting; save as aforesaid it shall not be necessary to give any
notice of an adjournment or of the business to be transacted at an adjourned
general meeting.
19.6 At any general meeting a resolution put to the vote at the
meeting shall be decided on a poll taken in such manner as the Chairman
directs.
19.7 Subject to the rights of holders of any class or series
having a preference over the Ordinary Shares, every Member of record present
in person or by proxy shall have one vote for each issued and outstanding
Ordinary Share registered in his name in the Register.
19.8 In the case of joint holders of record the vote of the
senior who tenders a vote, whether in person or by proxy, shall be accepted to
the exclusion of the votes of the other joint holders, and for this purpose
seniority shall be determined by the order in which the names stand in the
register of Members.
19.9 A Member of unsound mind, or in respect of whom an order
has been made by any court, having jurisdiction in lunacy, may vote, whether
on a show of hands or on a poll, by his committee, receiver, curator bonis, or
other person in the nature of a committee, receiver or curator bonis appointed
by that court, and any such committee, receiver, curator bonis or other
persons may vote by proxy.
19.10 No Member shall be entitled to vote at any general meeting
unless he is registered as a Member of the Company on the record date for such
meeting or holds a valid proxy of such a Member or unless all calls or other
sums presently payable in respect of the shares to be voted have been paid.
19.11 Votes may be given either personally or by proxy.
XX. PROXIES
20.1 The instrument appointing a proxy shall be in writing and
shall be executed under the hand of the appointor or of his attorney duly
authorized in writing, or, if the appointor is a corporation under the hand of
an officer or attorney duly authorized in that behalf. A proxy need not be a
Member of the Company.
20.2 The instrument appointing a proxy shall be deposited at the
Registered Office of the Company or at such other place as is specified for
that purpose in the notice convening the meeting no later than the time for
holding the meeting, or adjourned meeting provided that the Chairman of the
meeting may at his discretion direct that an instrument of proxy shall be
deemed to have been duly deposited upon receipt of facsimile transmission of
the signed proxy or upon receipt of telex or cable confirmation from the
appointor that the instrument of proxy duly signed is in the course of
transmission to the Company.
20.3 The instrument appointing a proxy may be in any usual or
common form and may be expressed to be for a particular meeting or any
adjournment thereof or generally revoked.
20.4 A vote given in accordance with the term of an instrument
of proxy shall be valid notwithstanding the previous death or insanity of the
principal or revocation of the proxy or of the authority under which the proxy
was executed, or the transfer of the share in respect of which the proxy is
given provided that no intimation in writing of such death, insanity,
revocation or transfer as aforesaid shall have been received by the Company at
the office before the commencement of the general meeting, or adjourned
meeting at which it is sought to use the proxy.
20.5 Any corporation which is a Member of record of the Company
may in accordance with its Articles or other governing documents or in the
absence of such provision by resolution of its board of directors or other
governing body authorize such person as it thinks fit to act as its
representative at any meeting of the Company or of any class of Members of the
Company, and the person so authorized shall be entitled to exercise the same
powers on behalf of the corporation which he represents as the corporation
could exercise if it were an individual Member of record of the Company.
XXI. DIRECTORS
21.1 (a) There shall be a Board of Directors appointed by a
plurality of the Members consisting of not less than three (3) nor more than
fifteen (15) persons. The Board of Directors shall have the exclusive power
and right to set the exact number of Directors within that range from time to
time by resolution adopted by the vote of a majority of the whole Board of
Directors.
(b) The Directors shall be divided into three classes,
designated by Class I, Class II and Class III. At the 1996 annual general
meeting of Members, Class I Directors shall be elected for a term expiring at
the 1999 annual general meeting of Members, at the 1997 annual general meeting
of Members, Class II Directors shall be elected for a term expiring at the
2000 annual general meeting and at the 1998 annual general meeting of Members,
Class III Directors shall be elected for a term expiring at the 2001 annual
general meeting of Members. At each succeeding annual general meeting of
Members, successors to Directors whose terms expire at that annual general
meeting shall be of the same class as the Directors they succeed and shall be
elected for three-year terms.
(c) If the number of Directors is decreased by resolution of the
Board of Directors pursuant to this Section 21.1, in no case shall that
decrease shorten the term of any incumbent Director.
(d) A Director shall hold office until the annual general
meeting for the year in which his term expires and until his successor shall
be elected and shall qualify, subject, however, to prior death, resignation,
retirement or removal from office. Any newly created directorship resulting
from an increase in the number of Directors and any other vacancy on the Board
of Directors, however caused, may be filled by a majority of the Directors
then in office, although less than a quorum, or by a sole remaining Director.
Any Director elected by the Board of Directors to fill a vacancy shall hold
office until the annual general meeting of Members for the year in which the
term of the Director vacating office expires and until his successor shall
have been elected and qualified. Any newly created directorship resulting
from an increase in the number of Directors may be created in any Class of
Directors that the Board of Directors may determine, and any Director elected
to fill the newly created vacancy shall hold office until the term of office
of such Class expires.
(e) One or more or all of the Directors of the Company may be
removed only for cause by the affirmative vote of the holders of at least a
majority of the outstanding shares generally entitled to vote, voting together
as a single class, at a meeting of Members for which proper notice of the
proposed removal has been given.
(f) Notwithstanding the foregoing, whenever the holders of any
one or more classes or series of shares issued by the Company shall have the
right, voting separately by class or series, to elect Directors at an annual
general meeting or extraordinary general meeting of Members, the election,
term of office, filling of vacancies and other features of such directorships
shall be governed by the provisions of these Articles. Directors so elected
shall not be divided into classes and shall be elected by such holders
annually unless expressly provided otherwise by those provisions or
resolutions. The aforesaid Directors and the Directors appointed under
Section 22.1 shall together constitute the Board of Directors from time to
time.
(g) Notwithstanding anything contained in these Articles to the
contrary, the affirmative vote of the holders of at least sixty-six and
two-thirds percent (66 2/3%) of the outstanding shares generally entitled to
vote, voting together as a single class, shall be required to amend or repeal
or adopt any provision inconsistent with this Section 21.1.
21.2 The Board of Directors shall have the authority to fix the
compensation of Directors, which may include their expenses, if any, of
attendance at each meeting of the Directors or of a committee.
21.3 A Director may hold any other office or place of profit
under the Company in conjunction with his office of Director for such period
and on such terms as to remuneration and otherwise as the Board of Directors
may determine.
21.4 A Director may act by himself or his firm in a professional
capacity for the Company and he or his firm shall be entitled to remuneration
for professional services as if he were not a Director.
21.5 No membership qualification for Directors shall be
required.
21.6 A Director of the Company may be or become a Director or
other officer of or otherwise interested in any company promoted by the
Company or in which the Company may be interested as shareholder, member or
otherwise and no such Director shall be accountable to the Company for any
remuneration or other benefits received by him as a Director or officer of, or
from his interest in, such other company.
21.7 No person shall be disqualified from the office of Director
or prevented by such office from contracting with the Company, either as
vendor, purchaser or otherwise, nor shall any such contract or any contract or
transaction entered into by or on behalf of the Company in which any Director
shall be in any way interested or be liable to be avoided, nor shall any
Director so contracting or being so interested be liable to account to the
Company for any profit realized by any such contract or transaction by reason
of such Director holding office or of the fiduciary relation thereby
established. A Director shall be at liberty to vote in respect of any
contract or transaction in which he is so interested as aforesaid; provided,
however, that the nature of the interest of any Director in any such contract
or transaction shall be disclosed by him at or prior to its consideration and
any vote thereon.
21.8 A general notice that a Director is a member of any
specified firm or company and is to be regarded as interested in any
transaction with such firm or company shall be sufficient disclosure under
Section 21.7 and after such general notice it shall not be necessary to give
special notice relating to any particular transaction.
XXII. POWERS AND DUTIES OF DIRECTORS
22.1 The business and affairs of the Company shall be managed by
the Board of Directors who may exercise all such powers of the Company and do
all such lawful acts and things as are not, from time to time by the Statute
or by these Articles required to be exercised or done by the Company in
general meeting.
22.2 The Board of Directors may from time to time and at any
time by powers of attorney appoint any company, firm, person or body of
persons, whether nominated directly or indirectly by the Board of Directors,
to be the attorney or attorneys of the Company for such purpose and with such
powers, authorities and discretions (not exceeding those vested in or
exercisable by the Board of Directors under these Articles) and for such
period and subject to such conditions as it may think fit, and any such powers
of attorney may contain such provisions for the protection and convenience of
persons dealing with any such attorneys as the Board of Directors may deem fit
and may also authorize any such attorney to delegate all or any of the powers,
authorities and discretions vested in him.
22.3 All cheques, promissory notes, drafts, bills of exchange
and other negotiable instruments and all receipts for monies paid to the
Company shall be signed, drawn, accepted, endorsed or otherwise executed as
the case may be by such officer or officers or such other person or persons as
the Board of Directors shall from time to time designate.
22.4 The Board of Directors shall cause Minutes to be made for
the purpose of recording the proceedings at all meetings of the Company and
the Directors and of Committees of the Board of Directors.
22.5 The Board of Directors on behalf of the Company may direct
the payment of a gratuity or pension or allowance on retirement to any
Director who has held any other salaried office or place of profit with the
Company or to his widow or dependents and may make contributions to any fund
and pay premiums for the purchase or provision of any such gratuity, pension
or allowance.
22.6 The Board of Directors may exercise all the powers of the
Company to borrow money and to mortgage or charge its undertaking, property
and uncalled capital or any part thereof and to issue debentures, debenture
stock and other securities whether outright or as security for any debt,
liability or obligation of the Company or of any third party.
22.7 The Board of Directors may authorize any officer, officers,
agent or agents to enter into any contract or agreement of any nature
whatsoever, including, without limitation, any contract, deed, bond, mortgage,
guaranty, deed of trust, security agreement, pledge agreement, act of pledge,
collateral mortgage, collateral chattel mortgage or any other document or
instrument of any nature whatsoever, and to execute and deliver any such
contract, agreement, document or other instrument of any nature whatsoever for
and in the name of and on behalf of the Company, and such authority may be
general or confined to specific instances.
XXIII. COMMITTEES
23.1 The Board of Directors may, by resolution passed by a
majority of the whole Board, designate one or more committees, each committee
to consist of one or more Directors. Except as limited by the Statute, the
Memorandum, these Articles of Association or the resolution establishing such
committee, each committee shall have and may exercise all of the authority of
the Board of Directors as the Board of Directors may determine and specify in
the respective resolutions appointing each such committee. A majority of all
of the members of any such committee may elect the Chairman of such committee
and may fix the time and place of its meetings, unless the Board of Directors
shall otherwise provide, and meetings of any committee may be held upon such
notice, or without notice, as shall from time to time be determined by the
members of any such committee. At all meetings of any committee a majority of
its members (or the member, if only one) shall constitute a quorum for the
transaction of business, and the act of a majority of the members present
shall be the act of any such committee, unless otherwise specifically provided
by the Statute, the Memorandum, these Articles or the resolution establishing
such committee. The committees shall keep regular minutes of their
proceedings and report the same to the Board of Directors when required. The
Board of Directors shall have power at any time to change the number, subject
as aforesaid, and members of any such committee, to fill vacancies and to
discharge any such committee. Such committee or committees shall have such
name or names as may be determined from time to time by resolution adopted by
the Board of Directors.
XXIV. PROCEEDINGS OF DIRECTORS
24.1 Except as otherwise provided by these Articles, the Board
of Directors shall meet together for the dispatch of business, convening,
adjourning and otherwise regulating its meetings as it thinks fit. Questions
arising at any meeting shall be decided by a majority of the Directors present
at a meeting at which there is a quorum.
24.2 Regularly scheduled meetings of the Board of Directors may
be held at such time and at such place as shall from time to time be
determined by the Board of Directors. Special meetings of the Board of
Directors may be called by the President of the Company on twenty-four (24)
hours' notice to each Director, either personally, by mail, telefax or by
telegram; special meetings shall be called by the President or Secretary in
like manner and on like notice on the written request of two (2) Directors.
Unless otherwise required by the Statute, the Memorandum, or these Articles,
neither the business to be transacted at, nor the purpose of, any special
meeting of the Board of Directors need be specified in the notice or waiver of
notice of such meeting. Attendance of a Director at any meeting shall
constitute a waiver of notice of such meeting, except when a Director attends
for the express purpose of objecting to the transaction of any business on the
ground that the meeting is not lawfully called or convened.
24.3 The quorum necessary for the transaction of the business of
the Board of Directors shall be a majority of the Board.
24.4 All acts done by any meeting of the Board of Directors or of a
committee of the Board of Directors shall, notwithstanding that it be
afterwards discovered that there was some defect in the appointment of any
Director, or that they or any of them were disqualified, be as valid as if
every such person had been duly appointed and qualified to be a Director.
24.5 Members of the Board of Directors or of any committee thereof
may participate in a meeting of the Board or of such committee by means of
conference telephone or similar communications equipment by means of which all
persons participating in the meeting can hear each other and participation in
a meeting pursuant to this provision shall constitute presence in person at
such meeting.
24.6 A resolution in writing (in one or more counterparts) signed
by all the Directors for the time being or all the members of a committee of
Directors shall be as valid and effectual as if it had been passed at a
meeting of the Board of Directors or committee as the case may be duly
convened and held.
XXV. VACATION OF OFFICE OF DIRECTOR
25.1 The office of a Director shall be vacated:
(a) If he gives notice in writing to the Company that he resigns
the office of Director;
(b) If he dies;
(c) If he is found to be or becomes of unsound mind; or
(d) If removed pursuant to Section 21.1.
XXVI. CERTAIN BUSINESS COMBINATIONS
26.1 In addition to any approval by Members required by the
Statute or any other law of the Cayman Islands, the approval of the holders of
at least a majority of the outstanding shares entitled to vote, voting
together as a single class, at a meeting called for such purpose, shall be
required in order for the Company:
(i) to merge, consolidate or amalgamate with another
company;
(ii) to reorganize or reconstruct itself pursuant to a
plan sanctioned by the Cayman Islands courts; or
(iii) to sell, lease or exchange all or substantially
all of the assets of the Company;
provided that the foregoing approval by Members shall not apply to any such
transaction of the Company with any entity which the Company, directly or
indirectly, controls, as defined in Rule 405 under the Securities Act of 1933,
as amended from time to time, of the United States of America.
XXVII. SEAL
27.1 The Company may have a seal, and the seal may be used by
causing it or a facsimile thereof to be impressed or affixed or reproduced or
otherwise. Any officer of the Company will have the authority to affix the
seal to any document requiring it.
XXVIII. OFFICERS
28.1 The officers of the Company shall be appointed by the Board of
Directors and may include a Chairman of the Board, a Chief Executive Officer,
a President, Senior and Executive Vice Presidents and Vice Presidents, a
Secretary, a Treasurer and one or more Assistant Secretaries and Assistant
Treasurers. The Board of Directors may also choose such other officers and
agents as it shall deem necessary or desirable and such persons shall hold
their offices for such terms and shall exercise such powers and perform such
duties as shall be determined by the Board of Directors from time to time.
Two or more offices may be held by the same person. None of the officers need
be a Director or a Member of the Company. The compensation of all officers
and agents of the Company shall be fixed from time to time by the Board of
Directors or pursuant to its direction. No officer shall be prevented from
receiving such compensation by reason of his also being a Director. The
officers of the Company shall hold office until their successors are elected
or appointed and qualified, or until their earlier death, resignation,
retirement, disqualification or removal. Any officer or agent elected or
appointed by the Board of Directors may be removed at any time with or without
cause by the affirmative vote of a majority of the Board of Directors
whenever, in its judgment, the best interests of the Company shall be served
thereby, but any such removal shall be without prejudice to the contractual
rights, if any, of the person so removed. Any officer may resign at any time
by giving written notice to the Company. Any such resignation shall take
effect at the date of the receipt of such notice or at such other time
specified therein, and unless otherwise specified therein, the acceptance of
such resignation shall not be necessary to make it effective. Election or
appointment of an officer or agent shall not of itself create contract rights.
Any vacancy occurring in any office of the Company may be filled by the Board
of Directors for the unexpired portion of the term.
28.2 A provision of the Statute or these Articles requiring or
authorizing a thing to be done by a Director and an officer shall not be
satisfied by its being done by the one person acting in the dual capacity of
Director and officer.
XXIX. DIVIDENDS AND RESERVES
29.1 Subject to the Statute, the Board of Directors may from time
to time declare dividends on shares of the Company outstanding and authorize
payment of the same out of the profits of the Company (realized or
unrealized), share premium account, or any other account permitted by the
Statute, and may from time to time pay to the Members such interim dividends,
as appears to the Board of Directors to be permitted by the Statute.
29.2 The Board of Directors may deduct from any dividend payable to
any Member all sums of money (if any) presently payable by him to the Company
on account of calls or otherwise.
29.3 The Board of Directors may declare that any dividend be paid
wholly or partly by the distribution of shares or other securities of the
Company and/or specific assets and in particular of paid up shares,
debentures, or debenture stock of any other company or in any one or more of
such ways and where any difficulty arises in regard to such distribution, the
Board of Directors may settle the same as it deems expedient and in particular
may issue fractional shares and fix the value for distribution of such
specific assets or any part thereof and may determine that cash payments shall
be made to any Members upon the footing of the value so fixed in order to
adjust the rights of all Members and may vest any such specific assets in
trustees as may seem expedient to the Board of Directors.
29.4 The Board of Directors of the Company may declare and pay
stock dividends to the extent permitted by the law (without the need for
Member approval).
29.5 No dividend shall bear interest against the Company unless
expressly authorized by the Board of Directors.
XXX. CAPITALIZATION
30.1 The Company may upon the recommendation of the Board of
Directors capitalise any sum standing to the credit of any of the Company's
reserve accounts (including share premium account and capital redemption
reserve fund) or any sum standing to the credit of profit and loss account or
otherwise available for distribution and to appropriate such sum to Members in
the proportions in which such sum would have been divisible amongst them had
the same been a distribution of profits by way of dividend and to apply such
sum on their behalf in paying up in full unissued shares (not being redeemable
shares) for allotment and distribution credited as fully paid up to and
amongst them in the proportion aforesaid. In such event the Board of
Directors shall do all acts and things required to give effect to such
capitalization, with full power to the Board of Directors to make such
provisions as it thinks fit for the case of shares becoming distributable in
fractions (including provisions whereby the benefit of fractional entitlements
accrue to the Company rather than to the Members concerned). The Board of
Directors may authorize any person to enter on behalf of all of the Members
interested into an agreement with the Company providing for such
capitalization and matters incidental thereto and any agreement made under
such authority shall be effective and binding on all concerned.
XXXI. AUDIT
31.1 The accounts relating to the Company's affairs shall be
audited in such manner, if at all, as may be determined from time to time by
the Board of Directors.
XXXII. NOTICES
32.1 Notices shall be in writing and may be given by the Company to
any Member either personally or by sending it by post, air courier, cable,
facsimile transmission or telex to him or to his address as shown in the
register of Members, such notice, if mailed, to be forwarded airmail where
practicable. Any such notice shall be deemed to have been effected on the
date the letter containing the same is posted as aforesaid, or sent by air
courier, cable, facsimile transmission or telex.
32.2 A notice may be given by the Company to the joint holders of
record of a share by giving the notice to the joining holder first named on
the register of Members in respect of the share.
32.3 A notice may be given by the Company to the person or persons
which the Company has been advised are entitled to a share or shares in
consequence of the death or bankruptcy of a Member by sending it through the
post as aforesaid in a prepaid letter addressed to them by name, or by the
title of representatives of the deceased, or trustee of the bankruptcy, or by
any like description at the address supplied for that purpose by the persons
claiming to be so entitled, or at the option of the Company by giving the
notice in any manner in which the same might have been given if the death or
bankruptcy had not occurred.
32.4 Notice of every general meeting shall be given in any manner
hereinbefore authorized to:
(a) every holder of voting shares as shown in the register of
Members as of the record date for such meeting except that in the case of
joint holder the notice shall be sufficient if given to the joint holder first
named in the register of Members;
(b) every person upon whom the ownership of a voting share
devolves by reason of his being a legal personal representative or a trustee
in bankruptcy of a holder of voting shares of record where such holder but for
his death or bankruptcy would be entitled to receive notice of the meeting;
and
except as otherwise required by law or these Articles, no other person shall
be entitled to receive notice of general meetings.
XXXIII. INDEMNITY AND LIMITATION OF LIABILITY
33.1 (a) The Company shall indemnify, to the full extent now or
hereafter permitted by law, any person (including his heirs, executors and
administrators) who was or is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative (including, without
limitation, an action by or in the right of the Company), by reason of his
acting as, or having in the past acted as, a Director, officer, employee or
agent of, or his acting in any other capacity for or on behalf of, the
Company, (including his serving for, on behalf of or at the request of the
Company as a Director, officer employee or agent of another company,
partnership, joint venture, trust or other enterprise, or in a fiduciary or
other capacity with respect to any employee benefit plan maintained by the
Company) against any expense (including attorney's fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person (or
his heirs, executors and administrators) in respect thereof. The Company
shall advance the expenses of defending any such action, suit or proceeding
(including appeals) in accordance with and to the full extent now or hereafter
permitted by law.
(b) The Board of Directors may, notwithstanding any interest of
the directors in such action, authorize the Company to purchase and maintain
insurance on behalf of any person described in Section 33.1(a), against any
liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Company would have the
power to indemnify him against such liability under the provisions of this
Article XXXIII.
(c) Directors of the Company shall have no personal liability to
the Company or its Members for monetary damages for breach of fiduciary or
other duties as a director, except (i) for any breach of a director's duty of
loyalty to the Company or its Members, (ii) for act or omissions not in good
faith or which involve intentional misconduct or a knowing violation of law,
or (iii) for any transaction from which a director derived an improper
personal benefit.
(d) The provisions of this Article XXXIII shall be applicable to
all actions, claims, suits or proceedings made or commenced after the adoption
hereof, whether arising from acts or omissions to act occurring before or
after its adoption. The provisions of this Article XXXIII shall be deemed to
be a contract between the Company and each director, officer, employee or
agent who serves in such capacity at any time while this Article and the
relevant provisions of the law, if any, are in effect, and any repeal or
modification thereof shall not affect any rights or obligations then existing
with respect to any state of facts or any action, suit or proceeding then or
theretofore existing, or any action, suit or proceeding thereafter brought or
threatened based in whole or in part on any such state of facts. If any
provision of this Article XXXIII shall be found to be invalid or limited in
application by reason of any law or regulation, it shall not affect any other
application of such provision or the validity of the remaining provisions
hereof. The rights of indemnification and advancement of expenses provided in
this Article shall neither be exclusive of, nor be deemed in limitation of,
any rights to which any such officer, director, employee or agent may
otherwise be entitled or permitted by contract, vote of Members or directors
or otherwise, or as a matter of law, both as to actions in his official
capacity and actions in any other capacity while holding such office, it being
the policy of the Company that indemnification of the specified individuals
shall be made to the fullest extent permitted by law.
XXXIV. BOOKS AND RECORDS
34.1 In addition to any rights which may be conferred on Members by
Statute, upon written demand under oath stating the purpose thereof, any
Member may review for any proper purpose, during usual hours for business, the
books and records of the Company, including without limitation, the Register.
A proper purpose shall mean a purpose reasonably related to such person's
interest as a Member.
XXXV. WINDING UP
35.1 In the event of any dissolution, liquidation or winding up of
the Company, whether voluntary or involuntary, after there shall have been
paid or set aside for payment to the holders of any outstanding shares ranking
senior to the Ordinary Shares as to distribution on liquidation, distribution
or winding up, the full amounts to which they shall be entitled and the
holders of the then outstanding Ordinary Shares shall be entitled to receive,
pro rata according to the number of Ordinary Shares registered in the names of
such Members, any remaining assets of the Company available for distribution
to its Members; provided, if, at such time, the holder of Ordinary Shares has
any outstanding debts, liabilities or engagements to or with the Company
(whether presently payable or not), either alone or jointly with any other
person, whether a Member or not (including, without limitation, any liability
associated with the unpaid purchase price of such Ordinary Shares), the
liquidator appointed to oversee the liquidation of the Company may deduct from
the amount payable in respect of such Ordinary Shares the aggregate amount of
such debts, liabilities and engagements and apply such amount to any of such
holders debts, liabilities or engagements to or with the Company (whether
presently payable or not). The liquidator may distribute, in kind, to the
holders of the Ordinary Shares remaining assets of the Company or may sell,
transfer or otherwise dispose of all or any part of such remaining assets to
any other person, corporation, trust or entity and receive payment therefor in
cash, shares or obligations of such other person, corporation, trust or entity
or any combination thereof, and may sell all or any part of the consideration
so received, and may distribute the consideration received or any balance or
proceeds thereof to holders of the Ordinary Shares. The liquidator may, with
the like sanction, vest the whole or any part of such assets in trustees upon
such trusts for the benefit of the contributories as the liquidator, with the
like sanction shall think fit, but so that no Member shall be compelled to
accept any shares or other securities whereon there is any liability.
XXXVI. DEREGISTRATION
36.1 (a) The Company may by Special Resolution resolve to be
registered by way of continuation in a jurisdiction outside the Cayman Islands
or such other jurisdiction in which it is for the time being incorporated,
registered or existing; and
(b) In furtherance of a resolution adopted pursuant to (a)
above of this Regulation, the Directors may cause an application to be made to
the Registrar of Companies to deregister the Company in the Cayman Islands or
such other jurisdiction in which it is for the time being incorporated,
registered or existing and may cause all such further steps as they consider
appropriate to be taken to effect the transfer by way of continuation of the
Company.
XXXVII. FISCAL YEAR
37.1 Each Fiscal Year shall commence on such date as may be
specified by the Board of Directors.
XXXVIII. AMENDMENTS OF ARTICLES
38.1 Subject to the Statute, except as otherwise provided in these
Articles, the Company may at anytime and from time to time by Special
Resolution alter or amend these Articles in whole or in part.
RIGHTS AGREEMENT
Agreement, dated as of March 25, 1996, between Triton Energy
Limited, a company organized under the laws of the Cayman Islands (the
"Company"), and Chemical Bank, a national banking association (the "Rights
Agent").
The Board of Directors of the Company has authorized and declared a
dividend of one preferred share purchase right (a "Right") for each Ordinary
Share (as such term is hereinafter defined) of the Company outstanding at the
effective time of the merger of TEL Merger Corp. with and into Triton Energy
Corporation on March 25, 1996 (the "Record Date"), each Right representing the
right to purchase one one-thousandth (subject to adjustment) of a Preference
Share (as hereinafter defined), upon the terms and subject to the conditions
herein set forth, and has further authorized and directed the issuance of one
Right (subject to adjustment as provided herein) with respect to each Ordinary
Share that shall become outstanding between the Record Date and the earliest
of the Distribution Date, the Redemption Date and the Final Expiration Date
(as such terms are hereinafter defined); provided, however, that Rights
may be issued with respect to Ordinary Shares that shall become outstanding
after the Distribution Date and prior to the Redemption Date and the Final
Expiration Date in accordance with Section 22.
Accordingly, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:
Section 1. Certain Definitions. For purposes of this Agreement,
the following terms have the meaning indicated:
(a) "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which shall be the Beneficial Owner (as such term
is hereinafter defined) of a number of Ordinary Shares (as such term is
hereinafter defined) equal to 15% or more of the number of Ordinary Shares (as
such term is hereinafter defined) then outstanding, but shall not include an
Exempt Person (as such term is hereinafter defined); provided, however,
that if the Board of Directors of the Company determines in good faith that a
Person who would otherwise be an "Acquiring Person" has become such
inadvertently (including, without limitation, because (i) such Person was
unaware that it beneficially owned a number of Ordinary Shares that would
otherwise cause such Person to be a "Acquiring Person" or (ii) such Person was
aware of the extent of its Beneficial Ownership of Ordinary Shares but had no
actual knowledge of the consequences of such Beneficial Ownership under this
Rights Agreement) and without any intention of changing or influencing control
of the Company, and such Person, as promptly as practicable after being
advised of such determination, divests himself or itself of Beneficial
Ownership of a sufficient number of Ordinary Shares so that such Person would
no longer be an Acquiring Person, then such Person shall not be deemed to be
or to have become an "Acquiring Person" for any purposes of this Agreement.
Notwithstanding the foregoing, (i) if a Person would be deemed an Acquiring
Person upon the adoption of this Agreement, such Person will not be deemed an
Acquiring Person for any purposes of this Agreement unless and until such
Person acquires Beneficial Ownership of any additional Ordinary Shares after
the adoption of this Agreement unless upon the consummation of the acquisition
of such additional Ordinary Shares such Person does not beneficially own a
number of Ordinary Shares equal to 15% or more of the number of Ordinary
Shares then outstanding and (ii) no Person shall become an "Acquiring Person"
as the result of an acquisition of Ordinary Shares by the Company which, by
reducing the number of shares outstanding, increases the proportionate number
of Ordinary Shares beneficially owned by such Person to 15% or more of the
number of Ordinary Shares then outstanding, provided, however, that if a
Person shall become the Beneficial Owner of a number of Ordinary Shares equal
to 15% or more of the number of Ordinary Shares then outstanding by reason of
such share acquisitions by the Company and thereafter become the Beneficial
Owner of any additional Ordinary Shares, then such Person shall be deemed to
be an "Acquiring Person" unless upon the consummation of the acquisition of
such additional Ordinary Shares such Person does not beneficially own a number
of Ordinary Shares equal to 15% or more of the number of Ordinary Shares then
outstanding. The phrase "then outstanding", when used with reference to a
Person's Beneficial Ownership of securities of the Company, shall mean the
number of such securities then issued and outstanding together with the number
of such securities not then actually issued and outstanding which such Person
would be deemed to beneficially own hereunder.
(b) "Affiliate" and "Associate" shall have the respective
meanings ascribed to such terms in Rule 12b-2 of the General Rules and
Regulations under the U.S. Securities Exchange Act of 1934, as amended (the
"Exchange Act"), as in effect on the date of this Agreement.
(c) A Person shall be deemed the "Beneficial Owner" of, shall be
deemed to have "Beneficial Ownership" of and shall be deemed to "beneficially
own" any securities:
(i) which such Person or any of such Person's Affiliates or
Associates is deemed to beneficially own, directly or indirectly within the
meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange
Act as in effect on the date of this Agreement;
(ii) which such Person or any of such Person's Affiliates
or Associates has (A) the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public
offering of securities), or upon the exercise of conversion rights, exchange
rights, rights, warrants or options, or otherwise; provided, however, that
a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
(x) securities tendered pursuant to a tender or exchange offer made by or on
behalf of such Person or any of such Person's Affiliates or Associates until
such tendered securities are accepted for purchase, (y) securities which such
Person has a right to acquire on the exercise of Rights at any time prior to
the time a Person becomes an Acquiring Person or (z) securities issuable upon
exercise of Rights from and after the time a Person becomes an Acquiring
Person if such Rights were acquired by such Person or any of such Person's
Affiliates or Associates prior to the Distribution Date or pursuant to
Section 3(a) or Section 22 hereof ("original Rights") or pursuant to Section
11(i) or Section 11(n) with respect to an adjustment to original Rights; or
(B) the right to vote pursuant to any agreement, arrangement or
understanding;provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to beneficially own, any security by reason of such
agreement, arrangement or understanding if the agreement, arrangement or
understanding to vote such security (1) arises solely from a revocable proxy
or consent given to such Person in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable rules
and regulations promulgated under the Exchange Act and (2) is not also then
reportable on Schedule 13D under the Exchange Act (or any comparable or
successor report); or
(iii) which are beneficially owned, directly or indirectly,
by any other Person with which such Person or any of such Person's Affiliates
or Associates has any agreement, arrangement or understanding (other than
customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities) for the purpose of
acquiring, holding, voting (except to the extent contemplated by the proviso
to Section 1(c)(ii)(B)) or disposing of any securities of the Company.
(d) "Business Day" shall mean any day other than a Saturday, a
Sunday, or a day on which banking institutions in the State of New York,
U.S.A. or the State in the U.S.A. in which the principal office of the Rights
Agent is located, are authorized or obligated by law or executive order to
close.
(e) "close of business" on any given date shall mean 5:00 P.M.,
New York City time, on such date; provided, however, that if such date is
not a Business Day it shall mean 5:00 P.M., New York City time, on the next
succeeding Business Day.
(f) "Distribution Date" shall have the meaning set forth in
Section 3 hereof.
(g) "Exempt Person" shall mean the Company, any Subsidiary (as
such term is hereinafter defined) of the Company, any employee benefit plan of
the Company or of any Subsidiary of the Company, or any entity or trustee
holding Ordinary Shares for or pursuant to the terms of any such plan or for
the purpose of funding any such plan or funding other employee benefits for
employees of the Company or of any Subsidiary of the Company.
(h) "Final Expiration Date" shall have the meaning set forth in
Section 7 hereof.
(i) "New York Stock Exchange" shall mean the stock market
operated by the New York Stock Exchange, Inc.
(j) "Ordinary Shares" when used with reference to the Company,
shall mean the Ordinary Shares, par value $.01 per share, of the Company.
"Ordinary Shares" when used with reference to any Person other than the
Company shall mean the share capital (or, in the case of an unincorporated
entity, the equivalent equity interest) with the greatest voting power of such
other Person or, if such other Person is a subsidiary of another Person, the
Person or Persons which ultimately control such first-mentioned Person.
(k) "Person" shall mean any individual, firm, corporation or
other entity, and shall include any successor (by merger or otherwise) of such
entity.
(l) "Preference Shares" shall mean the Series A Junior
Participating Preference Shares, par value $.01 per share, of the Company
having the rights and preferences set forth in the resolutions establishing
such class of Preference Shares attached hereto as Exhibit A.
(m) "Redemption Date" shall have the meaning set forth in
Section 7 hereof.
(n) "Securities Act" shall mean the U.S. Securities Act of 1933,
as amended.
(o) "Share Acquisition Date" shall mean the first date of public
announcement (which for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by
the Company or an Acquiring Person that an Acquiring Person has become such or
such earlier date as a majority of the Board of Directors shall become aware
of the existence of an Acquiring Person.
(p) "Subsidiary" of any Person shall mean any corporation or
other entity of which securities or other ownership interests having ordinary
voting power sufficient to elect a majority of the board of directors or other
persons performing similar functions are beneficially owned, directly or
indirectly, by such Person, and any corporation or other entity that is
otherwise controlled by such Person.
Section 2. Appointment of Rights Agent. The Company hereby
appoints the Rights Agent to act as agent for the Company and the holders of
the Rights (who, in accordance with Section 3 hereof, shall prior to the
Distribution Date also be the holders of the Ordinary Shares) in accordance
with the terms and conditions hereof, and the Rights Agent hereby accepts such
appointment. The Company may from time to time appoint such co-Rights Agents
as it may deem necessary or desirable.
Section 3. Issue of Right Certificates. (a) Until the earlier of
(i) the tenth day after the Share Acquisition Date or (ii) the tenth business
day (or such later date as may be determined by action of the Board of
Directors prior to such time as any Person becomes an Acquiring Person) after
the date of the commencement by any Person (other than an Exempt Person) of,
or of the first public announcement of the intention of such Person (other
than an Exempt Person) to commence, a tender or exchange offer the
consummation of which would result in any Person becoming the Beneficial Owner
of a number of Ordinary Shares equal to 15% or more of the number of Ordinary
Shares then outstanding (including any such date which is after the date of
this Agreement and prior to the issuance of the Rights; the earlier of such
dates being herein referred to as the "Distribution Date"), (x) the Rights
will be evidenced (subject to the provisions of Section 3(b) hereof) by the
certificates for Ordinary Shares registered in the names of the holders
thereof and not by separate Right Certificates, and (y) the Rights will be
transferable only in connection with the transfer of the Ordinary Shares. As
soon as practicable after the Distribution Date, the Company will prepare and
execute, the Rights Agent will countersign, and the Company will send or cause
to be sent (and the Rights Agent will, if requested, send) by first-class,
insured, postage-prepaid mail, to each record holder of Ordinary Shares as of
the close of business on the Distribution Date (other than any Acquiring
Person or any Associate or Affiliate of an Acquiring Person), at the address
of such holder shown on the records of the Company, a Right Certificate, in
substantially the form of Exhibit B hereto (a "Right Certificate"), evidencing
one Right (subject to adjustment as provided herein) for each Ordinary Share
so held. As of the Distribution Date, the Rights will be evidenced solely by
such Right Certificates.
(b) On the Record Date, or as soon as practicable thereafter,
the Company will send a copy of a Summary of Rights to Purchase Shares of
Preferred Stock, in substantially the form of Exhibit C hereto (the "Summary
of Rights"), by first-class, postage-prepaid mail, to each record holder of
Ordinary Shares as of the close of business on the Record Date (other than any
Acquiring Person or any Associate or Affiliate of any Acquiring Person), at
the address of such holder shown on the records of the Company. With respect
to certificates for Ordinary Shares outstanding as of the Record Date, until
the Distribution Date, the Rights will be evidenced by such certificates
registered in the names of the holders thereof together with the Summary of
Rights. Until the Distribution Date (or the earlier of the Redemption Date or
the Final Expiration Date), the surrender for transfer of any certificate for
Ordinary Shares outstanding on the Record Date, with or without a copy of the
Summary of Rights, shall also constitute the transfer of the Rights associated
with the Ordinary Shares represented thereby.
(c) Certificates issued for Ordinary Shares (including, without
limitation, upon conversion, disposition of Ordinary Shares out of treasury
stock or issuance or reissuance of Ordinary Shares out of authorized but
unissued shares) after the Record Date but prior to the earliest of the
Distribution Date, the Redemption Date or the Final Expiration Date shall have
impressed on, printed on, written on or otherwise affixed to them the
following legend:
This certificate also evidences and entitles the holder hereof to
certain rights as set forth in a Rights Agreement between Triton Energy
Limited and Chemical Bank, dated as of March 25, 1996 as the same may be
amended from time to time (the "Rights Agreement"), the terms of which are
hereby incorporated herein by reference and a copy of which is on file at the
principal executive offices of Triton Energy Limited. Under certain
circumstances, as set forth in the Rights Agreement, such Rights will be
evidenced by separate certificates and will no longer be evidenced by this
certificate. Triton Energy Limited will mail to the holder of this
certificate a copy of the Rights Agreement without charge after receipt of a
written request therefor. Under certain circumstances, as set forth in the
Rights Agreement, Rights owned by or transferred to any Person who becomes an
Acquiring Person (as defined in the Rights Agreement) and certain transferees
thereof will become null and void and will no longer be transferable.
With respect to such certificates containing the foregoing legend, until the
Distribution Date, the Rights associated with the Ordinary Shares represented
by such certificates shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate, except as otherwise provided
herein, shall also constitute the transfer of the Rights associated with the
Ordinary Shares represented thereby. In the event that the Company purchases
or otherwise acquires any Ordinary Shares after the Record Date but prior to
the Distribution Date, any Rights associated with such Ordinary Shares shall
be deemed cancelled and retired so that the Company shall not be entitled to
exercise any Rights associated with the Ordinary Shares which are no longer
outstanding. After the Distribution Date, Ordinary Shares issued upon the
conversion of another class of Ordinary Shares shall not have Right
Certificates attached thereto.
Notwithstanding this paragraph (c), the omission of a legend shall
not affect the enforceability of any part of this Agreement or the rights of
any holder of the Rights.
Section 4. Form of Right Certificates. The Right Certificates
(and the forms of election to purchase shares and of assignment to be printed
on the reverse thereof) shall be substantially in the form set forth in
Exhibit A hereto and may have such marks of identification or designation and
such legends, summaries or endorsements printed thereon as the Company may
deem appropriate and as are not inconsistent with the provisions of this
Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of the
New York Stock Exchange or of any other stock exchange or automated quotation
system on which the Rights may from time to time be listed, or to conform to
usage. Subject to the provisions of Sections 11, 13 and 22 hereof, the Right
Certificates shall entitle the holders thereof to purchase such number of one
one-thousandths of a share of Preferred Stock as shall be set forth therein at
the price per one one-thousandth of a share of Preferred Stock set forth
therein (the "Purchase Price"), but the number of such one one-thousandths of
a share of Preferred Stock and the Purchase Price shall be subject to
adjustment as provided herein.
Section 5. Countersignature and Registration. (a) The Right
Certificates shall be executed on behalf of the Company by the President, any
of the Vice Presidents, the Treasurer or the Controller of the Company, either
manually or by facsimile signature, shall have affixed thereto the Company's
seal or a facsimile thereof, and shall be attested by the Secretary or an
Assistant Secretary of the Company, either manually or by facsimile signature.
The Right Certificates shall be manually countersigned by the Rights Agent
and shall not be valid for any purpose unless countersigned. In case any
officer of the Company who shall have signed any of the Right Certificates
shall cease to be such officer of the Company before countersignature by the
Rights Agent and issuance and delivery by the Company, such Right
Certificates, nevertheless, may be countersigned by the Rights Agent and
issued and delivered by the Company with the same force and effect as though
the Person who signed such Right Certificates had not ceased to be such
officer of the Company; and any Right Certificate may be signed on behalf of
the Company by any Person who, at the actual date of the execution of such
Right Certificate, shall be a proper officer of the Company to sign such Right
Certificate, although at the date of the execution of this Agreement any such
Person was not such an officer.
(b) Following the Distribution Date, the Rights Agent will keep
or cause to be kept, at an office or agency designated for such purpose, books
for registration and transfer of the Right Certificates issued hereunder.
Such books shall show the names and addresses of the respective holders of the
Right Certificates, the number of Rights evidenced on its face by each of the
Right Certificates and the date of each of the Right Certificates.
Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. (a)
Subject to the provisions of Sections 7(e), 11(a)(ii) and 14 hereof, at any
time after the close of business on the Distribution Date, and prior to the
close of business on the earlier of the Redemption Date or the Final
Expiration Date, any Right Certificate or Right Certificates may be
transferred, split up, combined or exchanged for another Right Certificate or
Right Certificates, entitling the registered holder to purchase a like number
of one one-thousandths of a Preference Share as the Right Certificate or Right
Certificates surrendered then entitled such holder to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any
Right Certificate or Right Certificates shall make such request in writing
delivered to the Rights Agent, and shall surrender the Right Certificate or
Right Certificates to be transferred, split up, combined or exchanged at the
office or agency of the Rights Agent designated for such purpose. Thereupon
the Rights Agent shall countersign and deliver to the Person entitled thereto
a Right Certificate or Right Certificates, as the case may be, as so
requested. The Company may require payment of a sum sufficient to cover any
tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Right Certificates.
(b) Subject to the provisions of Section 11(a)(ii) hereof, at
any time after the Distribution Date and prior to the close of business on the
earlier of the Redemption Date or the Final Expiration Date, upon receipt by
the Company and the Rights Agent of evidence reasonably satisfactory to them
of the loss, theft, destruction or mutilation of a Right Certificate, and, in
case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to them, and, at the Company's request, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto,
and upon surrender to the Rights Agent and cancellation of the Right
Certificate if mutilated, the Company will make and deliver a new Right
Certificate of like tenor to the Rights Agent for delivery to the registered
holder in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.
Section 7. Exercise of Rights, Purchase Price; Expiration Date of
Rights. (a) Except as otherwise provided herein, the Rights shall become
exercisable on the Distribution Date, and thereafter the registered holder of
any Right Certificate may, subject to Section 11(a)(ii) hereof and except as
otherwise provided herein, exercise the Rights evidenced thereby in whole or
in part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof duly executed, to the Rights Agent at the
office or agency of the Rights Agent designated for such purpose, together
with payment of the Purchase Price for each one one-thousandth of a Preference
Share as to which the Rights are exercised, at any time which is both after
the Distribution Date and prior to the earliest of (i) the close of business
on May 22, 2005 (the "Final Expiration Date"), (ii) the time at which the
Rights are redeemed as provided in Section 23 hereof (the "Redemption Date")
or (iii) the time at which such Rights are exchanged as provided in Section 24
hereof.
(b) The Purchase Price shall be initially $120 for each one
one-thousandth of a Preference Share purchasable upon the exercise of a Right.
The Purchase Price and the number of one one-thousandths of a Preference
Share or other securities or property to be acquired upon exercise of a Right
shall be subject to adjustment from time to time as provided in Sections 11
and 13 hereof and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) of this Section 7.
(c) Except as otherwise provided herein, upon receipt of a Right
Certificate representing exercisable Rights, with the form of election to
purchase duly executed, accompanied by payment of the aggregate Purchase Price
for the shares of Preferred Stock to be purchased and an amount equal to any
applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof, in cash or by certified
check, cashier's check or money order payable to the order of the Company, the
Rights Agent shall thereupon promptly (i) (A) requisition from any transfer
agent of the Preference Shares certificates for the number of Preference
Shares to be purchased and the Company hereby irrevocably authorizes its
transfer agent to comply with all such requests, or (B) requisition from the
depositary agent depositary receipts representing interests in such number of
one one-thousandths of a Preference Share as are to be purchased (in which
case certificates for the Preference Shares represented by such receipts shall
be deposited by the transfer agent with the depositary agent) and the Company
hereby directs the depositary agent to comply with such request, (ii) when
appropriate, requisition from the Company the amount of cash to be paid in
lieu of issuance of fractional shares in accordance with Section 14 hereof,
(iii) promptly after receipt of such certificates or depositary receipts,
cause the same to be delivered to or upon the order of the registered holder
of such Right Certificate, registered in such name or names as may be
designated by such holder and (iv) when appropriate, after receipt, promptly
deliver such cash to or upon the order of the registered holder of such Right
Certificate.
(d) Except as otherwise provided herein, in case the registered
holder of any Right Certificate shall exercise less than all the Rights
evidenced thereby, a new Right Certificate evidencing Rights equivalent to the
exercisable Rights remaining unexercised shall be issued by the Rights Agent
to the registered holder of such Right Certificate or to his duly authorized
assigns, subject to the provisions of Section 14 hereof.
(e) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder of Rights upon the occurrence of
any purported transfer or exercise of Rights pursuant to Section 6 hereof or
this Section 7 unless such registered holder shall have (i) completed and
signed the certificate contained in the form of assignment or election to
purchase set forth on the reverse side of the Rights Certificate surrendered
for such transfer or exercise and (ii) provided such additional evidence of
the identity of the Beneficial Owner (or former Beneficial Owner) thereof as
the Company shall reasonably request.
Section 8. Cancellation and Destruction of Right Certificates.
All Right Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the Company or to
any of its agents, be delivered to the Rights Agent for cancellation or in
cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by
it, and no Right Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement. The Company
shall deliver to the Rights Agent for cancellation and retirement, and the
Rights Agent shall so cancel and retire, any other Right Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The
Rights Agent shall deliver all cancelled Right Certificates to the Company, or
shall, at the written request of the Company, destroy such cancelled Right
Certificates, and in such case shall deliver a certificate of destruction
thereof to the Company.
Section 9. Availability of Shares of Preference Shares.
(a) The Company covenants and agrees that it will cause to be
reserved and kept available out of its authorized and unissued Preference
Shares or any Preference Shares held in its treasury, the number of Preference
Shares that will be sufficient to permit the exercise in full of all
outstanding Rights.
(b) So long as the Preference Shares (and, following the time
that a Person becomes an Acquiring Person, Ordinary Shares and other
securities) issuable upon the exercise of Rights may be listed or admitted to
trading on the New York Stock Exchange or listed on any other national
securities exchange or quotation system, the Company shall use its best
efforts to cause, from and after such time as the Rights become exercisable,
all shares reserved for such issuance to be listed or admitted to trading on
the New York Stock Exchange or listed on any other exchange or quotation
system upon official notice of issuance upon such exercise.
(c) From and after such time as the Rights become exercisable,
the Company shall use its best efforts, if then necessary to permit the
issuance of Preference Shares (and following the time that a Person first
becomes an Acquiring Person, Ordinary Shares and other securities) upon the
exercise of Rights, to register and qualify such Preference Shares (and
following the time that a Person first becomes an Acquiring Person, Ordinary
Shares and other securities) under the Securities Act and any applicable state
securities or "Blue Sky" laws (to the extent exemptions therefrom are not
available), cause such registration statement and qualifications to become
effective as soon as possible after such filing and keep such registration and
qualifications effective until the earlier of the date as of which the Rights
are no longer exercisable for such securities and the Final Expiration Date.
The Company may temporarily suspend, for a period of time not to exceed 90
days, the exercisability of the Rights in order to prepare and file a
registration statement under the Securities Act and permit it to become
effective. Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction unless the requisite qualification in such jurisdiction shall
have been obtained and until a registration statement under the Securities Act
(if required) shall have been declared effective.
(d) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all Preference Shares (and,
following the time that a Person becomes an Acquiring Person, Ordinary Shares
and other securities) delivered upon exercise of Rights shall, at the time of
delivery of the certificates therefor (subject to payment of the Purchase
Price), be duly and validly authorized and issued and fully paid and
nonassessable shares.
(e) The Company further covenants and agrees that it will pay
when due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the issuance or delivery of the Right
Certificates or of any Preference Shares (or Ordinary Shares or other
securities) upon the exercise of Rights. The Company shall not, however, be
required to pay any transfer tax which may be payable in respect of any
transfer or delivery of Right Certificates to a Person other than, or the
issuance or delivery of certificates or depositary receipts for the Preference
Shares (or Ordinary Shares or other securities) in a name other than that of,
the registered holder of the Right Certificate evidencing Rights surrendered
for exercise or to issue or deliver any certificates or depositary receipts
for Preference Shares (or Ordinary Shares or other securities) upon the
exercise of any Rights until any such tax shall have been paid (any such tax
being payable by that holder of such Right Certificate at the time of
surrender) or until it has been established to the Company's reasonable
satisfaction that no such tax is due.
Section 10. Preference Share Record Date. Each Person in whose
name any certificate for Preference Shares is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of
the Preference Shares represented thereby on, and such certificate shall be
dated, the date upon which the Right Certificate evidencing such Rights was
duly surrendered and payment of the Purchase Price (and any applicable
transfer taxes) was made; provided, however, that if the date of such
surrender and payment is a date upon which the Preference Share transfer books
of the Company are closed, such Person shall be deemed to have become the
record holder of such shares on, and such certificate shall be dated, the next
succeeding Business Day on which the Preference Share transfer books of the
Company are open. Prior to the exercise of the Rights evidenced thereby, the
holder of a Right Certificate shall not be entitled to any rights of a holder
of Preference Shares for which the Rights shall be exercisable, including,
without limitation, the right to vote or to receive dividends or other
distributions, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.
Section 11. Adjustment of Purchase Price , Number of Shares and
Number of Rights. The Purchase Price, the number of Preference Shares or
other securities or property purchasable upon exercise of each Right and the
number of Rights outstanding are subject to adjustment from time to time as
provided in this Section 11.
(a) (i) In the event the Company shall at any time after the date
of this Agreement (A) declare a dividend on the Preference Shares payable in
Preference Shares, (B) subdivide the outstanding Preference Shares, (C)
combine the outstanding Preference Shares into a smaller number of Preference
Shares or (D) issue any of its share capital in a reclassification of the
Preference Shares (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), the Purchase
Price in effect at the time of the record date for such dividend or of the
effective date of such subdivision, combination or reclassification, and the
number and kind of share capital issuable on such date, shall be
proportionately adjusted so that the holder of any Right exercised after such
time shall be entitled to receive the aggregate number and kind of share
capital which, if such Right had been exercised immediately prior to such date
and at a time when the Preference Share transfer books of the Company were
open, the holder would have owned upon such exercise and been entitled to
receive by virtue of such dividend, subdivision, combination or
reclassification; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the share capital of the Company issuable upon exercise
of one Right.
(ii) Subject to Section 24 of this Agreement and except as
otherwise provided in this Section 11(a)(ii), in the event any Person becomes
an Acquiring Person, each holder of a Right shall thereafter have the right to
receive, upon exercise thereof at a price equal to the then current Purchase
Price multiplied by the number of one one-thousandths of a Preference Share
for which a Right is then exercisable, in accordance with the terms of this
Agreement and in lieu of Preference Shares, such number of Ordinary Shares (or
at the option of the Company, such number of one one-thousandths of Preference
Shares) as shall equal the result obtained by (x) multiplying the then current
Purchase Price by the number of one one-thousandths of a Preference Share for
which a Right is then exercisable and dividing that product by (y) 50% of the
then current per share market price of the Company's Ordinary Shares
(determined pursuant to Section 11(d) hereof) on the date of the occurrence of
such event; provided, however, that the Purchase Price and the number of
Ordinary Shares so receivable upon exercise of a Right shall thereafter be
subject to further adjustment as appropriate in accordance with Section 11(f)
hereof. Notwithstanding anything in this Agreement to the contrary, however,
from and after the time (the "invalidation time") when any Person first
becomes an Acquiring Person, any Rights that are beneficially owned by (x) any
Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (y)
a transferee of any Acquiring Person (or any such Affiliate or Associate) who
becomes a transferee after the invalidation time or (z) a transferee of any
Acquiring Person (or any such Affiliate or Associate) who became a transferee
prior to or concurrently with the invalidation time pursuant to either (I) a
transfer from the Acquiring Person to holders of its equity securities or to
any Person with whom it has any continuing agreement, arrangement or
understanding regarding the transferred Rights or (II) a transfer which the
Board of Directors has determined is part of a plan, arrangement or
understanding which has the purpose or effect of avoiding the provisions of
this paragraph, and subsequent transferees of such Persons, shall be void
without any further action and any holder of such Rights shall thereafter have
no rights whatsoever with respect to such Rights under any provision of this
Agreement. The Company shall use all reasonable efforts to ensure that the
provisions of this Section 11(a)(ii) are complied with, but shall have no
liability to any holder of Right Certificates or other Person as a result of
its failure to make any determinations with respect to an Acquiring Person or
its Affiliates, Associates or transferees hereunder. From and after the
invalidation time, no Right Certificate shall be issued pursuant to Section 3
or Section 6 hereof that represents Rights that are or have become void
pursuant to the provisions of this paragraph, and any Right Certificate
delivered to the Rights Agent that represents Rights that are or have become
void pursuant to the provisions of this paragraph shall be cancelled. From
and after the occurrence of an event specified in Section 13(a) hereof, any
Rights that theretofore have not been exercised pursuant to this Section
11(a)(ii) shall thereafter be exercisable only in accordance with Section 13
and not pursuant to this Section 11(a)(ii).
(iii) The Company may at its option substitute for an
Ordinary Share issuable upon the exercise of Rights in accordance with the
foregoing subparagraph (ii) such number or fractions of Preference Shares
having an aggregate current market value equal to the current per share market
price of an Ordinary Share. In the event that there shall not be sufficient
Ordinary Shares issued but not outstanding or authorized but unissued to
permit the exercise in full of the Rights in accordance with the foregoing
subparagraph (ii), the Board of Directors shall, to the extent permitted by
applicable law and any material agreements then in effect to which the Company
is a party (A) determine the excess of (1) the value of the Ordinary Shares
issuable upon the exercise of a Right in accordance with the foregoing
subparagraph (ii) (the "Current Value") over (2) the then current Purchase
Price multiplied by the number of one one-thousandths of Preference Shares for
which a Right was exercisable immediately prior to the time that the Acquiring
Person became such (such excess, the "Spread"), and (B) with respect to each
Right (other than Rights which have become void pursuant to Section
11(a)(ii)), make adequate provision to substitute for the Ordinary Shares
issuable in accordance with subparagraph (ii) upon exercise of the Right and
payment of the applicable Purchase Price, (1) cash, (2) a reduction in the
Purchase Price, (3) Preference Shares or other equity securities of the
Company (including, without limitation, shares or fractions of preference
shares which, by virtue of having dividend, voting and liquidation rights
substantially comparable to those of the Ordinary Shares, are deemed in good
faith by the Board of Directors to have substantially the same value as the
Ordinary Shares (such preference shares and shares or fractions of preference
shares are hereinafter referred to as "Ordinary Share equivalents"), (4) debt
securities of the Company, (5) other assets, or (6) any combination of the
foregoing, having a value which, when added to the value of the Ordinary
Shares actually issued upon exercise of such Right, shall have an aggregate
value equal to the Current Value (less the amount of any reduction in the
Purchase Price), where such aggregate value has been determined by the Board
of Directors upon the advice of a nationally recognized investment banking
firm selected in good faith by the Board of Directors; provided, however,
if the Company shall not make adequate provision to deliver value pursuant to
clause (B) above within thirty (30) days following the date that the Acquiring
Person became such (the "Section 11(a)(ii) Trigger Date"), then the Company
shall be obligated to deliver, to the extent permitted by applicable law and
any material agreements then in effect to which the Company is a party, upon
the surrender for exercise of a Right and without requiring payment of the
Purchase Price, Ordinary Shares (to the extent available), and then, if
necessary, such number or fractions of Preference Shares (to the extent
available) and then, if necessary, cash, which shares and/or cash have an
aggregate value equal to the Spread. If, upon the date any Person becomes an
Acquiring Person, the Board of Directors shall determine in good faith that it
is likely that sufficient additional Ordinary Shares could be authorized for
issuance upon exercise in full of the Rights, then, if the Board of Directors
so elects, the thirty (30) day period set forth above may be extended to the
extent necessary, but not more than ninety (90) days after the Section
11(a)(ii) Trigger Date, in order that the Company may seek shareholder
approval for the authorization of such additional shares (such thirty (30) day
period, as it may be extended, is herein called the "Substitution Period").
To the extent that the Company determines that some action need be taken
pursuant to the second and/or third sentence of this Section 11(a)(iii), the
Company (x) shall provide, subject to Section 11(a)(ii) hereof and the last
sentence of this Section 11(a)(iii) hereof, that such action shall apply
uniformly to all outstanding Rights and (y) may suspend the exercisability of
the Rights until the expiration of the Substitution Period in order to seek
any authorization of additional shares and/or to decide the appropriate form
of distribution to be made pursuant to such second sentence and to determine
the value thereof. In the event of any such suspension, the Company shall
issue a public announcement stating that the exercisability of the Rights has
been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. For purposes of this Section
11(a)(iii), the value of the Ordinary Shares shall be the current per share
market price (as determined pursuant to Section 11(d)(i)) on the Section
11(a)(ii) Trigger Date and the per share or fractional value of any "Ordinary
Share equivalent" shall be deemed to equal the current per share market price
of the Ordinary Shares. The Board of Directors of the Company may, but shall
not be required to, establish procedures to allocate the right to receive
Ordinary Shares upon the exercise of the Rights among holders of Rights
pursuant to this Section 11(a)(iii).
(b) In case the Company shall fix a record date for the issuance
of rights, options or warrants to all holders of Preference Shares entitling
them (for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preference Shares (or shares having the same rights,
privileges and preferences as the Preference Shares ("equivalent preference
shares")) or securities convertible into Preference Shares or equivalent
preference shares at a price per Preference Share or equivalent preference
shares (or having a conversion price per share, if a security convertible into
Preference Shares or equivalent preference shares) less than the then current
per share market price of the Preference Shares (determined pursuant to
Section 11(d) hereof) on such record date, the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price
in effect immediately prior to such record date by a fraction, the numerator
of which shall be the number of Preference Shares and equivalent preference
shares outstanding on such record date plus the number of Preference Shares
and equivalent preference shares which the aggregate offering price of the
total number of Preference Shares and/or equivalent preference shares so to be
offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such current market price, and
the denominator of which shall be the number of Preference Shares and
equivalent preference shares outstanding on such record date plus the number
of additional Preference Shares and/or equivalent preference shares to be
offered for subscription or purchase (or into which the convertible securities
so to be offered are initially convertible); provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the share capital of the Company issuable
upon exercise of one Right. In case such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the
value of such consideration shall be as determined in good faith by the Board
of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent. Preference Shares and equivalent
preference shares owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation. Such adjustment
shall be made successively whenever such a record date is fixed; and in the
event that such rights, options or warrants are not so issued, the Purchase
Price shall be adjusted to be the Purchase Price which would then be in effect
if such record date had not been fixed.
(c) In case the Company shall fix a record date for the making
of a distribution to all holders of the Preference Shares (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of
indebtedness or assets (other than a regular quarterly cash dividend or a
dividend payable in Preference Shares) or subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price to
be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the then current per share market price of the
Preference Shares (determined pursuant to Section 11(d) hereof) on such record
date, less the fair market value (as determined in good faith by the Board of
Directors of the Company whose determination shall be described in a statement
filed with the Rights Agent) of the portion of the assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants
applicable to one Preference Share, and the denominator of which shall be such
current per share market price (determined pursuant to Section 11(d) hereof)
of the Preference Shares; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the share capital of the Company to be issued upon
exercise of one Right. Such adjustments shall be made successively whenever
such a record date is fixed; and in the event that such distribution is not so
made, the Purchase Price shall again be adjusted to be the Purchase Price
which would then be in effect if such record date had not been fixed.
(d) (i) Except as otherwise provided herein, for the purpose of any
computation hereunder, the "current per share market price" of any security (a
"Security" for the purpose of this Section 11(d)(i)) on any date shall be
deemed to be the average of the daily closing prices per share of such
Security for the 30 consecutive Trading Days (as such term is hereinafter
defined) immediately prior to such date; provided, however, that in the
event that the current per share market price of the Security is determined
during a period following the announcement by the issuer of such Security of
(A) a dividend or distribution on such Security payable in shares of such
Security or securities convertible into such shares, or (B) any subdivision,
combination or reclassification of such Security, and prior to the expiration
of 30 Trading Days after the ex-dividend date for such dividend or
distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the current per share market
price shall be appropriately adjusted to reflect the current market price per
share equivalent of such Security. The closing price for each day shall be
the last sale price, regular way, or, in case no such sale takes place on such
day, the average of the closing bid and asked prices, regular way, in either
case as reported by the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Security is not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal U.S.
national securities exchange on which the Security is listed or admitted to
trading or, if the Security is not listed or admitted to trading on any U.S.
national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market or
such other system then in use, or, if on any such date the Security is not
quoted by any organization in the over-the-counter market, the average of the
closing bid and asked prices as furnished by a professional market maker
making a market in the Security selected by the Board of Directors of the
Company. The term "Trading Day" shall mean a day on which the principal
national securities exchange on which the Security is listed or admitted to
trading is open for the transaction of business or, if the Security is not
listed or admitted to trading on any national securities exchange, a Business
Day.
(ii) For the purpose of any computation hereunder, if the
Preference Shares are publicly traded, the "current per share market price" of
the Preference Shares shall be determined in accordance with the method set
forth in Section 11(d)(i). If the Preference Shares are not publicly traded
but the Ordinary Shares are publicly traded, the "current per share market
price" of the Preference Shares shall be conclusively deemed to be the current
per share market price of the Ordinary Shares as determined pursuant to
Section 11(d)(i) multiplied by one hundred (appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the
date hereof). If neither the Ordinary Shares nor the Preference Shares are
publicly traded, "current per share market price" shall mean the fair value
per share as determined in good faith by the Board of Directors of the
Company, whose determination shall be described in a statement filed with the
Rights Agent.
(e) No adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in the
Purchase Price; provided, however, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one
ten-thousandth of a Preference Share or Ordinary Share or other share or
security as the case may be. Notwithstanding the first sentence of this
Section 11(e), any adjustment required by this Section 11 shall be made no
later than the earlier of (i) three years from the date of the transaction
which requires such adjustment or (ii) the date of the expiration of the right
to exercise any Rights.
(f) If as a result of an adjustment made pursuant to Section
11(a) hereof, the holder of any Right thereafter exercised shall become
entitled to receive any share capital of the Company other than the Preference
Shares, thereafter the Purchase Price and the number of such other shares so
receivable upon exercise of a Right shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Preference Shares contained in Sections 11(a),
11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) and the provisions of Sections 7,
9, 10, 13 and 14 hereof with respect to the Preference Shares shall apply on
like terms to any such other shares.
(g) All Rights originally issued by the Company subsequent to
any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number of one one-thousandths
of a Preference Share purchasable from time to time hereunder upon exercise of
the Rights, all subject to further adjustment as provided herein.
(h) Unless the Company shall have exercised its election as
provided in Section 11(i), upon each adjustment of the Purchase Price as a
result of the calculations made in Sections 11(b) and (c), each Right
outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Purchase Price,
that number of one one-thousandths of a Preference Share (calculated to the
nearest one ten- thousandth of a Preference Share) obtained by (i) multiplying
(x) the number of one one-thousandths of a share covered by a Right
immediately prior to such adjustment by (y) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (ii) dividing
the product so obtained by the Purchase Price in effect immediately after such
adjustment of the Purchase Price.
(i) The Company may elect on or after the date of any adjustment
of the Purchase Price to adjust the number of Rights, in substitution for any
adjustment in the number of one one-thousandths of a Preference Share
purchasable upon the exercise of a Right. Each of the Rights outstanding
after such adjustment of the number of Rights shall be exercisable for the
number of one one-thousandths of a Preference Share for which a Right was
exercisable immediately prior to such adjustment. Each Right held of record
prior to such adjustment of the number of Rights shall become that number of
Rights (calculated to the nearest one ten-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase
Price. The Company shall make a public announcement of its election to adjust
the number of Rights, indicating the record date for the adjustment, and, if
known at the time, the amount of the adjustment to be made. This record date
may be the date on which the Purchase Price is adjusted or any day thereafter,
but, if the Right Certificates have been issued, shall be at least 10 days
later than the date of the public announcement. If Right Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company may, as promptly as practicable, cause to be
distributed to holders of record of Right Certificates on such record date
Right Certificates evidencing, subject to Section 14 hereof, the additional
Rights to which such holders shall be entitled as a result of such adjustment,
or, at the option of the Company, shall cause to be distributed to such
holders of record in substitution and replacement for the Right Certificates
held by such holders prior to the date of adjustment, and upon surrender
thereof, if required by the Company, new Right Certificates evidencing all the
Rights to which such holders shall be entitled after such adjustment. Right
Certificates so to be distributed shall be issued, executed and countersigned
in the manner provided for herein and shall be registered in the names of the
holders of record of Right Certificates on the record date specified in the
public announcement.
(j) Irrespective of any adjustment or change in the Purchase
Price or the number of one one-thousandths of a Preference Share issuable upon
the exercise of the Rights, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price and the number of one
one-thousandths of a Preference Share which were expressed in the initial
Right Certificates issued hereunder.
(k) Before taking any action that would cause an adjustment
reducing the Purchase Price below the then par value, if any, of the
Preference Shares or other share capital issuable upon exercise of the Rights,
the Company shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue
fully paid and nonassessable Preference Shares or other such shares at such
adjusted Purchase Price.
(l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Right exercised after such record date
of the Preference Shares and other share capital or securities of the Company,
if any, issuable upon such exercise over and above the Preference Shares and
other share capital or securities of the Company, if any, issuable upon such
exercise on the basis of the Purchase Price in effect prior to such
adjustment; provided, however, that the Company shall deliver to such
holder a due bill or other appropriate instrument evidencing such holder's
right to receive such additional shares upon the occurrence of the event
requiring such adjustment.
(m) Anything in this Section 11 to the contrary notwithstanding,
the Company shall be entitled to make such reductions in the Purchase Price,
in addition to those adjustments expressly required by this Section 11, as and
to the extent that it in its sole discretion shall determine to be advisable
in order that any consolidation or subdivision of the Preference Shares,
issuance wholly for cash of any Preference Shares at less than the current
market price, issuance wholly for cash or Preference Shares or securities
which by their terms are convertible into or exchangeable for Preference
Shares, dividends on Preference Shares payable in Preference Shares or
issuance of rights, options or warrants referred to hereinabove in Section
11(b), hereafter made by the Company to holders of its Preference Shares shall
not be taxable to such shareholders.
(n) Anything in this Agreement to the contrary notwithstanding,
in the event that at any time after the date of this Agreement and prior to
the Distribution Date, the Company shall (i) declare or pay any dividend on
the Ordinary Shares payable in Ordinary Shares or (ii) effect a subdivision,
combination or consolidation of Ordinary Shares (by reclassification or
otherwise than by payment of a dividend payable in Ordinary Shares) into a
greater or lesser number of Ordinary Shares, then in any such case, the number
of Rights associated with each Ordinary Share then outstanding, or issued or
delivered thereafter, shall be proportionately adjusted so that the number of
Rights thereafter associated with each Ordinary Share following any such event
shall equal the result obtained by multiplying the number of Rights associated
with each Ordinary Share immediately prior to such event by a fraction the
numerator of which shall be the total number of Ordinary Shares outstanding
immediately prior to the occurrence of the event and the denominator of which
shall be the total number of Ordinary Shares outstanding immediately following
the occurrence of such event.
(o) The Company agrees that, after the earlier of the
Distribution Date or the Stock Acquisition Date, it will not, except as
permitted by Sections 23, 24 or 27 hereof, take (or permit any Subsidiary to
take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or eliminate the
benefits intended to be afforded by the Rights.
Section 12. Certificate of Adjusted Purchase Price or Number of
Shares. Whenever an adjustment is made as provided in Section 11 or 13
hereof, the Company shall promptly (a) prepare a certificate setting forth
such adjustment, and a brief statement of the facts accounting for such
adjustment, (b) file with the Rights Agent and with each transfer agent for
the Ordinary Shares or the Preference Shares a copy of such certificate and
(c) mail a brief summary thereof to each holder of a Right Certificate in
accordance with Section 25 hereof (if so required under Section 25 hereof).
The Rights Agent shall be fully protected in relying on any such certificate
and on any adjustment therein contained and shall not be deemed to have
knowledge of any such adjustment unless and until it shall have received such
certificate.
Section 13. Consolidation, Merger or Sale or Transfer of Assets or
Earnings Power. (a) In the event, directly or indirectly, at any time after
any Person has become an Acquiring Person, (i) the Company shall merge with
and into any other Person, (ii) any Person shall consolidate with the Company,
or any Person shall merge with and into the Company and the Company shall be
the continuing or surviving corporation of such merger and, in connection with
such merger, all or part of the Ordinary Shares shall be changed into or
exchanged for shares or other securities of any other Person (or of the
Company) or cash or any other property, or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating
50% or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person (other than the Company or one or more
of its wholly-owned Subsidiaries), then upon the first occurrence of such
event, proper provision shall be made so that: (A) each holder of record of a
Right (other than Rights which have become void pursuant to Section 11(a)(ii))
shall thereafter have the right to receive, upon the exercise thereof at a
price equal to the then current Purchase Price multiplied by the number of one
one-thousandths of a Preference Share for which a Right was exercisable
(whether or not such Right was then exercisable) immediately prior to the time
that any Person first became an Acquiring Person (each as subsequently
adjusted thereafter pursuant to Sections 11(a)(i), 11(b), 11(c), 11(h), 11(i)
and 11(m)), in accordance with the terms of this Agreement and in lieu of
Preference Shares, such number of validly issued, fully paid and
non-assessable and freely tradeable Ordinary Shares of the Principal Party (as
defined herein) not subject to any liens, encumbrances, rights of first
refusal or other adverse claims, as shall be equal to the result obtained by
(1) multiplying the then current Purchase Price by the number of one
one-thousandths of a Preference Share for which a Right was exercisable
immediately prior to the time that any Person first became an Acquiring Person
(as subsequently adjusted thereafter pursuant to Sections 11(a)(i), 11(b),
11(c), 11(h), 11(i) and 11(m)) and (2) dividing that product by 50% of the
then current per share market price of the Ordinary Shares of such Principal
Party (determined pursuant to Section 11(d)(i) hereof) on the date of
consummation of such consolidation, merger, sale or transfer; provided that
the Purchase Price and the number of Ordinary Shares of such Principal Party
issuable upon exercise of each Right shall be further adjusted as provided in
Section 11(f) of this Agreement to reflect any events occurring in respect of
such Principal Party after the date of the such consolidation, merger, sale or
transfer; (B) such Principal Party shall thereafter be liable for, and shall
assume, by virtue of such consolidation, merger, sale or transfer, all the
obligations and duties of the Company pursuant to this Agreement; (C) the term
"Company" shall thereafter be deemed to refer to such Principal Party; and (D)
such Principal Party shall take such steps (including, but not limited to, the
reservation of a sufficient number of its Ordinary Shares in accordance with
Section 9 hereof) in connection with such consummation of any such transaction
as may be necessary to assure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to its Common Stock
thereafter deliverable upon the exercise of the Rights; provided that, upon
the subsequent occurrence of any consolidation, merger, sale or transfer of
assets or other extraordinary transaction in respect of such Principal Party,
each holder of a Right shall thereupon be entitled to receive, upon exercise
of a Right and payment of the Purchase Price as provided in this Section
13(a), such cash, shares, rights, warrants and other property which such
holder would have been entitled to receive had such holder, at the time of
such transaction, owned the Ordinary Shares of the Principal Party receivable
upon the exercise of a Right pursuant to this Section 13(a), and such
Principal Party shall take such steps (including, but not limited to,
reservation of shares of stock) as may be necessary to permit the subsequent
exercise of the Rights in accordance with the terms hereof for such cash,
shares, rights, warrants and other property.
(b) "Principal Party" shall mean
(i) in the case of any transaction described in (i) or (ii)
of the first sentence of Section 13(a) hereof: (A) the Person that is the
issuer of the securities into which the Ordinary Shares are converted in such
merger or consolidation, or, if there is more than one such issuer, the issuer
the Ordinary Shares of which have the greatest aggregate market value of
shares outstanding, or (B) if no securities are so issued, (x) the Person that
is the other party to the merger, if such Person survives said merger, or, if
there is more than one such Person, the Person the Ordinary Shares of which
have the greatest aggregate market value of shares outstanding or (y) if the
Person that is the other party to the merger does not survive the merger, the
Person that does survive the merger (including the Company if it survives) or
(z) the Person resulting from the consolidation; and
(ii) in the case of any transaction described in (iii) of
the first sentence in Section 13(a) hereof, the Person that is the party
receiving the greatest portion of the assets or earning power transferred
pursuant to such transaction or transactions, or, if each Person that is a
party to such transaction or transactions receives the same portion of the
assets or earning power so transferred or if the Person receiving the greatest
portion of the assets or earning power cannot be determined, whichever of such
Persons as is the issuer of Ordinary Shares having the greatest aggregate
market value of shares outstanding;
provided, however, that in any such case described in the foregoing clause
(b)(i) or (b)(ii), if the Ordinary Shares of such Person is not at such time
or has not been continuously over the preceding 12-month period registered
under Section 12 of the Exchange Act, then (1) if such Person is a direct or
indirect Subsidiary of another Person the Ordinary Shares of which is and has
been so registered, the term "Principal Party" shall refer to such other
Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more
than one Person and the Ordinary Shares of all of such Persons have been so
registered, the term "Principal Party" shall refer to whichever of such
Persons is the issuer of Ordinary Shares having the greatest aggregate market
value of shares outstanding, or (3) if such Person is owned, directly or
indirectly, by a joint venture formed by two or more Persons that are not
owned, directly or indirectly, by the same Person, the rules set forth in
clauses (1) and (2) above shall apply to each of the owners having an interest
in the venture as if the Person owned by the joint venture was a Subsidiary of
both or all of such joint venturers, and the Principal Party in each such case
shall bear the obligations set forth in this Section 13 in the same ratio as
its interest in such Person bears to the total of such interests.
(c) The Company shall not consummate any consolidation, merger,
sale or transfer referred to in Section 13(a) hereof unless prior thereto the
Company and the Principal Party involved therein shall have executed and
delivered to the Rights Agent an agreement confirming that the requirements of
Sections 13(a) and (b) hereof shall promptly be performed in accordance with
their terms and that such consolidation, merger, sale or transfer of assets
shall not result in a default by the Principal Party under this Agreement as
the same shall have been assumed by the Principal Party pursuant to Sections
13(a) and (b) hereof and providing that, as soon as practicable after
executing such agreement pursuant to this Section 13, the Principal Party
will:
(i) prepare and file a registration statement under the
Securities Act, if necessary, with respect to the Rights and the securities
purchasable upon exercise of the Rights on an appropriate form, use its best
efforts to cause such registration statement to become effective as soon as
practicable after such filing and use its best efforts to cause such
registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the Final Expiration
Date, and similarly comply with applicable state securities laws;
(ii) use its best efforts, if the Ordinary Shares of the
Principal Party shall be listed or admitted to trading on the New York Stock
Exchange or on another national securities exchange, to list or admit to
trading (or continue the listing of) the Rights and the securities purchasable
upon exercise of the Rights on the New York Stock Exchange or such securities
exchange, or, if the Ordinary Shares of the Principal Party shall not be
listed or admitted to trading on the New York Stock Exchange or a national
securities exchange, to cause the Rights and the securities receivable upon
exercise of the Rights to be reported by such other system then in use;
(iii) deliver to holders of the Rights historical financial
statements for the Principal Party which comply in all respects with the
requirements for registration on Form 10 (or any successor form) under the
Exchange Act; and
(iv) obtain waivers of any rights of first refusal or
preemptive rights in respect of the Ordinary Shares of the Principal Party
subject to purchase upon exercise of outstanding Rights.
(d) In case the Principal Party has provision in any of its
authorized securities or in its certificate of incorporation or by-laws or
other instrument governing its corporate affairs, which provision would have
the effect of (i) causing such Principal Party to issue (other than to holders
of Rights pursuant to this Section 13), in connection with, or as a
consequence of, the consummation of a transaction referred to in this Section
13, Ordinary Shares of such Principal Party at less than the then current
market price per share thereof (determined pursuant to Section 11(d) hereof)
or securities exercisable for, or convertible into, Ordinary Shares of such
Principal Party at less than such then current market price, or (ii) providing
for any special payment, tax or similar provision in connection with the
issuance of the Ordinary Shares of such Principal Party pursuant to the
provisions of Section 13, then, in such event, the Company hereby agrees with
each holder of Rights that it shall not consummate any such transaction unless
prior thereto the Company and such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement providing that the
provision in question of such Principal Party shall have been cancelled,
waived or amended, or that the authorized securities shall be redeemed, so
that the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.
(e) The Company covenants and agrees that it shall not, at any
time after a Person first becomes an Acquiring Person, enter into any
transaction of the type contemplated by (i) - (iii) of Section 13(a) hereof if
(x) at the time of or immediately after such consolidation, merger, sale,
transfer or other transaction there are any rights, warrants or other
instruments or securities outstanding or agreements in effect which would
substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights, (y) prior to, simultaneously with or immediately after
such consolidation, merger, sale, transfer of other transaction, the
stockholders of the Person who constitutes, or would constitute, the Principal
Party for purposes of Section 13(a) hereof shall have received a distribution
of Rights previously owned by such Person or any of its Affiliates or
Associates or (z) the form or nature of organization of the Principal Party
would preclude or limit the exercisability of the Rights.
Section 14. Fractional Rights and Fractional Shares. (a) The
Company shall not be required to issue fractions of Rights or to distribute
Right Certificates which evidence fractional Rights. In lieu of such
fractional Rights, there shall be paid to the registered holders of the Right
Certificates with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right. For the purposes of this Section 14(a), the current
market value of a whole Right shall be the closing price of the Rights for the
Trading Day immediately prior to the date on which such fractional Rights
would have been otherwise issuable. The closing price for any day shall be
the last sale price, regular way, or, in case no such sale takes place on such
day, the average of the closing bid and asked prices, regular way, in either
case as reported in the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Rights are not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal U.S.
national securities exchange on which the Rights are listed or admitted to
trading or, if the Rights are not listed or admitted to trading on any U.S.
national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market,
as reported by any system then in use or, if on any such date the Rights are
not quoted by any organization in the over-the-counter market, the average of
the closing bid and asked prices as furnished by a professional market maker
making a market in the Rights selected by the Board of Directors of the
Company. If on any such date no such market maker is making a market in the
Rights, the fair value of the Rights on such date as determined in good faith
by the Board of Directors of the Company shall be used.
(b) The Company shall not be required to issue fractions of
Preference Shares (other than fractions which are integral multiples of one
one-thousandth of a Preference Share) upon exercise of the Rights or to
distribute certificates which evidence fractional Preference Shares (other
than fractions which are integral multiples of one one-thousandth of a
Preference Share). Interests in fractions of Preference Shares in integral
multiples of one one-thousandth of a Preference Share may, at the election of
the Company, be evidenced by depositary receipts, pursuant to an appropriate
agreement between the Company and a depositary selected by it; provided,
that such agreement shall provide that the holders of such depositary receipts
shall have all the rights, privileges and preferences to which they are
entitled as beneficial owners of the Preference Shares represented by such
depositary receipts. In lieu of fractional Preference Shares that are not
integral multiples of one one-thousandth of a Preference Share, the Company
shall pay to the registered holders of Right Certificates at the time such
Rights are exercised as herein provided an amount in cash equal to the same
fraction of the current market value of one Preference Share. For the
purposes of this Section 14(b), the current market value of a Preference Share
shall be the closing price of a Preference Share (as determined pursuant to
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of
such exercise.
(c) The holder of a Right by the acceptance of the Right
expressly waives his right to receive any fractional Rights or any fractional
shares upon exercise of a Right (except as provided above).
Section 15. Rights of Action. All rights of action in respect of
this Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the
Right Certificates (and, prior to the Distribution Date, the registered
holders of the Ordinary Shares); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Ordinary Shares),
without the consent of the Rights Agent or of the holder of any other Right
Certificate (or, prior to the Distribution Date, of the Ordinary Shares), on
his own behalf and for his own benefit, may enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or
otherwise act in respect of, his right to exercise the Rights evidenced by
such Right Certificate (or, prior to the Distribution Date, such Ordinary
Shares) in the manner provided in such Right Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement and
will be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of, the obligations
of any Person subject to this Agreement.
Section 16. Agreement of Right Holders. Every holder of a Right,
by accepting the same, consents and agrees with the Company and the Rights
Agent and with every other holder of a Right that:
(a) prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Ordinary Shares;
(b) after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the office or agency of the Rights Agent designated for such purpose, duly
endorsed or accompanied by a proper instrument of transfer; and
(c) the Company and the Rights Agent may deem and treat the
Person in whose name the Right Certificate (or, prior to the Distribution
Date, the Ordinary Share certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of
ownership or writing on the Right Certificates or the Ordinary Share
certificate made by anyone other than the Company or the Rights Agent) for all
purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary.
Section 17. Right Certificate Holder Not Deemed a Shareholder.
No holder, as such, of any Right Certificate shall be entitled to vote,
receive dividends or be deemed for any purpose the holder of the Preference
Shares or any other securities of the Company which may at any time be
issuable on the exercise of the Rights represented thereby, nor shall anything
contained herein or in any Right Certificate be construed to confer upon the
holder of any Right Certificate, 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 give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting shareholders (except as provided in this Agreement),
or to receive dividends or subscription rights, or otherwise, until the Rights
evidenced by such Right Certificate shall have been exercised in accordance
with the provisions hereof.
Section 18. Concerning the Rights Agent. (a) The Company agrees
to pay to the Rights Agent reasonable compensation for all services rendered
by it hereunder and, from time to time, on demand of the Rights Agent, its
reasonable expenses and counsel fees and other disbursements incurred in the
administration and execution of this Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the
Rights Agent for, and to hold it harmless against, any loss, liability or
expense, incurred without negligence, bad faith or willful misconduct on the
part of the Rights Agent, for anything done or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including
the costs and expenses of defending against any claim of liability arising
therefrom, directly or indirectly.
(b) The Rights Agent shall be protected and shall incur no
liability for, or in respect of any action taken, suffered or omitted by it in
connection with, its administration of this Agreement in reliance upon any
Right Certificate or certificate for the Preference Shares or Ordinary Shares
or for other securities of the Company, instrument of assignment or transfer,
power of attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it to be
genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper Person or Persons, or otherwise upon the advice of
counsel as set forth in Section 20 hereof.
Section 19. Merger or Consolidation or Change of Name of Rights
Agent. (a) Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights
Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the stock transfer or corporate trust powers of the Rights Agent
or any successor Rights Agent, shall be the successor to the Rights Agent
under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto; provided, that such
corporation would be eligible for appointment as a successor Rights Agent
under the provisions of Section 21 hereof. In case at the time such successor
Rights Agent shall succeed to the agency created by this Agreement, any of the
Right Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor
Rights Agent and deliver such Right Certificates so countersigned; and in case
at that time any of the Right Certificates shall not have been countersigned,
any successor Rights Agent may countersign such Right Certificates either in
the name of the predecessor Rights Agent or in the name of the successor
Rights Agent; and in all such cases such Right Certificates shall have the
full force provided in the Right Certificates and in this Agreement.
(b) In case at any time the name of the Rights Agent shall be
changed and at such time any of the Right Certificates shall have been
countersigned but not delivered the Rights Agent may adopt the
countersignature under its prior name and deliver Right Certificates so
countersigned; and in case at that time any of the Right Certificates shall
not have been countersigned, the Rights Agent may countersign such Right
Certificates either in its prior name or in its changed name and in all such
cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Agreement.
Section 20. Duties of Rights Agent. The Rights Agent undertakes
the duties and obligations imposed by this Agreement upon the following terms
and conditions, by all of which the Company and the holders of Right
Certificates, by their acceptance thereof, shall be bound:
(a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the opinion of such counsel shall be full
and complete authorization and protection to the Rights Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion.
(b) Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact
or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect
thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by any one of the President,
the Chief Financial Officer or the Secretary of the Company and delivered to
the Rights Agent; and such certificate shall be full authorization to the
Rights Agent for any action taken or suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate.
(c) The Rights Agent shall be liable hereunder to the Company
and any other Person only for its own negligence, bad faith or wilful
misconduct.
(d) The Rights Agent shall not be liable for or by reason of any
of the statements of fact or recitals contained in this Agreement or in the
Right Certificates (except its countersignature thereof) or be required to
verify the same, but all such statements and recitals are and shall be deemed
to have been made by the Company only.
(e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Right Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate;
nor shall it be responsible for any change in the exercisability of the Rights
(including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or
any adjustment in the terms of the Rights (including the manner, method or
amount thereof) provided for in Sections 3, 11, 13, 23 and 24, or the
ascertaining of the existence of facts that would require any such change or
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of a certificate furnished pursuant to Section 12,
describing such change or adjustment); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any Preference Shares or other securities to be issued pursuant
to this Agreement or any Right Certificate or as to whether any Preference
Shares or other securities will, when issued, be validly authorized and
issued, fully paid and nonassessable.
(f) The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and assurances as may
reasonably be required by the Rights Agent for the carrying out or performing
by the Rights Agent of the provisions of this Agreement.
(g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
person reasonably believed by the Rights Agent to be one of the President, the
Chief Financial Officer or the Secretary of the Company, and to apply to such
officers for advice or instructions in connection with its duties, and it
shall not be liable for any action taken or suffered by it in good faith in
accordance with instructions of any such officer or for any delay in acting
while waiting for those instructions. Any application by the Rights Agent for
written instructions from the Company may, at the option of the Rights Agent,
set forth in writing any action proposed to be taken or omitted by the Rights
Agent under this Agreement and the date on and/or after which such action
shall be taken or such omission shall be effective. The Rights Agent shall
not be liable for any action taken by, or omission of, the Rights Agent in
accordance with a proposal included in any such application on or after the
date specified in such application (which date shall not be less than five
Business Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to an
earlier date) unless, prior to taking any such action (or the effective date
in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken
or omitted.
(h) The Rights Agent and any shareholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or
other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were
not Rights Agent under this Agreement. Nothing herein shall preclude the
Rights Agent from acting in any other capacity for the Company or for any
other legal entity.
(i) The Rights Agent may execute and exercise any of the rights
or powers hereby vested in it or perform any duty hereunder either itself or
by or through its attorneys or agents, and the Rights Agent shall not be
answerable or accountable for any act, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company resulting from any
such act, default, neglect or misconduct, provided reasonable care was
exercised in the selection and continued employment thereof.
(j) If, with respect to any Rights Certificate surrendered to
the Rights Agent for exercise or transfer, the certificate contained in the
form of assignment or the form of election to purchase set forth on the
reverse thereof, as the case may be, has not been completed to certify the
holder is not an Acquiring Person (or an Affiliate or Associate thereof), the
Rights Agent shall not take any further action with respect to such requested
exercise or transfer without first consulting with the Company.
Section 21. Change of Rights Agent. The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties under this
Agreement upon 30 days' notice in writing mailed to the Company and to each
transfer agent of the Ordinary Shares or Preference Shares by registered or
certified mail, and, following the Distribution Date, to the holders of the
Right Certificates by first-class mail. The Company may remove the Rights
Agent or any successor Rights Agent upon 30 days' notice in writing, mailed to
the Rights Agent or successor Rights Agent, as the case may be, and to each
transfer agent of the Ordinary Shares or Preference Shares by registered or
certified mail, and, following the Distribution Date, to the holders of the
Right Certificates by first-class mail. If the Rights Agent shall resign or
be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company shall fail to make
such appointment within a period of 30 days after giving notice of such
removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of
a Right Certificate (who shall, with such notice, submit his Right Certificate
for inspection by the Company), then the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be a corporation organized
and doing business under the laws of the United States or any State thereof,
which is authorized under such laws to exercise corporate trust or stock
transfer powers and is subject to supervision or examination by federal or
state authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least U.S. $50 million. After appointment,
the successor Rights Agent shall be vested with the same powers, rights,
duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver
and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or
deed necessary for the purpose. Not later than the effective date of any such
appointment the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Ordinary Shares or
Preference Shares, and, following the Distribution Date, mail a notice thereof
in writing to the registered holders of the Right Certificates. Failure to
give any notice provided for in this Section 21, however, or any defect
therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.
Section 22. Issuance of New Right Certificates. Notwithstanding
any of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Right Certificates evidencing Rights in
such forms as may be approved by its Board of Directors to reflect any
adjustment or change in the Purchase Price and the number or kind or class of
shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement. In
addition, in connection with the issuance or sale of Ordinary Shares following
the Distribution Date and prior to the earlier of the Redemption Date and the
Final Expiration Date, the Company may with respect to Ordinary Shares so
issued or sold pursuant to (i) the exercise of stock options, (ii) under any
employee plan or arrangement, (iii) upon the exercise, conversion or exchange
of securities, notes or debentures issued by the Company or (iv) a
contractual obligation of the Company in each case existing prior to the
Distribution Date, issue Rights Certificates representing the appropriate
number of Rights in connection with such issuance or sale.
Section 23. Redemption. (a) Subject to the provisions of this
Section 23, the Board of Directors of the Company may, at any time prior to
such time as any Person first becomes an Acquiring Person, redeem all but not
less than all the then outstanding Rights at a redemption price of $.01 per
Right, appropriately adjusted to reflect any subdivision, stock dividend or
similar transaction occurring after the date hereof (the redemption price
being hereinafter referred to as the "Redemption Price"). The redemption of
the Rights may be made effective at such time, on such basis and with such
conditions as the Board of Directors in its sole discretion may establish.
The Company may, at its option, pay the Redemption Price in cash, Ordinary
Shares (based on the current market price of the Ordinary Shares at the time
of redemption) or any other form of consideration deemed appropriate by the
Board of Directors.
(b) Immediately upon the action of the Board of Directors
ordering the redemption of the Rights pursuant to paragraph (a) of this
Section 23 (or at such later time as the Board of Directors may establish for
the effectiveness of such redemption), and without any further action and
without any notice, the right to exercise the Rights will terminate and the
only right thereafter of the holders of Rights shall be to receive the
Redemption Price. The Company shall promptly give public notice of any such
redemption; provided, however, that the failure to give, or any defect in,
any such notice shall not affect the validity of such redemption. Within 10
days after such action of the Board of Directors ordering the redemption of
the Rights (or such later time as the Board of Directors may establish for the
effectiveness of such redemption), the Company shall mail a notice of
redemption to all the holders of the then outstanding Rights at their last
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Ordinary Shares. Any notice which is mailed in the manner herein provided
shall be deemed given, whether or not the holder receives the notice. Each
such notice of redemption shall state the method by which the payment of the
Redemption Price will be made.
Section 24. Exchange. (a) The Board of Directors of the
Company, may, at its option, at any time after any Person first becomes an
Acquiring Person, exchange all or part of the then outstanding and exercisable
Rights (which shall not include Rights that have become void pursuant to the
provisions of Section 11(a)(ii) hereof) for Ordinary Shares at an exchange
ratio of one Ordinary Share per Right, (such exchange ratio being hereinafter
referred to as the "Exchange Ratio"). Notwithstanding the foregoing, the
Board of Directors shall not be empowered to effect such exchange at any time
(1) after any Person (other than an Exempt Person), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of a
number of Ordinary Shares equal to 50% or more of the number of Ordinary
Shares then outstanding or (2) after the occurrence of an event specified in
Section 13(a) hereof.
(b) Immediately upon the action of the Board of Directors of the
Company ordering the exchange of any Rights pursuant to paragraph (a) of this
Section 24 and without any further action and without any notice, the right to
exercise such Rights shall terminate and the only right thereafter of a holder
of such Rights shall be to receive that number of Ordinary Shares equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio.
The Company shall promptly give public notice of any such exchange;
provided, however, that the failure to give, or any defect in, such notice
shall not affect the validity of such exchange. The Company shall promptly
mail a notice of any such exchange to all of the holders of the Rights so
exchanged at their last addresses as they appear upon the registry books of
the Rights Agent. Any notice which is mailed in the manner herein provided
shall be deemed given, whether or not the holder receives the notice. Each
such notice of exchange will state the method by which the exchange of the
Ordinary Shares for Rights will be effected and, in the event of any partial
exchange, the number of Rights which will be exchanged. Any partial exchange
shall be effected pro rata based on the number of Rights (other than Rights
which have become void pursuant to the provisions of Section 11(a)(ii) hereof)
held by each holder of Rights.
(c) In the event that there shall not be sufficient Ordinary
Shares issued but not outstanding or authorized but unissued to permit any
exchange of Rights as contemplated in accordance with this Section 24, the
Company may, in its discretion, take such action as may be necessary to
authorize additional Ordinary Shares for issuance upon exchange of the Rights.
In the event that the Company shall determine not to take such action or
shall, after good faith effort, be unable to take such action as may be
necessary to authorize such additional Ordinary Shares, the Company shall
substitute, to the extent of such insufficiency, for each Ordinary Share that
would otherwise be issuable upon exchange of a Right, a number of Preference
Shares or fractions thereof (or equivalent preference shares as such term is
defined in Section 11(b)) having an aggregate current per share market price
(determined pursuant to Section 11(d) hereof) equal to the current per share
market price of one Ordinary Share (determined pursuant to Section 11(d)
hereof) as of the date of issuance of such Preference Shares or fractions
thereof (or equivalent preference shares).
(d) The Company shall not, in connection with any exchange
pursuant to this Section 24, be required to issue fractions of Ordinary Shares
or to distribute certificates which evidence fractional Ordinary Shares. In
lieu of such fractional Ordinary Shares, the Company shall pay to the
registered holders of the Right Certificates with regard to which such
fractional Ordinary Shares would otherwise be issuable an amount in cash equal
to the same fraction of the current market value of a whole Ordinary Share.
For the purposes of this paragraph (d), the current market value of a whole
Ordinary Share shall be the closing price of a Ordinary Share (as determined
pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading
Day immediately prior to the date of exchange pursuant to this Section 24.
Section 25. Notice of Certain Events. (a) In case the Company
shall at any time after the earlier of the Distribution Date or the Stock
Acquisition Date propose (i) to pay any dividend payable in shares of any
class to the holders of its Preference Shares or to make any other
distribution to the holders of its Preference Shares (other than a regular
quarterly cash dividend), (ii) to offer to the holders of its Preference
Shares rights or warrants to subscribe for or to purchase any additional
Preference Shares or shares of stock of any class or any other securities,
rights or options, (iii) to effect any reclassification of its Preference
Shares (other than a reclassification involving only the subdivision of
outstanding Preference Shares), (iv) to effect the liquidation, dissolution or
winding up of the Company, or (v) to declare or pay any dividend on Ordinary
Shares payable in Ordinary Shares or to effect a subdivision, combination or
consolidation of the Ordinary Shares (by reclassification or otherwise than by
payment of dividends in Ordinary Shares), then, in each such case, the Company
shall give to each holder of a Right Certificate, in accordance with Section
26 hereof, a notice of such proposed action, which shall specify the record
date for the purposes of such dividend of shares, or distribution of rights or
warrants, or the date on which such liquidation, dissolution or winding up is
to take place and the date of participation therein by the holders of the
Ordinary Shares and/or Preference Shares, if any such date is to be fixed, and
such notice shall be so given in the case of any action covered by clause (i)
or (ii) above at least 10 days prior to the record date for determining
holders of the Preference Shares for purposes of such action, and in the case
of any such other action, at least 10 days prior to the date of the taking of
such proposed action or the date of participation therein by the holders of
the Ordinary Shares and/or Preference Shares, whichever shall be the earlier.
(b) In case any event described in Section 11(a)(ii) or Section
13 shall occur then the Company shall as soon as practicable thereafter give
to each holder of a Right Certificate (or if occurring prior to the
Distribution Date, the holders of the Ordinary Shares) in accordance with
Section 26 hereof, a notice of the occurrence of such event, which notice
shall describe such event and the consequences of such event to holders of
Rights under Section 11(a)(ii) and Section 13 hereof.
Section 26. Notices. Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of any
Right Certificate to or on the Company shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Rights Agent) as follows:
Triton Energy Limited
Caledonian House, Mary Street
P.O. Box 1043
George Town, Grand Cayman, Cayman Islands
Attention: Secretary
Subject to the provisions of Section 21 hereof, any notice or demand
authorized by this Agreement to be given or made by the Company or by the
holder of any Right Certificate to or on the Rights Agent shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Company) as
follows:
Chemical Bank
2323 Bryan Street, Suite 2300
Dallas, Texas 75201
Attention: Shareholder Services Group
Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Right Certificate shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the
registry books of the Company.
Section 27. Supplements and Amendments. Except as otherwise
provided in this Section 27, for so long as the Rights are then redeemable,
the Company may in its sole and absolute discretion, and the Rights Agent
shall if the Company so directs, supplement or amend any provision of this
Agreement in any respect without the approval of any holders of the Rights.
At any time when the Rights are no longer redeemable, except as otherwise
provided in this Section 27, the Company may, and the Rights Agent shall, if
the Company so directs, supplement or amend this Agreement without the
approval of any holders of Rights Certificates in order to (i) cure any
ambiguity, (ii) correct or supplement any provision contained herein which may
be defective or inconsistent with any other provisions herein, (iii) shorten
or lengthen any time period hereunder, or (iv) change or supplement the
provisions hereunder in any manner which the Company may deem necessary or
desirable; provided that no such supplement or amendment shall adversely
affect the interests of the holders of Rights as such (other than an Acquiring
Person or an Affiliate or Associate of an Acquiring Person), and no such
amendment may cause the rights again to become redeemable or cause the
Agreement again to become amendable other than in accordance with this
sentence. Notwithstanding anything contained in this Agreement to the
contrary, no supplement or amendment shall be made that decreases the
Redemption Price. Upon the delivery of a certificate from an appropriate
officer of the Company which states that the proposed supplement or amendment
is in compliance with the terms of this Section 27, the Rights Agent shall
execute such supplement or amendment.
Section 28. Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.
Section 29. Benefits of this Agreement. Nothing in this
Agreement shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Right Certificates (and, prior
to the Distribution Date, the Ordinary Shares) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered
holders of the Right Certificates (and, prior to the Distribution Date, the
Ordinary Shares).
Section 30. Severability. If any term, provision, covenant or
restriction of this Agreement or applicable to this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.
Section 31. Governing Law. This Agreement and each Right
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the Cayman Islands and for all purposes shall be governed by and
construed in accordance with the laws of such Country applicable to contracts
to be made and performed entirely within such Country except that the rights,
duties and obligations of the Rights Agent shall be governed by and construed
in accordance with the Laws of the State of New York, U.S.A.
Section 32. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.
Section 33. Descriptive Headings. Descriptive headings of the
several Sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and attested, all as of the day and year first above written.
Attest: TRITON ENERGY LIMITED
By __________ By _________
Name: Name:
Title: Title:
Attest: CHEMICAL BANK
By _________ By___________
Name: Name:
Title: Title:
<PAGE>
A-
B-
Exhibit A
FORM OF
RESOLUTIONS
OF
TRITON ENERGY LIMITED
AUTHORIZING A SERIES OF PREFERENCE SHARES
___________________
WHEREAS, Triton Energy Corporation, a Delaware corporation ("TEC"),
desires to effect a reorganization pursuant to which the Company would become
the parent holding company of TEC through the merger (the "Merger") of TEL
Merger Corp., a Delaware corporation and a wholly-owned subsidiary of the
Company ("Sub"), with and into TEC; and
WHEREAS, in connection with the Merger, the Board of Directors and
the sole shareholder of the Company have resolved to amend and restate the
Memorandum of Association and Articles of Association (the "Restated Charter")
to be effective immediately prior to the effective time of the Merger; now
therefore, be it
RESOLVED, that pursuant to the authority vested in the Board of
Directors of the Company in accordance with the provisions of its Restated
Charter, the Board of Directors, effective as of the effective time of the
Merger, does hereby create, authorize and provide for the issuance, upon the
exercise of the rights issued by the Company to its shareholders of record at
the close of business on the effective date of the Merger (the "Rights"), of a
series of preference shares of the Company, to be designated Series A Junior
Participating Preference Shares (hereinafter referred to as the "Series A
Preference Shares"), initially consisting of 200,000 shares and to the extent
that the designations, powers, preferences and relative and other special
rights and the qualifications, limitations and restrictions of the Series A
Preference Shares are not stated and expressed in the Restated Charter, does
hereby fix and state such designations, powers, and preferences and relative
and other special rights and the qualifications, limitations or restrictions
thereof, as follows:
Section 1. DESIGNATION AND AMOUNT. The shares of such series shall
be designated as "Series A Junior Participating Preference Shares" (the
"Series A Preference Shares"), and the number of shares constituting such
series shall be 200,000. Such number of shares may be increased or decreased
by resolution of the Board of Directors; PROVIDED, that no decrease shall
reduce the number of Series A Preference Shares to a number less than the
number of shares then outstanding plus the number of shares reserved for
issuance upon the exercise of outstanding options, rights or warrants or upon
the conversion of any outstanding securities issued by the Company convertible
into Series A Preference Shares.
Section 2. DIVIDENDS AND DISTRIBUTIONS.
(A) Subject to the rights of the holders of any shares of any
series of Preference Shares of the Company (the "Preference Shares") (or any
similar shares) ranking prior and superior to the Series A Preference Shares
with respect to dividends, the holders of Series A Preference Shares, in
preference to the holders of Ordinary Shares, having a par value of $.01 per
share, of the Company (the "Ordinary Shares") and of any other shares of the
Company ranking junior to the Series A Preference Shares, shall be entitled to
receive, when, as and if declared by the Board of Directors out of funds
legally available for the purpose, quarterly dividends payable in cash on the
last day of January, April, July, and October in each year (each such date
being referred to herein as a "Dividend Payment Date"), commencing on the
first Dividend Payment Date after the first issuance of a share or fraction of
a share of Series A Preference Shares, in an amount per share (rounded to the
nearest cent) equal to the greater of (a) $1 or (b) subject to the provision
for adjustment hereinafter set forth, 1,000 times the aggregate per share
amount of all cash dividends, and 1,000 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions other than
a dividend payable in Ordinary Shares, declared on the Ordinary Shares since
the immediately preceding Dividend Payment Date or, with respect to the first
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Preference Shares. In the event the Company shall at any
time declare or pay any dividend on the Class A Shares payable in shares of
Ordinary Shares, or effect a subdivision or combination or consolidation of
the outstanding Ordinary Shares (by reclassification or otherwise than by
payment of a dividend in shares of Ordinary Shares) into a greater or lesser
number of Ordinary Shares, then in each such case the amount to which holders
of Series A Preference Shares were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of Ordinary
Shares outstanding immediately after such event and the denominator of which
is the number of Ordinary Shares that were outstanding immediately prior to
such event.
(B) The Company shall declare a dividend or distribution on the
Series A Preference Shares as provided in paragraph (a) of this Section
immediately after it declares a dividend or distribution on the Ordinary
Shares (other than a dividend payable in shares of Ordinary Shares); provided
that, in the event no dividend or distribution shall have been declared on the
Ordinary Shares during the period between any Dividend Payment Date and the
next subsequent Dividend Payment Date, a dividend of $1 per share on the
Series A Preference Shares shall nevertheless be payable, when, as and if
declared, on such subsequent Dividend Payment Date.
(C) Dividends shall begin to accrue and be cumulative, whether or
not earned or declared, on outstanding Series A Preference Shares from the
Dividend Payment Date next preceding the date of issue of such shares, unless
the date of issue of such shares is prior to the record date for the first
Dividend Payment Date, in which case dividends on such shares shall begin to
accrue from the date of issue of such shares, or unless the date of issue is a
Dividend Payment Date or is a date after the record date for the determination
of holders of Series A Preference Shares entitled to receive a quarterly
dividend and before such Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Dividend Payment
Date. Accrued but unpaid dividends shall not bear interest. Dividends paid
on the Series A Preference Shares in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the
determination of holders of Series A Preference Shares entitled to receive
payment of a dividend or distribution declared thereon, which record date
shall be not more than 60 days prior to the date fixed for the payment
thereof.
Section 3. VOTING RIGHTS. The holders of Series A Preference
Shares shall have the following rights:
(A) Subject to the provision for adjustment hereinafter set forth,
each Series A Preference Share shall entitle the holder thereof to 1,000 votes
on all matters submitted to a vote of the shareholders of the Company. In the
event the Company shall at any time declare any dividend on the Ordinary
Shares payable in shares of Ordinary Shares, or effect a subdivision or
combination or consolidation of the outstanding Ordinary Shares (by
reclassification or otherwise than by payment of a dividend in Ordinary
Shares) into a greater or lesser number of Ordinary Shares, then in each such
case the number of votes per share to which holders of Series A Preference
Shares were entitled immediately prior to such event shall be adjusted by
multiplying such number by a fraction, the numerator of which is the number of
Ordinary Shares outstanding immediately after such event and the denominator
of which is the number of Ordinary Shares that were outstanding immediately
prior to such event.
(B) Except as otherwise provided herein, in any other resolution of
the Board of Directors creating a series of Preference Shares or any similar
shares, and except as otherwise required by law, the holders of Series A
Preference Shares and the holders of Ordinary Shares and any other shares of
the Company having general voting rights shall vote together as one class on
all matters submitted to a vote of shareholders of the Company.
(C) Except as set forth herein, or as otherwise provided by law,
holders of Series A Preference Shares shall have no special voting rights and
their consent shall not be required (except to the extent that they are
entitled to vote with holders of Ordinary Shares as set forth herein) for
taking any corporate action.
Section 4. CERTAIN RESTRICTIONS.
(A) Whenever quarterly dividends or other dividends or
distributions payable on the Series A Preference Shares as provided in Section
2 are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not earned or declared, on Series A Preference
Shares outstanding shall have been paid in full, the Company shall not:
(i) declare or pay dividends, or make any other distributions, on
any shares ranking junior (as to dividends) to the Series A Preference Shares;
(ii) declare or pay dividends, or make any other distributions, on
any shares ranking on a parity (as to dividends) with the Series A Preference
Shares, except dividends paid ratably on the Series A Preference Shares and
all such parity shares on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are
then entitled;
(iii) redeem or purchase or otherwise acquire for consideration
shares ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series A Preference Shares, provided that the Company
may at any time redeem, purchase or otherwise acquire shares of any such
junior shares in exchange for shares of the Company ranking junior (as to
dividends and upon dissolution, liquidation or winding up) to the Series A
Preference Shares or rights, warrants or options to acquire such junior
shares; or
(iv) redeem or purchase or otherwise acquire for consideration any
Series A Preference Shares, or any shares of shares ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with
the Series A Preference Shares, except in accordance with a purchase offer
made in writing or by publication (as determined by the Board of Directors) to
all holders of such shares upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative
rights and preferences of the respective series and classes, shall determine
in good faith will result in fair and equitable treatment among the respective
series or classes.
(B) The Company shall not permit any subsidiary of the Company to
purchase or otherwise acquire for consideration any shares of the Company
unless the Company could, under paragraph (a) of this Section 4, purchase or
otherwise acquire such shares at such time and in such manner.
Section 5. REACQUIRED SHARES. Any Series A Preference Shares
purchased or otherwise acquired by the Company in any manner whatsoever shall
be retired and cancelled promptly after the acquisition thereof.
Section 6. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any
liquidation, dissolution or winding up of the Company, no distribution shall
be made (a) to the holders of shares ranking junior (upon liquidation,
dissolution or winding up) to the Series A Preference Shares unless, prior
thereto, the holders of Series A Preference Shares shall have received $1,000
per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not earned or declared, to the date of such
payment, provided that the holders of Series A Preference Shares shall be
entitled to receive an aggregate amount per share, subject to the provision
for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount to be distributed per share to holders of Ordinary Shares, or (b) to
the holders of shares ranking on a parity (upon liquidation, dissolution or
winding up) with the Series A Preference Shares, except distributions made
ratably on the Series A Preference Shares and all such parity shares in
proportion to the total amounts to which the holders of all such shares are
entitled upon such liquidation, dissolution or winding up. In the event the
Company shall at any time declare or pay any dividend on the Ordinary Shares
payable in Ordinary Shares, or effect a subdivision or combination or
consolidation of the outstanding Ordinary Shares (by reclassification or
otherwise than by payment of a dividend in Ordinary Shares) into a greater or
lesser number of Ordinary Shares, then in each such case the aggregate amount
to which holders of Series A Preference Shares were entitled immediately prior
to such event under the proviso in clause (a) of the preceding sentence shall
be adjusted by multiplying such amount by a fraction the numerator of which is
the number of Ordinary Shares outstanding immediately after such event and the
denominator of which is the number of Ordinary Shares that were outstanding
immediately prior to such event.
Section 7. CONSOLIDATION, MERGER, ETC. In case the Company shall
enter into any consolidation, merger, combination or other transaction in
which the Ordinary Shares are converted into, exchanged for or changed into
other shares or securities, cash and/or any other property, then in any such
case each Series A Preference Share shall at the same time be similarly
converted into, exchanged for or changed into an amount per share (subject to
the provision for adjustment hereinafter set forth) equal to 1,000 times the
aggregate amount of shares, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each Ordinary
Shares is converted or exchanged. In the event the Company shall at any time
declare or pay any dividend on the Ordinary Shares payable in Ordinary Shares,
or effect a subdivision or combination or consolidation of the outstanding
Ordinary Shares (by reclassification or otherwise than by payment of a
dividend in Ordinary Shares) into a greater or lesser number of Ordinary
Shares, then in each such case the amount set forth in the preceding sentence
with respect to the conversion, exchange or change of Series A Preference
Shares shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of Ordinary Shares outstanding immediately
after such event and the denominator of which is the number of Ordinary Shares
that were outstanding immediately prior to such event.
Section 8. NO REDEMPTION. The Series A Preference Shares shall not
be redeemable from any holder thereof.
Section 9. RANK. The Series A Preference Shares shall rank, with
respect to the payment of dividends and the distribution of assets upon
liquidation, dissolution or winding up of the Company, junior to all other
series of Preference Shares and senior to the Ordinary Shares.
Section 10. AMENDMENT. The Restated Charter of the Company shall
not be further amended in any manner which would materially alter or change
the powers, preferences or special rights of the Series A Preference Shares so
as to affect them adversely without the affirmative vote of the holders of
two-thirds or more of the outstanding Series A Preference Shares, voting
separately as a class.
Section 11. FRACTIONAL SHARES. Series A Preference Shares may be
issued in fractions of a share which shall entitle the holder thereof, in
proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
of the rights of holders of Series A Preference Shares.
AND BE IT FURTHER RESOLVED, that any documents heretofore executed
or lawful actions heretofore taken by any of the officers of the Company in
connection with the transactions herein described are hereby ratified,
confirmed and approved in all respects.
Exhibit B
Form of Right Certificate
Certificate No. R- _______ Rights
NOT EXERCISABLE AFTER MAY 22, 2005 OR EARLIER IF REDEMPTION OR EXCHANGE
OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO
EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR
TRANSFERRED TO ANY PERSON WHO BECOMES AN ACQUIRING PERSON (AS DEFINED
IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME
NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.
Right Certificate
Triton Energy Limited
This certifies that ___________ or registered assigns, is the
registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Rights Agreement, dated as of March 25, 1996, as the same may be amended
from time to time (the "Rights Agreement"), between Triton Energy Limited, a
company organized under the laws of the Cayman Islands (the "Company"), and
Chemical Bank (the "Rights Agent"), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 P.M., New York City time, on May 22, 2005 at the office or
agency of the Rights Agent designated for such purpose, or of its successor as
Rights Agent, one one-thousandth of a fully paid non-assessable Series A
Junior Participating Preference Share, par value $.01 per share (the
"Preference Shares"), of the Company, at a purchase price of $120 per one
one-thousandth of a Preference Share (the "Purchase Price"), upon presentation
and surrender of this Right Certificate with the Form of Election to Purchase
duly executed. The number of Rights evidenced by this Rights Certificate (and
the number of one one-thousandths of a Preference Share which may be purchased
upon exercise hereof) set forth above, and the Purchase Price set forth above,
are the number and Purchase Price as of March 25, 1996, based on the
Preference Shares as constituted at such date. As provided in the Rights
Agreement, the Purchase Price, the number of one one-thousandths of a
Preference Share (or other securities or property) which may be purchased upon
the exercise of the Rights and the number of Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the happening of
certain events.
This Right Certificate is subject to all of the terms, provisions
and conditions of the Rights Agreement, which terms, provisions and conditions
are hereby incorporated herein by reference and made a part hereof and to
which Rights Agreement reference is hereby made for a full description of the
rights, limitations of rights, obligations, duties and immunities hereunder of
the Rights Agent, the Company and the holders of the Right Certificates.
Copies of the Rights Agreement are on file at the principal executive offices
of the Company and the above-mentioned office or agency of the Rights Agent.
The Company will mail to the holder of this Right Certificate a copy of the
Rights Agreement without charge after receipt of a written request therefor.
This Right Certificate, with or without other Right Certificates,
upon surrender at the office or agency of the Rights Agent designated for such
purpose, may be exchanged for another Right Certificate or Right Certificates
of like tenor and date evidencing Rights entitling the holder to purchase a
like aggregate number of Preference Shares as the Rights evidenced by the
Right Certificate or Right Certificates surrendered shall have entitled such
holder to purchase. If this Right Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not
exercised.
Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate (i) may be redeemed by the Company at a
redemption price of $.01 per Right or (ii) may be exchanged in whole or in
part for Preference Shares or the Company's Ordinary Shares, par value $.01
per share.
No fractional Preference Shares will be issued upon the exercise of
any Right or Rights evidenced hereby (other than fractions which are integral
multiples of one one-thousandth of a Preference Share, which may, at the
election of the Company, be evidenced by depositary receipts), but in lieu
thereof a cash payment will be made, as provided in the Rights Agreement.
No holder of this Right Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of the
Preference Shares or of any other securities of the Company which may at any
time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, 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 give or withhold consent to any corporate action,
or to receive notice of meetings or other actions affecting shareholders
(except as provided in the Rights Agreement) or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by this
Right certificate shall have been exercised as provided in the Rights
Agreement.
This Right Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.
WITNESS the facsimile signature of the proper officers of the
Company and its corporate seal. Dated as of _____________.
ATTEST: TRITON ENERGY LIMITED
By __________________ By __________________
Countersigned:
_______________________,
as Rights Agent
By _________________________
Authorized Signature
<PAGE>
Form of Reverse Side of Right Certificate
FORM OF ASSIGNMENT
(To be executed by the registered holder if such
holder desires to transfer the Right Certificate)
FOR VALUE RECEIVED _________________________ hereby sells, assigns
and transfer unto
_______________________________________________________________
(Please print name and address of transferee)
_____________________________________________________________________________
Rights represented by this Right Certificate, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint
___________________ Attorney, to transfer said Rights on the books of the
within-named Company, with full power of substitution.
Dated: _________________
______________________________
Signature
Signature Guaranteed:
Signatures must be guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of
Securities Dealers, Inc., or a commercial bank or trust company having an
office or correspondent in the United States.
------------------------------------------------------------
(To be completed)
The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are not beneficially owned by, were not acquired by the
undersigned from, and are not being assigned to, an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement).
________________________
Signature
<PAGE>
Form of Reverse Side of Right Certificate - continued
FORM OF ELECTION TO PURCHASE
(To be executed if holder desires to exercise
Rights represented by the Rights Certificate)
To Triton Energy Limited:
The undersigned hereby irrevocably elects to exercise
__________________ Rights represented by this Right Certificate to purchase
the Preference Shares (or other securities or property) issuable upon the
exercise of such Rights and requests that certificates for such Preference
Shares (or such other securities) be issued in the name of:
______________________________________________________________
(Please print name and address)
______________________________________________________________
If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivery to:
Please insert social security
or other identifying number
______________________________________________________________
(Please print name and address)
______________________________________________________________
Dated: ____________________
________________________
Signature
(Signature must conform to holder specified on Right Certificate)
Signature Guaranteed:
Signature must be guaranteed by a member of firm of a registered
U.S. national securities exchange, a member of the National Association of
Securities Dealers, Inc., or a commercial bank or trust company having an
office or correspondent in the United States.
<PAGE>
Form of Reverse Side of Right Certificate -- continued
_________________________________________________________________
(To be completed)
The undersigned certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by, and were not acquired by the
undersigned from, an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement)
______________________
Signature
_________________________________________________________________
NOTICE
The signature in the Form of Assignment or Form of Election to
Purchase, as the case may be, must conform to the name as written upon the
face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.
In the event the certification set forth above in the Form of
Assignment or the Form of Election to Purchase, as the case may be, is not
completed, such Assignment or Election to Purchase will not be honored.
<PAGE>
Exhibit C
UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT,RIGHTS OWNED
BY OR TRANSFERRED TO ANY PERSON WHO BECOMES AN ACQUIRING PERSON (AS DEFINED IN
THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND
VOID AND WILL NO LONGER BE TRANSFERABLE.
SUMMARY OF RIGHTS TO PURCHASE
Preference Shares
On March ___, 1996, the Board of Directors of Triton Energy Limited
(the "Company") declared a dividend of one preference share purchase right (a
"Right") for each outstanding Ordinary Share, par value $.01 per share, of the
Company (the "Ordinary Shares"). The dividend is payable on March 25, 1996
(the "Record Date") to the shareholders of record on that date. Each Right
entitles the registered holder to purchase from the Company one one-thousandth
of a Series A Junior Participating Preference Share, par value $.01 per share
(the "Preference Shares") of the Company at a price of $120 per one
one-thousandth of a Preference Share (the "Purchase Price"), subject to
adjustment. The description and terms of the Rights are set forth in a Rights
Agreement dated as of March 25, 1996, as the same may be amended from time to
time (the "Rights Agreement"), between the Company and Chemical Bank, as
Rights Agent (the "Rights Agent").
Until the earlier to occur of (i) 10 days following a public
announcement that a person or group of affiliated or associated persons (an
"Acquiring Person") have acquired beneficial ownership of a number of Ordinary
Shares equal to 15% or more of the number of outstanding Ordinary Shares;
provided, however, that if a Person would be deemed an Acquiring Person
upon the adoption of the Rights Agreement, such Person will not be deemed an
"Acquiring Person" for any purposes of the Rights Agreement unless and until
such Person acquires Beneficial Ownership of any additional Ordinary Shares
after the date of the adoption of the Rights Agreement or (ii) 10 business
days (or such later date as may be determined by action of the Board of
Directors prior to such time as any person or group of affiliated persons
becomes an Acquiring Person) following the commencement of, or announcement of
an intention to make, a tender offer or exchange offer the consummation of
which would result in the beneficial ownership by a person or group of a
number of Ordinary Shares equal to 15% or more of the number of outstanding
Ordinary Shares (the earlier of such dates being called the "Distribution
Date"), the Rights will be evidenced, with respect to any of the Ordinary
Share certificates outstanding as of the Record Date, by such Ordinary Share
certificate together with a copy of this Summary of Rights.
The Rights Agreement provides that, until the Distribution Date (or
earlier redemption or expiration of the Rights), the Rights will be
transferred with and only with the Ordinary Shares; provided, however,
that prior to the Distribution Date, upon the conversion of any class of
Ordinary Shares into Ordinary Shares of a different class all Rights attached
to the Ordinary Shares being converted shall be deemed cancelled and retired
by the Company. Until the Distribution Date (or earlier redemption or
expiration of the Rights), new Ordinary Shares certificates issued after the
Record Date upon transfer or new issuances of Ordinary Shares (including
pursuant to the conversion) will contain a notation incorporating the Rights
Agreement by reference. Until the Distribution Date (or earlier redemption or
expiration of the Rights), the surrender for transfer of any certificates for
Ordinary Shares outstanding as of the Record Date, even without such notation
or a copy of this Summary of Rights, will also constitute the transfer of the
Rights associated with the Ordinary Shares represented by such certificate.
As soon as practicable following the Distribution Date, separate certificates
evidencing the Rights ("Right Certificates") will be mailed to holders of
record of the Ordinary Shares as of the close of business on the Distribution
Date and such separate Right Certificates alone will evidence the Rights.
The Rights are not exercisable until the Distribution Date. The
Rights will expire on May 22, 2005 (the "Final Expiration Date"), unless the
Final Expiration Date is extended or unless the Rights are earlier redeemed or
exchanged by the Company, in each case as described below.
The Purchase Price payable, and the number of Preference Shares or
other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution (i) in the event of a
dividend of shares on, or a subdivision, combination or reclassification of,
the Preference Shares, (ii) upon the grant to holders of the Preference Shares
of certain rights or warrants to subscribe for or purchase Preference Shares
at a price, or securities convertible into Preference Shares with a conversion
price, less than the then-current market price of the Preference Shares or
(iii) upon the distribution to holders of the Preference Shares of evidences
of indebtedness or assets (excluding regular periodic cash dividends or
dividends payable in Preference Shares) or of subscription rights or warrants
(other than those referred to above).
The number of outstanding Rights are also subject to adjustment in
the event of a stock split of the Ordinary Shares or a dividend on the
Ordinary Shares payable in Ordinary Shares or subdivisions, consolidations or
combinations of the Ordinary Shares occurring, in any such case, prior to the
Distribution Date.
Preference Shares purchasable upon exercise of the Rights will not
be redeemable. Each Preference Share will be entitled, when, as and if
declared, to a minimum preferential quarterly dividend payment of $1 per share
but will be entitled to an aggregate dividend of 1,000 times the dividend
declared per Ordinary Share. In the event of liquidation, the holders of the
Preference Shares will be entitled to a minimum preferential liquidation
payment of $1,000 per share (plus any accrued but unpaid dividends) but will
be entitled to an aggregate payment of 1,000 times the payment made per
Ordinary Share. Each Preference Share shall be entitled to 1,000 votes,
voting together with the Ordinary Shares. Finally, in the event of any
merger, consolidation or other transaction in which Ordinary Shares are
converted or exchanged, each Preference Share will be entitled to receive
1,000 times the amount received per Ordinary Share. These rights are
protected by customary antidilution provisions.
In the event that any person or group of affiliated or associated
persons becomes an Acquiring Person, each holder of a Right, other than Rights
beneficially owned by the Acquiring Person (which will thereupon become void),
will thereafter have the right to receive upon exercise of a Right at the then
current exercise price of the Right, that number of Ordinary Shares having a
market value of two times the exercise price of the Right.
In the event that, after a person or group has become an Acquiring
Person, the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are
sold, proper provision will be made so that each holder of a Right (other than
Rights beneficially owned by an Acquiring Person which will have become void)
will thereafter have the right to receive, upon the exercise thereof at the
then current exercise price of the Right, that number of ordinary shares of
the person with whom the Company has engaged in the foregoing transaction (or
its parent), which number of shares at the time of such transaction will have
a market value of two times the exercise price of the Right.
At any time after any person or group becomes an Acquiring Person
and prior to the acquisition by such person or group of beneficial ownership
of a number of Ordinary Shares equal to 50% or more of the number of
outstanding Ordinary Shares, the Board of Directors of the Company may
exchange the Rights (other than Rights owned by such person or group which
will have become void), in whole or in part, at an exchange ratio of one
Ordinary Share, or one one-thousandth of a Preference Share (or of a share of
a class or series of the Company's preference shares having equivalent rights,
preferences and privileges), per Right (subject to adjustment).
With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional Preference Shares will be issued (other
than fractions which are integral multiples of one one-thousandth of a
Preference Share, which may, at the election of the Company, be evidenced by
depositary receipts) and in lieu thereof, an adjustment in cash will be made
based on the market price of the Preference Shares on the last trading day
prior to the date of exercise.
At any time prior to the time an Acquiring Person becomes such, the
Board of Directors of the Company may redeem the Rights in whole, but not in
part, at a price of $.01 per Right (the "Redemption Price"); provided that
under certain cirumstances set forth in the Rights Agreement, after the after
a tender offer has been commenced, the Board of Directors may not be
permitted to redeem the Rights. Immediately upon any redemption of the
Rights, the right to exercise the Rights will terminate and the only right of
the holders of Rights will be to receive the Redemption Price.
For so long as the Rights are then redeemable, the Company may,
except with respect to the redemption price, amend the Rights in any manner.
After the Rights are no longer redeemable the Company may, except with respect
to the redemption price, amend the Rights in any manner that does not
adversely affect the interests of holders of the Rights.
Until a Right is exercised, the holder thereof, as such, will have
no rights as a shareholder of the Company, including, without limitation, the
right to vote or to receive dividends.
A copy of the Rights Agreement has been filed with the Securities
and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A.
A copy of the Rights Agreement is available free of charge from the Company.
This summary description of the Rights does not purport to be complete and is
qualified in its entirety by reference to the Rights Agreement, as the same
may be amended from time to time, which is hereby incorporated herein by
reference.
<PAGE>
EXECUTION COPY
TRITON ENERGY LIMITED
and
CHEMICAL BANK,
as Rights Agent
Rights Agreement
Dated as of March 25, 1996
<PAGE>
Page
TABLE OF CONTENTS
Page
Section 1. Certain Definitions
2
Section 2. Appointment of Rights Agent
9
Section 3. Issue of Right Certificates
9
Section 4. Form of Right Certificates
12
Section 5. Countersignature and Registration
13
Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen
Right Certificates 14
Section 7. Exercise of Rights, Purchase Price; Expiration
Date of Rights 16
Section 8. Cancellation and Destruction of Right Certificates
19
Section 9. Availability of Shares of Preference Shares
19
Section 10. Preference Share Record Date
22
Section 11. Adjustment of Purchase Price, Number of Shares and
Number of Rights 23
Section 12. Certificate of Adjusted Purchase Price or Number of
Shares 42
Section 13. Consolidation, Merger or Sale or Transfer of Assets
or Earnings Power 42
Section 14. Fractional Rights and Fractional Shares
50
Section 15. Rights of Action
52
Section 16. Agreement of Right Holders
53
Section 17. Right Certificate Holder Not Deemed a Shareholder
54
Section 18. Concerning the Rights Agent
55
Section 19. Merger or Consolidation or Change of Name of Rights
Agent 56
Section 20. Duties of Rights Agent
57
Section 21. Change of Rights Agent
61
Section 22. Issuance of New Right Certificates
63
Section 23. Redemption
64
Section 24. Exchange
65
Section 25. Notice of Certain Events
68
Section 26. Notices
69
Section 27. Supplements and Amendments
70
Section 28. Successors
71
Section 29. Benefits of this Agreement
72
Section 30. Severability
72
Section 31. Governing Law
72
Section 32. Counterparts
72
Section 33. Descriptive Headings
73
Exhibit 5.1
June 26, 1996
Triton Energy Limited
Caledonian House
Mary Street, P.O. Box 1043
George Town
Grand Cayman, Cayman Islands
Dear Sirs:
This opinion is delivered in connection with the Registration Statement
(as amended, the "Registration Statement") on Form S-8 filed with the
Securities and Exchange Commission by Triton Energy Limited, a Cayman Islands
company (the "Company"), under the Securities Act of 1933, as amended (the
"Act"), relating to an additional 1,050,000 of the Company's Ordinary Shares,
par value $.01 per share (the "Shares"), issuable pursuant to the Company's
Second Amended and Restated 1992 Stock Option Plan and Amended and Restated
1985 Restricted Stock Plan.
I am familiar with the Memorandum and Articles of Association of the
Company, each as amended to date. In addition, I have examined such corporate
records, documents and other instruments and have made such other examinations
and inquiries as I have deemed necessary to enable me to express the opinions
set forth herein.
Based upon the foregoing, subject to the qualifications and limitations
stated herein, and limited in all respects to the laws of the State of Texas,
the Companies Law (1995 Revision) of the Cayman Islands and the laws of the
United States of America, I am of the opinion that the Shares have been duly
authorized, validly issued, fully paid and nonassessable.
I am a member of the bar of the State of Texas and any opinion herein as
to the laws of the Cayman Islands is based upon the latest generally available
compilation of the statutes and case law of such jurisdiction.
I hereby consent to the use of this opinion as an exhibit to the
Registration Statement and the use of my name under the caption "Legal
Matters" in the Prospectus forming a part of the Registration Statement.
Very truly yours,
/s/Robert B. Holland, III
Robert B. Holland, III
EXHIBIT 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus
constituting part of this Registration Statement on Form S-8 of our report
dated February 9, 1996, which appears on page F-2 of Triton Energy
Corporation's Annual Report to Stockholders, which is incorporated by
reference in Triton Energy Corporation's Annual Report on Form 10-K for the
year ended December 31, 1995. We also consent to the reference to us under
the heading "Experts" in such Prospectus.
PRICE WATERHOUSE LLP
Dallas, Texas
July 11, 1996
Exhibit 23.2
DeGolyer and MacNaughton
One Energy Square
Dallas, Texas 75206
June 25, 1996
Triton Energy Limited
Caledonian House
Mary Street
P.O. Box 1043
George Town
Grand Cayman, Cayman Islands
Gentlemen:
We hereby consent to (i) the incorporation by reference from Triton
Energy Corporation's Annual Report on Form 10-K for the year ended December
31, 1995 (the "Form 10-K"), and the inclusion in the Registration Statement of
Triton Energy Limited (the "Company") on Form S-8 relating to offering of the
Company's securities of certain data from our report dated February 12, 1996,
entitled "Appraisal Report as of December 31, 1995 on Certain Properties in
Colombia owned by Triton Colombia Incorporated" under the caption "Properties
- - Reserves" in Item 2 of the Form 10-K and (ii) the specific references to our
firm under such caption in the Form 10-K and under the caption "Experts" in
such Registration Statement.
Very truly yours,
DeGOLYER and MacNAUGHTON
