Document:

Exhibit 4.2

 

RISK RETENTION AGREEMENT, dated
as of July 15, 2022 (this “Agreement”), by and among SYNCHRONY BANK,
a federal savings association organized under the laws of the United States (“Synchrony Bank”), SYNCHRONY CARD FUNDING,
LLC, a Delaware limited liability company (“Synchrony Card Funding”), and SYNCHRONY CARD ISSUANCE TRUST, a Delaware
statutory trust (the “Issuer”).

 

W I T N E S S E T H:

 

WHEREAS,
Synchrony Bank and Synchrony Card Funding have entered into an Amended and Restated Receivables Sale Agreement, dated as of May 1, 2018
(the “Receivables Sale Agreement”), pursuant to which Synchrony Bank sells Receivables arising under certain Accounts
to Synchrony Card Funding;

 

WHEREAS,
Synchrony Card Funding and the Issuer have entered into an Amended and Restated Transfer Agreement, dated as of May 1, 2018 (as
amended, restated, supplemented or otherwise modified, the “Transfer Agreement”), pursuant to which Synchrony Card
Funding conveyed to the Issuer all of its right, title and interest in and to the Receivables arising under certain Accounts;

 

WHEREAS,
Synchrony Card Funding, Citibank, N.A., as the trustee (in such capacity, the “Trustee”) and Citicorp Trust Delaware,
National Association, as the Delaware trustee, have entered into an Amended and Restated Trust Agreement, dated as of May 1, 2018
(as amended, restated, supplemented or otherwise modified, the “Trust Agreement”), pursuant to which the Issuer issued
the Transferor Interest to Synchrony Card Funding;

 

WHEREAS,
the Issuer and The Bank of New York Mellon (the “Indenture Trustee”) have entered into an Amended and Restated Master
Indenture, dated as of May 1, 2018 (as amended, restated, supplemented or otherwise modified, the “Master Indenture”),
and a SynchronySeries Indenture Supplement, dated as of September 26, 2018, (as amended, restated, supplemented or otherwise modified,
the “Indenture Supplement”, and together with the Master Indenture, the “Indenture”), pursuant to
which the Issuer has issued and may from time to time issue the SynchronySeries Notes; and

 

WHEREAS,
Synchrony Card Funding intends to cause the Issuer to issue the Class A(2022-2) Notes pursuant to the Indenture and the Class A(2022-2)
Terms Document, dated as of July 15, 2022 (the “Terms Document”), between the Issuer and the Indenture Trustee.

 

NOW, THEREFORE, it is hereby
agreed by and among Synchrony Bank, Synchrony Card Funding and the Issuer as follows:

 

1.                 
DEFINITIONS. All capitalized terms used but not defined herein shall have the meanings given to such terms in the Terms
Document and, if not defined therein, in the Indenture. The following capitalized terms shall have the following meanings:

 

“Applicable Investor”
means each holder of a beneficial interest in any Class A(2022-2) Note that is (i) an “institutional investor” as defined
in the EU Securitization Regulation and to which the EU Securitization Regulation applies or (ii) an “institutional investor” as defined in the UK Securitization
Regulation and to which the UK Securitization Regulation applies.

 

     

     

    

 

“EU
Securitization Regulation” means Regulation (EU) 2017/2402 of the European Parliament and of the Council of December 12, 2017
laying down a general framework for securitization and creating a specific framework for simple, transparent and standardized securitization
and amending certain other European Union directives and regulations, as amended.

 

“EU Securitization
Rules” means the EU Securitization Regulation, together with any relevant regulatory and/or implementing technical standards
adopted by the European Commission in relation thereto, any relevant regulatory and/or implementing technical standards applicable in
relation thereto pursuant to any transitional arrangements made pursuant to the EU Securitization Regulation, and, in each case, any relevant
guidance published in relation thereto by the European Banking Authority or the European Securities and Markets Authority (or, in either
case, any predecessor authority) or by the European Commission.

 

“UK Securitization
Regulation” means Regulation (EU) 2017/2402 as it forms part of UK domestic law by operation of the European Union (Withdrawal)
Act 2018, as amended, and as amended by the Securitisation (Amendment) (EU Exit) Regulations 2019, and as further amended.

 

“UK
Securitization Rules” means the UK Securitization Regulation, together with (a) all applicable binding technical standards
made under the UK Securitization Regulation, (b) any EU regulatory technical standards or implementing technical standards relating to
the EU Securitization Regulation (including such regulatory technical standards or implementing technical standards which are applicable
pursuant to any transitional provisions of the EU Securitization Regulation) forming part of UK domestic law by operation of the European
Union (Withdrawal) Act 2018, as amended (the “EUWA”), (c) all relevant guidance, policy statements or directions relating
to the application of the UK Securitization Regulation (or any binding technical standards) published by the Financial Conduct Authority
and/or the Prudential Regulation Authority (or their successors), (d) any guidelines relating to the application of the EU Securitization
Regulation which are applicable in the United Kingdom, (e) any other transitional, saving or other provision relevant to the UK Securitization
Regulation by virtue of the operation of the EUWA and (f) any other applicable laws, acts, statutory instruments, rules, guidance or policy
statements published or enacted relating to the UK Securitization Regulation, in each case, as may be further amended, supplemented or
replaced, from time to time.

 

2.                 
REPRESENTATIONS. Synchrony Bank represents and warrants to the Issuer and the Indenture Trustee (solely for the benefit
of the Applicable Investors) that as of the date hereof:

 

(a)              
Synchrony Bank has all requisite power and authority to execute, deliver and perform its obligations under this Agreement;

 

(b)               The
execution, delivery and performance of this Agreement have been duly authorized by all necessary action, and do not violate any
provision of any law or regulation of any Governmental Authority, or contractual or other restrictions binding on Synchrony Bank,
except where such violations, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect;
and

 

    2

     

    

 

(c)              
This Agreement is the valid, binding and enforceable obligation of Synchrony Bank, except as the same may be limited by applicable
Debtor Relief Laws, now or hereafter in effect, and by general principles of equity (whether considered in a suit at law or in equity).

 

3.                 
COVENANTS. With reference to the EU Securitization Rules and the UK Securitization Rules, in each case as in effect and
applicable on the date hereof, Synchrony Bank hereby confirms, represents and warrants to and agrees with, and irrevocably and unconditionally
undertakes to the Issuer and the Indenture Trustee, solely for the benefit of each Applicable Investor, on an ongoing basis, that:

 

(a)              
Synchrony Bank, as an “originator” for the purposes of the EU Securitization Rules and the UK Securitization Rules,
will retain upon issuance of the Notes, and on an ongoing basis for so long as the Notes remain outstanding, a material net economic interest
in the securitization transaction described in the Offering Memorandum (the “Retained Interest”) that is not less than
5% of the nominal value of the securitized exposures, in a form that is intended to qualify as an originator’s interest as provided
in option (b) of Article 6(3) of the EU Securitization Regulation and option (b) of Article 6(3) of the UK Securitisation Regulation,
in each case, as in effect and applicable on the closing date, by holding all the membership interests in Synchrony Card Funding, which
in turn holds all or part of the Transferor Interest (the “Retained Interest”);

 

(b)              
Synchrony Bank will not (and will not permit Synchrony Card Funding or any of its other affiliates to) hedge or otherwise mitigate
its credit risk under or associated with the Retained Interest, or sell, transfer or otherwise surrender all of part of the rights, benefits
or obligations arising from the Retained Interest, except, to the extent permitted in accordance with the EU Securitization Rules and
the UK Securitization Rules;

 

(c)              
Synchrony Bank will not change the manner or form in which it retains its Retained Interest while any of the Class A(2022-2) Notes
are outstanding, except as permitted by the EU Securitization Rules and the UK Securitization Rules; and

 

(d)              
Synchrony Bank will provide ongoing confirmation of Synchrony Bank’s continued compliance with its obligations described
in (a), (b) and (c) above in or concurrently with the delivery of each Monthly Noteholders’ Statement.

 

4.                  AGREEMENTS
OF SYNCHRONY CARD FUNDING. Synchrony Card Funding hereby acknowledges the terms and conditions of this Agreement and, further,
covenants that it will not subject the Retained Interest to any credit risk mitigation or other hedge, or sell, transfer or
otherwise surrender all or part of the rights, benefits or obligations arising from the Retained Interest, other than as directed by
Synchrony Bank and as permitted in accordance with the terms of this Agreement.

 

    3

     

    

 

5.                 
LIMITATION OF LIABILITY.

 

(a)              
It is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by Citibank, N.A.,
not individually or personally, but solely as Trustee of the Issuer, (ii) each of the representations, undertakings and agreements herein
made on the part of the Issuer is made and intended not as a personal representation, undertaking and agreement by Citibank, N.A. but
is made and intended for the purpose of binding only the Issuer, (iii) nothing herein contained shall be construed as creating any liability
on Citibank, N.A., individually or personally, to perform any covenant either expressed or implied contained herein, all such liability,
if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (iv) Citibank,
N.A. has made no investigation as to the accuracy or completeness of any representations and warranties made by the Issuer or any other
party in this Agreement, and (v) under no circumstances shall Citibank, N.A. be personally liable for the payment of any indebtedness
or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken
by the Issuer under this Agreement or any other related documents.

 

(b)              
Notwithstanding anything to the contrary contained herein or in any other document or agreement relating to the Class A(2022-2)
Notes, in no event shall Synchrony Bank or Synchrony Card Funding be liable to the Indenture Trustee, the Issuer, the Trustee, any Applicable
Investor or any other Noteholder, or responsible for, losses in respect of the Class A(2022-2) Notes or any interest therein, including,
without limitation any loss of value of any Class A(2022-2) Notes or any interest therein, due to the failure of the Retained Interest
and compliance by Synchrony Bank and Synchrony Card Funding with the terms of this Agreement to satisfy the EU Securitization Rules, the
UK Securitization Rules or other similar or equivalent provisions now or hereafter in effect. 

 

(c)              
Without limiting Section 5(b) of this Agreement, except as specifically provided in Sections 3 and 4 of this Agreement, neither
Synchrony Bank nor Synchrony Card Funding undertakes, or intends, to take or refrain from taking any action with regard to the Class A(2022-2)
Notes in a manner prescribed or contemplated by the EU Securitization Rules or the UK Securitization Rules, or to take any action for
purposes of, or in connection with, compliance by any Applicable Investor or other person with any applicable EU Securitization Rules
or UK Securitization Rules. In particular, neither of them makes any undertaking in this Agreement or otherwise with respect to the transparency
requirements in Article 7 of the EU Securitization Regulation or Article 7 of the UK Securitization Regulation.

 

    4

     

    

 

6.                 
MISCELLANEOUS. 

 

(a)              
 THIS  AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTION 5-1401(1) OF THE GENERAL OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE
LAWS OF THE UNITED STATES OF AMERICA.

 

(b)              
EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK
CITY SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS INDENTURE OR TO ANY
MATTER ARISING OUT OF OR RELATING TO THIS INDENTURE; PROVIDED, THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE
COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN NEW YORK CITY.  EACH PARTY HERETO SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION
THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO
THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH PARTY HERETO HEREBY WAIVES PERSONAL
SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT
AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT ITS ADDRESS DETERMINED IN ACCORDANCE WITH SECTION
6(d) AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE DAYS
AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID.  NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO
TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

(c)              
BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES
DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE
BENEFITS OF THE JUDICIAL SYSTEM, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT
TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO
THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    5

     

    

 

If to Synchrony Bank:

 

777 Long Ridge Road

Stamford, Connecticut 06902

Attention: Eric Duenwald – Treasurer

 

If to Synchrony Card
Funding:

 

777 Long Ridge Road

Stamford, Connecticut 06902

Attention:  Eric Duenwald – President

 

If to the Issuer:

 

388 Greenwich Street

New York, New York 10013

Attn:  Synchrony Card Issuance Trust

 

(d)              
Neither this Agreement nor any term or provision hereof may be changed, waived, discharged or terminated except by a writing signed
by a duly authorized officer of the party against whom enforcement of such change, waiver, discharge or termination is sought to be enforced.

 

(e)              
Any part, provision, representation, warranty or covenant of this Agreement that is prohibited or is held to be void or unenforceable
shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.

 

Any part, provision,
representation, warranty or covenant of this Agreement that is prohibited or is held to be void or unenforceable in any particular jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits or renders void or unenforceable any provision hereof.

 

(f)               
This Agreement constitutes the entire agreement and understanding of the parties with respect to the matters addressed herein,
and this Agreement supersedes any prior agreements and/or understandings, written or oral, with respect to such matters.

 

    6

     

    

 

(g)              
 The Issuer is a party to this Agreement solely for the purposes of obtaining the benefit of the representations, warranties and
covenants contained therein and under no circumstances shall it be deemed to have undertaken any obligations thereunder or by virtue of
its entry into this Agreement.

 

(h)              
The Indenture Trustee is a third party beneficiary of this Agreement solely for the purpose of obtaining the benefit of the representations,
warranties and covenants contained herein and under no circumstances shall it be deemed to have undertaken any obligations hereunder.
For the avoidance of doubt, in no event shall the Indenture Trustee have any responsibility to monitor compliance with or be charged with
knowledge of the EU Securitization Rules or the UK Securitization Rules, nor shall it be liable to any Applicable Investor, Noteholder
or any party whatsoever for any violation of such EU Securitization Rules or such UK Securitization Rules or such similar provisions now
or hereafter in effect or for any breach of any term of this Agreement.

 

    7

     

    

 

Synchrony Bank, Synchrony Card
Funding and the Issuer have caused this Agreement to be duly executed by their respective officers as of the date first above written.

 

	 	SYNCHRONY BANK 
	 	 
	 	 	By:	                    
	 	 	Name: Eric Duenwald
	 	 	Title:
      SVP & Treasurer 
	 	 
	 	SYNCHRONY
    CARD FUNDING, LLC
	 	 
	 	 
	 	 	By:	 
	 	 	Name: Christopher Coffey
	 	 	Title:
      Vice President 
	 	 
	 	SYNCHRONY
    CARD ISSUANCE TRUST
	 	 
	 	By:	Citibank, N.A., not in its individual
    capacity, but solely as Trustee
	 	 
	 	 	By:	 
	 	 	Name:
	 	 	Title:Exhibit
4.3

 

DESCRIPTION
OF SECURITIES

 

Our
authorized capital stock consists of 100,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of preferred
stock, par value $0.001 per share, all of which are undesignated.

 

Description
of Common Stock

 

Voting.
Holders of common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have
cumulative voting rights. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors
may elect all of the directors standing for election.

 

Dividends.
Holders of common stock are entitled to receive proportionately any dividends that may be declared by our Board, subject to any preferential
dividend rights of outstanding preferred stock.

 

Liquidation
and Distribution. Upon our liquidation, dissolution or winding up, the holders of common stock are entitled to receive proportionately
our net assets available after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred
stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. Our outstanding shares of common stock
are, and the shares offered by us in this offering will be, when issued and paid for, fully paid and nonassessable. 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 preferred stock that we may designate and issue in the future.

 

Anti-Takeover
Effects of Delaware Law; Our Certificate of Incorporation and Our Bylaws

 

Delaware
law, our certificate of incorporation and our bylaws contain provisions that could have the effect of delaying, deferring or discouraging
another party from acquiring control of us. These provisions, which are summarized below, are intended to discourage coercive takeover
practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first
negotiate with our Board.

 

Removal
of Directors

 

Our
certificate of incorporation currently provides that directors may be removed only for cause and only by the affirmative vote of the
holders of 75% of our shares of capital stock present in person or by proxy and entitled to vote. However, our Board of Directors approved
an amendment to our bylaws that became effective on June 17, 2016, which permits our directors to be removed either for cause or without
cause by our stockholders. At our annual meeting of stockholders for the year ended April 30, 2016 that was held on October 21, 2016
(the “2016 Annual Meeting”), we submitted a proposal to stockholders seeking stockholder approval to amend our certificate
of incorporation to delete the reference to “for cause” in Section 6 of Article IX of the certificate of incorporation. This
proposal to amend the certificate of incorporation did not receive the required affirmative vote of the holders of at least 75% of the
outstanding shares of common stock entitled to vote at the meeting, so the proposal did not pass. However, we also submitted a proposal
to stockholders at the 2016 Annual Meeting seeking approval to amend our certificate of incorporation to add a clause that specified
that, to the fullest extent permitted by law, any provision in the Certificate of Incorporation that is contrary to a requirement of
the Delaware General Corporate Law (the “DGCL”) shall be read in conformity with the applicable requirement of the DGCL.
This second proposal only required the affirmative vote of the holders of a majority of the outstanding shares of common stock entitled
to vote at the 2016 Annual Meeting, and it passed.

 

Our
Board of Directors takes the position that under current Delaware law, the “only for cause” provision in the certificate
of incorporation regarding removal of the company’s directors is not enforceable and is therefore not in conformity with the applicable
requirement of the DGCL. Accordingly, we will comply with the provisions of our bylaws, as amended and as described above, relating to
director removal and will not seek to enforce that provision of our certificate of incorporation relating to stockholder removal of directors
only for cause, as presently in effect. Under our certificate of incorporation and bylaws, any vacancy on the Board, including a vacancy
resulting from an enlargement of the Board, may be filled only by vote of a majority of our directors then in office.

 

    	 

    	 

    

 

The
limitations on the ability of our stockholders to remove directors and fill vacancies could make it more difficult for a third party
to acquire, or discourage a third party from seeking to acquire, control of us.

 

Stockholder
Action by Written Consent; Special Meetings

 

Our
certificate of incorporation provides that any action required or permitted to be taken by our stockholders must be effected at a duly
called annual or special meeting of such holders and may not be effected by any consent in writing by such holders. Our certificate of
incorporation and our bylaws also provide that, except as otherwise required by law, special meetings of our stockholders can only be
called by our chairman of the board, our chief executive officer, our president or the Board.

 

Advance
Notice Requirements for Stockholder Proposals

 

Our
bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of stockholders, including
proposed nominations of persons for election to the Board. Stockholders at an annual meeting may only consider proposals or nominations
specified in the notice of meeting or brought before the meeting by or at the direction of the Board of Directors or by a stockholder
of record on the record date for the meeting, that is entitled to vote at the meeting and that has delivered to our secretary a timely
written notice in proper form of the stockholder’s intention to bring such business before the meeting. These provisions could
have the effect of delaying until the next stockholder meeting stockholder actions that are favored by the holders of a majority of our
outstanding voting securities.

 

Delaware
Business Combination Statute

 

We
are subject to Section 203 of the Delaware General Corporation Law. Subject to certain exceptions, Section 203 prevents a publicly held
Delaware corporation from engaging in a “business combination” with any “interested stockholder” for three years
following the date that the person became an interested stockholder, unless the interested stockholder attained such status with the
approval of our Board of Directors or unless the business combination is approved in a prescribed manner. A “business combination”
includes, among other things, a merger or consolidation involving us and the “interested stockholder” and the sale of more
than 10% of our assets. In general, an “interested stockholder” is any entity or person beneficially owning 15% or more of
our outstanding voting stock and any entity or person affiliated with or controlling or controlled by such entity or person.

 

Amendment
of Certificate of Incorporation and Bylaws

 

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 certificate of incorporation or bylaws, unless a corporation’s certificate of incorporation
or bylaws, as the case may be, requires a greater percentage. Our bylaws may be amended or repealed by a majority vote of our Board of
Directors or the affirmative vote of the holders of at least 75% of the voting power of our capital stock issued and outstanding and
entitled to vote on the matter.

 

Limitation
of Liability and Indemnification of Officers and Directors

 

Our
certificate of incorporation limits the personal liability of directors for breach of fiduciary duty to the maximum extent permitted
by the Delaware General Corporation Law. Our certificate of incorporation provides that no director will have personal liability to us
or to our stockholders for monetary damages for breach of fiduciary duty or other duty as a director. However, these provisions do not
eliminate or limit the liability of any of our directors:

 

	 	●	for any breach of their
    duty of loyalty to us or our stockholders;
	 	●	for acts or omissions not
    in good faith or that involve intentional misconduct or a knowing violation of law;
	 	●	for voting or assenting
    to unlawful payments of dividends or other distributions; or
	 	●	for any transaction from
    which the director derived an improper personal benefit.

 

Any
amendment to or repeal of these provisions will not eliminate or reduce the effect of these provisions in respect of any act or failure
to act, or any cause of action, suit or claim that would accrue or arise prior to any amendment or repeal or adoption of an inconsistent
provision. If the Delaware General Corporation Law is amended to provide for further limitations on the personal liability of directors
of corporations, then the personal liability of our directors will be further limited to the greatest extent permitted by the Delaware
General Corporation Law.

 

    	 

    	 

    

 

In
addition, our certificate of incorporation provides that we must indemnify our directors and officers and we must advance expenses, including
attorneys’ fees, to our directors and officers in connection with legal proceedings, subject to limited exceptions.

 

Notice
of Share Ownership

 

Our
bylaws contain a provision requiring any beneficial owner of three percent or more of our outstanding common stock to notify us of his
or her stockholdings, as well as of any change in his or her beneficial ownership of one percent or more of our outstanding common stock.
Our bylaws do not provide for any specific remedy in the event a stockholder does not comply with this provision. We do not intend to
make any such information public, unless required by law or the rules of the SEC or the NYSE American.

 

Authorized
but Unissued Shares

 

Our
authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval, subject
to any limitations imposed by the listing standards of the NYSE American. These additional shares may be used for a variety of
corporate finance transactions, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common
stock and preferred stock could make it more difficult or discourage an attempt to obtain control of us by means of a proxy contest,
tender offer, merger or otherwise.

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for our common stock is Computershare Trust Company, N.A. Its address is 462 South 4th Street, Suite 1600,
Louisville, KY 40202, and its telephone number is 1-800-662-7232.

 

Our
common stock is listed on the NYSE American under the symbol “OPTT.”

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