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Preferred Stock and Stockholder's Equity
3 Months Ended
Mar. 31, 2013
Preferred Stock and Stockholder's Equity

10.              Preferred Stock and Stockholder’s Equity

In 2007, the stockholders of the Company approved an amendment to the Company’s Articles of Incorporation to provide for the issuance of 10,000,000 shares of preferred stock, and the Company subsequently completed a public offering of 1,610,000 shares of 9.25% Series A Cumulative Preferred Stock at a price of $25.00 per share.

Holders of the Series A Preferred Stock are entitled to receive, when and as declared by the Board of Directors, dividends at a rate of 9.25% per annum ($2.3125 per annum per share). The Series A Preferred Stock does not have any stated maturity date and will not be subject to any sinking fund or mandatory redemption provisions, except, under certain circumstances upon a change of ownership or control.

The shares of Series A Preferred Stock are classified outside of permanent equity on the consolidated balance sheets due to its change of control redemption provision. Following a change of ownership or control of the Company by a person or entity, other than by a “Qualifying Public Company,” the Company will be required to redeem the Series A Preferred Stock within 90 days after the date on which the change of ownership or control occurred for cash. In the event of liquidation, the holders of the Series A Preferred Stock will have the right to receive $25.00 per share, plus all accrued and unpaid dividends, before any payments are made to the holders of the Company’s common stock.

In the fourth quarter of 2012, the holders of the Series A Preferred Stock approved an amendment to the Articles Supplementary for the Series A Preferred Stock that modified the definition of a “Qualifying Public Company” to give the Company more flexibility when pursuing strategic acquisitions and mergers by allowing a change of control to be executed without the redemption provision being triggered if the Company’s stock is still actively traded in the open market. The amendment also extended the redemption date at which the Company may redeem the Series A Preferred Stock for cash at its option, in whole or from time to time in part, at a redemption price of $25.00 per share, plus accrued and unpaid dividends (whether or not earned or declared) from June 30, 2012 to September 30, 2013.