Document:

rain-ex43_74.htm

 

 Exhibit 4.3

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

General

The following is a summary of the material terms of our capital stock, as well as other material terms of our amended and restated certificate of incorporation and amended and restated bylaws and certain provisions of Delaware law. This summary does not purport to be complete and is qualified in its entirety by the provisions of our certificate of incorporation and bylaws, copies of which are filed as exhibits to our Annual Report on Form 10-K, to which this exhibit is also appended.

Our authorized capital stock consists of 200,000,000 shares of common stock, $0.001 par value per share, 50,000,000 shares of non-voting common stock, $0.001 par value per share, and 10,000,000 shares of “blank check” preferred stock, $0.001 par value per share.

Common Stock and Non-Voting Common Stock

Our amended and restated certificate of incorporation authorizes the issuance of up to 200,000,000 shares of our common stock and 50,000,000 shares of our non-voting common stock. All outstanding shares of our common stock and non-voting common stock are validly issued, fully paid and nonassessable.

Holders of our common stock and our non-voting common stock have identical rights, provided that, (i) except as otherwise expressly provided in our amended and restated certificate of incorporation or as required by applicable law, on any matter that is submitted to a vote by our stockholders, holders of our common stock are entitled to one vote per share of common stock, and holders of our non-voting common stock are not entitled to any votes per share of non-voting common stock, including for the election of directors, and (ii) holders of our common stock have no conversion rights, while holders of our non-voting common stock shall have the right to convert each share of our non-voting common stock into one share of common stock at such holder’s election, provided that as a result of such conversion, such holder, together with its affiliates and any members of a Schedule 13(d) group with such holder, would not beneficially own in excess of 9.99% of our common stock immediately prior to and following such conversion (the “Beneficial Ownership Limitation”), unless otherwise as expressly provided for in our amended and restated certificate of incorporation. However, the Beneficial Ownership Limitation may be increased or decreased to any other percentage (not to exceed 19.99%) designated by such holder of non-voting common stock upon 61 days’ notice to us.

        Voting Rights

 Our common stock is entitled to one vote per share on any matter that is submitted to a vote of our stockholders, and our non-voting common stock is not entitled to any votes per share. Except as otherwise expressly provided in our amended and restated certificate of incorporation or required by applicable law, all shares of common stock and non-voting common stock will have the same rights and privileges and rank equally, share ratably, and be identical in all respects for all matters, including those described below.

         Dividends   

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock and non-voting common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. 

         Liquidation Rights    

On our liquidation, dissolution, or winding-up, the holders of common stock and non-voting common stock will be entitled to share equally, identically, and ratably in all assets remaining after the payment of any liabilities, liquidation preferences and accrued or declared but unpaid dividends, if any, with respect to any outstanding 

 

 

preferred stock, unless a different treatment is approved by the affirmative vote of the holders of a majority of the outstanding shares of such affected class, voting separately as a class.

Preferred Stock

Under the terms of our amended and restated certificate of incorporation, our board of directors (the “Board”) has the authority, without further action by our stockholders, to issue up to 10,000,000 shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each such series, to fix the dividend, voting and other rights, preferences and privileges of the shares of each wholly unissued series and any qualifications, limitations or restrictions thereon, and to increase or decrease the number of shares of any such series, but not below the number of shares of such series then outstanding.

Our Board may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock and non-voting common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in our control and may adversely affect the market price of our common stock and non-voting common stock and the voting and other rights of the holders of our common stock and non-voting common stock. We have no current plans to issue any shares of preferred stock.

Registration Rights

We are party to the amended and restated investors’ rights agreement, effective as of September 2, 2020 (the “IRA”) which provides that certain of our stockholders have certain registration rights described below. The registration of shares of our common stock pursuant to the exercise of registration rights described below would enable holders to sell these shares without restriction under the Securities Act of 1933, as amended (the “Securities Act”) when the registration statement is declared effective. We will pay all expenses related to any demand, piggyback, or Form S-3 registration described below, with the exception of underwriting discounts and commissions.

The registration rights described below will expire upon the earliest to occur of: (i) April 27, 2024; (ii) the closing of a deemed liquidation event (as defined in our amended and restated certificate of incorporation) or (iii) with respect to any particular holder, at such time that such holder can sell its shares, under Rule 144 or another similar exemption under the Securities Act, during any three-month period without registration.

 

Demand Registration Rights

 

The holders of registrable securities are entitled to certain demand registration rights. At any time after October 19, 2021, holders who are major investors and hold a majority of the registrable securities then outstanding may request that we register at least 40% of the registrable securities then outstanding.

Piggyback Registration Rights

Subject to certain specified exceptions, if we propose to register any of our securities under the Securities Act either for our own account or for the account of other stockholders, the holders of shares having registration rights are entitled to written notice and certain “piggyback” registration rights allowing them to include their shares in our registration statement. These registration rights are subject to specified conditions and limitations, including the right of the underwriters, in their sole discretion, to limit the number of shares included in any such offering under certain circumstances, but not below 30% of the total amount of securities included in such offering.

Form S-3 Registration Rights

At any time after we are qualified to file a registration statement on Form S-3, and subject to limitations and conditions, holders who are major investors and hold at least 30% of the registrable securities then outstanding may make a written request that we prepare and file a registration statement on Form S-3 under the Securities Act covering their shares, so long as the aggregate price to the public, net of the underwriters’ discounts and commissions, is at least $5,000,000. We will prepare and file the Form S-3 registration statement as requested, unless, in the good faith judgment of our Board, such registration would be materially detrimental to the company and its stockholders and filing should be deferred. We may defer only once in any 12-month period, and such deferral shall not exceed 90 days after receipt of the request. In addition, we are not obligated to prepare or file any of these registration statements (i) within 30 days before or 90 days after the effective date of a registration 

 

 

statement pursuant to demand or piggyback registration rights or (ii) if two of these registrations have been completed within any 12-month period.

Anti-Takeover Effects of Our Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws and Delaware Law

Our amended and restated certificate of incorporation and our amended and restated bylaws include a number of provisions that may have the effect of delaying, deferring or preventing another party from acquiring control of us and encouraging persons considering unsolicited tender offers or other unilateral takeover proposals to negotiate with our Board rather than pursue non-negotiated takeover attempts.

	
 
	
 
	
 
	
 
	
 
	
 

	
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Issuance of undesignated preferred stock: Under our amended and restated certificate of incorporation, our Board has the authority, without further action by the stockholders, to issue up to 10,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our Board. The existence of authorized but unissued shares of preferred stock enables our Board to make it more difficult to attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise.

	
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Classified board: Our amended and restated certificate of incorporation establishes a classified Board consisting of three classes of directors, with staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders to succeed the directors of the same class whose terms are then expiring, with the other classes continuing for the remainder of their respective three-year terms. This provision may have the effect of delaying a change in control of our Board.

	
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Election and removal of directors and board vacancies: Our amended and restated certificate of incorporation provides that directors will be elected by a plurality vote. Our amended and restated certificate of incorporation and amended and restated bylaws also provide that our Board has the right to increase or decrease the size of the Board and to fill vacancies on the Board. Directors may be removed only for cause by the affirmative vote of the holders of at least 66 2/3% of the votes that all our stockholders would be entitled to cast in an annual election of directors. Only our Board is authorized to fill vacant directorships. In addition, the number of directors constituting our Board may be set only by resolution adopted by a majority vote of the directors then in office. These provisions prevent stockholders from increasing the size of our Board and gaining control of our Board by filling the resulting vacancies with its own nominees.

	
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Requirements for advance notification of stockholder nominations and proposals: Our amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors that specify certain requirements as to the timing, form and content of a stockholder’s notice. Business that may be conducted at an annual meeting of stockholders will be limited to those matters properly brought before the meeting. These provisions may make it more difficult for our stockholders to bring matters before our annual meeting of stockholders or to nominate directors at annual meetings of stockholders.

	
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No written consent of stockholders: Our amended and restated certificate of incorporation provides that all stockholder actions be taken by a vote of the stockholders at an annual or special meeting, and that stockholders may not take any action by written consent in lieu of a meeting. This limit may lengthen the amount of time required to take stockholder actions and would prevent the amendment of our amended and restated bylaws or removal of directors by our stockholders without holding a meeting of stockholders.

	
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No stockholder ability to call special meetings: Our amended and restated certificate of incorporation and amended and restated bylaws provide that only our Board may be able to call special meetings of stockholders and only those matters set forth in the notice of the special meeting may be considered or acted upon at a special meeting of stockholders.

 

 

	
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Amendments to certificate of incorporation and bylaws: Any amendment to our amended and restated certificate of incorporation must be approved by a majority of our Board as well as, if required by law or our amended and restated certificate of incorporation, a majority of the outstanding shares entitled to vote on the amendment and a majority of the outstanding shares of each class entitled to vote thereon as a class, except that the amendment of provisions to Board classification, stockholder action, certificate amendments and liability of directors must be approved by not less than 66 2/3% of the outstanding shares entitled to vote on the amendment, voting together as a single class. Any amendment to our amended and restated bylaws must be approved by either a majority of our Board or not less than 66 2/3% of the outstanding shares entitled to vote on the amendment, voting together as a single class.

 

 

 

	
 
	
 
	
 
	
 
	
 
	
 

These provisions are designed to enhance the likelihood of continued stability in the composition of our Board and its policies, to discourage certain types of transactions that may involve an actual or threatened acquisition of our company and to reduce our vulnerability to an unsolicited acquisition proposal. We also designed these provisions to discourage certain tactics that may be used in proxy fights. However, these provisions could have the effect of discouraging others from making tender offers for our shares and, as a consequence, they may also reduce fluctuations in the market price of our shares that could result from actual or rumored takeover attempts.

Delaware General Corporation Law Section 203

As a Delaware corporation, we are also subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in a business combination specified in the statute with an interested stockholder (as defined in the statute) for a period of three years after the date of the transaction in which the person first becomes an interested stockholder, unless the business combination is approved in advance by a majority of the independent directors or by the holders of at least two-thirds of the outstanding disinterested shares. The application of Section 203 of the Delaware General Corporation Law could also have the effect of delaying or preventing a change of control of us.

Exclusive Forum Selection Clause

Our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the sole and exclusive forum to the fullest extent permitted by law for: (1) any derivative action or proceeding brought on our behalf; (2) any action asserting a breach of fiduciary duty owed by any director, officer or other employee to us or our stockholders; (3) any action asserting a claim against us or any director or officer or other employee arising pursuant to the Delaware General Corporation Law; (4) any action to interpret, apply, enforce or determine the validity of our amended and restated certificate of incorporation or bylaws; or (5) any other action asserting a claim that is governed by the internal affairs doctrine, shall be the Court of Chancery of the State of Delaware (or another state court or the federal court located within the State of Delaware if the Court of Chancery does not have or declines to accept jurisdiction), in all cases subject to the court’s having jurisdiction over indispensable parties named as defendants. Our amended and restated certificate of incorporation provides that the federal district courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act but the forum selection provisions will not apply to claims brought to enforce a duty or liability created by the Exchange Act. Although we believe these provisions benefit us by providing increased consistency in the application of Delaware law for the specified types of actions and proceedings, the provisions may have the effect of discouraging lawsuits against us or our directors or officers. It is possible that a court could find that such provisions are inapplicable for a particular claim or action or that such provisions are unenforceable. In addition, under the Securities Act, federal courts have concurrent jurisdiction over all suits brought to enforce any duty or liability created by the Securities Act, and investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder.

Transfer Agent and Registrar

American Stock Transfer & Trust Company, LLC serves as the transfer agent and registrar for our common stock.

 

 

Listing

Our common stock is listed on the Nasdaq Global Select Market under the symbol “RAIN.” Our non-voting common stock is not listed on any securities exchange.Document

EXECUTION VERSION

SUSPENSION OF RIGHTS AGREEMENT

To:        Citizens Bank, N.A., as Administrative Agent (the “Administrative Agent”)
From:    CRA International, Inc., CRA International (UK) Limited, CRA International Limited, and CRA International (Netherlands) B.V. (collectively, the “Borrowers”)
Date:        November 19, 2021
Ladies & Gentlemen:
Reference is made to the Amended and Restated Credit Agreement, dated as of October 24, 2017, among the undersigned, as the Borrowers, the Lenders (as defined in the Credit Agreement) and Citizens Bank, N.A., as Administrative Agent (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”).  
1.This proposed letter agreement (once counter-signed, the “Suspension of Rights Agreement”) is delivered by us to you in your capacity as Administrative Agent under the Credit Agreement.  Unless otherwise defined in this letter, terms defined in the Credit Agreement shall have the same meaning when used herein.  “LIBOR”, as used herein, refers to the London interbank offered rate.  The term “LIBOR setting”, as used herein, refers to an available tenor in a specified currency for LIBOR.  “USD”, as used herein, refers to United States Dollars.  

2.The term “Non-USD Currency” in this letter shall mean each of Euros, Sterling, Swiss Francs and, solely in relation to six month Interest Periods, Canadian Dollars. 

3.Each Borrower acknowledges that on December 31, 2021, panel submissions for certain Non-USD Currency LIBOR settings shall cease, following which representative LIBOR rates for such settings shall cease to be published or otherwise made available (the “December 31, 2021 LIBOR Cessation Event”). 

4.The Borrowers further acknowledge that on December 31, 2021, panel submissions for USD LIBOR settings for tenors of one week and two months shall cease (each, an “Affected USD LIBOR Setting”), following which representative LIBOR rates for such settings shall cease to be published or otherwise made available.

5.For good and valuable consideration, including avoiding or delaying the incurrence of costs required to update the terms of the Credit Agreement in connection with the December 31, 2021 LIBOR Cessation Event and the cessation of the Affected USD LIBOR Settings and other events relating to interest rate benchmarks that may affect extensions of credit under the Credit Agreement, as well as avoiding uncertainty that may otherwise be caused by the December 31, 2021 LIBOR Cessation Event, and in lieu of amending the Credit Agreement at this time or irrevocably waiving any right thereunder, but subject to paragraph 6 below, each Borrower agrees with effect from December 1, 2021 (the “Effective Date”) to suspend certain of its rights under the Credit Agreement as follows:

(a)each Borrower agrees that, notwithstanding anything to the contrary in the Loan Documents, (i) from and after the Effective Date, Loans may not be requested or extended under the Credit Agreement in any Non-USD Currency and no Lender shall be obligated to participate in any Loan under the Credit Agreement in any Non-USD Currency; and (ii) it shall repay or prepay any and all outstanding Loans denominated in any Non-USD Currency, if not scheduled to be repaid earlier, on or before December 31, 2021; 

(b)each Borrower agrees that, notwithstanding anything to the contrary in the Loan Documents, (i) from and after December 31, 2021 it shall no longer be permitted to select an Interest Period of one week or two months for any borrowing in USD; and (ii) from and after December 31, 2021, no Lender shall be obligated to participate in any borrowing under the Credit Agreement using an Affected USD LIBOR Setting; (together, this clause (b) with the preceding clause (a), the “Suspension of Rights”); and

(c)each Borrower agrees that, if a notice or instruction is given under the Credit Agreement after the Effective Date that selects a Non-USD Currency as the currency of a Loan, such notice or instruction shall be deemed to be amended to select USD as the currency of that Loan (and, if such notice or instruction is deemed to be for an Affected USD LIBOR Setting, such request or instruction shall be deemed to be for an Interest Period equal to one month), and, in each case, each Borrower further agrees that only such amended notice or instruction will have any effect under the Credit Agreement.

6.This letter is without prejudice to the rights and obligations of the Adminitsrative Agent and the Borrowers under Section 3.03 (Effect of Benchmark Transition Event) of the Credit Agreement, and any amendments effected pursuant to Section 3.03 on or after the date hereof shall supercede, nullify, and end any and all affected provisions of this Suspension of Rights Agreement, and otherwise restore the Borrowers’ rights as provided by the terms of any such amendment.

7.Each Borrower agrees to indemnify and hold harmless the Administrative Agent and each other Indemnitee for any damage, loss, cost, liability, claim or reasonable expense whatsoever incurred (A) in connection with a breach, or reasonably in anticipation of a potential breach, of the Borrowers’ agreements in paragraphs 5(a) and 5(b) hereof, or (B) giving effect to the instruction of a Borrower in paragraph 5(c) hereof, unless directly caused by the Administrative Agent’s or such Indemnitee’s gross negligence or wilful misconduct.

8.This Suspension of Rights Agreement is hereby designated as a Loan Document and will be posted to the Platform in accordance with the Credit Agreement. The Borrowers and Administrative Agent acknowledge and agree that each Lender under the Credit Agreement may rely on and shall be a third party beneficiary of this letter.

9.This Suspension of Rights Agreement may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same 
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instrument.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any  document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

10.This Suspension of Rights Agreement has been duly executed and delivered by the Borrowers and constitutes a legal, valid and binding obligation of the Borrowers, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

11.The provisions of the Credit Agreement relating to Governing Law; Jurisdiction; Consent to Service of Process and  Waiver of Jury Trial (regardless of how captioned or titled) shall apply with equal force and effect to this Suspension of Rights Agreement as if fully set forth herein.
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Very truly yours,
CRA International, Inc.

By: /s/ Paul A. Maleh
Name: Paul A. Maleh
Title:  CEO and President

CRA International (UK) Limited

By: /s/ Paul A. Maleh
Name: Paul A. Maleh
Title:  CEO and President

CRA International Limited

By: /s/ Paul A. Maleh
Name: Paul A. Maleh
Title:  CEO and President

CRA International (Netherlands) B.V.

By: /s/ Paul A. Maleh
Name: Paul A. Maleh
Title:  CEO and President

Agreed and accepted by:
Citizens Bank, N.A., as Administrative Agent

By:/s/ William S. Rowe
Name: William S. Rowe
Title: Managing Director

 CRA International Suspension of Rights Agreement

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