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pirs12312019ex-43

                                                                                       Exhibit 4.3                         DESCRIPTION OF THE REGISTRANT’S SECURITIES                         REGISTERED PURSUANT TO SECTION 12 OF THE                               SECURITIES EXCHANGE ACT OF 1934   Pieris Pharmaceuticals, Inc. (“Pieris,” “we,” “us” or the “Company”) has one class of securities registered under  Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): Common Stock, $0.001  par value per share (“Common Stock”).                                                                                  DESCRIPTION OF COMMON STOCK   We are authorized to issue 300,000,000 shares of common stock, par value $0.001 per share.    The following summary of certain provisions of our common stock does not purport to be complete. This  description is summarized from, and is qualified in its entirety by reference to, our amended and restated  articles of incorporation and our amended and restated bylaws, to which you should refer and both of which are  included as exhibits to this Form 10-K. The summary below is also qualified by provisions of applicable law,  including Chapters 78 and 92A of the Nevada Revised Statutes, or NRS, as applicable to corporations.   General  The holders of our common stock are entitled to one vote per share on matters on which our stockholders vote.  There are no cumulative voting rights. An election of directors by our stockholders shall be determined by a  plurality of the votes cast by the stockholders entitled to vote on the election. Subject to any preferential  dividend rights of any outstanding shares of preferred stock, holders of our common stock are entitled to  receive dividends, if declared by our Board of Directors, out of funds that we may legally use to pay dividends.  All of the issued and outstanding shares of our common stock are duly authorized, validly issued, fully paid  and non-assessable.   If we liquidate or dissolve, holders of our common stock are entitled to share ratably in our assets once our  debts and any liquidation preference owed to any then-outstanding preferred stockholders are paid. Our  amended and restated articles of incorporation do not provide our common stock with any redemption,  conversion or preemptive rights. The rights, preferences and privileges of holders of common stock are subject  to and may be adversely affected by the rights of the holders of shares of any series of then-outstanding  preferred stock.   Registration Rights  Private Placement Registration Rights  On December 17, 2014, we entered into a purchase agreement with multiple investors relating to the issuance  and sale of shares of our common stock in a private placement (the “2014 Private Placement”). The 2014  Private Placement held closings on December 17, December 18, and December 23, 2014, through which we  sold an aggregate of 6,779,510 shares of our common stock at $2.00 per share for aggregate proceeds of  approximately $13.6 million.   We also issued warrants to acquire up to 542,360 shares of our common stock at an exercise price of $2.00  per share to placement agents or their designees (the “Placement Agent Warrants”).   In connection with the 2014 Private Placement, we entered into a registration rights agreement and agreed to  file a registration statement covering the resale of the shares sold in the 2014 Private Placement, the shares  underlying the Placement Agent Warrants, and the 20,000,000 shares of our common stock issued to former  stockholders of Pieris GmbH in connection with the share exchange transaction on December 17, 2014. We  filed a registration statement on Form S-1 which was declared effective by the SEC on May 11, 2015. We have  agreed to keep such registration statement effective until the later of December 17, 2016 and such time as all  of the securities to be registered thereunder have been sold under the registration statement or may be sold  without restriction pursuant to Rule 144.   On June 2, 2016, we entered into a securities purchase agreement with multiple investors relating to the  issuance and sale of units consisting of: (i) one share of our common stock or non-voting series A convertible  preferred stock convertible into one share of common stock, and (ii) a warrant to purchase 0.40 shares of our    95703497v.3 

 

common stock with an exercise price of $2.00 per share and (iii) a warrant to purchase 0.20 shares of our  common stock with an exercise price of $3.00 per share (the “2016 Private Placement”). The 2016 Private  Placement closed on June 8, 2016 and we sold 8,188,804 units for gross proceeds of approximately  $16.5 million.   In connection with the 2016 Private Placement, we entered into a registration rights agreement with the  investors and agreed to register the resale of the common stock, the common stock underlying the preferred  stock, and the warrants. We filed a registration statement on Form S-3 which was declared effective by the  SEC on August 3, 2016. We have agreed to use our commercially reasonable efforts to keep such registration  statement effective until the earliest to occur of: (i) such time as all of the securities to be registered thereunder  have been sold under the registration statement, (ii) such time as all of the securities to be registered  thereunder may be sold without restriction pursuant to Rule 144, or (iii) June 8, 2018.   Transfer Agent and Registrar  The transfer agent and registrar for our common stock is Computershare Trust Company, N.A. Its address is  P.O. Box 505000, Louisville, KY, 40233-5000. Their telephone number is (877) 373-6374 from the United  States, Canada and Puerto Rico and (781) 575-3100 from all other locations.   Stock Exchange Listing  Our common stock is listed for quotation on the Nasdaq Capital Market, under the symbol “PIRS.”         CERTAIN PROVISIONS OF DELAWARE LAW AND OF THE COMPANY’S AMENDED AND       RESTATED ARTICLES OF INCORPORATION AND AMENDED AND RESTATED BYLAWS   Anti-Takeover Provisions  The provisions of Delaware law and our amended and restated articles of incorporation and amended and  restated bylaws could discourage or make it more difficult to accomplish a proxy contest or other change in our  management or the acquisition of control by a holder of a substantial amount of our voting stock. It is possible  that these provisions could make it more difficult to accomplish, or could deter, transactions that stockholders  may otherwise consider to be in their best interests or in our best interests. These provisions are intended to  enhance the likelihood of continuity and stability in the composition of our board of directors and in the policies  formulated by the board of directors and to discourage certain types of transactions that may involve an actual  or threatened change of our control. These provisions are designed to reduce our vulnerability to an unsolicited  acquisition proposal and to discourage certain tactics that may be used in proxy fights. Such provisions also  may have the effect of preventing changes in our management.   Delaware Statutory Business Combinations Provision  We are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law.  Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an  “interested stockholder” for a period of three years after the date of the transaction in which the person became  an interested stockholder, unless the business combination is, or the transaction in which the person became  an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. For  purposes of Section 203, a “business combination” is defined broadly to include a merger, asset sale or other  transaction resulting in a financial benefit to the interested stockholder, and, subject to certain exceptions, an  “interested stockholder” is a person who, together with his or her affiliates and associates, owns, or within three  years prior, did own, 15% or more of the corporation’s voting stock.   Classified Board of Directors; Removal of Directors for Cause  Pursuant to our amended and restated articles of incorporation and amended and restated bylaws, our board of  directors is divided into three classes, with the term of office of the first class to expire at the first annual  meeting of stockholders following the initial classification of directors, the term of office of the second class to  expire at the second annual meeting of stockholders following the initial classification of directors, and the term  of office of the third class to expire at the third annual meeting of stockholders following the initial classification  of directors. At each annual meeting of stockholders, directors elected to succeed those directors whose terms  expire, other than directors elected by the holders of any series of preferred stock under specified  circumstances, will be elected for a three-year term of office. All directors elected to our classified board of 

 

directors will serve until the election and qualification of their respective successors or their earlier resignation  or removal. Members of the board of directors may only be removed for cause and only by the affirmative vote  of at least 80% of our outstanding voting stock. These provisions are likely to increase the time required for  stockholders to change the composition of the board of directors. For example, at least two annual meetings  will be necessary for stockholders to effect a change in a majority of the members of the board of directors.   Advance Notice Provisions for Stockholder Proposals and Stockholder Nominations of Directors  Our amended and restated bylaws provide that, for nominations to the board of directors or for other business  to be properly brought by a stockholder before a meeting of stockholders, the stockholder must first have given  timely notice of the proposal in writing to our Secretary. For an annual meeting, a stockholder’s notice generally  must be delivered not less than 90 days nor more than 120 days prior to the first anniversary of the previous  year’s annual meeting date. For a special meeting, the notice must generally be delivered not earlier than the  90th day prior to the meeting and not later than the later of (1) the 60th day prior to the meeting or (2) the 10th  day following the day on which public announcement of the meeting is first made. Detailed requirements as to  the form of the notice and information required in the notice are specified in the amended and restated bylaws.  If it is determined that business was not properly brought before a meeting in accordance with our bylaw  provisions, such business will not be conducted at the meeting.   Special Meetings of Stockholders  Special meetings of the stockholders may be called only by our board of directors pursuant to a resolution  adopted by a majority of the total number of directors.   No Stockholder Action by Written Consent  Any action to be effected by our stockholders must be effected at a duly called annual or special meeting of the  stockholders.   Super Majority Stockholder Vote Required for Certain Actions  The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the shares  entitled to vote on any matter is required to amend a corporation’s articles of incorporation or bylaws, unless  the corporation’s articles of incorporation or bylaws, as the case may be, require a greater percentage. Our  amended and restated articles of incorporation requires the affirmative vote of the holders of at least 80% of  our outstanding voting stock to amend or repeal any of the provisions discussed in this section of this Exhibit.  This 80% stockholder vote would be in addition to any separate class vote that might in the future be required  pursuant to the terms of any preferred stock that might then be outstanding. An affirmative vote of the holders  of at least 80% of our outstanding voting stock is also required for any amendment to, or repeal of, our  amended and restated bylaws by the stockholders. Our amended and restated bylaws may be amended or  repealed by a simple majority vote of the board of directors.pirs12312019ex1016

                                                                     Exhibit 10.16                                                PIERIS PHARMACEUTICALS GmbH                                      Lise-Meitner-Strasse 30                                      85354 Freising, Germany                                      Attention: Alliance Management                                        Copy to:                                      PIERIS PHARMACEUTICALS Inc.                                      255 State Street, 9th Floor                                      Boston, MA 02109                                      Attention: Legal Counsel                                          February 5, 2020      By email and by registered letter with acknowledgement of receipt      Re: Letter to extend the Initial Research Collaboration Term pursuant to section 3.1.1 a) of  the   License and Collaboration Agreement between Les Laboratoires Servier and Institut de   Recherches Internationales Servier (individually and collectively “Servier”) and Pieris   Pharmaceuticals Inc. and Pieris Pharmaceuticals GmbH (individually and collectively “Pieris”)   (“Servier” and “Pieris” collectively the “Parties”) dated January 4, 2017 referenced   162756/SNET/PTCE as amended (the “Agreement”)      Dear Sirs,      The Initial Research Collaboration Term expires on January 3rd, 2020 in accordance with section   1.124 of the Agreement.      In that respect, Servier and Pieris mutually agree by the present letter (the “Letter Amendment”)   to extend the Initial Research Collaboration Term for the Initial Collaboration Products which are   still under Development under the applicable Collaboration Plans and which have not reached PCC   yet [***] by one (1) year (the “Initial Research Collaboration Renewal Term”) pursuant to  section 3.1.1 a) of the Agreement. Consequently, the Initial Research Collaboration Renewal Term  shall now be due to expire on January 3, 2021.    Pursuant to 3.1.6 a) the Parties agree that the additional sum to be paid to Pieris (the “Collaboration   Renewal Development Funds”) with respect to such Collaboration Renewal Term is [***]. Such   Collaboration Renewal Development Funds includes (i) [***], and (ii) an additional lump sum of   [***]. The Collaboration Renewal Development Funds shall be paid in quarterly installments of   [***] following receipt of invoices requesting such payments, with the first payment due within   forty-five (45) days of the execution of this Letter Amendment, the second payment due within   forty-five (45)  days of April 1, 2020, the third payment due within forty-five (45)  days of July 1,   2020 and the fourth payment due within forty-five (45) days of October 1, 2020.                                                                                  1 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.     

 

                                                                     Exhibit 10.16    Following extension of the Initial Research Collaboration Term, the Parties mutually agree to   update by this Letter Amendment the applicable Collaboration Plans and Collaboration Budgets   accordingly. The updated versions of the Collaboration Plans and Collaboration Budgets are   attached as exhibits to this Letter Amendment and may be updated or amended from time-to-time   pursuant to the Agreement.       Capitalized terms or derivatives thereof when used herein shall have the meaning attributed to   them in the Agreement.       This Letter Amendment does not modify the Agreement on any aspects other than those explicitly  stated herein. All other provisions of the Agreement not modified by this Letter Amendment shall  remain in full force and effect.     This Letter Amendment, comprising three (3) exhibits, is made in four (4) original copies and shall   become effective as of January 3, 2020.      Please provide acknowledgement of this Letter Amendment, by having this Letter Amendment   signed by a duly-authorized signatory and returning two (2) executed copy of this Letter   Amendment at your earliest convenience to Mr. Romuald LAINE (at Institut de Recherches   Internationales Servier, 50 rue Carnot, 92284 Suresnes Cedex, France) with an electronic copy to   romuald.laine@servier.com.      Yours sincerely,      For INSTITUT DE RECHERCHES              For LES LABORATOIRES SERVIER   INTERNATIONALES SERVIER                                                                                                                                    By:_/s/ Dr. Claude Bertrand______       By:_/s/ Mr. Christian Bazantay___                                                                                         Name : Dr. Claude Bertrand              Name: Mr. Christian BAZANTAY    Title: Vice-President Research and      Title: Proxy   Development                                                                                                                                                                                                         By:_/s/ Mr. Eric Falcand_____                                                                                      Name: Mr.  Eric FALCAND                                           Title: Proxy                                                                                                                          2 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.     

 

                                                                            Exhibit 10.16                                                   For PIERIS PHARMACEUTICALS, INC.            For PIERIS PHARMACEUTICALS GMBH                                                                                                                                                By:_/s/ Stephen S. Yoder______              By:____/s/ Stephen S. Yoder_______                                                  Name : Stephen Yoder                        Name : Stephen Yoder   Title: CEO                                  Title: Managing Director                                                                                            3 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.     

 

                                                                            Exhibit 10.16                                       Exhibit 3.1.2. (a)2                                            [***]                                                                                                                     4 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.     

 

                                                                            Exhibit 10.16                                       Exhibit 3.1.2. (a)3                                            [***]                                                                                                                                                                                                              5 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.     

 

                                                                            Exhibit 10.16                                       Exhibit 3.1.2. (a)4                                            [***]                                                                                                                                                                                                                 6 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.     

 

                                                                            Exhibit 10.16                                            Summary                                            [***]                                                                                                                                     7 / 7  [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,  HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE  COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

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