UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 9)
ALLEGHENY TECHNOLOGIES INCORPORATED
(Name of Issuer)
Common Stock, par value $0.10 per share
(Title of Class of Securities)
01741R102
(CUSIP Number)
Kevin R. Evanich, P.C., Kirkland & Ellis LLP,
200 East Randolph Drive, Chicago, IL 60601 (312) 861-2200
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
January 25, 2006
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
| CUSIP No. 01741R102 | 13D/A | Page 2 of 4 Pages |
| 1 |
NAME OF REPORTING PERSON
Richard P. Simmons |
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| 2 |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ¨ (b) x |
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| 3 |
SEC USE ONLY
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| 4 |
SOURCE OF FUNDS
N/A |
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| 5 |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E)
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¨ | ||
| 6 |
CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A. |
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH |
7 SOLE VOTING POWER
4,275,840 8 SHARED VOTING POWER
0 9 SOLE DISPOSITIVE POWER
3,965,840(1) 10 SHARED DISPOSITIVE POWER
0 |
| 11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,275,840 |
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| 12 |
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
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¨
|
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| 13 |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.4% |
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| 14 |
TYPE OF REPORTING PERSON
IN |
| (1) | Mr. Simmons has entered into forward contracts and sold call options covering 360,000 of his shares and he currently does not have dispositive power with respect to such shares. |
Item 5 of the Statement on Schedule 13D dated August 21, 1996, as amended, is hereby further amended and restated in its entirety as follows:
Item 5. Interest in Securities of the Issuer.
| (a) - (b) | At the date of this Amendment No. 9, Mr. Simmons has sole voting power with respect to 4,275,840 shares of ATI Common Stock, representing approximately 4.4% of the total number of the issued and outstanding shares of ATI Common Stock. As described below in Item 6 to this Amendment, 360,000 of Mr. Simmons shares are subject to either calls or forward contracts, and he currently does not have dispositive power with respect to such shares. As a result such calls and forward contracts, Mr. Simmons has sole dispositive power over 3,965,840 shares of ATI Common Stock, representing approximately 4.1% of the total number of the issued and outstanding shares of ATI Common Stock. The percentages set forth above are based on information contained in the Form 10-Q Quarterly Report of ATI for the quarter ended September 31, 2005. Included in these share amounts and percentages are 3,026 shares of ATI Common Stock issuable upon exercise of stock options granted to Mr. Simmons pursuant to ATI incentive plans. The options are exercisable within 60 days after the date of this Amendment No. 9. |
| (c) | The following sales of ATI Common Stock were effected by Mr. Simmons since November 28, 2005, through brokers’ transactions on the New York Stock Exchange. |
|
Date |
Amount of Securities
|
Price Per Share
|
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|
November 29, 2005 |
10,000 | $ | 32.90 | ||
|
December 20, 2005 |
10,000 | $ | 34.46 | ||
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December 21, 2005 |
10,000 | $ | 34.56 | ||
|
December 21, 2005 |
10,000 | $ | 34.66 | ||
|
December 21, 2005 |
10,000 | $ | 34.76 | ||
|
December 21, 2005 |
10,000 | $ | 34.86 | ||
|
December 21, 2005 |
10,000 | $ | 34.96 | ||
|
December 22, 2005 |
10,000 | $ | 35.60 | ||
|
December 22, 2005 |
10,000 | $ | 35.16 | ||
|
December 23, 2005 |
10,000 | $ | 35.26 | ||
|
December 23, 2005 |
10,000 | $ | 35.36 | ||
|
January 4, 2006 |
5,600 | $ | 39.00 | ||
|
January 4, 2006 |
10,000 | $ | 39.10 | ||
|
January 4, 2006 |
9,900 | $ | 39.20 | ||
|
January 4, 2006 |
70,000 | $ | 37.75 | ||
|
January 4, 2006 |
10,000 | $ | 37.80 | ||
|
January 4, 2006 |
10,000 | $ | 37.90 | ||
|
January 4, 2006 |
10,000 | $ | 38.00 | ||
|
January 4, 2006 |
10,000 | $ | 38.90 | ||
|
January 4, 2006 |
4,400 | $ | 39.00 | ||
|
January 4, 2006 |
100 | $ | 39.20 | ||
|
January 5, 2006 |
10,000 | $ | 39.30 | ||
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January 5, 2006 |
10,000 | $ | 39.40 | ||
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January 5, 2006 |
10,000 | $ | 39.50 | ||
|
January 5, 2006 |
10,000 | $ | 39.60 | ||
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January 5, 2006 |
10,000 | $ | 39.70 | ||
|
January 6, 2006 |
50,000 | $ | 40.24 | ||
|
January 6, 2006 |
10,000 | $ | 40.30 | ||
|
January 6, 2006 |
10,000 | $ | 40.40 | ||
|
January 6, 2006 |
10,000 | $ | 40.50 | ||
|
January 6, 2006 |
10,000 | $ | 40.60 | ||
|
January 6, 2006 |
10,000 | $ | 40.70 | ||
|
January 6, 2006 |
10,000 | $ | 40.80 | ||
|
January 6, 2006 |
6,900 | $ | 40.65 | ||
|
January 10, 2006 |
3,100 | $ | 40.65 | ||
|
January 11, 2006 |
6,900 | $ | 41.15 | ||
|
January 11, 2006 |
9,700 | $ | 41.25 | ||
|
January 11, 2006 |
10,000 | $ | 40.75 | ||
|
January 11, 2006 |
10,000 | $ | 40.85 | ||
|
January 11, 2006 |
10,000 | $ | 40.95 | ||
|
January 11, 2006 |
10,000 | $ | 41.05 | ||
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January 11, 2006 |
3,100 | $ | 41.15 | ||
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January 12, 2006 |
10,000 | $ | 41.35 | ||
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January 12, 2006 |
10,000 | $ | 41.45 | ||
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January 12, 2006 |
10,000 | $ | 41.55 | ||
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January 17, 2006 |
10,000 | $ | 41.65 | ||
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January 23, 2006 |
10,000 | $ | 41.75 | ||
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January 24, 2006 |
15,700 | $ | 44 | ||
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January 24, 2006 |
7,200 | $ | 44.10 | ||
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January 24, 2006 |
20,000 | $ | 41.95 | ||
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January 24, 2006 |
8,800 | $ | 42.05 | ||
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January 24, 2006 |
10,000 | $ | 42.15 | ||
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January 24, 2006 |
10,200 | $ | 42.25 | ||
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January 24, 2006 |
10,000 | $ | 42.35 | ||
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January 24, 2006 |
10,000 | $ | 42.45 | ||
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January 24, 2006 |
3,600 | $ | 42.55 | ||
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January 24, 2006 |
200 | $ | 44.50 | ||
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January 24, 2006 |
1,700 | $ | 44.10 | ||
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January 24, 2006 |
10,000 | $ | 44.20 | ||
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January 24, 2006 |
10,000 | $ | 44.30 | ||
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January 24, 2006 |
10,000 | $ | 44.40 | ||
|
January 24, 2006 |
9,800 | $ | 44.50 | ||
|
January 25, 2006 |
40,000 | $ | 47.34 | ||
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January 25, 2006 |
12,300 | $ | 47.45 | ||
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January 25, 2006 |
10,100 | $ | 47.45 | ||
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January 25, 2006 |
10,000 | $ | 47.55 | ||
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January 25, 2006 |
10,000 | $ | 47.65 | ||
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January 25, 2006 |
10,000 | $ | 47.75 | ||
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January 25, 2006 |
7,200 | $ | 47.85 | ||
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January 25, 2006 |
12,800 | $ | 47.95 | ||
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January 25, 2006 |
10,000 | $ | 48.05 | ||
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January 25, 2006 |
10,000 | $ | 48.15 | ||
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January 25, 2006 |
10,000 | $ | 48.25 | ||
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January 25, 2006 |
10,000 | $ | 48.35 | ||
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January 26, 2006 |
10,000 | $ | 48.30 | ||
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January 26, 2006 |
10,000 | $ | 48.40 | ||
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January 26, 2006 |
10,000 | $ | 48.50 | ||
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January 26, 2006 |
10,000 | $ | 48.60 | ||
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January 26, 2006 |
10,000 | $ | 48.70 | ||
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January 26, 2006 |
10,000 | $ | 48.80 | ||
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January 26, 2006 |
10,000 | $ | 48.90 | ||
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January 26, 2006 |
10,000 | $ | 49.00 | ||
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January 27, 2006 |
20,000 | $ | 49.80 | ||
In addition, since October 11, 2005, Mr. Simmons has entered into several sales of standardized call option contracts (each contract covering 100 shares of ATI Common Stock) (the “Call Options”). On October 26, 2005, Mr. Simmons sold 500 Call Options at a price of $3.3354 per underlying share. The purchaser of these Call Options may purchase the underlying shares from Mr. Simmons on April 22, 2006 at a price of $30.00 per share. On November 23, 2005, Mr. Simmons sold 123 Call Options at a price of $3.40 per underlying share; on November 25, Mr. Simmons sold 175 Call Options at a price of $3.40 per underlying share; on November 29, Mr. Simmons sold 40 Call Options at a price of $3.40 per underlying share; on November 30, Mr. Simmons sold 200 Call Options at a price of $3.40 per underlying share; on December 1, 2005, Mr. Simmons sold 100 Call Options at a price of $3.70 per underlying share and 200 Call Options at a price of $3.60 per underlying share; on December 2, 2005, Mr. Simmons sold 200 Call Options at a price of $3.60 per underlying share, 100 Call Options at a price of $3.70 per underlying share, and 162 Call Options at a price of $3.7494 per underlying share; and on December 2, 2005, Mr. Simmons sold 300 Call Options at a price of $3.6333 per underlying share. The purchaser of these Call Options may purchase the underlying shares from Mr. Simmons on July 22, 2006 at a price of $35.00 per share. Each of these sales was effected through brokers’ transactions on the Chicago Board Options Exchange. On January 24, 2006, Mr. Simmons sold on the over-the-counter market 500 Call Options at a price of $5.10 per underlying share. The purchaser of these Call Options may purchase the underlying shares from Mr. Simmons on January 24, 2007 at a price of $47.00 per share.
| (d) | Not applicable. |
| (e) | Not applicable. |
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.
On September 27, 2005, Mr. Simmons entered into a forward contract with Bear Stearns & Co., Inc. (the “Forward Contract”). The pricing terms and number of shares subject to the Forward Contract are set forth in the table below.
|
Forward Contract |
Delivery
Amount |
Initial
Price |
Target
Price |
Pricing Date
|
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|
September 27, 2005 |
50,000 | $ | 30.3109 | $ | 37.828 | March 27, 2006 | ||||
The Initial Price and Target Price set forth above are subject to adjustment as set forth in the Forward Contracts to effect the intent of the parties with respect to the expected economic consequences of these transactions.
Pursuant to the Forward Contract, Mr. Simmons has agreed, if the final price on the Pricing Date (the “Final Price”) is greater than the Initial Price, to deliver to Bear Stearns & Co., Inc. (“Bear Stearns”) on the third NYSE business day following the Pricing Date (the “Settlement Date”) a number of shares of ATI Common Stock equal to the Delivery Amount. The price to be paid by Bear Stearns for these shares (the “Settlement Price”) shall be equal to the product of (i) the Delivery Amount and (ii) the lesser of (A) [(2x(Final Price - Initial Price)) + Initial Price] and (B) the Target Price. If the Final Price is equal to or less than the Initial Price, Mr. Simmons will not have any delivery obligations under the Forward Contract.
Alternatively, Mr. Simmons has the option to settle the Forward Contract for cash, determined in reference to the amount equal to the product of (i) the Final Price minus the lesser of (A) [(2x(Final Price - Initial Price)) + Initial Price] and (B) the Target Price and (ii) the Delivery Amount (the “Cash Settlement Amount”). If the Cash Settlement Amount is positive, Mr. Simmons will pay to Bear Stearns the Cash Settlement Amount. If the Cash Settlement Amount is negative, Bear Stearns will pay to Mr. Simmons the absolute value of the Cash Settlement Amount. If the Cash Settlement Amount is zero, no payment will be required of either party.
Mr. Simmons has delivered the number of shares of ATI Common Stock equal to the Delivery Amounts to secure his obligations under the Forward Contract. Although Mr. Simmons has delivered these shares to secure such obligations, he has retained all voting rights with respect to these shares and accordingly continues to be deemed the beneficial owners of such shares. As a result of the pledge of the shares, however, Mr. Simmons does not currently have dispositive power with respect to these shares.
The foregoing description of the Forward Contract is qualified in its entirety by reference to the Form of Confirmation of Forward Sale Agreement included as Exhibit 1 to this Amendment.
Mr. Simmons also sold call options on a total of 260,000 shares of ATI Common Stock on the Chicago Board Options Exchange and call options on a total of 50,000 shares of ATI stock on the over-the-counter market, including those call options described in Item 5(c) above.
Item 7. Material to be Filed as Exhibits.
|
Exhibit No. |
Description |
|
| 1 | Form of Confirmation of Forward Sale Agreement between Bear Stearns & Co., Inc. and Richard P. Simmons | |
Page 3 of 4 Pages
SIGNATURE
After reasonable inquiry and to the best of the undersigned’s knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.
Date: January 31, 2006
|
/s/ Richard P. Simmons |
| Richard P. Simmons |
Page 4 of 4 Pages
Exhibit 1
BEAR STEARNS
BEAR, STEARNS & CO. INC.
383 MADISON AVENUE
NEW YORK, NEW YORK 10179
212-272-2000
| DATE: | [ ] | |
| TO: | Mr. Richard Simmons | |
| TELEPHONE: | 1-412-741-7491 | |
| FACSIMILE: | 1-412-741-0663 | |
| FROM: | Derivatives Documentation | |
| TELEPHONE: | 212-272-2711 | |
| FACSIMILE: | 212-272-9857 | |
| SUBJECT: | Equity Derivatives Confirmation / ASAP Forward | |
| REFERENCE NUMBER: | [ ] | |
The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into on the Trade Date specified below (the “Transaction”) between Bear, Stearns & Co. Inc. (“Bear Stearns”) and Mr. Richard Simmons (“Counterparty”). This letter agreement constitutes the sole and complete “Confirmation,” as referred to in the Master Agreement specified below, with respect to this Transaction.
1. In lieu of negotiating an ISDA Master Agreement and Schedule, Bear Stearns and Counterparty hereby agree that the ISDA Master Agreement, with a Schedule attached thereto containing all elections, modifications and amendments thereto contained in “Elections, Modifications and Amendments Under the Master Agreement” below (as so supplemented, the “Master Agreement”)) shall be deemed to have been executed by both of us on the Trade Date on which we entered into the first “Transaction” (as defined in the ISDA Master Agreement), with “Elections, Modifications and Amendments Under the Master Agreement” below constituting the Schedule thereto. This Confirmation and the Transaction to which it relates, as well as all other Transactions between us (unless otherwise specified in the Confirmations relating to such Transactions) shall supplement, form a part of and be subject to such Master Agreement. All provisions contained in, or incorporated by reference to the Master Agreement shall govern the Transaction referenced in this Confirmation, as well as all other Transactions between the parties heretofore or hereafter entered into, except as expressly modified herein or therein. THUS THIS CONFIRMATION CONSTITUTES BOTH A MASTER AGREEMENT AND A CONFIRMATION THEREUNDER.
This Confirmation is subject to and incorporates the 2000 ISDA Definitions (the “Definitions”) and the 1996 Equity Derivatives Definitions (the “1996 Definitions”), each as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 2 of 12
In the event of any inconsistency between this Confirmation, the Definitions or the Master Agreement, as such inconsistencies may relate to this Transaction, this Confirmation shall prevail.
2. The terms of the particular Transaction to which this Confirmation relates are as follows:
| General Terms: | ||
| Trade Date: | [ ] | |
| Buyer: | Bear Stearns | |
| Seller: | Counterparty | |
| Delivery Amount: | [ ] Shares | |
| Pricing Date: |
[ ]
For purposes of this Transaction, the Pricing Date and the Final Price will be determined as if the Pricing Date were a Valuation Date for a Share Swap Transaction. |
|
| Initial Price: | USD [ ], minus the Dividend Adjustment determined as of the Pricing Date. | |
| Target Price: | USD [ ], minus the Dividend Adjustment determined as of the Pricing Date. | |
| Final Price: | The closing price per Share quoted by the Exchange at the close of the regular afternoon trading session on the Pricing Date. | |
| Dividend Adjustment: | The sum of the following amounts, whether positive or negative, determined with respect to each ordinary cash dividend on the Shares, which dividends have an ex-dividend date during the period commencing on, but excluding, the Trade Date to, but including, the Pricing Date; (a) the per-Share amount of each such ordinary cash dividend minus (b) the Contractual Dividend. | |
| In the event that the Shares pay dividends other than quarterly the Calculation Agent shall adjust the calculation of the Dividend Adjustment Amount as may be necessary to effect the intent of the parties with respect to the expected economic consequences of this Transaction. | ||
| Contractual Dividend: | USD [ ] | |
| Shares: | The common shares of Allegheny Technologies, Inc., currently trading under the ticker symbol ATI. | |
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 3 of 12
| Exchange: | New York Stock Exchange | |
| Related Exchange: | The exchanges or quotation systems, if any, on which options or futures contracts on the Shares are traded or quoted, and as may be selected from time to time by the Calculation Agent. | |
| Settlement Condition: | The Settlement Condition shall be deemed to be fulfilled if the Final Price is greater than the Initial Price. For the avoidance of doubt, if the Final Price is equal to or less than the Initial Price, there shall be no payment or delivery obligations hereunder. | |
| Calculation Agent: | Bear Stearns | |
| Physical Settlement Term s: | ||
| Physical Settlement: | If the Settlement Condition is deemed to be fulfilled, then on the Settlement Date, the Seller will deliver to Buyer the Number of Shares to be Delivered and Buyer will pay to Seller the Settlement Price. Such payment and such delivery will be made on the Settlement Date through the relevant Clearance System at the accounts specified in this Confirmation on a delivery versus payment basis. | |
| For purposes of these Physical Settlement provisions, this Transaction will be treated as a Physically-settled Share Option Transaction (except that Physical Settlement shall occur if the Settlement Condition is deemed to be fulfilled and Physical Settlement shall not occur if the Settlement Condition is not deemed to be fulfilled). | ||
|
Number of Shares to Be Delivered: |
The “Number of Shares to be Delivered” will be a number of Shares equal to the Delivery Amount. | |
| Settlement Price: | Notwithstanding Section 2.1(g)(iii) of the 1996 Definitions, the Settlement Price will mean the amount expressed in USD as determined by the Calculation Agent equal to the product of (i) the Number of Shares to Be Delivered and the lesser of: | |
| (A) [(2 x (Final Price – Initial Price)) + Initial Price]; and (B) Target Price | ||
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 4 of 12
| Settlement Date: | The third Exchange Business Day following the Pricing Date (or if such day is not a Currency Business Day, the next Currency Business Day). | |
| Applicability of Certain Sections of the 1996 Definitions: | Sections 6.6 ( Expenses ) and, except to the extent expressly set forth to the contrary herein, 6.7 ( Dividends ) of the 1996 Definitions will apply to any delivery of Shares hereunder, save that the reference to “Exercise Date” will be deemed to be a reference to “Pricing Date”. | |
| Section 6.8 ( Representation and Agreement ) of the 1996 Definitions will apply to any delivery of Shares hereunder. For the avoidance of doubt, the “Additional Representations of the Counterparty” set forth below will also apply to any delivery of Shares hereunder, including, without limitation, subparagraph (a) thereof, which imposes conditions on the Shares that Seller may deliver. | ||
| Section 6.9 ( Failure to Deliver ) of the 1996 Definitions will apply to any obligation to deliver Shares hereunder, save that the reference to “Exercise Date” will be deemed to be a reference to “Pricing Date” and that the Additional Termination Event will occur in respect of (and the Affected Transaction will be) a Transaction (after consideration of any partial delivery) consisting of the obligation to deliver Shares on the Settlement Date only. | ||
| Section 6.10 ( Default Interest ) of the 1996 Definitions will apply to any obligation to deliver Shares hereunder. | ||
| Clearance System: | The principal domestic clearance system customarily settling trades on a free delivery basis in the Shares as of the Pricing Date, as selected by the Calculation Agent; subject to “Settlement by Delivery of Collateral” below. | |
| Cash Settlement Terms: | ||
| Cash Settlement Payment Date: | The third Exchange Business Day following the Pricing Date (or if such day is not a Currency Business Day, the next Currency Business Day). | |
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 5 of 12
| Cash Settlement Amount: | An amount equal to the product of (i) the Final Price minus the Reference Number (as defined herein) and (ii) the Delivery Amount. | |
| Reference Number: |
The lesser of: (A) [(2 x (Final Price – Initial Price)) + Initial Price]; and (B) Target Price |
|
| Payment: | If the Settlement Condition is deemed to be fulfilled, then on the Cash Settlement Payment Date, (i) if the Cash Settlement Amount is positive, Seller will pay to Buyer the Cash Settlement Amount and (ii) if the Cash Settlement Amount is negative, Buyer will pay to Seller the absolute value of the Cash Settlement Amount and (iii) if the Cash Settlement Amount is zero, then no payment will be required by either party. | |
| Right of Seller to Elect Cash Settlement: | Seller shall have the right to elect that the Cash Settlement Terms apply to this Transaction. If no such election is made, then the Physical Settlement Terms will apply. | |
| Notice of such election must be given to Bear Stearns between the hours of 9:00 a.m. and 4:00 p.m. (New York time) not less than five Exchange Business Days prior to the Pricing Date. Such notice shall be given telephonically and shall be irrevocable when given. | ||
| Notwithstanding the foregoing, if Bear Stearns determines, in its sole discretion, that the requirements of Section 6.8 ( Representation and Agreement ) of the 1996 Definitions and the “Additional Representations of the Counterparty” set forth below including, without limitation, subparagraph (a) thereof, are not or will not be satisfied, then Bear Stearns may deem that notwithstanding whether Counterparty has made any election hereunder, the Cash Settlement Terms shall apply. | ||
| Settlement by Delivery of Collateral: | The parties agree that if Bear Stearns would otherwise be obligated to return Collateral (as defined in the Collateral Provisions below) in accordance with the Collateral Provisions and Seller would otherwise be obligated to deliver Shares hereunder, Bear Stearns may, at its sole option, retain the Collateral (but only to the extent of the number of Shares required to be delivered by Seller) and Seller will thereupon not be obligated to deliver the Shares. | |
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 6 of 12
| All of the transactions between the parties described in “Settlement by Delivery of Collateral” above shall take place, as to Seller, in an account(s) maintained by Seller at Bear Stearns in accordance with the Account Agreement between Seller and Bear Stearns and its affiliates, and all such property and monies maintained in such accounts shall be Collateral and will be subject to the security interest of Bear Stearns. In such event, transfer on the books and records of the party maintaining such accounts shall be deemed to be the Clearance System for all purposes hereunder. In addition, such transaction shall be governed by, and subject to the provisions of, the agreements and terms governing such accounts. | ||
| Adjustments: | ||
|
Method of Adjustment: |
Calculation Agent Adjustment | |
| Extraordinary Events : | ||
|
Consequence of Merger Events: |
||
|
(a) Share-for-Share and (b) Share-for-Combined: |
||
| If there is a Merger Event for which the Merger Consideration is Share-for-Share or if there is a Merger Event for which the Merger Consideration is Share-for-Combined then, not earlier than twenty Exchange Business Days nor later than the fifteenth Exchange Business Day prior to the proposed Merger Date, Seller may request that Buyer provide terms under which the Transaction may continue (a “Continued Terms Request”). If Seller makes a Continued Terms Request, then Buyer shall, not later than ten Exchange Business Days prior to the proposed Merger Date notify Seller of the terms, as determined by Buyer in a commercially reasonable manner (which would be reflective of both increases and decreases in value attendant upon the Merger Event), under which the Transaction may continue after the Merger Date. If Seller notifies Buyer that Seller accepts such terms by no later than the third Exchange Business Day following the date on which Buyer provides such terms then the Transaction shall continue under the terms so provided by Buyer and agreed to by Seller. All notices under this provision may be given orally | ||
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 7 of 12
| (and confirmed in writing, which failure to confirm shall not vitiate the effectiveness of the notice) and must be given between 9:00 a.m. and 4:00 p.m. (New York time). | ||
| If Counterparty fails to make a Continued Terms Request as provided herein or if the parties do not agree the terms on which to continue the Transaction, then Cancellation and Payment shall apply in accordance with Section 9.7 of the 1996 Definitions. | ||
|
(c) Share-for-Other: |
Cancellation and Payment | |
|
Nationalization, Insolvency and Delisting: |
Cancellation and Payment shall apply in accordance with Section 9.7 of the 1996 Definitions; provided that, Section 9.6 (a) of the 1996 ISDA Equity Derivatives Definitions shall be amended by the addition of the following definition: | |
| (iii) “Delisting” means that the Exchange announces that pursuant to the rules of such Exchange, the Shares cease (or will cease) to be listed, traded or publicly quoted on the Exchange for any reason (other than a Merger Event or Tender Offer) and are not immediately re-listed, re-traded or re-quoted on an exchange or quotation system located in the same country as the Exchange (or, where the Exchange is within the European Union, in any member state of the European Union). | ||
| Wherever the words “Nationalization or Insolvency” or “Nationalization or an Insolvency” appear in Section 9.6 and 9.7 of the 1996 ISDA Equity Derivatives Definitions, such words shall be replaced by “Nationalization, Insolvency and Delisting.” | ||
| Section 9.7 (c) (iii) of the 1996 ISDA Equity Derivatives Definitions shall be amended by replacing the word “and” in line 5 with a comma and by adding the following wording to the end of the paragraph: “and (C) in respect of a Delisting, the date of the first public announcement by the Exchange that the Shares will cease to be listed in the manner described in the definition of “Delisting.” | ||
Reference Number: [ ]
Mr. Richard Simmons
[ ]
Page 8 of 12
| Additional Termination Event: | ||
| Notwithstanding anything to the contrary in the 1996 Definitions, it shall be an Additional Termination Event if a Tender Event Date (defined below) occurs during the term of this Transaction. | ||
| For purposes of an Additional Termination Event which occurs as a result of the occurrence of a Tender Event Date, | ||
| (a) Counterparty shall be the sole Affected Party; | ||
| (b) This Transaction shall be the sole Affected Transaction; | ||
| (c) Second Method and Loss will be deemed to apply. | ||
| “Tender Event Date” means the fifth Exchange Business Day preceding the date that the Calculation Agent reasonably anticipates will be the date on which Shareholders desiring to participate in a Tender Offer (defined below) are required to tender their Shares in order for such Shares to be included in the Tender Offer. A “Tender Offer” shall mean a tender or other offer to purchase or exchange made by any party (including the Issuer) for 10% or more of the outstanding Shares of the Issuer. | ||
| The occurrence of a Tender Event Date will be determined by the Calculation Agent based on publicly available information. No alteration or re-instatement of the Tran | ||