Document:

pbyi-ex1019_197.htm

Exhibit 10.19

 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

February 13, 2020

Jeff J. Ludwig

via E-mail

Re:EMPLOYMENT OFFER LETTER

Dear Jeff:

Puma Biotechnology, Inc., a Delaware corporation (the “Company”) is pleased to offer you the Full-Time, Exempt position of Chief Commercial Officer of the Company, with terms as noted below. Please confirm your acceptance of this offer by signing and returning a copy of this letter on or before Monday, February 17, 2020:

1.Effective Date, Position, Duties And Responsibilities. The terms will become effective on the date you start your employment (the “Effective Date”), which shall be no later than Monday, March 16, 2020. As of the Effective Date, the Company will employ you as its Chief Commercial Officer. In such capacity, you will have such duties and responsibilities as are normally associated with such position. Your duties may be changed from time to time by the Company in its discretion. You will report to the President and CEO of the Company or such other individual as the Company may designate, and will work at the Company’s offices located in Los Angeles, California, or such other location as the Company may designate, except for travel to other locations as may be necessary to fulfill your responsibilities. If your travel involves flying for less than two hours you will be permitted to fly economy-plus class. If your flight involves flying for more than two hours you will be permitted to fly business-class, (or, in a two-class aircraft, first-class) (in each case, as applicable). Although your initial title and duties are described above, the Company may assign you additional or different duties and/or titles from time-to-time.

2.Base Compensation. During your employment with the Company, the Company will pay you a base salary at the rate of $550,000 per year (the “Base Salary”), less payroll deductions and all required withholdings, payable in installments in accordance with the Company’s normal payroll practices (but in no event less often than monthly) and prorated for any partial pay period of employment. Your Base Salary may be subject to adjustment pursuant to the Company’s policies as in effect from time to time.

 

 

 

3.Annual Bonus. In addition to the Base Salary set forth above, you will be eligible to receive an annual discretionary cash bonus (pro-rated for any partial year of service), based on the attainment of performance metrics and/or individual performance objectives, in each case, established and evaluated by the Company in its sole discretion (the “Annual Bonus”). Your target Annual Bonus shall be 40% of your Base Salary, but the actual amount of your Annual Bonus may be more or less (and may equal zero), depending on the attainment of applicable performance criteria. Payment of any Annual Bonus(es), to the extent any Annual Bonus(es) become payable, will be contingent upon your continued employment through the applicable payment date.

4.Annual Equity: You will be eligible to receive an annual equity award, in the form of and on terms and conditions as determined by the Board of Directors (or a subcommittee thereof) in its sole discretion.

5.Stock Option. In connection with entering into this offer letter, in connection with the commencement of your employment with the Company and provided that you are employed by the Company on the date of grant, the Company will grant you an option to purchase 320,000 shares of the Company’s common stock (the “Stock Option”) at a per share exercise price equal to the Fair Market Value of a share of the Company’s common stock on the date of grant (as determined in accordance with the Company’s 2011 Incentive Award Plan), which is expected to be on the commencement date of your employment. Subject to your continued employment with the Company through the applicable vesting date, 1/3rd of the shares underlying the Stock Option will vest on the first anniversary of the Effective Date and 1/36th of the shares underlying the Stock Option will vest on each monthly anniversary of the Effective Date thereafter. Subject to the foregoing, the terms and conditions of the Stock Option must be approved by the Board of Directors, or a subcommittee thereof, and will be set forth in a separate award agreement in such form as is prescribed by the Company, to be entered into by the Company and you.

6.“One-Time” Milestone Equity Awards. You will be eligible to receive an equity award based on the achievement of each of the following US Nerlynx based milestones, and subject to your continued employment by the Company through the applicable grant date: [***]. These sales milestones are based on United States sales only and does not include sales outside of the United States). For the avoidance of doubt each award shall be granted only once (if at all) upon achievement of the applicable milestone. The terms and conditions of either award must be approved by the Board of Directors, or a subcommittee thereof, and will be set forth in a separate award agreement in a form prescribed by the Company, to be entered into by you and the Company.

7.Signing Bonus. In connection with entering into this offer letter, you will be paid a signing bonus to $725,000 (the “Signing Bonus”) within twenty days after the Effective Date. You and the Company acknowledge and agree that the Signing Bonus will not be earned in whole unless and until you are continuously, actively employed by the Company through the third anniversary of the Effective Date. If your employment is terminated by the Company with Cause, as defined in Section 9(b), at any time prior to or on the first anniversary of the Effective Date, or by you for any reason prior to or on the first anniversary of the Effective Date, you will not be entitled to retain any portion of the Signing Bonus and you will be obligated to repay to the Company the Signing Bonus, in full, within 30 days following the date of termination. In the 

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event that your employment is terminated by the Company with Cause or by you (a) after the first anniversary of the Effective Date but prior to or on the second anniversary of the Effective Date, the Company will allow you to retain 33% of the unearned bonus, and you hereby agree to repay to the Company, within 30 days following the date of termination, 67% of the Signing Bonus; or (b) after the second anniversary of the Effective Date but prior to the third anniversary of the Effective Date, the Company will allow you to retain 67% of the unearned Signing Bonus, and you hereby agree to repay to the Company, within 30 days following the date of termination, 33% of the Signing Bonus.

8.Benefits And Vacation. You will be eligible to participate in all health (including an annual comprehensive-executive physical), welfare, savings and retirement plans, practices, policies and programs maintained or sponsored by the Company from time to time for the benefit of its similarly situated employees, subject to the terms and conditions thereof. To the extent that you properly elect to participate in the Company’s applicable medical, dental and/or prescription benefit plans, the Company will pay the premiums for you and your dependents under such plans while you remain employed by the Company, provided, however, that the Company shall have no obligation to pay any such premiums if doing so would result in a violation of law and/or the imposition of penalty or excise taxes on the Company. In addition, you will be eligible for other standard benefits, such as sick leave, 4 weeks personal vacation, holidays, and shutdowns in each case, to the extent available under, and in accordance with, Company policy applicable generally to other similarly situated employees of the Company. Notwithstanding the foregoing, nothing contained in this Section 8 shall, or shall be construed so as to, obligate the Company or its affiliates to adopt, sponsor, maintain or continue any benefit plans or programs at any time.

9.Termination.

(a)If your employment with the Company is terminated by the Company without Cause or by you for Good Reason (each, a “Qualifying Termination”), and you execute and fail to revoke during any applicable revocation period a general release of all claims against the Company and its affiliates in a form reasonably acceptable to the Company (the “Release”) within 60 days following such termination of employment, then you shall be entitled to receive (i) an amount (the “Severance”) equal to your Base Salary and Target Bonus at the rate in effect immediately prior to your date of termination, (ii) if you timely elect to receive continued healthcare coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall directly pay the premium for you and your covered dependents through the earlier of (A) the 12-month anniversary of your termination date and (B) the date you and your covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s) and (iii) if the Qualifying Termination occurs on or within 18 months following a Change in Control (as defined in the Plan), all outstanding Company equity awards held by you on your date of termination shall immediately become fully vested and, to the extent applicable, exercisable. For the avoidance of doubt, all such equity awards will remain outstanding and eligible to vest following your date of termination shall actually vest and become exercisable (if applicable) and non-forfeitable upon the effectiveness of the Release. The Severance shall be made in substantially equal installments in accordance with the Company’s standard payroll policies, less applicable withholdings, with such installments to commence on the first payroll date following the 60th day following your date of termination, with 

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the first installment to include any amount(s) that would have otherwise been paid prior to such first payroll date. In addition, (A) if any plan pursuant to which the benefits in subsection (ii) are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A (as defined below) under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover you under its group health plans without incurring penalties (including without limitation, pursuant to Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to you in substantially equal monthly installments over the continuation coverage period (or the remaining portion thereof).

(b)For purposes of this offer letter, Cause shall mean: (1) your conviction or plea of nolo contender to a misdemeanor involving moral turpitude or any felony, (2) your commission of any act of theft, embezzlement or misappropriation of Company assets, (3) your material breach of any agreement with the Company, (4) your failure to follow the reasonable and lawful written direction of any superior, provided that you are given five days’ notice and opportunity to cure such failure, if curable, prior to termination, (5) your willful failure to perform the essential duties of your position, or (6) your commission of an act of unlawful discrimination, harassment or retaliation. This does not alter the at-will nature of your employment.

(c)For purposes of this offer letter, “Good Reason” shall mean the occurrence of any one or more of the following events without your prior written consent, unless the Company corrects in all material respects the circumstances constituting Good Reason (provided such circumstances are capable of correction) in accordance with the correction provisions described below:

(i)a material diminution in your Base Salary, excluding any reduction applicable equally to all executive officers of the Company following a material decline in the Company’s earnings, public image, or performance;

(ii)a material diminution in your authority, duties or responsibilities; or

(iii)a change in the geographic location at which you must perform services to a location that is greater than 50 miles from the Company’s principal place of business as of the Effective Date;

provided, however, that no termination shall be deemed a termination by you for Good Reason unless and until (x) you provide the Board with written notice of the circumstances constituting Good Reason within 90 days after the date that you first become aware of the existence of such circumstances; (y) the Company fails to correct the circumstance so identified within 30 days after the receipt of such notice (if capable of correction); and (z) the effective date of your termination of employment occurs no later than 90 days after the date that you first become aware of the event or circumstances constituting Good Reason.

(d)No amount that is deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) shall be payable pursuant to this offer letter unless your termination of employment constitutes a “separation from service” from the Company within the meaning of Section 409A of the Code and the Department of Treasury 

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regulations and other guidance promulgated thereunder (“Section 409A”). For purposes of Section 409A, your right to receive any installment payments under this offer letter shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment.

(e)Notwithstanding the foregoing, no compensation or benefits, including without limitation any severance payments or benefits described above, shall be paid to you during the 6- month period following your “separation from service” from the Company if the Company determines that paying such amounts at the time or times indicated in this letter would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such 6-month period (or such earlier date upon which such amount can be paid under Section 409A without resulting in a prohibited distribution, including as a result of your death), the Company shall pay you a lump-sum amount equal to the cumulative amount that would have otherwise been payable to you during such period.

10.Confidential And Proprietary Information. This offer of employment is contingent upon your execution of the Proprietary Information and Inventions Agreement, attached hereto as Exhibit A.

11.Non-Solicitation. You further agree that during the term of such employment and for one (1) year after your employment is terminated, you will not directly or indirectly solicit, induce, or encourage any employee, consultant, agent, customer, vendor, or other parties doing business with the Company to terminate their employment, agency, or other relationship with the Company or to render services for or transfer their business from the Company and you will not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.

12.At-Will Employment; Amendment. Your employment with the Company is “at-will,” and either you or the Company may terminate your employment for any reason whatsoever (or for no reason) upon written notice of such termination to the other party. This at‐will employment relationship cannot be changed except in a writing signed by you and an authorized representative of the Company. This agreement may not be amended except by a signed writing executed by the parties hereto.

13.Company Rules And Regulations. As an employee of the Company, you agree to abide by all Company rules, regulations and policies as set forth in the Company’s employee handbook or as otherwise promulgated.

14.Withholding. The Company may withhold from any amounts payable under this offer letter such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

15.Entire Agreement. As of the Effective Date, this offer letter, together with the Proprietary Information and Inventions Agreement, comprises the final, complete and exclusive agreement between you and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises, whether oral or written, made to 

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you by any representative of the Company. You agree that any such agreement, offer or promise between you and any representative of the Company is hereby terminated and will be of no further force or effect, and you acknowledge and agree that upon your execution of this offer letter, you will have no right or interest in or with respect to any such agreement, offer or promise.

16.Choice Of Law. This offer letter shall be interpreted and construed in accordance with California law without regard to any conflicts of laws principles.

17.Proof Of Right To Work. As required by law, this offer of employment is subject to satisfactory proof of your right to work in the United States.

18.Background Check And Drug Screening. This offer of employment is expressly contingent upon your completion of a pre-employment background check conducted by an outside service bureau and a drug screening test, in each case with results that are satisfactory to the Company in its sole discretion. Refusal to submit to the background check or drug screening test will result in your disqualification from further employment consideration. In addition, failure to successfully complete the background check or drug screening test will cause this offer of employment to be withdrawn, or your employment to be terminated if you already have started work.

[SIGNATURE PAGE FOLLOWS]

 

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Exhibit 10.19

 

Please confirm your agreement to the foregoing by signing and dating the enclosed duplicate original of this offer letter in the space provided below for your signature and returning it to the Company’s President and Chief Executive Officer. Please retain one fully-executed original for your files.

 

	
 
	
Sincerely,

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Puma Biotechnology, Inc.

	
 
	
a Delaware corporation

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
By:
	
/s/ Alan H. Auerbach

	
 
	
Name:
	
Alan H. Auerbach

	
 
	
Title:
	
President and Chief Executive Officer

	
 
	
 
	
 

	
 
	
 
	
 

	
Accepted and Agreed,
	
 
	
 

	
this 16th day of February, 2020
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Jeff. J. Ludwig
	
 
	
 
	
 

	
 
	
Jeff J. Ludwignxst-ex48_122.htm

 

Exhibit 4.8

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

As of February 23, 2021, Nexstar Media Group, Inc. (the “Company,” “we,” “us” and “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: the Class A Common Stock (as defined below).

DESCRIPTION OF CAPITAL STOCK

The following is a summary of the material terms of our capital stock that are contained in our Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and Amended and Restated By-laws (the “By-laws”), and is qualified in its entirety by reference to these documents. You should refer to the Certificate of Incorporation and the By-laws, both of which we have filed as exhibits to our Annual Report on Form 10-K of which this exhibit is a part. In addition, you should refer to the General Corporation Law of Delaware, as amended (the “DGCL”), which may also affect the terms of our capital stock. Terms used herein and not otherwise defined herein have the meanings set forth in the Certificate of Incorporation or the By-laws, as applicable. 

Authorized Shares of Capital Stock

Under the Certificate of Incorporation, Nexstar is authorized to issue an aggregate of 125,200,000 shares of capital stock, divided into classes as follows:

	
 
	
•
	
100 million shares of Class A common stock, par value $0.01 per share (the “Class A common stock”);

	
 
	
•
	
20 million shares of Class B common stock, par value $0.01 per share (the “Class B common stock);

	
 
	
•
	
5 million shares of Class C common stock, par value $0.01 per share (the “Class C common stock”); and

	
 
	
•
	
200,000 shares of preferred stock, par value $0.01 per share (the “preferred stock”).

As of February 23, 2021, there were 43,384,534 shares of Class A common stock outstanding, and there were no shares of Class B common stock, Class C common stock or preferred stock outstanding. Nexstar’s Class A common stock is traded on The Nasdaq Global Select Market under the symbol “NXST.” 

Common Stock

The holders of Class A common stock and Class B common stock possess all rights pertaining to the capital stock of Nexstar, subject to the preferences, qualifications, limitations, voting rights and restrictions with respect to any series of preferred stock that may be issued with any preference or priority over the common stock. No shares of Class B common stock are currently outstanding.

Stockholder Voting

Except as may be provided for in any amendment to the Certificate of Incorporation establishing a series of preferred stock and until such time as any shares of Class B common stock are issued, the holders of Class A common stock will have the sole power to vote for the election of directors and for all other purposes. If shares of Class B common stock are issued in the future, the holders of Class A common stock and Class B common stock will generally have identical rights, except that holders of Class A common stock are entitled to one vote per share while holders of Class B common stock will be entitled to 10 votes per share on all matters to be voted on by stockholders. Holders of shares of Class A common stock and Class B common stock are not entitled to cumulate their votes in the election of directors. Generally, all matters to be voted on by stockholders must be approved by a majority of the votes entitled to be cast by all shares of Class A common stock and Class B common stock present in person or represented by proxy, voting together as a single class, subject to any voting rights granted to holders of any preferred stock. Except as otherwise provided by law, and subject to any voting rights granted to holders of any 

 

 

outstanding preferred stock, amendments to Nexstar’s Certificate of Incorporation generally must be approved by at least a majority of the combined voting power of all holders of Class A common stock and Class B common stock voting together as a single class. However, amendments that would alter or change the powers, preferences or special rights of the Class A common stock or the Class B common stock so as to affect them adversely also must be approved by a majority of the votes entitled to be cast by the holders of the shares affected by the amendment, voting as a separate class, and amendments to certain provisions of Nexstar’s Certificate of Incorporation must be approved by two-thirds of the votes entitled to be cast with respect to such amendments.

The holders of Class C common stock have no voting rights but otherwise generally have the same rights as the holders of Class A common stock and Class B common stock.

Dividends and Other Distributions

Upon Nexstar’s liquidation, dissolution or winding up, after payment in full of the amounts required to be paid to holders of preferred stock, if any, all holders of Class A common stock, regardless of class, are entitled to share ratably in any assets available for distribution to holders of shares of common stock. 

Holders of Class A common stock, Class B common stock and Class C common stock will share in an equal amount per share in any dividend declared by the board of directors, subject to any preferential rights of any outstanding preferred stock. Dividends consisting of shares of Class A common stock, Class B common stock and Class C common stock may be paid only as follows: (1) shares of Class A common stock may be paid only to holders of Class A common stock, shares of Class B common stock may be paid only to holders of Class B common stock and shares of Class C common stock may be paid only to holders of Class C common stock; and (2) shares shall be paid proportionally with respect to each outstanding share of Class A common stock, Class B common stock and Class C common stock.

Conversion Rights

At any time or from time to time, any holder of shares of Class B common stock or Class C common stock may convert all or any portion of the shares of Class B common stock or Class C common stock held by such holder into an equal number of shares of Class A common stock. All the shares of Class B common stock will be automatically converted into an equal number of shares of Class A common stock (x) if the Class B common stock represents less than 10% of the total common stock of the Company outstanding or (y) upon the transfer of the Class B common stock to anyone other than ABRY Broadcast Partners II, L.P. or ABRY Broadcast Partners III, L.P. (collectively, “ABRY”) or an affiliate of ABRY or Perry A. Sook. 

Preemptive Rights

No holders of Class A common stock, Class B common stock or Class C common stock have any preemptive rights with respect to the common stock or any other securities of the Company, or to any obligations convertible (directly or indirectly) into securities of the Company.

Transfer Restrictions and Redemption 

If the Company has reason to believe that the Ownership, or proposed Ownership, of shares of capital stock of the Company by any stockholder, other Owner or Proposed Transferee could, either by itself or when taken together with the Ownership of any shares of capital stock of the Company by any other Person, result in any Violation, such stockholder, other Owner or Proposed Transferee, upon request of the Company, shall promptly furnish to the Company such information (including information with respect to citizenship, other Ownership interests and affiliations) as the Company may reasonably request to determine whether the Ownership of, or the exercise of any rights with respect to, shares of capital stock of the Company by such stockholder, other Owner or Proposed Transferee could result in any Violation. 

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 If (a) any stockholder, other Owner or Proposed Transferee from whom information is requested should fail to respond to such request within the period of time (including any applicable extension thereof) determined by the board of directors, or (b) whether or not any stockholder, other Owner or Proposed Transferee timely responds to any request for information, the board of directors shall conclude that effecting, permitting or honoring any Transfer or the Ownership of any shares of capital stock of the Company, by any such stockholder, other Owner or Proposed Transferee, could result in any Violation, or that it is in the interest of the Company to prevent or cure any such Violation or any situation which could result in any such Violation, or mitigate the effects of any such Violation or any situation that could result in any such Violation, then the Company may, inter alia: (1) refuse to permit any Transfer of record of shares of capital stock of the Company that involves a Transfer of such shares to, or Ownership of such shares by, any Disqualified Person; (ii) refuse to honor any such Transfer of record effected or purported to have been effected, and in such case any such Transfer of record shall be deemed to have been void ab initio; (iii) suspend those rights of stock ownership the exercise of which could result in any Violation; and/or (iv) redeem such shares, in accordance with the paragraph below.

Notwithstanding any other provision of the Certificate of Incorporation to the contrary, but subject to the provisions of any resolution or resolutions of the board of directors creating any series of preferred stock, outstanding shares of Class A common stock, Class B common stock, Class C common stock or preferred stock shall always be subject to redemption by the Company, by action of the board of directors, if in the judgment of the board of directors such action should be taken with respect to any shares of capital stock of the Company of which any Disqualified Person is the stockholder, other Owner or Proposed Transferee. The terms and conditions of such redemption shall be as set forth in the Certificate of Incorporation.

Takeover Defense

Certain provisions of the Certificate of Incorporation, the By-laws and the DGCL have anti-takeover effects and could delay, discourage, defer or prevent a tender offer or takeover attempt that a stockholder might consider to be in the stockholder’s best interests, including attempts that might result in a premium over the market price for the shares held by stockholders, and may make removal of the incumbent management and directors more difficult.

Authorized Shares. The authorized but unissued shares of Class A common stock and preferred stock will be available for future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of Nexstar by means of a proxy contest, tender offer, merger or otherwise.

The board of directors of Nexstar will have the sole authority to determine the terms of any one or more series of preferred stock, including voting rights, dividend rates, conversion and redemption rights, and liquidation preferences. As a result of the ability to fix voting rights for a series of preferred stock, the board of directors will have the power to the extent consistent with its legal duties to issue a series of preferred stock to persons friendly to management in order to attempt to block a tender offer, merger or other transaction by which a third-party seeks control of Nexstar, and thereby assist members of management to retain their positions.

Special Meetings of Stockholders. Under the By-laws and subject to the rights of any series of preferred stock that may be issued by Nexstar, special meetings of stockholders may be called solely by the board of directors of Nexstar or by the chairman of the board of directors.

Action by Written Consent. Under the Certificate of Incorporation and By-laws, Nexstar stockholders may not take action by written consent.

Advance Notice of Nominations and Proposed Business for Stockholder Meetings. Under the By-laws, only the board of directors or a stockholder of record entitled to vote at a meeting for the election of directors may nominate candidates for election to the board of directors of Nexstar at an annual meeting of stockholders or present business for consideration by the stockholders at an annual meeting.

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The By-laws require that a stockholder who desires to nominate a candidate for election to the board of directors at an annual meeting or present business at an annual meeting to provide notice to the Secretary of Nexstar in advance of the meeting. The notice must be in proper form and set forth various information related to the stockholder giving the notice and the applicable nomination or proposal. Notice of such stockholder nomination or proposal must be received by Nexstar not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than 30 days, or delayed by more than 90 days, from such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the 120th day prior to such annual meeting and not later than the later of the 90th day prior to such annual meeting and the 10th day following the day on which the public announcement of the date of such meeting is first made by Nexstar.

Classified Board of Directors. The Certificate of Incorporation and By-laws provide that the size of Nexstar’s board of directors will be determined from time to time by resolution adopted by a majority of the board of directors of Nexstar and that the directors shall be divided into three classes, with directors serving staggered three‐year terms. The classification of Nexstar’s board of directors has the effect of making it more difficult for stockholders to change the composition of Nexstar’s board of directors. At least two annual meetings of stockholders, instead of one, will generally be required to effect a change in a majority of Nexstar’s board of directors. This may have the effect of discouraging a third-party from initiating a proxy contest, making a tender offer or otherwise attempting to obtain control of Nexstar. In addition, because the classification of Nexstar’s board of directors may discourage accumulations of large blocks of Class A common stock by purchasers whose objective is to take control of Nexstar and remove a majority of Nexstar’s board of directors, the classification of Nexstar’s board of directors could tend to reduce the likelihood of fluctuations in the market price of Class A common stock that might result from accumulations of large blocks of Class A common stock for such a purpose. Accordingly, Nexstar stockholders could be deprived of certain opportunities to sell their Class A common stock at a higher market price than might otherwise be the case.

Delaware Business Combination Statute. Nexstar is subject to Section 203 of the DGCL, an anti-takeover law. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date the person became an interested stockholder, unless (with some exceptions) the “business combination” or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, 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 voting stock. As permitted by Section 203, Nexstar has elected not to be governed by Section 203 with respect to ABRY and any entity controlled by ABRY, and therefore, unless Nexstar’s Certificate of Incorporation is amended, neither ABRY nor any such entity shall be deemed to be an “interested stockholder.” The existence of this provision could have an anti-takeover effect with respect to transactions not approved in advance by the board of directors, including discouraging attempts that might result in a premium over the market price for Class A common stock.

Other Matters 

Limitation on Director’s Liability. The Certificate of Incorporation provides that, to the fullest extent permitted by Delaware law, Nexstar will indemnify and advance expenses of any director or officer who is made or threatened to be made a party to any proceeding by reason of the fact that he or she is or was a director or officer of Nexstar. In addition, no director or officer of the combined company will be liable to the combined company or its stockholders for monetary damages with respect to any transaction, occurrence or course of conduct.

Transfer Agent. The transfer agent for Nexstar is the American Stock Transfer & Trust Co., Corporate Trust Department, 6201 Fifteenth Ave., Brooklyn, New York 11219.

 

 

 

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