Document:

EX-4.6

 Exhibit 4.6 

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 

2021 EQUITY COMPENSATION PLAN FOR OUTSIDE DIRECTORS 
  

	I.	 PURPOSE AND DURATION OF PLAN 

The purpose of this Public Service Enterprise Group Incorporated 2021 Equity Compensation Plan for Outside Directors (“Plan”) is to advance the
interests of the Company and its stockholders by assisting the Company in attracting and retaining individuals of superior talent, ability and achievement to serve on its Board of Directors. 

It is intended that the Plan will be interpreted and administered to prevent taxation under Section 409A of the Code. Any provision of or amendment
to this Plan that would cause any amount to be taxable under Section 409A with respect to any individual is void and without effect. Any election by any Participant, and any administrative action by the Committee that would cause any amount to
be taxable under Section 409A with respect to any individual is void and without effect under the Plan. In the event that a Participant fails to make a Section 409A-compliant payment election, the Plan’s default payment provisions, as
set forth in Subsection VI.G and Section VIII, shall apply. 
 This Plan shall become effective upon the date it receives shareholder approval, April 20, 2021 (the
“Effective Date”) and terminate on the tenth anniversary of the Effective Date, unless terminated earlier pursuant to Section VIII of the Plan. After this Plan is terminated, no Awards may be granted however, Awards previously granted
shall remain outstanding subject to this Plan’s terms and conditions. 
  

	II.	 DEFINITIONS 

The following words and phrases shall have the meanings set forth below unless a different meaning is required by the context: 

 

	 	a)	 Annual Meeting: The Annual Meeting of Stockholders of the Company. 

 

	 	b)	 Award: An award granted under the Plan to a Participant by the Corporate Governance Committee pursuant to any
terms and conditions that the Committee may establish and set forth in the applicable Award Agreement. Restricted Stock Units are granted under the Plan pursuant to Section V. 

 

	 	c)	 Award Agreement An agreement, certificate, resolution or other type or form of writing or other evidence approved
by the Committee or Board (as applicable) that sets forth the terms and conditions of an Award granted under this Plan. An Award Agreement may be in an electronic medium, may be limited to notation on the books and records of the Company and, unless
otherwise determined by the Committee or Board (as applicable), acceptation is not required by Participant. 

  

	 	d)	 Board: The Board of Directors of the Company as constituted at any time. 

	 	e)	 Code: The Internal Revenue Code of 1986, as it may be amended from time to time. 

 

	 	f)	 Committee: The Corporate Governance Committee of the Board of Directors, or any Committee designated by the Board
of Directors as successors to the powers and duties of the Corporate Governance Committee. The Committee shall be comprised of not less than two members who shall be ‘”non-employee directors” within the meaning of Rule 16b-3(b) (3) (or any successor rule) promulgated under the Exchange Act. 

  

	 	g)	 Common Stock: The Common Stock without nominal or par value of the Company. 

 

	 	h)	 Company: Public Service Enterprise Group Incorporated, a corporation organized and existing under the laws of the
State of New Jersey, or its successor or successors. 

  

	 	i)	 Disability: Any physical or mental condition of a permanent nature which, in sole reasonable judgment of the
Committee, renders an Outside Director incapable of performing the duties of a member of the Board. 

  

	 	j)	 Exchange Act: The Securities and Exchange Act of 1934, as amended, or as it may be amended from time to time.

  

	 	k)	 Fair Market Value: The closing price of a share, as reported on the New York Stock Exchange on the date as of
which the determination is being made or, if no sales of shares are reported on this date, on the next day on which there were sales of shares reported. 

 

	 	l)	 NYSE: The New York Stock Exchange, Inc. 

 

	 	m)	 Outside Director: A member of the Board on or after the Effective Date who never has been employed by the Company
or any of its affiliates. 

  

	 	n)	 Participant: An Outside Director who receives an Award under this Plan. 

 

	 	o)	 Plan: This Public Service Enterprise Group Incorporated 2021 Equity Compensation Plan for Outside Directors, as it
may be amended from time to time. 

  

	 	p)	 Restricted Stock Unit: An award, representing the right to receive shares of Common Stock as an Outside Director,
subject to the provisions of Section V hereof. 

  

	 	q)	 Principles: The PSEG Corporate Governance Principles, which set forth the stock ownership requirements for Outside
Directors. 

  
 2 

	 	r)	 Securities Act: The Securities Act of 1933, as amended, or as it may be amended from time to time.

  

	 	s)	 Service: A Director’s service as a member of the Board. 

 

	 	t)	 Year of Service: The annual period commencing on May 1st
of each year and ending at the earlier of the succeeding April 30th or the next Annual Meeting of Stockholders. For any person first elected as a member of the Board after May 1st of any year, his/her first Year of Service shall commence upon his/her election as an Outside Director and shall end at the earlier of the succeeding April 30th or the next Annual Meeting of Stockholders. 

  

	III.	 SHARES SUBJECT TO THE PLAN 

250,000 shares of Common Stock are reserved to satisfy Awards pursuant to the terms of this Plan. Such shares may be acquired directly from the Company or, at the
discretion of the Company, purchased on the open market by the Company or its agent. 
 Individual Limit: The maximum aggregate value of shares with respect to
which Awards may be granted in any one calendar year to any one Participant shall not exceed $750,000. 
 Share Usage. The number of Shares available for
issuance under the Plan, shall be subject to the following: 
  

	 	(a)	 The maximum number of shares that may be issued under an Award shall be counted against the shares subject to the plan at
the time of grant and reserved for issuance, unless the Award Agreement provides otherwise; 

  

	 	(b)	 The maximum number of shares of Common Stock available for issuance under the Plan shall not be reduced to reflect any
dividends or dividend equivalents that are reinvested into additional shares or credited as additional Award Units; 

  

	 	(c)	 Any shares withheld by the Company or otherwise used to satisfy tax withholding obligations associated with an Award
granted under this Plan, shall, in each case, count against the shares subject to the plan. 

 Adjustments in Authorized shares. In the event
of any corporate event or transaction (including a change in the shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock
dividend, stock split, reverse stock split, split up or split off, spinoff or spinout, or other distribution of stock or property of the Company, combination of shares, exchange of shares, dividend in-kind, or
other like change in capital structure, number of outstanding shares or distribution (other than normal cash dividends) to shareholders of the Company, issuance of rights or warrants, or any similar corporate event or transaction, the Committee, in
order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable, the number 

  
 3 

 
and kind of shares that may be issued under this Plan or under particular forms of Awards, the number and kind of shares subject to outstanding Awards, other Award terms, and other value
determinations applicable to outstanding Awards. 
  

	IV.	 Administration 

The Plan shall be administered by the Committee, which shall establish rules and regulations regarding the administration and operation of the Plan,
including acceptable forms of notices under the Plan. 
  

	V.	 RESTRICTED STOCK UNIT AWARD 

 

	 	A.	 Upon the commencement of each Year of Service as a member of the Board, each Outside Director shall be granted an Award
in an amount as shall be established from time to time by the Board of Directors. The date of grant shall be the first business day of May. With respect to an Outside Director first elected as a director after May 1 of any year, the date of
such Outside Director’s initial award grant under this Plan shall be the first business day of the month next following the Outside Director’s initial election as a member of the Board. 

 

	 	B.	 The number of Awards to be awarded on any particular date of grant shall be equal to the amount of the award grant
(expressed in dollars) divided by the Fair Market Value on the date of grant, rounded up to the next whole share. 

  

	 	C.	 If a Participant fails to complete the Year of Service with respect to which a Stock Unit Award has been granted, other
than on account of Disability or death, such Stock Unit Award and any earnings thereon shall be prorated to reflect the portion of the Year of Service actually served by the Participant, Participant shall vest in such awards 1/12 for each completed
month of service. Notwithstanding the foregoing, if a Participant’s termination of service as an Outside Director is on account of Disability or death, such Participant shall be fully vested in their Award. 

 

	 	D.	 No stock shall be issued in connection with any Award, except as set forth in Section VII A., and shall be evidenced by a
bookkeeping account in the name of the Participant maintained by the Company. The Company shall not be required to segregate any amounts credited to these Stock Unit Award accounts, which shall be established merely as an accounting convenience.
Amounts credited to the Award accounts shall at all times remain solely the property of the Company subject to the claims of its general creditors. Award accounts shall be credited with dividend equivalents at a rate equal to such dividends as may
be declared by the Company on the Common Stock. Such dividends equivalents shall be 

  
 4 

	 	
deemed invested as additional Stock Units at a share price equal to the Fair Market Value on the NYSE on the payable date of the Company Stock dividend. 

 

	 	E.	 Until distribution of shares of Common Stock from the Plan, neither a Participant nor any other person shall have any
right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly
declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony, property settlement or separate maintenance owed by a Participant or any other person, or be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.

 In the event that a domestic relations order is received by the Plan, the Committee shall determine whether the order is a
Qualified Domestic Relations Order (“QDRO”) (within the meaning of Code section 414(p)). The Participant’s Account shall be valued as of the business day preceding the date specified in such QDRO. Upon notice to the Committee that a
QDRO is being sought with respect to a Participant’s Account, no distribution shall be made to a Participant until such time as the status of the QDRO is determined. The alternate payee of the Participant’s Account shall thereafter
participate in the Plan in accordance with its terms, except such person shall not have the rights or benefits provided in Subsection V.A. If a QDRO is issued and the amount awarded the alternate payee exceeds the value of the Participant’s
Account, the amount apportioned shall be limited to the amount then in the account. If a QDRO so provides, benefits may be paid to an alternate payee before they would otherwise be distributable under the Plan, and no such distribution to an
alternate payee shall be treated as a distribution to the Participant for purposes of Section VI. 
  

	 	F.	 No Participant shall have any of the rights of a stockholder (including the right to vote and to receive dividends and
other distributions (except as set forth in Section V (D) and (G)) with respect to Restricted Stock Units unless and until shares of Common Stock are actually issued in their name. 

 

	 	G.	 In the event of any stock dividend, stock split, combination or exchange of shares, merger, consolidation, spin-off or other distribution (other than normal cash dividends) of Company assets to shareholders, or any other change affecting the Common Stock, such adjustments, if any, as are appropriate to reflect such
change shall be made with respect to 

  
 5 

	 	
outstanding Restricted Stock Units. 

  

	 	H.	 Upon a Change in Control of the Company all outstanding Awards shall be considered as having met the requirements of
Section V.C. For the purposes of this Plan, “Change in Control” shall mean the occurrence of any of the following events: 

  

	 	a)	 Any “Person” (within the meaning of Section 13(d) of the Exchange Act) becomes the beneficial owner
(within the meaning of Rule 13d-3 under the Exchange Act, a “Beneficial Owner”), of voting securities of the Company (excluding (i) any voting securities acquired directly from the
Company or its affiliates, (ii) any voting securities of the Company acquired in connection with an acquisition by the Company, (iii) voting securities of the Company acquired by an employee benefit plan (or related trust) sponsored or
maintained by the Company or Affiliate, (iv) any voting securities of the Company acquired by any corporation pursuant to a transaction which complies with (1) or (2) of subsection (c) or subsection (d) of this definition )
representing 25% or more of the combined voting power of the Company’s then outstanding securities, or 

  

	 	b)	 During any period of two (2) consecutive years (not including any period prior to the Effective Date) individuals
constitute a majority of the Board (and any new directors whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was so approved) cease for any reason to constitute a majority thereof; or 

 

	 	c)	 There is consummated a merger or consolidation of the Company with any other corporation other than (1) a merger or
consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary, at least 75% of the combined voting power of the
securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar
transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of the 

  
 6 

	 	
combined voting power of the Company’s then outstanding securities; or 

  

	 	d)	 The shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is
consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at
least 75% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 

Notwithstanding the foregoing subparagraphs (a), (b), (c) and (d), a “Change in Control” shall not be deemed to have occurred by virtue of the
consummation of any transaction or series of integrated transactions immediately following which the record holders of the Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 
  

	VI.	 DISTRIBUTIONS 

  

	 	A.	 A Participant who has met the stock ownership requirements set forth in the Principles, determined as of the beginning of
the annual election period, may make an election to (i) receive the shares attributable to their vested Restricted Stock Unit Award within the 30-day period following the next April 30th, or
(ii) defer receipt of the shares in accordance with Paragraphs B through H of this Section. Such election is irrevocable. 

 If
a Participant makes an election under (i) in the preceding paragraph, the shares shall be distributed to the Participant within the 30-day period following the next April 30th. 

If a Participant does not make an election with respect to a Stock Unit Award, shares attributable to their vested Restricted Stock Unit Award shall be
distributed to the Participant within 30 days following the date of termination of the Participant’s Service. 
  

	 	B.	 Upon the termination of a Participant’s service as an Outside Director, or as of such later date as is elected by
the Participant under Section VI.F., the Company shall issue to the Participant shares of Common Stock equal to the number of Restricted Stock Units in their account without any restriction of any kind in accordance with such Participant’s
distribution elections 

  
 7 

	 	
hereunder. Any fractional shares may be paid in cash, paid in fractional shares, or rounded up or down to the nearest whole share. Restricted Stock Units shall be valued based upon the Fair
Market Value on the day of distribution. 

  

	 	C.	 By written notice to the Plan filed with the Company’s Secretary, (or another record- keeper prescribed by the
Committee), prior to December 31 of the year prior to the year a Restricted Stock Unit Award is granted, a Participant may elect to have distribution of their Restricted Stock Unit account commence: (1) within 30 days following the date of
termination of the Participant’s Service, or on a date indicated by the Participant as a specified number of years and/or months following termination of the Participant’s Service. Distribution shall commence within 30 days following the
date that the Participant elects. If a Participant does not make an election respect to an Award, such Restricted Stock Unit shall be distributed to the Participant within 30 days following the date of termination of the Participant’s Service.

  

	 	D.	 By written notice to the Plan filed with the Company’s Secretary, (or another record- keeper prescribed by the
Committee), prior to December 31 of the year prior to the year an Award is granted, a Participant may elect to receive the distribution of their Award account in the form of (1) one lump-sum payment,
or (2) annual distributions over a period of three to fifteen years as selected by the Participant. In the event a lump-sum payment is made under the Plan, the amount then standing to the
Participant’s credit in their Award account shall be paid to the Participant on the date determined under Section VI.B. In the case of a distribution over a period of years, the Company shall pay to the Participant, commencing on the date
determined under Section VI.B, annual installments from the amount then standing to their credit in their Award account. The amount of each installment shall be determined by dividing the then unpaid balance in the Participant’s Restricted
Stock Unit account by the number of installments remaining to be paid. If a Participant does not make an election as to the manner of distribution of their Restricted Stock Unit account, such distribution shall be made in the form of a lump sum.

  

	 	E.	 In the event of a Participant’s death, the balance of the Participant’s Restricted Stock Unit Award account
shall be distributed to the Participant’s Beneficiary(ies) in a lump-sum payment within 30 days following the Participant’s death. A Participant may change Beneficiary designations at any time in
accordance with the rules as prescribed by the Committee. If a Participant does not make a Beneficiary designation, or if the Beneficiary has predeceased the Participant, such distribution shall be made as a
lump-sum to their estate. 

  

	 	F.	 Participants may, (i) by rules as prescribed by the Committee prior to December 31st of any year, make changes of distribution elections on a 

  
 8 

	 	
prospective basis with respect to future grants of Restricted Stock Unit Awards; and (ii) by notice filed with the Company, make changes of distribution elections with respect to prior
deferred compensation as long as (A) any such new distribution election is made at least one year prior to the date that the commencement of the distribution would otherwise have occurred and (B) the revised commencement date is at least
five years later than the date that the commencement of the distribution would otherwise have occurred., If a Participant has elected a distribution in installments, installment payments shall be treated as one payment. 

 

	 	G.	 Notwithstanding any other provision of the Plan, if the Board, by vote of the Outside Directors, other than the
Participant making the claim, shall determine in its sole discretion that the time of payment of a Participant’s Restricted Stock Unit account should be advanced because of protracted illness or other undue hardship, then the Board may advance
the time or times of payment (whether before or after the date of Participant’s termination of service as a Director) of an amount or amounts needed to meet the emergency in accordance with the requirements of Section 409A and the
regulations promulgated thereunder. 

  

	 	H.	 Distribution in Case of Certain Tax Events – If, with respect to any Participant, the Plan fails to meet the
requirements of the Code with respect to the deferral of tax liability, the Company may accelerate distribution from a Participant’s Account amounts sufficient to meet such Participant’s resulting Federal, State, Local and/or Foreign tax
liability (including any interest and penalties). 

  

	VII.	  FURTHER CONDITIONS 

 

	 	A.	 Unless the shares of Common Stock to be distributed pursuant to the Plan have been registered with the Securities and
Exchange Commission under the Securities Act prior to issuance, the Participant receiving such shares must represent in writing to the Company that such shares of Common Stock are being acquired for investment purposes only and not with a view
towards the further resale or distribution thereof and must supply to the Company such other documentation as may be required by the Company, unless in the opinion of counsel to the Company such representation, agreement or documentation is not
necessary to comply with the Securities Act. 

  

	 	B.	 The Company shall not be obligated to deliver any shares of Common Stock until they have been listed on each securities
exchange on which the shares of Common Stock may then be listed or until there has been qualification under or compliance with such state or federal laws, rules or regulations as the Company may deem applicable. The Company shall use reasonable
efforts to obtain such listing, qualification and compliance. 

  
 9 

	 	C.	 The Committee may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of
any taxes that the Company is required by any law or regulation of any governmental authority, whether federal, state or local, domestic or foreign, to withhold in connection with the award of Restricted Stock Units or the distribution of any Common
Stock, including, but not limited to (i) the withholding of delivery of certificates for shares of Common Stock until the Participant reimburses the Company for the amount the Company is required to withhold with respect to such taxes,
(ii) the canceling of any number of shares of Common Stock issuable in an amount sufficient to reimburse the Company for the amount it is required to so withhold or (iii) withholding the amount due from any such Participant’s other
compensation. 

  

	VIII.	  TERMINATION AND AMENDMENT 

The Company, by action of the Board of Directors, reserves the right to amend the Plan at any time and for any reason. Although the Company anticipates
that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, the Company, by the Board of Directors, reserves
the right to discontinue its sponsorship of the Plan or to terminate the Plan (or both), at any time, by the action of the Board of Directors. In general, upon the termination of the Plan, the affected Participants shall receive payment of their
benefits in accordance with the terms of Section VI. However, the Company may, in its discretion, terminate the entire Plan and pay each Participant a single lump-sum distribution of their entire Account
Balance, in the event that the Company satisfies any of the following: 
  

	 	(a)	 Such distributions are made between 12 and 24 months following the termination of the Plan, and the Company does not
adopt a new plan which would be aggregated with this Plan under IRS guidance under Code Section 409A at any time within the five years following the Plan termination. 

 

	 	(b)	 The Plan is terminated within the 30 days preceding or the 12 months following a Change in Control, all payments are made
within 12 months of the date of termination, and all substantially similar arrangements sponsored by the Company are terminated as well. 

  

	 	(c)	 The Plan is terminated within 12 months of a corporate dissolution, as defined in IRS guidance under Code
Section 409A, and lump sum payments are made in the latest of (i) the year of the termination, (ii) the year in which amounts are no longer subject to a substantial risk of forfeiture; or (iii) the first year in which payment is
administratively practicable. 

  
 10 

 The termination of the Plan shall not adversely affect any Participant or Beneficiary who has become entitled to the
payment of any benefits under the Plan as of the date of termination. 
  

	IX.	 NOT A CONTRACT FOR CONTINUED SERVICE 

Nothing contained in the Plan or in any stock unit agreement executed pursuant hereto shall be deemed to confer upon any Outside Director to whom Awards
are or may be awarded hereunder any right to remain a member of the Board or in any way limit the right of the Board or the Stockholders to terminate or fail to renominate or reelect any such Outside Director as a member of the Board. 

 

	X.	 MISCELLANEOUS 

  

	 	A.	 The costs and expenses of administering the Plan shall be borne by the Company and shall not be charged against any award
or to any Outside Director receiving an award. 

  

	 	B.	 This Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the
State of New Jersey. 

  

	 	C.	 The captions and section numbers appearing in this Plan are inserted only as a matter of convenience. They do not define,
limit or describe the scope or intent of the provisions of this Plan. In this Plan, words in the singular number include the plural and in the plural include the singular; and words of the masculine gender include the feminine and the neuter, and
when the sense so indicates, words of the neuter gender may refer to any gender. 

  

	 	D.	 Whenever the time for payment or performance hereunder shall fall on a weekend or public holiday, such payment or
performance shall be deemed to be timely if made on the next succeeding business day. 

  
 11Exhibit
4.1

 

Description
of the Registrant’s Securities

 

The
following descriptions of our common stock, our preferred stock and certain provisions of our certificate of incorporation and
bylaws are summaries and are qualified by reference to the complete copies of our certificate of incorporation and bylaws with
are exhibits to this report.

 

Gene
Therapeutics, Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended,
our common stock, par value $0.0001 per share.

 

Common
Stock

 

Authorized
Share Capital. Our certificate of incorporation authorizes us to issue up to 200,000,000 shares of common stock.

 

Voting
Rights. The holders of our common stock are entitled to one vote per share on all matters submitted to a vote of our stockholders.
There is no cumulative voting with respect to the election of directors, with the result that directors are elected by a plurality
of the votes cast. There is no classification of the board of directors.

 

Dividend
Rights. The holders of outstanding shares of common stock are entitled to receive ratably any dividends declared by our board
of directors out of assets legally available therefor, subject to preferences that may be applicable to any preferred stock outstanding
at the time.

 

Liquidation
Preferences. In the event that we liquidate, dissolve or wind up, holders of our common stock are entitled to share ratably
in all assets remaining after payment of liabilities and the liquidation preference of any then outstanding shares of preferred
stock.

 

Other
Rights. Holders of common stock have no preemptive or conversion rights or other subscription rights. There are no redemption
or sinking fund provisions applicable to the common stock. All outstanding shares of common stock are fully paid and non-assessable.

 

Preferred
Stock

 

Gene
Therapeutics, Inc. has outstanding preferred stock. The preferred stock is not registered under Section 12 of the Securities Exchange
Act of 1934, as amended. However, rights evidenced by the preferred stock may limit or qualify the rights of the holders of our
common stock and we are including information on our preferred stock so investors may understand those limitations and qualifications.

 

Authorized
Share Capital. Our certificate of incorporation authorizes us to issue up to 40,000,000 shares of preferred stock with rights,
preferences and privileges of which may be designated from time to time by our board of directors. Our board of directors has
authorized to series of preferred stock, our Series A Convertible Preferred Stock and Series B Convertible Preferred Stock.

 

    	 	-1-	 

    	 

    

 

Our
board of directors may, without further action by our stockholders, fix the rights, preferences, privileges and restrictions of
up to an aggregate of 38,295,988 shares of preferred stock in one or more series and authorize their issuance, subject to the
approval rights of the holders of Series A Convertible Preferred Stock and Series B Preferred Stock described below. These rights,
preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences,
sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may
be greater than the rights of our common stock or outstanding preferred stock. The issuance of our preferred stock could adversely
affect the voting power of holders of our common stock and the likelihood that such holders will receive dividend payments and
payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing
a change of control or other corporate action.

 

Series
A Convertible Preferred Stock

 

Our
board of directors has designated a class of 4,012 shares of our preferred stock as “Series A Convertible Preferred Stock.”
All 4,012 shares of Series B Preferred Stock have been issued and as of December 31, 2019 790 shares remained outstanding, with
the following rights, privileges and preferences:

 

Voting
Rights. Except as required by law, holders of the shares of our Series A Convertible Preferred Stock will not have rights
to vote on any matters, questions or proceedings, including the election of directors. However, as long as any shares of our Series
A Convertible Preferred Stock are outstanding, we cannot, without the affirmative vote of the holders of a majority of the then
outstanding shares of our Series A Convertible Preferred Stock, (1) alter or change adversely the powers, preferences or rights
given to the shares of our Series A Convertible Preferred Stock or alter or amend its certificate of designation, (2) authorize
or create any class of shares ranking as to dividends, redemption or distribution of assets upon liquidation senior to, or otherwise
pari passu with, the shares of our Series A Convertible Preferred Stock, (3) amend our Certificate of Incorporation or other charter
documents in any manner that adversely affects any rights of the holders of our Series A Convertible Preferred Stock, (4) increase
the number of authorized shares of our Series A Convertible Preferred Stock, or (5) enter into any agreement with respect to any
of the foregoing. As long as any shares of Series A Convertible Preferred Stock are outstanding, unless the holders of more than
two-thirds of the outstanding Series A Convertible Preferred Stock approve, we have agreed not to, directly or indirectly (1)
incur any indebtedness other than Permitted Indebtedness (as defined in the certificate of incorporation), (2) incur any liens
other than Permitted Liens, (3) amend our certificate of incorporation in a manner that adversely affects the rights of any holder
of Series A Convertible Preferred Stock, (4) repurchase or redeem shares of our outstanding common stock or common stock equivalents,
(5) pay any dividends on our common stock, or (6) enter into any related party transactions, except for arm’s-length transactions
that are expressly approved by a majority of the disinterested directors of our board of directors.

 

Dividends.
Each share of our Series A Convertible Preferred Stock is entitled to receive dividends when, as, and if dividends are paid on
shares of our common stock. Dividends are payable on each share Series A Convertible Preferred Stock on an “as-converted”
basis, in the same amount and form as dividends actually paid on shares of our common stock.

 

    	 	-2-	 

    	 

    

 

Liquidation
Preferences. In the event that we liquidate, dissolve or wind up, after payment or provision for payment of our debts and
other liabilities and before any distribution or payment is made to the holders of our common stock or any junior securities,
the holders of our Series A Convertible Preferred Stock will first be entitled to be paid an amount equal to $1,000 per share
plus any other fees, liquidated damages or dividends then owing, before our remaining assets will be distributed among the holders
of the other classes or series of shares of our capital stock in accordance with our certificate of incorporation.

 

Conversion.
Subject to certain ownership limitations as described below, the shares of our Series A Convertible Preferred Stock are convertible
at any time at the option of the holder into shares of our common stock at a conversion ratio determined by dividing the stated
value of the shares of our Series A Convertible Preferred Stock (or $1,000) by a conversion price of $0.0113 per share. The conversion
price is subject to adjustment in the case of share splits, share dividends, combinations of shares and similar recapitalization
transactions. We have the right to force conversion of the Series A Preferred Stock into common stock; provided that during a
period of 30 consecutive trading days the VWAP for each of any 25 trading days during period exceeds $0.60 (subject to adjustment
for forward and reverse stock splits and the like) and the dollar trading volume for each trading day during such period exceeds
$2,000,000 per Trading Day, and we meet certain other “Equity Conditions” described in our certificate of incorporation.
A holder of our Series A Convertible Preferred Stock will not have the right to convert, and we will not have the right to force
such holder to convert, any portion of its shares of our Series A Convertible Preferred Stock if the holder, together with its
affiliates, would beneficially own in excess of 9.99% of the number shares of our common stock outstanding immediately after giving
effect to its conversion.

 

Series
B Preferred Stock

 

Our
board of directors has designated a class of 1,700,000 shares of our preferred stock as “Series B Convertible Preferred
Stock.” All 1,700,000 shares of Series B Preferred Stock have been issued and are outstanding, with the following rights,
privileges and preferences:

 

Voting
Rights. Each share of our Series B Convertible Preferred Stock has the same voting rights as shares of our common stock, on
an “as-converted” basis, and votes on all matters with the common stock as a single class. In addition, the Series
B Convertible Preferred Stock has voting rights that require the approval of a majority of the outstanding shares of Series B
Convertible Preferred Stock for any action to: (1) alter or change adversely the powers, preferences or rights given to the shares
of our Series B Convertible Preferred Stock or alter or amend its certificate of designation, (2) authorize or create any class
of shares ranking as to dividends, redemption or distribution of assets upon liquidation senior to, or otherwise pari passu with,
the shares of our Series B Convertible Preferred Stock, (3) amend our Certificate of Incorporation or other charter documents
in any manner that adversely affects any rights of the holders of our Series B Convertible Preferred Stock, (4) increase the number
of authorized shares of our Series B Convertible Preferred Stock, or (5) enter into any agreement with respect to any of the foregoing.

 

Dividends.
Each share of our Series B Convertible Preferred Stock is entitled to receive dividends when, as, and if dividends are paid
on shares of our common stock. Dividends are payable on each share Series B Convertible Preferred Stock on an “as-converted”
basis, in the same amount and form as dividends actually paid on shares of our common stock.

 

    	 	-3-	 

    	 

    

 

Conversion.
The shares of our Series B Convertible Preferred Stock are convertible at any time at the option of the holder into shares
of our common stock at a ratio determined by dividing the stated value of $1.00 per such share of Series B Preferred Stock by
the conversion price of $0.0113 per share of common stock. Accordingly, each share of our Series B Convertible Preferred Stock
is initially convertible into 88.5 shares of our common stock. The conversion price is subject to adjustment in the case of share
splits, share dividends, combinations of shares and similar recapitalization transactions. In addition, if we sell shares of Common
Stock or Common Stock equivalents at a price less than the current conversion price, the conversion price of the Series B Convertible
Preferred Stock will be reduced to equal eighty percent (80%) of the price at which such common stock or common stock equivalents
are sold.

 

Liquidation.
The Series B Convertible Preferred Stock has a liquidation preference. Upon any liquidation, dissolution or winding up of
our company, after payment or provision for payment of our debts and other liabilities and before any distribution or payment
is made to the holders of our common stock or any junior securities, the holders of our Series B Convertible Preferred Stock will
first be entitled to be paid an amount equal to $1.00 per share plus any other fees, liquidated damages or dividends then owing,
before our remaining assets will be distributed among the holders of the other classes or series of shares of our capital stock
in accordance with our Certificate of Incorporation.

 

Anti-Takeover
Provisions

 

Certificate
of Incorporation and Bylaws

 

Our
certificate of incorporation and bylaws provide that annual and special meetings of stockholders may be called only the majority
of our whole board of directors and not by the shareholders or any other person. Our bylaws provide for advance notice requirements
for shareholder nominations for director.

 

The
foregoing provisions will make it more difficult for our existing stockholders to replace our board of directors as well as for
another party to obtain control of us by replacing our board of directors. Since our board of directors has the power to retain
and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect
a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors
to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our
control.

 

These
provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its
policies and to discourage certain types of transactions that may involve an actual or threatened acquisition of us. These provisions
are also designed to reduce our vulnerability to an unsolicited acquisition proposal and to discourage certain tactics that may
be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our
shares and may have the effect of deterring hostile takeovers or delaying changes in our control or management. As a consequence,
these provisions also may inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover
attempts.

 

    	 	-4-	 

    	 

    

 

Section
203 of the Delaware General Corporation Law

 

We
are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any
business combination with any interested stockholder for a period of three years after the date that such stockholder became an
interested stockholder, with the following exceptions:

 

	 	●	before
    such date, the board of directors of the corporation approved either the business combination or the transaction that resulted
    in the stockholder becoming an interested stockholder;
	 	 	 
	 	●	upon
    closing of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder
    owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes
    of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those
    shares owned by (i) persons who are directors and also officers and (ii) employee stock plans in which employee participants
    do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or
    exchange offer; or
	 	 	 
	 	●	on
    or after such date, the business combination is approved by the board of directors and authorized at an annual or special
    meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting
    stock that is not owned by the interested stockholder.

 

In
general, Section 203 defines “business combination” to include the following:

 

	 	●	any
    merger or consolidation involving the corporation and the interested stockholder;
	 	 	 
	 	●	any
    sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
	 	 	 
	 	●	subject
    to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation
    to the interested stockholder;
	 	 	 
	 	●	any
    transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class
    or series of the corporation beneficially owned by the interested stockholder; or
	 	 	 
	 	●	the
    receipt by the interested stockholder of the benefit of any loss, advances, guarantees, pledges or other financial benefits
    by or through the corporation.

 

In
general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s
affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder
status did own, 15% or more of the outstanding voting stock of the corporation.

 

    	 	-5-	 

    	 

    

 

Limitations
of Liability and Indemnification

 

Our
certificate of incorporation provides that we will indemnify our directors and officers, and may indemnify our employees and other
agents, to the fullest extent permitted by the Delaware General Corporation Law. However, Delaware law prohibits our amended and
restated certificate of incorporation from limiting the liability of our directors for the following:

 

	 	●	any
    breach of a director’s duty of loyalty to us or to our stockholders;
	 	 	 
	 	●	acts
    or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
	 	 	 
	 	●	unlawful
    payment of dividends or unlawful stock repurchases or redemptions; and
	 	 	 
	 	●	any
    transaction from which a director derived an improper personal benefit.

 

If
Delaware law is amended to authorize corporate action further eliminating or limiting the personal liability of a director, then
the liability of our directors will be eliminated or limited to the fullest extent permitted by Delaware law, as so amended. Our
certificate of incorporation does not eliminate a director’s duty of care and, in appropriate circumstances, equitable remedies,
such as injunctive or other forms of non-monetary relief, remain available under Delaware law. It also does not affect a director’s
responsibilities under any other laws, such as the federal securities laws or other state or federal laws. Under Delaware law
and our bylaws, we are empowered to enter into indemnification agreements with our directors, officers, employees and other agents
and to purchase insurance on behalf of any person whom we are required or permitted to indemnify.

 

The
limitation of liability and indemnification provisions in our certificate of incorporation may discourage stockholders from bringing
a lawsuit against directors for breach of their fiduciary duties. They may also reduce the likelihood of derivative litigation
against directors and officers, even though an action, if successful, might benefit us and our stockholders. A stockholder’s
investment may be harmed to the extent we pay the costs of settlement and damage awards against directors and officers pursuant
to these indemnification provisions. Insofar as indemnification for liabilities arising under the Securities Act, may be permitted
to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that,
in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act, and is, therefore,
unenforceable. There is no pending litigation or proceeding naming any of our directors or officers as to which indemnification
is being sought, nor are we aware of any pending or threatened litigation that may result in claims for indemnification by any
director or officer.

 

    	 	-6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}]]