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Exhibit 4.1 FORM OF NEGOTIABLE SUBORDINATED
CONVERTIBLE NOTE THE INDEBTEDNESS EVIDENCED HEREBY IS
SUBORDINATED TO THE SENIOR INDEBTEDNESS (AS DEFINED HEREIN),
PURSUANT TO THE TERMS AND CONDITIONS CONTAINED HEREIN. THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN
EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.
THE SALE OR OTHER DISPOSITION OF ANY OF THE SECURITIES
REPRESENTED BY THIS NOTE IS RESTRICTED BY A CERTAIN STOCK PURCHASE
AGREEMENT, AS AMENDED FROM TIME TO TIME, BY AND AMONG THIS COMPANY,
MASTEC, INC., WANZEK CONSTRUCTION, INC., TRUST B UNDER THE AMENDED
AND RESTATED LIVING TRUST OF LEO WANZEK DATED FEBRUARY 2, 2000,
JANET L. WANZEK, WANZEK CONSTRUCTION 2008 IRREVOCABLE TRUST, JON L.
WANZEK, AND JON L. WANZEK 2008 TWO-YEAR IRREVOCABLE ANNUITY TRUST.
A COPY OF THE STOCK PURCHASE AGREEMENT IS AVAILABLE FOR INSPECTION
DURING NORMAL BUSINESS HOURS AT THE PRINCIPAL EXECUTIVE OFFICE OF
THIS COMPANY AND WILL BE FURNISHED TO THE RECORD HOLDER OF THIS
NOTE WITHOUT CHARGE UPON WRITTEN REQUEST TO THE COMPANY AT ITS
PRINCIPAL PLACE OF BUSINESS. NEGOTIABLE SUBORDINATED
CONVERTIBLE NOTE
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Coral Gables, Florida
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December ,
2008
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$
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FOR VALUE RECEIVED, MASTEC
NORTH AMERICA, INC. (the "Company" ), hereby promises to
pay to the order of
( "Holder" ), the principal amount of
($
) on December , 2013 (the
"Maturity Date" ), and to pay interest on the unpaid
principal balance hereof at the rate of eight percent (8%) per
annum from the date hereof (the "Issuance Date" ). The
principal balance of this Note shall be payable pursuant to
Section 1.a . Interest on this Note shall accrue and be
payable pursuant to Section 1.b . Capitalized terms
used but not defined herein have the respective meanings ascribed
thereto in the Stock Purchase Agreement, dated as of
October 4, 2008, as subsequently amended, by and among the
Company, MasTec, Inc., a Florida corporation (the
"Guarantor" ), Wanzek Construction, Inc., a North Dakota
corporation, Trust B under the Amended and Restated Living Trust of
Leo Wanzek dated February 2, 2000, a North Dakota trust, Janet
L. Wanzek, a North Dakota resident, Wanzek Construction 2008
Irrevocable Trust, a North Dakota trust, Jon L. Wanzek, a North
Dakota resident ( "Jon" ), Jon L. Wanzek 2008 Two-Year
Irrevocable Annuity Trust, a North Dakota trust, and Jon, as
Sellers’ Representative.
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1. Payments of
Principal and Interest . Subject to the provisions of
Section 15 hereof:
a.
Payment of Principal . The principal balance of this Note
shall be paid to the Holder hereof on the Maturity Date. The
Company shall not prematurely pay or prepay any outstanding
principal balance to the Holder, except pursuant to
Section 3 .
b.
Payment of Interest . Interest on the unpaid principal
balance of this Note shall accrue at a rate of eight percent (8%)
per annum commencing on the Issuance Date. Interest shall be paid
each April ___, August ___, and December ___, commencing April ___,
2009, during the term of this Note.
c.
General Payment Provisions . All payments of principal and
interest on this Note shall be made in lawful money of the United
States of America by wire transfer of immediately available funds
to such account as the Holder may from time to time designate by
written notice to the Company in accordance with the provisions of
this Note. Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a Business Day, the same
shall instead be due on the next succeeding day which is a Business
Day and, in the case of any interest payment date which is not the
date on which this Note is paid in full, the extension of the due
date thereof shall not be taken into account for purposes of
determining the amount of interest due on such date.
2. Conversion of
Note . This Note shall be convertible into shares of the
Guarantor’s common stock, par value $.10 per share (the
"Common Stock" ), on the terms and conditions set forth in
this Section 2 .
a.
Certain Defined Terms . For purposes of this Note, the
following terms shall have the following meanings:
i.
"Conversion Amount" means the sum of (A) the principal
amount of this Note to be converted, plus (B) all
accrued and unpaid interest.
ii.
"Conversion Price" means $12 per share of Common Stock.
iii.
"Family Group" means Jon and his spouse, their siblings,
parents and descendants (whether natural or adopted) and any trust
formed and maintained solely for the benefit of such persons.
iv.
"Minimum Conversion Amount" means a minimum principal amount
of $5,500,000.
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v.
"Transfer Agent" means [Insert].
b.
Conversion Right . At any time or times on or after the
Issuance Date, the Holder shall be entitled to convert, any part
equal to or in excess of the Minimum Conversion Amount of the
outstanding and unpaid principal amount of this Note into fully
paid and nonassessable shares of Common Stock at the Conversion
Rate (as defined below).
c.
Treatment of Accrued Interest Upon Conversion . Upon any
conversion pursuant to subsection b of this
Section 2 , the accrued and unpaid interest outstanding
on the date of conversion (the "Conversion Date" ) shall be
converted into fully paid and nonassessable shares of Common Stock
at the Conversion Rate.
d.
Fractional Shares . No fractional shares of Common Stock
shall be issued upon any conversion. If a conversion would result
in the issuance of a fraction of a share of Common Stock, the
number of shares of Common Stock to be issued upon such conversion
shall be rounded down to the nearest whole share.
e.
Conversion Rate . The number of shares of Common Stock
issuable upon conversion of this Note pursuant to subsection
b of this Section 2 shall be determined
according to the following formula (the "Conversion Rate" ):
Conversion Amount
Conversion Price
f.
Mechanics of Conversion . The conversion of this Note shall
be conducted in the following manner:
i.
Holder’s Delivery Requirements . To convert this Note
into shares of Common Stock pursuant to subsection b of this
Section 2 , the Holder shall (A) transmit by
facsimile (or otherwise deliver) a copy of a fully executed notice
of conversion in the form attached hereto as Exhibit I (a
"Conversion Notice" ) to the Company and (B) surrender
to the Company the original Note.
ii.
Conversion . Upon receipt of a Conversion Notice and the
original Note by the Company in accordance with
Section 2.f.i , the Company shall instruct the Transfer
Agent to process such Conversion Notice in accordance with the
terms herein. Upon receipt by the Transfer Agent of a copy of the
executed Conversion Notice, the Transfer Agent shall, not later
than the third Business Day following the date of receipt, issue
and surrender to a common carrier for overnight delivery to the
Holder, a certificate, issued in the name of the Holder for the
number of shares of Common Stock to which the Holder shall be
entitled. If less than the principal amount of this Note is
submitted for conversion, then the Company shall, as soon as
practicable and in no event later than three Business Days after
receipt of the Note and at its own expense, issue and deliver to
the Holder a new Note for the outstanding principal amount not
converted.
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iii.
Record Holder . As of the Conversion Date, the Holder shall
be treated for all purposes as the record holder of the shares of
Common Stock to be issued on such date.
iv.
ATermination of Accrued Interest . Upon the Company’s
receipt of any Conversion Notice, no further interest shall accrue
with respect to the principal amount to be converted pursuant to
such notice.
g.
Taxes . The Holder shall pay any and all taxes that may be
payable with respect to the issuance and delivery of Common Stock
upon the conversion of this Note.
h.
Adjustments to Conversion Price . The Conversion Price will
be subject to adjustment from time to time as provided in this
Section 2.h .
i.
Adjustment of Conversion Price upon Subdivision or Combination
of Common Stock . If the Guarantor at any time subdivides (by
any stock split, stock dividend, recapitalization or otherwise) its
outstanding shares of Common Stock into a greater number of shares,
the Conversion Price in effect immediately prior to such
subdivision will be proportionately reduced. If the Guarantor at
any time combines (by combination, reverse stock split or
otherwise) its outstanding shares of Common Stock into a smaller
number of shares, the Conversion Price in effect immediately prior
to such combination will be proportionately increased.
ii.
Notices . Immediately upon any adjustment of the Conversion
Price, the Company will give written notice thereof to Holder
setting forth in reasonable detail, and certifying, the calculation
of such adjustment.
i.
Limitation on Beneficial Ownership . The Holder shall not
have the right to convert this Note pursuant to
Section 2.b to the extent that after giving effect to
such conversion the Holder (together with such Person’s
affiliates) would beneficially own 10% or more of the outstanding
shares of the Common Stock following such conversion. For purposes
of this Section 2.i , beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. Notwithstanding anything to the
contrary contained herein, each Conversion Notice shall constitute
a representation by the Holder that, after giving effect to such
Conversion Notice, the Holder will not beneficially own (as
determined in accordance with this Section&
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