Document:

EX-4.1

 

 
  

 
  

 

 

AUBURN
NATIONAL 
BANCORPORATION, 
INC AND SUBSIDIARIES

EXHIBIT 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF
THE 

SECURITIES EXCHANGE ACT OF 1934

 

The following summarizes the terms of certain securities of Auburn National
Bancorporation, 
Inc., a Delaware corporation 
(the “Company”). The
Company’s 
common stock is registered under Section 12(b) of the Securities Exchange 
Act of 1934,

as amended (the “Exchange Act”). The following summary does not
purport 
to be complete and is qualified in its entirety 
by reference to the
Company’s Certificate of Incorporation 
(as amended, the “Charter”) and Amended and Restated Bylaws

(as amended, the “Bylaws”), each previously filed with the
U.S. 
Securities and Exchange Commission, as well as reference 
to federal and
state banking laws and regulations and the Delaware General Corporations 
Law (the “DGCL”).

Authorized Capital

The Company’s authorized capital 
stock consists of 8,500,000 shares of
common stock, $.01 par value per share and 
200,000 shares of preferred stock, $.01 par value per
share. 

Common Stock

Voting 

Rights.
 
Each holder of common stock is entitled to one vote for each share
held on all matters on 
which our 
shareholders are entitled to vote. Directors are
elected by a majority vote, and no shareholder 
has the right to cumulative 
voting
with respect to the election of directors. 
Dividend
Rights.
 
Subject to the prior rights of holders of any then-outstanding shares of
preferred stock, each share of 
common stock has equal rights to participate in dividends when, as and if
declared 
by the board of directors out of funds 
legally available therefor.

Liquidation
Rights.
 
Subject to the prior rights of creditors and the satisfaction of any
liquidation preference granted to the 
holders of any outstanding shares of preferred stock, if
any, 
in the event of a liquidation, the holders of common stock will 
be entitled
to share ratably in any assets remaining after payment of all debts and other liabilities.

Other.
 

Holders of common stock have no redemption or subscription, conversion 
or preemptive rights.

Exchange and Trading
Symbol.
 
The common stock is listed for trading on the NASDAQ Global Market under
the symbol 
“AUBN.”

Transfer Agent and
Registrar.
 
The transfer agent and registrar for the common stock is
Computershare Investor Services 
LLC.

Preferred Stock

Shares of preferred stock may be issued for any purpose and in any manner
permitted 
by law, in one or 
more distinctly

designated series, including as a dividend or for such consideration as the
board 
of directors may determine by resolution or 
resolutions adopted from time
to time. The board of directors is expressly authorized to 
fix and state, by resolution or

resolutions adopted from time to time prior to the issuance of any shares of a particular
series 
of preferred stock, the 
designations, voting powers (if any),
preferences, and relative, participating, optional 
or other special rights, and

qualifications, limitations or restrictions thereof. The rights of the holders of the
common 
stock will generally be subject to 
the rights of the holders of any
existing outstanding shares of preferred 
stock with respect to dividends, liquidation

preferences and other matters.

As of the date hereof, the Company has no outstanding shares 
of preferred
stock. 

 
 

 

Anti-takeover Effects

Certain provisions of the Charter and Bylaws could make a merger, 
tender offer
or proxy contest more difficult, even if 
such events were perceived by many of shareholders as beneficial to their
interests. 
These provisions include (1) requiring, 
under certain circumstances,
that a “Business Combination” (as defined in the Charter) 
be approved by (i) holders of at

least 80% of the outstanding shares entitled to vote, and (ii) by a majority of shares held by persons
other 
than “Related 
Persons” (as defined in the Charter), (2)
prohibiting shareholders from removing directors 
without cause, and, in order to

remove a director for cause, requiring approval of (i) at least 80% of the outstanding
shares 
entitled to vote and (ii) a 
majority of shares held by persons other than
“Related Persons,” (3) advance notice for 
nominations of directors and

shareholders’ proposals, and (4) authority to issue “blank check”
preferred 
stock with such designations, rights and 
preferences as may be
determined from time to time by the board of directors. In addition, as a Delaware 
corporation, the

Company is subject to Section 203 of the Delaware General Corporation Law 
which,
in general, prevents an “interested 
shareholder,” defined generally as a person
owning 
15% or more of a corporation’s outstanding 
voting stock, from

engaging in a business combination with the corporation for three years following
the 
date that person became an interested 
shareholder unless certain specified
conditions are satisfied. 
Restrictions on Ownership

The ability of a third party to acquire the Company is limited under applicable U.S. banking
laws 
and regulations. The 
Bank Holding Company Act, or BHC Act, requires any
bank holding company to obtain 
Federal Reserve approval prior to 
acquiring,
directly or indirectly, 
5% or more of any class of voting securities of the bank holding company. 
Any “company”

(as defined in the BHC Act) other than a bank holding company would be required 
to
obtain Federal Reserve approval 
before acquiring “control” of a bank holding
company. 
“Control” generally means (i) the ownership or control of 25% 
or

more of a class of voting securities, (ii) the ability to elect a majority of the directors or
(iii) 
the ability otherwise to exercise 
a controlling influence over management
and policies. A holder of 25% 
or more of the outstanding common stock of a bank

holding company, other than an individual, 
is subject to regulation and
supervision as a bank holding company 
under the 
BHC Act. On January 30, 2020,
the Federal Reserve adopted new rules, effective September 
30, 2020 simplifying

determinations of control of banking organizations for BHC Act purposes.

In addition, under the Change in Bank Control Act of 1978, as amended, 
and the
Federal Reserve’s regulations 
thereunder, 
any person, either individually
or acting through or in concert with one or more persons, is 
required to provide notice to the

Federal Reserve prior to acquiring, directly or indirectly, 
10% or more of the
outstanding voting securities of a bank 
holding company, and
receive 
nonobjection from the Federal Reserve.agle-ex1020_196.htm

                                                                                                                                          Exhibit 10.20 

June 14, 2021

 

 

Jonathan Alspaugh

via email

 

 

Re: Offer of Employment – Chief Financial Officer

 

 

Dear Jonathan,

 

On behalf of Aeglea BioTherapeutics, Inc. (the “Company”), it is my pleasure to formally offer you the position of Chief Financial Officer with an anticipated start date of July 6, 2021.  This letter contains an overview of the responsibilities, compensation and benefits associated with this position.  We are hopeful that you will accept this offer and look forward to the prospect of having a mutually successful relationship with you.  

 

EMPLOYMENT

During employment with the Company, you will be expected to devote your full business time and attention to the business and affairs of the Company.  You will report to Anthony Quinn, Chief Executive Officer, and will be expected to abide by all the Company’s employment policies and procedures, including but not limited to the Company’s policies prohibiting employment discrimination and harassment and the Company’s rules regarding proprietary information and trade secrets.

 

BASE SALARY 

While employed by the Company, your annual base salary for this exempt, full-time position will be $400,008.00 or $16,667.00 paid semi-monthly. The Base Salary will be payable to you in accordance with the Company’s regular payroll practices and procedures and will be subject to periodic review and adjustment, at the Company’s discretion. 

  

BONUS

For each calendar year of employment beginning with 2021, you will be eligible to receive a discretionary bonus in an amount targeted at forty percent (40%) of the Base Salary paid to you in that calendar year (the “Annual Bonus”). Your entitlement to receive an Annual Bonus and the amount thereof will be determined by the Board in its sole discretion based on (i) the Company’s financial performance and financial resources as well as (ii) the Board’s evaluation of your performance for a given year and your achievement of certain objectives in the applicable calendar year as set forth and approved by the Board.  You will be eligible for an Annual Bonus for a given calendar year only if you remain employed by the Company through the date that such Annual Bonus is paid; as a result, you are not entitled to any Annual Bonus for which you might otherwise be eligible if your employment ends for any reason before the date of payment.  Nothing guarantees your receipt of an Annual Bonus in any amount if the specified objectives are not met and/or any of the other conditions set forth herein are not satisfied in a given calendar year.  Your entitlement to a bonus, in the event of a Qualifying Termination, will be governed by the terms of the Severance Agreement 

 

 

                                            Page 1                                                       

                                                                                                                                          Exhibit 10.20 

 

 

STOCK

As additional compensation, and subject to approval by the Board of Directors of the Company, the Company will arrange for the grant to you, which will be incentive stock options if available, to purchase 160,000 shares of Company common stock with an exercise price equal to the fair market value of the Company’s stock, as defined in the Company’s equity incentive plan, on the date of grant.  One-fourth of the total number of options in this grant will vest upon your completion of 12 months of employment, and one forty-eighth (1/48th) each month thereafter, in each case, subject to your continued service through the applicable vesting date.  The options in this incentive stock option grant will expire the day prior to the tenth anniversary of the grant date.

 

The options will be granted pursuant to and subject to the terms and conditions of the Company’s equity incentive plan and will be further subject to the terms of an option agreement as approved by the Company’s Board of Directors setting forth the vesting conditions and other restrictions.  To the extent there is any discrepancy between this Offer Letter and the terms of any option agreement, the option agreement will control.

 

SEVERANCE 

You shall be entitled to the severance benefits set out in the accompanying Severance Agreement attached hereto and incorporated herein as Exhibit A.

 

BENEFITS

As a full-time employee of the Company, you will be eligible to enroll in a number of benefits including medical, dental, vision, life and disability insurance as of your date of hire. Because we recognize the need for you to take time away from the office to creatively recharge, you are eligible for paid time off (PTO) immediately. We offer 20 days of PTO per calendar year, accrued at a rate of 6.667 hours per pay period. You will also be eligible to participate in the 401k plan following 90 days of service. The Company provides a match up to four percent (4%). Please note that all Company benefit plans will be governed by and subject to plan documents and/or written policies. The Company reserves the right to amend, modify, and/or terminate any of its employee benefit plans or policies, or any other terms of your employment, at any time.

 

RELOCATION EXPENSES 

The Company will reimburse your moving expenses and transportation costs associated with you and your immediate family's relocation to within 30 miles of Aeglea Bio Therapeutics, Inc. Austin, TX office, including, temporary housing, transportation of up to two automobiles, and transportation and storage of household goods, (all such amounts reimbursed, "Relocation Expense") but excluding expenses covered by any other eligible corporate relocation expense reimbursement available to you, with a limit of $50,000.00 on such total reimbursement payable to you. The Aeglea Relocation Expense reimbursements will be subject to the appropriate IRS tax withholdings. Receipts evidencing all such relocation expenses must be submitted to the Company by December 31, 2021 to qualify for such reimbursement. If you terminate your employment with the Company for any reason within one year after your employment start date, you agree to repay the Company 100% of the Relocation Expense paid to you pursuant to this paragraph, on the date of your termination. 

 

 

 

                                            Page 2                                                       

                                                                                                                                          Exhibit 10.20 

 

EXPENSE REIMBURSEMENT

The Company will reimburse you for all reasonable and necessary expenses, incurred by you in connection with performing your duties as an employee of the Company and that are pre-approved by the Company, provided that you comply with any Company policy or practice on submitting, accounting for and documenting such expenses.

 

EMPLOYMENT AT WILL

Although we hope for a long and mutually beneficial relationship, this letter is not a contract of employment for a definite term.  Employment with the Company is “at will,” and is not guaranteed for any specific length of service or any specific position.  Accordingly, as an “at-will” employee, the Company may terminate your employment, or you may resign your employment with the Company at any time, for any reason or no reason.

 

COVENANTS

This offer letter and your employment is subject to a successful criminal background check and documentation of authorization to work in the United States.  No later than your first day of employment you will be expected to sign a Proprietary Information and Inventions Assignment Agreement (the “Agreement”) in the form attached hereto as Exhibit B.  Your employment with the Company is contingent upon your execution of this Agreement.  

 

EMPLOYEE REPRESENTATIONS

Please understand it is the policy of the Company not to solicit or accept proprietary information and / or trade secrets of other companies or third parties.  If you have or have had access to trade secrets or other confidential, proprietary information from your former employer or another third party, the use of such information in performing your duties at the Company is prohibited.  This may include, but is not limited to, confidential or proprietary information in the form of documents, magnetic media, software, customer lists, and business plans or strategies.  

 

In making this employment offer, the Company has relied on your representation that: (a) you are not currently a party to any agreement that would restrict your ability to accept this offer or to perform services for the Company; (b) you are not subject to any non-competition or non-solicitation agreement or other restrictive covenants that might restrict your employment by the Company as contemplated by this offer; (c) you have the full right, power and authority to execute and deliver the Agreement and to perform all of your obligations thereunder; and (d) you will not bring with you to the Company or use in the performance of your responsibilities at the Company any materials, documents or work product of a former employer or other third party that are not generally available to the public, unless you have obtained written authorization from such former employer or third party for their possession and use and have provided the Company with a copy of same.

 

This offer, once accepted, and together with the severance agreement and confidentiality agreement referred to above, constitutes the entire agreement between you and the Company with respect to the subject matter hereof and supersedes all prior offers, negotiations and agreements, if any, whether written or oral, relating to such subject matter.  You acknowledge that neither the Company nor its agents have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this agreement for the purpose of inducing you to execute the agreement, and you acknowledge that you have executed this agreement in reliance only upon such promises, representations and warranties as are contained herein.

 

 

                                            Page 3                                                       

                                                                                                                                          Exhibit 10.20 

 

We look forward to your contribution to the Company.  If you have any questions about the terms of this offer or the contents of this letter, please feel free to contact me. In acknowledgment and acceptance of our offer, please sign this Offer Letter as well as the other Agreements referenced and return all documents to me directly.

 

Sincerely,

 

AEGLEA BIOTHERAPEUTICS, INC

 

By: /s/ Eugene Sackett

 

Name:Eugene Sackett

Title:Vice President Human Resources

 

AGREED AND ACCEPTED:

 

 

 

/s/ Jonathan Alspaugh06/15/2021

Jonathan Alspaugh

SignatureDate

 

 

EXHIBIT A - Severance Agreement

EXHIBIT B - Non-Disclosure Agreement and Invention Rights Assignment

                                            Page 4

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