EXHIBIT 4.3
THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A
REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH IN A
SECURITIES PURCHASE AGREEMENT, DATED AS OF APRIL 7, 2008, COPIES OF
WHICH ARE ON FILE WITH THE SECRETARY OF THE ISSUER.
WARRANT
to purchase
[ ]
Shares of Common
Stock
dated as of
[ ]
WASHINGTON MUTUAL, INC.
a Washington Corporation
Issue Date: [ ]
1.
Definitions
. Unless the context otherwise
requires, when used herein the following terms shall have the
meanings indicated.
“ Affiliate ” has
the meaning set forth in Section 6.10(a) of the
Securities Purchase Agreement.
“ Applicable Price
” means the greater of (A) the greater of the Market
Price per share of outstanding Common Stock on (i) the date on
which the Company issues or sells any Common Stock other than
Excluded Stock and (ii) the first date of the announcement of
such issuance or sale and (B) the Reference Purchase
Price.
“ Appraisal Procedure
” means a procedure whereby two independent appraisers, one
chosen by the Company and one by the Warrantholder (or if there is
more than one Warrantholder, a majority in interest of
Warrantholders), shall mutually agree upon the determinations then
the subject of appraisal. Each party shall deliver a notice
to the other appointing its appraiser within 15 days after the
Appraisal Procedure is invoked. If within 30 days after
appointment of the two appraisers they are unable to agree upon the
amount in
question, a third independent appraiser shall be
chosen within 10 days thereafter by the mutual consent of such
first two appraisers or, if such first two appraisers fail to agree
upon the appointment of a third appraiser, such appointment shall
be made by the American Arbitration Association, or any
organization successor thereto, from a panel of arbitrators having
experience in the appraisal of the subject matter to be
appraised. The decision of the third appraiser so appointed
and chosen shall be given within 30 days after the selection of
such third appraiser. If three appraisers shall be appointed
and the determination of one appraiser is disparate from the middle
determination by more than twice the amount by which the other
determination is disparate from the middle determination, then the
determination of such appraiser shall be excluded, the remaining
two determinations shall be averaged and such average shall be
binding and conclusive on the Company and the Warrantholder;
otherwise, the average of all three determinations shall be binding
and conclusive on the Company and the Warrantholder. The
costs of conducting any Appraisal Procedure shall be borne by the
Warrantholder requesting such Appraisal Procedure, except
(A) the fees and expenses of the appraiser appointed by the
Company and any other costs incurred by the Company shall be borne
by the Company and (B) if such Appraisal Procedure shall
result in a determination that is disparate by 5% or more from the
Company’s initial determination, all costs of conducting such
Appraisal Procedure shall be borne by the Company.
“ Beneficially Own
” or “ Beneficial Owner ” has the meaning
set forth in Section 4.1(f) of the Securities Purchase
Agreement.
“ Board of Directors
” has the meaning set forth in Section 2.2(d) of
the Securities Purchase Agreement.
“ Board Representative
” has the meaning set forth in Section 4.3 of the
Securities Purchase Agreement.
“ Business Combination
” means a merger, consolidation, statutory share exchange or
similar transaction that requires adoption by the Company’s
shareholders.
“ business day ”
means any day except Saturday, Sunday and any day which shall be a
legal holiday or a day on which banking institutions in the State
of New York or in the State of Washington generally are authorized
or required by law or other governmental actions to
close.
“ Common Shares ”
has the meaning set forth in Section 2.
“ Capital Stock
” means (A) with respect to any person that is a
corporation or company, any and all shares, interests,
participations or other equivalents (however designated) of capital
or capital stock of such person and (B) with respect to any
person that is not a corporation or company, any and all
partnership or other equity interests of such person.
“ Common Stock ”
has the meaning given to it in the recitals of the Securities
Purchase Agreement.
“ Company ” has
the meaning set forth in the preamble of the Securities Purchase
Agreement.
“ Company
Subsidiary ” has the meaning set forth in
Section 2.2(a)(2) of the Securities Purchase
Agreement.
“ Convertible Preferred
Stock ” shall have the meaning set forth in the recitals
of the Securities Purchase Agreement.
“ Exchange Act ”
means the Securities Exchange Act of 1934, as amended, or any
successor statute, and the rules and regulations promulgated
thereunder.
“ Excluded Stock
” means (A) shares of Common Stock issued by the Company
as a stock dividend payable in shares of Common Stock, or upon any
subdivision or split-up of the outstanding shares of Capital Stock
in each case which is subject to Section 13(B), or upon
conversion of shares of Capital Stock (but not the issuance of such
Capital Stock which will be subject to the provisions of
Section 13(A)), (B) shares of Common Stock to be issued
to employees, consultants and advisors of the Company pursuant to
options, restricted stock units or other equity-based awards
granted prior to the date of issuance of this Warrant and pursuant
to options, restricted stock units or other equity-based awards
granted after the date of issuance of this Warrant if the exercise
price per share of Common Stock on the date of such grant equals or
exceeds the Market Price of a share of Common Stock on the date of
such grant and (C) shares of Common Stock issued by the
Company in connection with a dividend reinvestment, employee or
shareholder stock purchase plan.
“ Exercise
Approvals” means the collective reference to the
Shareholder Approvals and the Regulatory Approvals.
“ Exercise Price
” means an amount equal to the lower of (i) an amount
equal to 115% of the average Market Price of the Common Stock
during the five trading days following the public announcement of
the results of the Company’s quarter ended March 31,
2008 (it being understood that if the such announcement occurs
prior to the commencement of trading on the New York Stock
Exchange, the first trading day following such announcement shall
be the day of such announcement) and (ii) an amount equal to
115% of the Reference Purchase Price; provided , that such
amount shall be reduced by $0.50 on each six-month anniversary of
the date of this Warrant if the Shareholder Approvals shall not
have been obtained prior to such anniversary, up to a maximum
reduction of $2.00.
“ Expiration Time
” has the meaning set forth in Section 3.
“ Fundamental Change
” means the occurrence of one of the following:
(i) a “person” or
“group” within the meaning of
Section 13(d) of the Exchange Act files a Schedule TO or
any schedule, form or report under the Exchange Act disclosing that
such person or group has become the direct or indirect ultimate
Beneficial Owner of common equity of the Company representing more
than 50% of the voting power of the outstanding Common
Stock;
(ii) consummation of any
consolidation or merger of the Company or similar transaction or
any sale, lease or other transfer in one transaction or a series of
transactions of all or substantially all of the consolidated assets
of the Company and its subsidiaries, taken as a whole, to any
Person other than one of the Company’s subsidiaries, in each
case pursuant to which the
Common Stock will be converted into cash,
securities or other property, other than pursuant to a transaction
in which the Persons that Beneficially Owned, directly or
indirectly, voting shares of the Company immediately prior to such
transaction Beneficially Own, directly or indirectly, voting shares
representing a majority of the total voting power of all
outstanding classes of voting shares of the continuing or surviving
Person immediately after the transaction; or
(iii) the Company’s
shareholders approve and adopt a plan of liquidation or dissolution
of the Company or a sale of all or substantially all of the
Company’s assets.
“ Governmental
Entities ” has the meaning set forth in
Section 2.2(e) of the Securities Purchase
Agreement.
“ Group ” means a
group as contemplated by Section 13(d)(3) of the Exchange
Act.
“ Securities Purchase
Agreement ” means the Securities Purchase Agreement,
dated as of April 7, 2008, between the Company and the
Purchasers, including all schedules and exhibits
thereto.
“ Purchasers ”
has the meaning set forth in the preamble of the Securities
Purchase Agreement.
“ Market Price ”
means, with respect to a particular security, on any given day, the
last reported sale price regular way or, in case no such reported
sale takes place on such day, the average of the last closing bid
and ask prices regular way, in either case on the principal
national securities exchange on which the applicable securities are
listed or admitted to trading, or if not listed or admitted to
trading on any national securities exchange, (A) the closing
sale price for such day reported by the Nasdaq Stock Market if such
security is traded over-the-counter and quoted in the Nasdaq Stock
Market, or (B) if such security is so traded, but not so
quoted, the average of the closing reported bid and ask prices of
such security as reported by the Nasdaq Stock Market or any
comparable system, or (C) if such security is not listed on
the Nasdaq Stock Market or any comparable system, the average of
the closing bid and ask prices as furnished by two members of the
National Association of Securities Dealers, Inc. selected from
time to time by the Company for that purpose. If such
security is not listed and traded in a manner that the quotations
referred to above are available for the period required hereunder,
the Market Price per share of Common Stock shall be deemed to be
the fair value per share of such security as determined in good
faith by the Board of Directors.
“ New Issuance Price
” has the meaning set forth in
Section 3(A)(i).
“ Ordinary Cash
Dividends ” means a regular quarterly cash dividend out
of surplus or net profits legally available therefor (determined in
accordance with generally accepted accounting principles,
consistently applied) and consistent with past practice.
“ person ” has
the meaning given to it in Section 3(a)(9) of the
Exchange Act and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act.
“ Preliminary Fundamental
Change ” means, with respect to the Company, (A) the
execution of definitive documentation for a transaction or
(B) the recommendation that
shareholders tender in response to a tender or
exchange offer, that could reasonably result in a Fundamental
Change upon consummation.
“ Pro Rata
Repurchases ” means any purchase of shares of Common
Stock by the Company or any Affiliate thereof pursuant to any
tender offer or exchange offer subject to
Section 13(e) of the Exchange Act, or pursuant to any
other offer available to substantially all holders of Common Stock,
whether for cash, shares of Capital Stock of the Company, other
securities of the Company, evidences of indebtedness of the Company
or any other person or any other property (including, without
limitation, shares of Capital Stock, other securities or evidences
of indebtedness of a Company Subsidiary), or any combination
thereof, effected while this Warrant is outstanding;
provided , however , that “Pro Rata
Repurchase” shall not include any purchase of shares by the
Company or any Affiliate thereof made in accordance with the
requirements of Rule 10b-18 as in effect under the Exchange
Act. The “ Effective Date ” of a Pro Rata
Repurchase shall mean the date of acceptance of shares for purchase
or exchange under any tender or exchange offer which is a Pro Rata
Repurchase or the date of purchase with respect to any Pro Rata
Repurchase that is not a tender or exchange offer.
“ Regulatory Approvals
” with respect to the Warrantholder, means the receipt of
approvals and authorizations of, filings and registrations with,
notifications to, or expiration or termination of any applicable
waiting period under, the Hart-Scott-Rodino Antitrust Improvements
Act of 1976 or the competition or merger control laws of other
jurisdictions, in each case necessary to the extent necessary to
permit such Warrantholder to exercise this Warrant for a Share and
to own such Share of Common Stock.
“ Reference Purchase
Price ” has the meaning set forth in
Section 1.2(b) of the Securities Purchase
Agreement.
“Reset
Price” has the
meaning set forth in Section 3(A)(i).
“ SEC ” means the
U.S. Securities and Exchange Commission.
“ Securities Act
” means the Securities Act of 1933, as amended, or any
successor statute, and the rules and regulations promulgated
thereunder.
“ Shares ” has
the meaning set forth in Section 2.
“ Shareholder Approvals
” means all shareholder approvals necessary to
(A) approve the exercise of this Warrant for a Share for
purposes of Section 312.03 of the NYSE Listed Company Manual,
and (B) amend the Articles to increase the number of
authorized shares of Common Stock to at least such number as shall
be sufficient to permit the exercise of this Warrant for a
Share.
“ Subsidiary
” has the meaning set forth in Section 2.2(a)(2) of
the Securities Purchase Agreement.
“ Underlying Security
Price ” has the meaning set forth in
Section 3(A)(i).
“ Voting Securities
” has the meaning set forth in Section 4.1(f) of
the Securities Purchase Agreement.
“ Warrantholder ”
has the meaning set forth in Section 2.
“ Warrants ”
means this Warrant, issued pursuant to the Securities Purchase
Agreement.
2.
Number of Shares; Exercise
Price . This
certifies that, for value received, [NAME OF HOLDER], its
affiliates or its registered assigns (the “
Warrantholder ”) is entitled, upon the terms and
subject to the conditions hereinafter set forth, to acquire from
the Company, in whole or in part, after the receipt of Exercise
Approvals, up to an aggregate of [ · ] fully paid and nonassessable shares of Common
Stock, no par value, of the Company (the “ Common
Shares ”), at a purchase price per Common Share equal to
the Exercise Price. The number of Common Shares (the
“Shares” ) and the Exercise Price are subject to
adjustment as provided herein, and all references to “Common
Stock” and “Exercise Price” herein shall be
deemed to include any such adjustment or series of
adjustments.
3.
Exercise of Warrant;
Term . Subject to
Section 2, to the extent permitted by applicable laws and
regulations, the right to purchase the Shares represented by this
Warrant is exercisable, in whole or in part by the Warrantholder,
at any time or from time to time after 9:00 a.m., New York
City time, on the date hereof, but in no event later than
11:59 p.m., New York City time, on the fifth anniversary of
the date of issuance of the Warrant (the “ Expiration
Time ”), by (A) the surrender of this Warrant and
Notice of Exercise annexed hereto, duly completed and executed on
behalf of the Warrantholder, at the office of the Company in
Seattle, Washington (or such other office or agency of the Company
in the United States as it may designate by notice in writing to
the Warrantholder at the address of the Warrantholder appearing on
the books of the Company), and (B) payment of the Exercise
Price for the Shares thereby purchased at the election of the
Warrantholder in one of the following manners:
(i)
by tendering in cash, by certified
or cashier’s check or by wire transfer payable to the order
of the Company, or
(ii)
by having the Company withhold
shares of Common Stock issuable upon exercise of the Warrant equal
in value to the aggregate Exercise Price as to which this Warrant
is so exercised based on the Market Price of the Common Stock on
the trading day prior to the date on which this Warrant and the
Notice of Exercise are delivered to the Company.
If the Warrantholder does not
exercise this Warrant in its entirety, the Warrantholder will be
entitled to receive from the Company within a reasonable time, and
in any event not exceeding three business days, a new warrant in
substantially identical form for the purchase of that number of
Shares equal to the difference between the number of Shares subject
to this Warrant and the number of Shares as to which this Warrant
is so exercised. Notwithstanding anything in this Warrant to the
contrary, the Warrantholder hereby acknowledges and agrees that its
exercise of this Warrant for Shares is subject to the condition
that it will have first received the Shareholder
Approvals.
4.
Issuance of Shares;
Authorization; Listing . Certificates for Shares issued upon
exercise of this Warrant will be issued in such name or names as
the Warrantholder may designate and will be delivered to such named
person or persons within a reasonable time, not to exceed three
business days after the date on which this Warrant has been duly
exercised in accordance with the terms of this Warrant. The
Company hereby represents and warrants that any Shares issued upon
the exercise of this Warrant in accordance with the provisions of
Section 3 will, upon receipt of the Shareholder Approvals, be
duly and validly authorized and issued, fully paid and
nonassessable and free from all taxes, liens and charges (other
than liens or charges created by the Warrantholder or taxes in
respect of any transfer occurring contemporaneously
therewith). The Company agrees that the Shares so issued will
be deemed to have been issued to the Warrantholder as of the close
of business on the date on which this Warrant and payment of the
Exercise Price are delivered to the Company in accordance with the
terms of this Warrant, notwithstanding that the stock transfer
books of the Company may then be closed or certificates
representing such Shares may not be actually delivered on such
date. Subject to receipt of Exercise Approvals, the Company
will at all times reserve and keep available, out of its authorized
but unissued Common Stock, solely for the purpose of providing for
the exercise of this Warrant, the aggregate number of shares of
Common Stock issuable upon exercise of this Warrant. The
Company will (A) procure, at its sole expense, the listing of
the Shares and other securities issuable upon exercise of this
Warrant, subject to issuance or notice of issuance on all stock
exchanges on which the Common Stock are then listed or traded and
(B) maintain the listing of such Shares after issuance.
The Company will use reasonable best efforts to ensure that the
Shares may be issued without violation of any applicable law or
regulation or of any requirement of any securities exchange on
which the Shares are listed or traded.
5.
No Fractional Shares or
Scrip . No
fractional Shares or scrip representing fractional Shares shall be
issued upon any exercise of this Warrant. In lieu of any
fractional Share to which the Warrantholder would otherwise be
entitled, the Warrantholder shall be entitled to receive a cash
payment equal to the Market Price of the Common Stock less the
Exercise Price for such fractional share.
6.
No Rights as Shareholders;
Transfer Books .
This Warrant does not entitle the Warrantholder to any voting
rights or other rights as a shareholder of the Company prior to the
date of exercise hereof. The Company will at no time close
its transfer books against transfer of this Warrant in any manner
which interferes with the timely exercise of this
Warrant.
7.
Charges, Taxes and
Expenses . Issuance
of certificates for Shares to the Warrantholder upon the exercise
of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in
respect of the issuance of such certificates, all of which taxes
and expenses shall be paid by the Company.
8.
Transfer/Assignment
.
(A)
Subject to compliance with clause
(B) of this Section 8, without obtaining the consent of
the Company to assign or transfer this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, upon
the books of the Company by the registered holder hereof in person
or by duly authorized attorney, and a new warrant shall be made and
delivered by the Company, of the same tenor and date as this
Warrant but registered in the name of one or
more transferees, upon surrender of this
Warrant, duly endorsed, to the office or agency of the Company
described in Section 2. All expenses (other than stock
transfer taxes) and other charges payable in connection with the
preparation, execution and delivery of the new warrants pursuant to
this Section 8 shall be paid by the Company.
(B)
Notwithstanding the foregoing, this
Warrant and any rights hereunder, and any Shares issued upon
exercise of this Warrant, shall be subject to the applicable
restrictions as set forth in Section 4.2 of the Securities
Purchase Agreement.
(C)
If and for so long as required by
the Securities Purchase Agreement, this Warrant Certificate shall
contain a legend as set forth in Section 4.4 of the Securities
Purchase Agreement.
9.
Exchange and Registry of
Warrant . This
Warrant is exchangeable, upon the surrender hereof by the
Warrantholder to the Company, for a new warrant or warrants of like
tenor and representing the right to purchase the same aggregate
number of Shares. The Company shall maintain a registry
showing the name and address of the Warrantholder as the registered
holder of this Warrant. This Warrant may be surrendered for
exchange or exercise, in accordance with its terms, at the office
of the Company, and the Company shall be entitled to rely in all
respects, prior to written notice to the contrary, upon such
registry.
10.
Loss, Theft, Destruction or
Mutilation of Warrant . Upon receipt by the Company of evidence
reasonably satisfactory to it