Document:

EX-4.5

 Exhibit 4.5 

Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 

Twist Bioscience Corporation (“Twist,” “we,” “our,” “us,” or the “Company”) has one class of securities
registered under Section 12 of the Securities Exchange Act of 1934, as amended: common stock. The following is a description of the material terms of our Amended and Restated Certificate of Incorporation of Twist) dated as of November 2,
2018 (the “Amended and Restated Certificate of Incorporation”) and our Bylaws as amended and restated effective November 2, 2018 (the “Amended and Restated Bylaws”) and of specified provisions of Delaware General Corporation
Law (the “DGCL”). The following description is intended as a summary only and is qualified in its entirety by reference to our Amended and Restated Certificate of Incorporation, our Amended and Restated Bylaws and the DGCL. We encourage
you to read our Amended and Restated Certificate of Incorporation, our Amended and Restated Bylaws and the applicable provisions of the Delaware General Corporation Law for more information. 

General 
 Our Amended and Restated Certificate of
Incorporation authorizes us to issue up to 100,000,000 shares of common and 10,000,000 shares of preferred stock, par value $0.00001 per share. As of September 30, 2020, 45,082,599 shares of common stock were issued and outstanding and no
shares of preferred stock were issued and outstanding. 
 Common stock 

The holders of Twist’s common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders.
Cumulative voting for the election of directors is not provided for in the Amended and Restated Certificate of Incorporation, which means the holders of a majority of Twist’s shares of common stock can elect all of the directors then standing
for election. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available for
that purpose.    In the event of liquidation, dissolution or winding up of the Company, the holders of Twist’s common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to the
prior distribution rights of any outstanding preferred stock. The common stock has no preemptive or conversion rights or other subscription rights. All of the outstanding shares of common stock are fully paid
and non-assessable. 
 Anti-takeover effects of Delaware law and Amended and Restated Certificate of
Incorporation and Amended and Restated Bylaws 
 The Amended and Restated Certificate of Incorporation and the Amended and Restated Bylaws contain
certain provisions that could have the effect of delaying, deterring or preventing another party from acquiring control of Twist. These provisions and certain provisions of Delaware law, which are summarized below, may discourage coercive takeover
practices and inadequate takeover bids. These provisions are also designed, in part, to encourage persons seeking to acquire control of Twist to negotiate first with Twist’s board of directors. Twist believes that the benefits of increased
protection of Twist’s potential ability to negotiate more favorable terms with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire Twist. 

Undesignated preferred stock 
 As discussed above,
Twist’s board of directors has the ability to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of Twist. These and other provisions may have the effect of deterring
hostile takeovers or delaying changes in control or management of Twist. 
 Limits on ability of stockholders to act by written consent or call a
special meeting 
 The Amended and Restated Certificate of Incorporation provides that Twist’s stockholders may not act by written consent,
which may lengthen the amount of time required to take stockholder actions. As a result, a holder controlling a majority of Twist’s capital stock would not be able to amend Twist’s bylaws or remove directors without holding a meeting of
Twist’s stockholders called in accordance with Twist’s bylaws. 
 In addition, the Amended and Restated Bylaws provide that special meetings of
the stockholders may be called only by the majority of Twist’s board of directors. Stockholders may not call a special meeting, which may delay the ability of Twist’s stockholders to force consideration of a proposal or for holders
controlling a majority of Twist’s capital stock to take any action, including the removal of directors. 
 Requirements for advance notification
of stockholder nominations and proposals 
 The Amended and Restated Bylaws establish advance notice procedures with respect to stockholder proposals
and the nomination of candidates for election as directors, other than nominations made by or at the direction of Twist’s board of directors or a committee of 

  
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Twist’s board of directors. These provisions may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may
also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of Twist. 

Board classification 
 Twist’s board of
directors are divided into three classes, one class of which is elected each year by Twist’s stockholders. The directors in each class will serve three-year terms. For more information on the classified board, see Part III. Item 10
“Directors, executive officers and corporate governance—Board Composition” in Twist’s most recent Annual Report on Form 10-K filed with the SEC. A third party may be discouraged from making
a tender offer or otherwise attempting to obtain control of Twist as it is it more difficult and time-consuming for stockholders to replace a majority of the directors on a classified board. 

No cumulative voting 
 The Amended and Restated
Certificate of Incorporation and Amended and Restated Bylaws do not provide for cumulative voting in the election of directors. Cumulative voting allows a stockholder to vote a portion or all of its shares for one or more candidates for seats on the
board of directors. Without cumulative voting, a minority stockholder may not be able to gain as many seats on Twist’s board of directors as the stockholder would be able to gain if cumulative voting were permitted. The absence of cumulative
voting makes it more difficult for a minority stockholder to gain a seat on Twist’s board of directors to influence the decision of Twist’s board regarding a takeover. 

Amendment of charter and bylaws provisions 
 The
amendment of the above provisions of the Amended and Restated Certificate of Incorporation will require approval by holders of at least two thirds of Twist’s outstanding capital stock entitled to vote generally in the election of directors. The
amendment of certain provisions of Twist’s bylaws will also require approval by the holders of at least two thirds of Twist’s outstanding capital stock entitled to vote generally in the election of directors. 

Delaware anti-takeover statute 
 Twist is subject
to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly held Delaware corporation from engaging, under certain circumstances, in a business combination with an interested
stockholder for a period of three years following the date the person became an interested stockholder unless: 
  

	 	•	 	 prior to the date of the transaction, Twist’s board of directors approved either the business combination or
the transaction which resulted in the stockholder becoming an interested stockholder; 

  

	 	•	 	 upon completion 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 commenced, calculated as provided under Section 203; or 

 

	 	•	 	 at or subsequent to the date of the transaction, the business combination is approved by Twist’s board of
directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the
interested stockholder. 

 Generally, a business combination includes a merger, asset or stock sale, or other transaction resulting in a
financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a
corporation’s outstanding voting stock. Twist expects that the existence of this provision will have an anti-takeover effect with respect to transactions Twist’s board of directors does not approve in advance. Twist anticipates that
Section 203 may also discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders. 

The provisions of Delaware law and the provisions of the Amended and Restated Certificate of Incorporation and the Amended and Restated Bylaws, could have the
effect of discouraging others from attempting hostile takeovers and, as a consequence, they might also inhibit temporary fluctuations in the market price of Twist’s common stock that often result from actual or rumored hostile takeover
attempts. These provisions might also have the effect of preventing changes in Twist’s management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders might otherwise deem to be in
their best interests. 

  
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Exhibit 10.1

 

 

 

 

 

 

 

FuelCell Energy, Inc.

 

Fiscal Year 2021

Long Term Incentive Plan

 

As Approved November 24, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FUELCELL ENERGY, INC.

LONG TERM INCENTIVE PLAN

  

Background:   This Long Term Incentive Plan (this “LTI Plan”) of FuelCell Energy, Inc. (the “Company”) is a sub-plan consisting of awards made under the Company’s 2018 Omnibus Incentive Plan (the “Omnibus Plan”).  This LTI Plan and all awards described herein are subject to the Omnibus Plan and the individual award agreements entered into in connection with this LTI Plan.  Capitalized terms used in this LTI Plan and not otherwise defined will have the meaning given in the Omnibus Plan.   

 

Eligible Participants:   The executive officers of the Company and other members of senior management designated by the Board of Directors of the Company or its Compensation Committee (the “Committee”) will be eligible for awards under this LTI Plan.  In addition, subject to the limitations described below under “Delegated Award Authority,” the Company’s Chief Executive Officer (“CEO”) may designate additional participants to receive CEO Discretionary Awards (as defined below).

 

Purpose:   To attract, retain, motivate, and reward key employees and executives for meeting or exceeding long term financial objectives of the Company and to align the long-term growth and performance goals of key employees and executives with those of shareholders.

 

Awards:   There will be three (3) award components granted annually under this LTI Plan:  

 

	
 
	
•
	
Relative Total Shareholder Return (“TSR”) Performance Shares, representing 32.5% of the total target award amount;

 

	
 
	
•
	
Absolute TSR Performance Shares, representing 32.5% of the total target award amount; and

 

	
 
	
•
	
Time-Vesting Restricted Stock Units (“RSUs”), representing 35% of the total target award amount.

 

CEO Discretionary Awards may consist of some or all of the above in different proportions selected by the CEO. 

 

Award Determination:   Target award values for the awards of Performance Shares and RSUs (other than CEO Discretionary Awards and the target award value for the CEO) shall be established and approved by the Committee. The target value for the CEO award shall be determined by the independent members of the Board of Directors of the Company with a recommendation from the Committee, and target award values for the CEO Discretionary Awards shall be determined by the CEO as described under “Delegated Award Authority.”  Performance Shares and RSUs are valued for this purpose based on the average closing price of the Company’s common stock over the 20 trading days immediately preceding the grant date.  The grant date of awards other than CEO Discretionary Awards shall, unless otherwise determined by the Committee (or the Board of Directors of the Company, in the case of the CEO award), be the date on which the Committee (or the Board of Directors of the Company, in the case of the CEO award) approves the award. 

 

Notwithstanding any other provisions of this LTI Plan document, all determinations with regard to awards for the Company’s executive officers (including target award values) shall be made exclusively by the Committee, except for the award to the CEO (including the CEO target award value), which shall be made by the independent directors of the Board of Directors of the Company, based on a recommendation from the Committee.

 

Performance Criteria for Performance Shares:  Performance Shares granted to LTI Plan participants will be earned only upon achievement of the performance criteria set forth below.  The Performance Shares will have a performance period ending on the last day of the second full fiscal year that follows the year in which 

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the Performance Shares are granted, with a continued service-based vesting requirement until the third anniversary of the date of grant. 

 

The number of Performance Shares that will be deemed earned by each LTI Plan participant will be determined as of the end of the Performance Period.  

 

The performance criteria and certain other terms of the Performance Shares are described below:

 

	
 
	
1.
	
Relative TSR Performance Shares 

 

	
Performance Assessment:  
	
TSR of the Company relative to the TSR of the Russell 2000

	
Performance Period:  
	
The three consecutive fiscal years beginning with the fiscal year that includes the grant date 

	
Payout Calibration:  
	
•100% plus or minus 0.5x the difference between the Company’s TSR and the Russell 2000 index composite TSR

•Payout is capped at 200% of the target number of Performance Shares

•Payout is capped at 100% of the target number of Performance Shares if the Company’s absolute TSR over the performance period is negative

 

The Company’s TSR is calculated by subtracting Beginning Stock Price from Ending Stock Price (as each term is defined below) for the Performance Period, adding any dividends during the period, and then dividing the result by the Company’s Beginning Stock Price.

 

“Beginning Stock Price” shall mean the average closing price of the Company’s common stock over the 20 consecutive trading days ending on the last trading day immediately prior to the beginning of the Performance Period. 

 

“Ending Stock Price” shall mean the average closing price of the Company’s common stock over the 20 consecutive trading days ending on the last day of the Performance Period.

 

Performance Shares earned on the basis of Relative TSR Performance remain subject to vesting based on continued service until the third anniversary of the grant date.

 

	
 
	
2.
	
Absolute TSR Performance Shares

 

	
Performance Assessment:  
	
Closing stock price

	
Performance Period:  
	
The three consecutive fiscal years beginning with the fiscal year that includes the grant date

3

 

	
Payout Calibration:  
	
•An increase, in an amount specified by the Committee, in the price of the Company’s common stock over the average closing price of the Company’s common stock over the 20 consecutive trading days ending on the last trading day immediately prior to the beginning of the Performance Period  

earns 50% of the target number of Performance Shares

•An increase, in an amount specified by the Committee, in the price of the Company’s common stock over the average closing price of the Company’s common stock over the 20 consecutive trading days ending on the last trading day immediately prior to the beginning of the Performance Period  earns 100% of the target number of Performance Shares

•An increase, in an amount specified by the Committee, in the price of the Company’s common stock over the average closing price of the Company’s common stock over the 20 consecutive trading days ending on the last trading day immediately prior to the beginning of the Performance Period  earns 200% of the target number of Performance Shares

•Each price hurdle must be met for 20 consecutive trading days

•Price hurdles may be met at any point during the Performance Period

 

Performance Shares earned on the basis of Absolute TSR Performance remain subject to vesting based on continued service until the third anniversary of the grant date.

 

Vesting Criteria for Restricted Stock Units:  RSUs granted to LTI Plan participants will vest based on continued service at a rate of one-third (1/3) of the total number of RSUs granted on each of the first three anniversaries of the grant date.

 

Effect of Termination: If a participant’s employment terminates for any reason prior to the date Performance Shares or RSUs are fully vested, then all Performance Shares or RSUs that have not vested shall be immediately forfeited, except as may otherwise be provided by the Committee (or in the case of the CEO, the independent members of the Board of Directors of the Company) or under the Omnibus Plan.

 

No Dividend Equivalents: No dividend equivalents will be paid on Performance Shares and RSUs, nor will the Performance Shares or RSUs represent any right to dividends with respect to the shares subject to the Performance Share or RSU awards. 

 

Termination and Amendment.  The Committee or the Board of Directors of the Company may amend, modify or terminate this LTI Plan at any time; provided that no such amendment, modification or termination shall adversely affect awards previously granted under this LTI Plan without the consent of the award holder except to the extent permitted without such consent by the terms of the applicable award agreement or the Omnibus Plan.

 

Delegated Award Authority:  The CEO is delegated the authority to grant Performance Shares and RSUs (“CEO Discretionary Awards”) to employees of, or other service providers to, the Company other than any executive officer, any person recruited or hired as a successor to any executive officer or any other direct report to the CEO, or any Executive Vice President, Senior Vice President or Vice President, and to 

4

 

administer and modify such Performance Shares and RSUs; provided that (1) the CEO Discretionary Awards made in any single fiscal year shall not relate to more than an aggregate of a number of shares of the Company’s common stock specified by the Committee and (2) the CEO Discretionary Awards granted to any individual under this Delegated Award Authority in any fiscal year shall not relate to more than a specified value as determined by the Committee.   Subject to the limits in the preceding sentence, the CEO shall determine the target value of each CEO Discretionary Award.  The effective grant date of any CEO Discretionary Award shall be the third trading day following the first earnings release issued by the Company after the CEO’s approval of such CEO Discretionary Award.  At each regularly scheduled meeting of the Committee, the Committee shall receive a report (for information and not for approval or ratification) of the CEO Discretionary Awards approved by the CEO pursuant to this Delegated Award Authority since the preceding meeting of the Committee.

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