Document:

EX-10.13

 Exhibit 10.13 

EXECUTIVE SEVERANCE AGREEMENT 

This Executive Severance Agreement (the “Agreement”) is entered into by and between
                     (the “Executive”) and Datadog, Inc., a Delaware corporation (the “Company”), effective
as of the Effective Date (as defined below). 
 RECITALS 

A. The Company’s Board of Directors (the “Board”) believes that it is in the best interests of the Company and
its stockholders to provide Executive with certain benefits upon a termination of Executive’s employment under certain circumstances, which benefits are intended to provide Executive with financial security and provide sufficient income and
encouragement to Executive to remain with the Company, notwithstanding the possibility of a termination of Executive’s employment with the Company. 

B. To accomplish the foregoing objectives, the Board desires to provide the opportunity for severance and change in control benefits to
Executive on the terms provided in this Agreement. 
 Now therefore, in consideration of the mutual promises, covenants and agreements
contained herein, and in consideration of the continuing employment of Executive by the Company, the parties hereto agree as follows: 
 1.
Effectiveness and Term of Agreement. This Agreement shall become effective as of the closing of the Company’s initial public offering of Class A Common Stock (the date on which such closing occurs, the “Effective
Date”) and will terminate as of such time as the Company has met all of its obligations hereunder following a termination of Executive’s employment with the Company. 

2. Qualifying Termination. If Executive is subject to a Qualifying Termination, then, subject to Sections 4, 8, and 9 below,
Executive will be entitled to the following benefits: 
 (a) Severance Benefits. The Company shall pay Executive an amount equal
to the sum of (i) six (6) months of his or her monthly base salary and (ii) 50% of Executive’s then-current target annual bonus, each at the rate in effect immediately prior to the actions that resulted in the Qualifying Termination.
Executive will receive his or her severance payment in a cash lump sum, which will be paid on the first business day occurring after the sixtieth (60th) day following the
Separation, provided that the Release Conditions have been satisfied. If Executive is subject to a Qualifying Termination, no Equity Awards (as defined below) shall accelerate, except as may be provided in an individual award
agreement between Executive and the Company. 
 (b) Continued Employee Benefits. If Executive timely elects continued coverage under
the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Company shall pay the full amount of Executive’s COBRA premiums on behalf of Executive for Executive’s continued coverage under the Company’s health,
dental and vision plans, including coverage for Executive’s eligible dependents, for the six (6)-month period following Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent
medical insurance plan by a subsequent employer; provided that if the Company determines that it cannot provide the payment of COBRA on behalf of Executive without violating applicable law or incurring additional expense under
applicable law, the Company will provide Executive, in lieu thereof, a taxable lump sum payment for the balance of the six (6)-month COBRA period, which payment will equal 100% of the applicable COBRA premium for Executive and any dependents. The
number of months of COBRA to be paid, in the event of a cash payment under the preceding sentence, shall be reduced by the number of months of COBRA premiums previously paid by the Company. 

 3. CIC Qualifying Termination. If Executive is subject to a CIC
Qualifying Termination, then, subject to Sections 4, 8, and 9 below, Executive will be entitled to the following benefits: 
 (a)
Severance and Bonus Payments. The Company or its successor shall pay Executive an amount equal to the sum of (i) twelve (12) months of his or her monthly base salary and (ii) Executive’s then current target annual bonus,
each at the rate in effect immediately prior to the actions that resulted in the Qualifying Termination. Executive will receive his or her severance payment in a cash lump sum, which will be paid on the first business day occurring after
the sixtieth (60th) day following the Separation, provided that the Release Conditions have been satisfied. 

(b) Equity. Each of Executive’s then outstanding unvested Equity Awards, excluding awards that vest based upon the
satisfaction of performance criteria, shall accelerate and become vested (and, if applicable, exercisable) [with respect to 100% of the then unvested shares subject thereto]1
[with respect to the number of unvested shares subject thereto that would have otherwise vested in the 18-month period following the Separation, had Executive remained in continuous service with the
Company during that period]2. “Equity Awards” means all options to purchase shares of Company common stock, restricted stock units, and all other stock-based awards granted
to Executive, including but not limited to stock bonus awards, restricted stock and stock appreciation rights. Subject to Section 4, the accelerated vesting described above shall be effective as of the Separation. In the event an Equity Award
vests based upon the satisfaction of performance criteria, the treatment of such Equity Award shall be based upon the terms of such Equity Award and shall not be subject to accelerated vesting pursuant to the terms of this Section 3(b). In the
event an Equity Award does not vest based upon the satisfaction of performance criteria and was granted prior to the Effective Date, the treatment of such Equity Award shall be based upon the terms of such Equity Award and shall not be subject to
accelerated vesting pursuant to the terms of this Section 3(b); provided, however, that to the extent that this Section 3(b) provides for more favorable vesting acceleration than the terms of such Equity Award, then the terms of
this Section 3(b) shall apply to such Equity Award instead. 
 (c) Continued Employee Benefits. If Executive timely elects
continued coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Company shall pay the full amount of Executive’s COBRA premiums on behalf of Executive for Executive’s continued coverage under the
Company’s health, dental and vision plans, including coverage for Executive’s eligible dependents, for the twelve (12)-month period following Executive’s Separation or, if earlier, until Executive is eligible to be covered under
another substantially equivalent medical insurance plan by a subsequent employer; provided that if the Company determines that it cannot provide the payment of COBRA on behalf of Executive without violating applicable law or
incurring additional expense under applicable law, the Company will provide Executive, in lieu thereof, a taxable lump sum payment for the balance of the twelve (12)-month COBRA period, which payment will equal 100% of the applicable COBRA premium
for Executive and any dependents. The number of months of COBRA to be paid, in any case, shall be reduced by the number of months of COBRA previously paid by the Company. 

(d) Benefits True Up. In the event Executive terminates pursuant to a Qualifying Termination under Section 2 and that termination
is later determined by the Company to qualify as a CIC Qualifying Termination, then the Company shall make a true-up payment to Executive so that the aggregate of all benefits provided to Executive
are those in this Section 3. Notwithstanding the timing described in 
  

	1 	 For Tier One: CEO, CTO, CPO, CFO, GC 

	2 	 For Tier Two: CRO, CHRO (when hired) 

 
Sections 3(a), 3(b) and 3(c), this true-up payment will occur on the closing of the Change of Control, and any equity awards that would otherwise
forfeit upon a Qualifying Termination shall remain outstanding and eligible to vest for three (3) months following such Qualifying Termination to permit the acceleration described in Section 3(b) above. 

4. General Release. Any other provision of this Agreement notwithstanding, the benefits under Section 2 and 3 shall not
apply unless Executive has executed a general release of claims in a form prescribed by the Company and such release has become effective (the document effecting the foregoing, the “Release”). The Company will deliver the form of
Release to Executive within ten (10) days after Executive’s Separation. Executive must execute and return the Release within the time period specified in the form, and in all events within sixty (60) days following the termination
event described in Section 2 or 3, as applicable. 
 5. Accrued Compensation and Benefits. Notwithstanding anything
to the contrary in Section 2 and 3 above, the Company shall pay Executive’s earned but unpaid base salary and other vested but unpaid cash entitlements for the period through and including the Separation, including unused earned vacation
pay and unreimbursed documented business expenses incurred by Executive prior to the date of termination (collectively, “Accrued Compensation and Expenses”). In addition, Executive shall be entitled to any other vested benefits
earned by Executive for the period through and including the termination date of Executive’s employment under any other employee benefit plans and arrangements maintained by the Company, in accordance with the terms of such plans and
arrangements, except as may be modified herein (collectively, “Accrued Benefits”). Any Accrued Compensation and Expenses to which Executive is entitled shall be paid to Executive in cash as soon as administratively practicable after
the termination, and, in any event, no later than two and one-half (2-1/2) months after the end of the taxable year of Executive in which the termination
occurs or at such earlier time as may be required by applicable law. Any Accrued Benefits to which Executive is entitled shall be paid to Executive as provided in the relevant plans and arrangements. 

6. Definitions. 
 (a)
“Cause” will mean one or more of the following: (i) the commission of, or plea of guilty or no contest to, (A) any felony or (B) a criminal act involving fraud, misappropriation, embezzlement, or moral turpitude;
(ii) the willful misappropriation of the funds or property of the Company; (iii) the failure by Executive to perform Executive’s material duties or comply with the lawful and reasonable instructions of the Board [or the
CEO]3 in a manner consistent with Executive’s position and duties hereunder; (iv) any material act or material omission aiding or abetting a competitor, vendor or client of the
Company to the material disadvantage or detriment of the Company; (v) gross negligence or willful misconduct with respect to the Company; (vi) repeatedly reporting to work under the influence of alcohol or illegal drugs in a manner that
materially adversely affects Executive’s performance of Executive’s duties; (vii) any willful conduct causing the Company substantial public disgrace or substantial disrepute or substantial economic harm; (viii) unauthorized use
or disclosure by Executive of confidential information or trade secrets of the Company; (ix) the violation of material written Company policies (as in effect from time to time) made known to Executive, including but not limited to any equal
employment opportunity policy or policy against workplace harassment or retaliation; or (x) any other material breach of any agreement between Executive and the Company, which breach or violation remains uncured (if curable) for a period of
twenty (20) days after written notice of such breach or violation from the Company to Executive (such notice to specify the nature of the claimed breach and the manner in which the Company requires such breach to be cured). 

 
  

	3 	 For inclusion in agreements for executives other than the CEO. 

 (b) “Change in Control” has the meaning set forth in the Company’s
2019 Equity Incentive Plan, as it may be amended from time to time, or any successor plan thereto. 
 (c) “CIC Qualifying
Termination” means a Separation (i) within twelve (12) months following a Change in Control or (ii) within three (3) months preceding a Change in Control, in each case, resulting from (i) the Company terminating
Executive’s employment for any reason other than Cause or (ii) Executive voluntarily resigning his or her employment for Good Reason. A termination or resignation due to Executive’s death or disability shall not constitute a CIC
Qualifying Termination. 
 (d) “Code” means the Internal Revenue Code of 1986, as amended. 

(e) “Good Reason” means the occurrence of the following without Executive’s consent: (i) a relocation of
Executive’s principal workplace by more than 30 miles; (ii) in the case of a CIC Qualifying Termination only, a material reduction in Executive’s base pay or target bonus other than in connection with a Companywide reduction in base
pay or bonus; (iii) in the case of a CIC Qualifying Termination only, a material reduction of Executive’s duties, authority, or responsibilities, relative to Executive’s duties, authority, or responsibilities as in effect immediately
prior to such reduction; provided, however, that a reduction in duties, authority, responsibilities solely by virtue of the Company being acquired and made part of a larger entity (for example, where Executive retains essentially the same
responsibility and duties with respect to a subsidiary, business unit or division that substantially contains the Company’s business following a Change of Control as Executive had immediately prior to the Change of Control) shall not constitute
“Good Reason”. A condition shall not be considered “Good Reason” unless Executive gives the Company written notice of such condition within ninety (90) days after such condition comes into existence and the Company fails to
remedy such condition with thirty (30) days after receiving Executive’s written notice. Executive must resign Executive’s employment no later than fifteen (15) days following expiration of the Company’s thirty (30) day
cure period or written receipt from the Company of its intent not to cure. 
 (f) “Qualifying Termination” means a
Separation that is not a CIC Qualifying Termination, but which results from (i) the Company terminating Executive’s employment for any reason other than Cause or (ii) Executive voluntarily resigning his employment for Good Reason. A termination or resignation due to Executive’s death or disability shall not constitute a Qualifying Termination. 

(g) “Release Conditions” means (i) the Company has received Executive’s executed Release and (ii) any
rescission period applicable to Executive’s executed Release has expired such that the Release is effective. 
 (h)
“Separation” means a “separation from service,” as defined in the regulations under Section 409A of the Code. 

7. Successors. 
 (a)
Company’s Successors. The Company shall require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or
assets, by an agreement in substance and form satisfactory to Executive, to assume this Agreement and to agree expressly to perform this Agreement in the same manner and to the same extent as the Company would be required to perform it in the
absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets or which becomes bound by this Agreement by operation of law. 

 (b) Executive’s Successors. This Agreement and all rights of Executive hereunder
shall inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

8. Golden Parachute Taxes. In the event that (i) any payment or benefit arising out of or in connection with a change of ownership
or effective control of the Company or a substantial portion of its assets within the meaning of Section 280G of the Code (such change, a “280G Change in Control”), that is made or provided, or to be made or provided, by the
Company (or any successors thereto or affiliates thereof) to Executive, whether pursuant to the terms of this Agreement or any other plan, agreement, or arrangement (any such payment or benefit, a “Parachute Payment”) would be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”) and (ii) the net after-tax amount (taking into account all applicable taxes payable by Executive,
including any Excise Taxes) that Executive would receive with respect to such Parachute Payments does not exceed the net after-tax amount that Executive would receive if the amount of such Parachute Payments
were reduced to the maximum amount that could otherwise be payable to Executive without the imposition of the Excise Tax, then such Parachute Payments shall be reduced to the extent necessary to eliminate the imposition of the Excise Tax. Any
reduction in the Parachute Payments required to be made pursuant to this section shall be made first with respect to Parachute Payments payable in cash before being made in respect to any Parachute Payments to be provided in the form of benefits or
equity award acceleration, and in the form of benefits before being made with respect to equity award acceleration, and in any case, shall be made with respect to such Parachute Payments in inverse order of the scheduled dates or times for the
payment or provision of such Parachute Payments. 
 9. Miscellaneous Provisions. 

(a) Section 409A. To the extent (i) any payments to which Executive becomes entitled under this Agreement, or any agreement or plan
referenced herein, in connection with Executive’s termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (ii) Executive is deemed at the time of such termination of
employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from
Executive’s Separation; or (ii) the date of Executive’s death following such Separation; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Executive,
including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period,
any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to Executive or Executive’s beneficiary in one lump sum (without interest). Except
as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be
subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not
affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which Executive
incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. To the extent that any
provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and
for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral”
within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an 

 
exemption from Section 409A under another provision of Section 409A. Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments
for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A. Notwithstanding anything to the contrary in this Agreement, if the period of time comprising (x) the time
to consider and make effective the Release and (y) the time after the expiration or cessation of any cure period or attempt to cure Good Reason, spans two calendar years, then, any payments that constitute deferred compensation subject to
Section 409A will be made in the second calendar year. 
 (b) Other Arrangements. This Agreement supersedes any and all severance
arrangements and accelerated vesting benefits which were previously offered or provided by the Company to Executive, and Executive hereby waives Executive’s rights to such other benefits, except as set forth in Section 3(b) with respect to
the treatment of Equity Awards granted prior to the Effective Date[; provided, however, that the terms of your offer letter agreement, dated August 28, 2018 (including all Exhibits thereto), with respect to severance payments and
benefits shall apply to the extent that such terms are more favorable than the terms of this Agreement]4. For the avoidance of doubt, in no event shall Executive receive benefits under both
Sections 2 and Section 3 with respect to Executive’s Separation. 
 (c) Choice of Law; Dispute Resolution. The terms
of this Agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this Agreement, Executive’s employment with the Company or any other relationship between Executive and the Company (the
“Disputes”) will be governed by New York law, excluding laws relating to conflicts or choice of law. Executive and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in the City, County
and State of New York in connection with any Dispute or any claim related to any Dispute. 
 (d) Notice. Notices and all other
communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid or deposited
with Federal Express Corporation, with shipping charges prepaid. In the case of Executive, mailed notices shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing. In the case of the
Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 

(e) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall
be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (f) Withholding
Taxes. All payments made under this Agreement shall be subject to applicable withholding and income taxes. 
 (g) Severability.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 

(h) At-Will Employment. Nothing in this Agreement shall confer upon Executive
any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any subsidiary of the Company or of Executive, which rights are hereby expressly reserved by each,
to terminate his or her service at any time and for any reason. 
 [Signature Page to Executive Severance Agreement Follows] 

 
  

	4 	 For CFO agreement only. 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written. This Agreement may be signed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same
instrument. 
  
  

							
	EXECUTIVE	 		 		 	COMPANY
				
	  
	 		 	                	 	  

	Name:	 		 		 	 Name:
 Title:

 [Signature Page to Executive Severance Agreement]Exhibit

Exhibit 4.5

DESCRIPTION OF REGISTRANT’S SECURITIES
The following description of Palo Alto Networks, Inc. (the “Company,” “we,” “us” or “our”) capital stock is a summary that is not complete and is qualified in its entirety by reference to the Company’s Restated Certificate of Incorporation filed on July 25, 2012 (“COI”), and Amended and Restated Bylaws, initially adopted on March 2, 2005 and amended and restated on September 12, 2018 (“Bylaws”). 
General
Our authorized capital stock consists of 1,100,000,000 shares, with a par value of $0.0001 per share, of which 1,000,000,000 shares are designated as common stock and 100,000,000 shares are designed as preferred stock. 

Common stock 
The holders of our common stock are entitled to one vote per share in any election of directors and on all matters submitted to a vote of our stockholders and do not have cumulative voting rights.  Subject to preferences that may be applicable to any preferred stock outstanding at the time, 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. Upon our liquidation, dissolution, or winding 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. 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. 

Preferred stock 
Our board of directors is authorized, without further action by our stockholders, to issue from time to time up to an aggregate of 100,000,000 shares of preferred stock in one or more series and to designate the rights, preferences, privileges, and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, redemption rights, liquidation preference, sinking fund terms, and the number of shares constituting any series or the designation of any series, any or all of which may be greater than the rights of common stock. 

Anti-takeover effects of the COI, Bylaws and Delaware law
Our COI and Bylaws contain certain provisions that could have the effect of delaying, deferring or discouraging another party from acquiring control of the Company. These provisions and certain provisions of Delaware law, which are summarized below, could discourage takeovers, coercive or otherwise. These provisions are also designed, in part, to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us.
Undesignated preferred stock.    As discussed above, our board of directors has the ability to designate and issue preferred stock with voting or other rights or preferences that could deter hostile takeovers or delay changes in our control or management.
Limits on the ability of stockholders to act by written consent or call a special meeting.    Our COI provides that our stockholders may not act by written consent, which may lengthen the amount of time required to take stockholder actions. As a result, the holders of a majority of our capital stock would not be able to amend our COI or Bylaws or remove directors without holding a meeting of stockholders called in accordance with our Bylaws.
In addition, our COI and Bylaws provide that special meetings of the stockholders may be called only by our board of directors, the chairperson of our board of directors, our chief executive officer, or our president (in the absence of a chief executive officer). A stockholder may not call a special meeting, which may delay the ability of our stockholders to force consideration of a proposal or for holders controlling a majority of our capital stock to take any action, including the removal of directors. 
Requirements for advance notification of stockholder nominations and proposals.    Our COI and Bylaws contain 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 our board of directors or a committee of the board of directors. Under our Bylaws, eligible stockholders may nominate persons for our board of directors for inclusion in our proxy statement.  To be 

eligible, a single stockholder, or group of up to 20 stockholders, must own 3% of our outstanding stock continuously from at least three years prior to such nomination through the date of our relevant annual meeting. The individual stockholder, or group of stockholders, may submit that number of director nominations not exceeding the greater of (a) two or (b) 20% of the number of directors in office. Any such nomination must comply with the requirements set forth in our Bylaws.
These advance notice procedures may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed and 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 attempt to obtain control of our company.
Board classification.    Our board of directors is divided into three classes. The directors in each class serve for a three-year term, one class being elected each year by our stockholders. This system of electing and removing directors may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors.
No cumulative voting.    The Delaware General Corporation Law provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless the certificate of incorporation provides otherwise. Our COI and Bylaws do not expressly provide for cumulative voting. Without cumulative voting, a minority stockholder may not be able to gain as many seats on our 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 our board of directors to influence our board of directors’ decision regarding a takeover.
Delaware anti-takeover statute.    We are subject to the provisions of Section 203 of the Delaware General Corporation Law 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, our board of directors approved either the business combination or the transaction that 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, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, (1) shares owned by persons who are directors and also officers and (2) shares owned by 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

		
	•
	at or subsequent to the date of the transaction, the business combination is approved by our 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 66 2/3% of the outstanding voting stock that 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. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that Section 203 may discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

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