Document:

Exhibit
10.2

 

H.C.WAINWRIGHT&CO.

 

February
26, 2020

 

Cocrystal
Pharma, Inc.

19805 N. Creek Parkway

Bothell, WA 98011

 

Attn:
Gary Wilcox, Chief Executive Officer

 

Dear
Mr. Wilcox:

 

This
letter agreement (this “Agreement”) constitutes the agreement between Cocrystal Pharma, Inc. (the “Company”)
and H.C. Wainwright & Co., LLC (“Wainwright”), that Wainwright shall serve as the exclusive agent,
advisor or underwriter in any offering (each, an “Offering”) of securities of the Company (the “Securities”)
during the Term (as hereinafter defined) of this Agreement. The terms of each Offering and the Securities issued in connection
therewith shall be mutually agreed upon by the Company and Wainwright and nothing herein implies that Wainwright would have the
power or authority to bind the Company and nothing herein implies that the Company shall have an obligation to issue any Securities.
It is understood that Wainwright’s assistance in an Offering will be subject to the satisfactory completion of such investigation
and inquiry into the affairs of the Company as Wainwright deems appropriate under the circumstances and to the receipt of all
internal approvals of Wainwright in connection with the transaction. The Company expressly acknowledges and agrees that Wainwright’s
involvement in an Offering is strictly on a reasonable best efforts basis and that the consummation of an Offering will be subject
to, among other things, market conditions. The execution of this Agreement does not constitute a commitment by Wainwright to purchase
the Securities and does not ensure a successful Offering of the Securities or the success of Wainwright with respect to securing
any other financing on behalf of the Company. Wainwright may retain other brokers, dealers, agents or underwriters on its behalf
in connection with an Offering.

 

A.
Compensation; Reimbursement. At the closing of each Offering (each, a “Closing”), the Company shall compensate
Wainwright as follows:

 

	 	1.	Cash
    Fee. The Company shall pay to Wainwright a cash fee, or as to an underwritten Offering an underwriter discount, equal
    to 6.5% of the aggregate gross proceeds raised in each Offering.
	 	 	 
	 	2.	Expense
    Allowance. Out of the proceeds of each Closing, the Company also agrees to pay Wainwright (a) a management fee equal to
    1.0% of the gross proceeds raised in each Offering; (b) $25,000 for non-accountable expenses (to be increased to $50,000 in
    case of a public Offering); (c) up to $50,000 for fees and expenses of legal counsel and other out-of-pocket expenses (to
    be increased to $90,000 in case of a public Offering); plus the additional amount payable by the Company pursuant to Paragraph
    D.3 hereunder and, if applicable, the costs associated with the use of a third-party electronic road show service (such as
    NetRoadshow); provided, however, that such amount in no way limits or impairs the indemnification and contribution provisions
    of this Agreement.

 

430
Park Avenue | New York, New York 10022 1212.356.0500 | www.hcwco.com

Member:
FINRA/SIPC

 

    	 

    	 

    

 

	 	3.	Tail.
    Wainwright shall be entitled to compensation under clause (1) hereunder, calculated in the manner set forth therein, with
    respect to any public or private offering or other financing or capital-raising transaction of any kind, (“Tail Financing”)
    to the extent that such financing or capital is provided to the Company by investors whom Wainwright first introduced
    to the Company during the Term or investors who participated in an Offering, if such Tail Financing is consummated at any
    time within the six-month period following the expiration or termination of this Agreement.
	 	 	 
	 	4.	Right
    of First Refusal. The period of time during which Wainwright shall have the right of first refusal pursuant to this Agreement
    (the “ROFR Term”) shall be determined based on the amount of gross proceeds raised in each Offering, as
    follows: 30 days for each $1.0 million raised, provided however, that in no event shall the ROFR Term exceed 12 months
    from the consummation of an Offering. If, from the date hereof until the end of the ROFR Term, the Company or any of its subsidiaries
    (a) decides to dispose of or acquire business units or acquire any of its outstanding securities or any recapitalization,
    reorganization, restructuring or other similar transaction, including, without limitation, an extraordinary dividend or distributions
    or a spin-off or split-off, and the Company decides to retain a financial advisor for such transaction, Wainwright (or any
    affiliate designated by Wainwright) shall have the right to act as the Company’s exclusive financial advisor for any
    such transaction; or (b) decides to finance or refinance any indebtedness using a manager or agent, Wainwright (or any affiliate
    designated by Wainwright) shall have the right to act as sole book-runner, sole manager, sole placement agent or sole agent
    with respect to such financing or refinancing; or (c) decides to raise funds by means of a public offering (including at-the-market
    facility) or a private placement or any other capital-raising financing of equity, equity-linked or debt securities using
    an underwriter or placement agent, Wainwright (or any affiliate designated by Wainwright) shall have the right to act as sole
    book-running manager, sole underwriter or sole placement agent for such financing. If Wainwright or one of its affiliates
    decides to accept any such engagement, the agreement governing such engagement will contain, among other things, provisions
    for customary fees for transactions of similar size and nature and the provisions of this Agreement, including indemnification,
    which are appropriate to such a transaction. Provided, however, that Wainwright shall not entitled to the right of
    first refusal hereunder relating to the private placement of securities to the Company’s officers, directors and 10%
    or more shareholders.

 

    	 	2	 

     

    

 

B.
Term and Termination of Engagement; Exclusivity. The term of Wainwright’s exclusive engagement will begin on
the date hereof and end three (3) months thereafter (the “Term”). Notwithstanding anything to the contrary contained
herein, the Company agrees that the provisions relating to the payment of fees, reimbursement of expenses, right of first refusal,
tail, indemnification and contribution, confidentiality, conflicts, independent contractor and waiver of the right to trial by
jury will survive any termination or expiration of this Agreement. Notwithstanding anything to the contrary contained herein,
the Company has the right to terminate the Agreement for cause in compliance with FINRA Rule 5110(f)(2)(D)(ii). The exercise of
such right of termination for cause eliminates the Company’s obligations with respect to the provisions relating to the
tail fees and right of first refusal. Notwithstanding anything to the contrary contained in this Agreement, in the event that
an Offering pursuant to this Agreement shall not be carried out for any reason whatsoever during the Term, the Company shall be
obligated to pay to Wainwright its actual and accountable out-of-pocket expenses related to an Offering (including the fees and
disbursements of Wainwright’s legal counsel) and, if applicable, for electronic road show service used in connection with
an Offering. Furthermore, the Company agrees that during Wainwright’s engagement hereunder, all inquiries, whether direct
or indirect, from prospective investors will be referred to Wainwright and will be deemed to have been contacted by Wainwright
in connection with an Offering. Additionally, except as set forth hereunder, the Company represents, warrants and covenants that
no brokerage or finder’s fees or commissions are or will be payable by the Company or any subsidiary of the Company to any
broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other third-party with respect to
any Offering.

 

C.
Information; Reliance. The Company shall furnish, or cause to be furnished, to Wainwright all information requested by Wainwright
for the purpose of rendering services hereunder and conducting due diligence (all such information being the “Information”).
In addition, the Company agrees to make available to Wainwright upon request from time to time the officers, directors, accountants,
counsel and other advisors of the Company. The Company recognizes and confirms that Wainwright (a) will use and rely on the Information,
including any documents provided to investors in each Offering (the “Offering Documents”) which shall include
any Purchase Agreement (as defined hereunder), and on information available from generally recognized public sources in performing
the services contemplated by this Agreement without having independently verified the same; (b) does not assume responsibility
for the accuracy or completeness of the Offering Documents or the Information and such other information; and (c) will not make
an appraisal of any of the assets or liabilities of the Company. Upon reasonable request, the Company will meet with Wainwright
or its representatives to discuss all information relevant for disclosure in the Offering Documents and will cooperate in any
investigation undertaken by Wainwright thereof, including any document included or incorporated by reference therein. At each
Offering, at the request of Wainwright, the Company shall deliver such legal letters (including, without limitation, negative
assurance letters), opinions, comfort letters, officers’ and secretary certificates and good standing certificates, all
in form and substance satisfactory to Wainwright and its counsel as is customary for such Offering. Wainwright shall be a third
party beneficiary of any representations, warranties, covenants, closing conditions and closing deliverables made by the Company
in any Offering Documents, including representations, warranties, covenants, closing conditions and closing deliverables made
to any investor in an Offering.

 

    	 	3	 

     

    

 

D.
Related Agreements. At each Offering, the Company shall enter into the following additional agreements:

 

	 	1.	Underwritten
    Offering. If an Offering is an underwritten Offering, the Company and Wainwright shall enter into a customary underwriting
    agreement in form and substance satisfactory to Wainwright and its counsel.
	 	 	 
	 	2.	Best
    Efforts Offering. If an Offering is on a best efforts basis, the sale of Securities to the investors in the Offering will
    be evidenced by a purchase agreement (“Purchase Agreement”) between the Company and such investors in a
    form reasonably satisfactory to the Company and Wainwright. Wainwright shall be a third party beneficiary with respect to
    the representations, warranties and covenants, closing conditions and closing deliverables included in the Purchase Agreement.
    Prior to the signing of any Purchase Agreement, officers of the Company with responsibility for financial affairs will be
    available to answer inquiries from prospective investors.
	 	 	 
	 	3.	Escrow,
    Settlement and Closing. If each Offering is not settled via delivery versus payment (“DVP”), the Company and
    Wainwright shall enter into an escrow agreement with a third party escrow agent pursuant to which Wainwright’s compensation
    and expenses shall be paid from the gross proceeds of the Securities sold. If the Offering is settled in whole or in part
    via DVP, Wainwright shall arrange for its clearing agent to provide the funds to facilitate such settlement. The Company shall
    pay Wainwright closing costs, which shall also include the reimbursement of the out-of-pocket cost of the escrow agent or
    clearing agent, as applicable, which closing costs shall not exceed $12,900.
	 	 	 
	 	4.	FINRA
    Amendments. Notwithstanding anything herein to the contrary, in the event that Wainwright determines that any of the terms
    provided for hereunder shall not comply with a FINRA rule, including but not limited to FINRA Rule 5110, then the Company
    shall agree to amend this Agreement (or include such revisions in the final underwriting agreement) in writing upon the request
    of Wainwright to comply with any such rules; provided that any such amendments shall not provide for terms that are less favorable
    to the Company than are reflected in this Agreement.

 

E.
Confidentiality. In the event of the consummation or public announcement of any Offering, Wainwright shall have the right
to disclose its participation in such Offering, including, without limitation, the Offering at its cost of “tombstone”
advertisements in financial and other newspapers and journals.

 

    	 	4	 

     

    

 

F.
Indemnity.

 

	 	1.	In
    connection with the Company’s engagement of Wainwright hereunder, the Company hereby agrees to indemnify and hold harmless
    Wainwright and its affiliates, and the respective controlling persons, directors, officers, members, shareholders, agents
    and employees of any of the foregoing (collectively the “Indemnified Persons”), from and against any and
    all claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any
    of them (including the reasonable fees and expenses of counsel), as incurred, whether or not the Company is a party thereto
    (collectively a “Claim”), that are (A) related to or arise out of (i) any actions taken or omitted to be
    taken (including any untrue statements made or any statements omitted to be made) by the Company, or (ii) any actions taken
    or omitted to be taken by any Indemnified Person in connection with the Company’s engagement of Wainwright, or (B) otherwise
    relate to or arise out of Wainwright’s activities on the Company’s behalf under Wainwright’s engagement,
    and the Company shall reimburse any Indemnified Person for all expenses (including the reasonable fees and expenses of counsel)
    as incurred by such Indemnified Person in connection with investigating, preparing or defending any such claim, action, suit
    or proceeding, whether or not in connection with pending or threatened litigation in which any Indemnified Person is a party.
    The Company will not, however, be responsible for any Claim that is finally judicially determined to have resulted from the
    gross negligence or willful misconduct of any such Indemnified Person for such Claim. The Company further agrees that no Indemnified
    Person shall have any liability to the Company for or in connection with the Company’s engagement of Wainwright except
    for any Claim incurred by the Company as a result of such Indemnified Person’s gross negligence or willful misconduct.
	 	 	 
	 	2.	 The
    Company further agrees that it will not, without the prior written consent of Wainwright, which shall not be unreasonably
    withheld, settle, compromise or consent to the entry of any judgment in any pending or threatened Claim in respect of which
    indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to such Claim),
    unless such settlement, compromise or consent includes an unconditional, irrevocable release of each Indemnified Person from
    any and all liability arising out of such Claim.
	 	 	 
	 	3.	Promptly
    upon receipt by an Indemnified Person of notice of any complaint or the assertion or institution of any Claim with respect
    to which indemnification is being sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint
    or of such assertion or institution but failure to so notify the Company shall not relieve the Company from any obligation
    it may have hereunder, except and only to the extent such failure materially prejudiced the Company. If the Company is requested
    by such Indemnified Person, the Company will assume the defense of such Claim, including the employment of counsel for such
    Indemnified Person and the payment of the fees and expenses of such counsel, provided, however, that such counsel shall be
    satisfactory to the Indemnified Person and provided further that if the legal counsel to such Indemnified Person reasonably
    determines that having common counsel would present such counsel with a conflict of interest or if the defendant in, or target
    of, any such Claim, includes an Indemnified Person and the Company, and legal counsel to such Indemnified Person reasonably
    concludes that there may be legal defenses available to it or other Indemnified Persons different from or in addition to those
    available to the Company, such Indemnified Person may employ its own separate counsel (including local counsel, if necessary)
    to represent or defend him, her or it in any such Claim and the Company shall pay the reasonable fees and expenses of such
    counsel. Notwithstanding anything herein to the contrary, if the Company fails timely or diligently to defend, contest, or
    otherwise protect against any Claim, the relevant Indemnified Person shall have the right, but not the obligation, to defend,
    contest, compromise, settle, assert crossclaims, or counterclaims or otherwise protect against the same, and shall be fully
    indemnified by the Company therefor, including without limitation, for the reasonable fees and expenses of its counsel and
    all amounts paid as a result of such Claim or the compromise or settlement thereof. In addition, with respect to any Claim
    in which the Company assumes the defense, the Indemnified Person shall have the right to participate in such Claim and to
    retain his, her or its own counsel therefor at his, her or its own expense.

 

    	 	5	 

     

    

 

	 	4.	The
    Company agrees that if any indemnity sought by an Indemnified Person hereunder is held by a court to be unavailable for any
    reason then (whether or not Wainwright is the Indemnified Person), the Company and Wainwright shall contribute to the Claim
    for which such indemnity is held unavailable in such proportion as is appropriate to reflect the relative benefits to the
    Company, on the one hand, and Wainwright on the other, in connection with Wainwright’s engagement referred to above,
    subject to the limitation that in no event shall the amount of Wainwright’s contribution to such Claim exceed the amount
    of fees actually received by Wainwright from the Company pursuant to Wainwright’s engagement. The Company hereby agrees
    that the relative benefits to the Company, on the one hand, and Wainwright on the other, with respect to Wainwright’s
    engagement shall be deemed to be in the same proportion as (a) the total value paid or proposed to be paid or received by
    the Company pursuant to the applicable Offering (whether or not consummated) for which Wainwright is engaged to render services
    bears to (b) the fee paid or proposed to be paid to Wainwright in connection with such engagement.
	 	 	 
	 	5.	The
    Company’s indemnity, reimbursement and contribution obligations under this Agreement (a) shall be in addition to, and
    shall in no way limit or otherwise adversely affect any rights that any Indemnified Person may have at law or at equity and
    (b) shall be effective whether or not the Company is at fault in any way.

 

G.
Limitation of Engagement to the Company. The Company acknowledges that Wainwright has been retained only by the Company,
that Wainwright is providing services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and
that the Company’s engagement of Wainwright is not deemed to be on behalf of, and is not intended to confer rights upon,
any shareholder, owner or partner of the Company or any other person not a party hereto as against Wainwright or any of its affiliates,
or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities
Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), employees or agents.
Unless otherwise expressly agreed in writing by Wainwright, no one other than the Company is authorized to rely upon this Agreement
or any other statements or conduct of Wainwright, and no one other than the Company is intended to be a beneficiary of this Agreement.
The Company acknowledges that any recommendation or advice, written or oral, given by Wainwright to the Company in connection
with Wainwright’s engagement is intended solely for the benefit and use of the Company’s management and directors
in considering a possible Offering, and any such recommendation or advice is not on behalf of, and shall not confer any rights
or remedies upon, any other person or be used or relied upon for any other purpose. Wainwright shall not have the authority to
make any commitment binding on the Company. The Company, in its sole discretion, shall have the right to reject any investor introduced
to it by Wainwright.

 

    	 	6	 

     

    

 

H.
Limitation of Wainwright’s Liability to the Company. Wainwright and the Company further agree that neither Wainwright
nor any of its affiliates or any of its or their respective officers, directors, controlling persons (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act), employees or agents shall have any liability to the Company, its
security holders or creditors, or any person asserting claims on behalf of or in the right of the Company (whether direct or indirect,
in contract, tort, for an act of negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable
relief arising out of or relating to this Agreement or the services rendered hereunder, except for losses, fees, damages, liabilities,
costs or expenses that arise out of or are based on any action of or failure to act by Wainwright and that are finally judicially
determined to have resulted solely from the gross negligence or willful misconduct of Wainwright.

 

I.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable
to agreements made and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination
of this Agreement, will be heard only in the state or federal courts located in the City of New York, State of New York. The parties
hereto expressly agree to submit themselves to the jurisdiction of the foregoing courts in the City of New York, State of New
York. The parties hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court
sitting in the City and State of New York. In the event Wainwright or any Indemnified Person is successful in any action, or suit
against the Company, arising out of or relating to this Agreement, the final judgment or award entered shall be entitled to have
and recover from the Company the costs and expenses incurred in connection therewith, including its reasonable attorneys’
fees. Any rights to trial by jury with respect to any such action, proceeding or suit are hereby waived by Wainwright and the
Company.

 

J.
Notices. All notices hereunder will be in writing and sent by certified mail, hand delivery, overnight delivery, fax or e-mail,
if sent to Wainwright, at the address set forth on the first page hereof, e-mail:                      , Attention: Head of Investment Banking, and
if sent to the Company, to the address set forth on the first page hereof, e-mail:                     , Attention: Chief Financial Officer. Notices
sent by certified mail shall be deemed received five days thereafter, notices sent by hand delivery or overnight delivery shall
be deemed received on the date of the relevant written record of receipt, notices delivered by fax shall be deemed received as
of the date and time printed thereon by the fax machine and notices sent by e-mail shall be deemed received as of the date and
time they were sent.

 

K.
Conflicts. The Company acknowledges that Wainwright and its affiliates may have and may continue to have investment banking
and other relationships with parties other than the Company pursuant to which Wainwright may acquire information of interest to
the Company. Wainwright shall have no obligation to disclose such information to the Company or to use such information in connection
with any contemplated transaction.

 

    	 	7	 

     

    

 

L.
Anti-Money Laundering. To help the United States government fight the funding of terrorism and money laundering, the federal
laws of the United States require all financial institutions to obtain, verify and record information that identifies each person
with whom they do business. This means Wainwright must ask the Company for certain identifying information, including a government-issued
identification number (e.g., a U.S. taxpayer identification number) and such other information or documents that Wainwright considers
appropriate to verify the Company’s identity, such as certified articles of incorporation, a government-issued business
license, a partnership agreement or a trust instrument.

 

M.
Miscellaneous. The Company represents and warrants that it has all requisite power and authority to enter into and carry out
the terms and provisions of this Agreement and the execution, delivery and performance of this Agreement does not breach or conflict
with any agreement, document or instrument to which it is a party or bound. This Agreement shall not be modified or amended except
in writing signed by Wainwright and the Company. This Agreement shall be binding upon and inure to the benefit of both Wainwright
and the Company and their respective assigns, successors, and legal representatives. This Agreement constitutes the entire agreement
of Wainwright and the Company with respect to the subject matter hereof and supersedes any prior agreements with respect to the
subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination
will not affect such provision in any other respect, and the remainder of the Agreement shall remain in full force and effect.
This Agreement may be executed in counterparts (including facsimile or electronic counterparts), each of which shall be deemed
an original but all of which together shall constitute one and the same instrument.

 

*********************

 

    	 	8	 

     

    

 

In
acknowledgment that the foregoing correctly sets forth the understanding reached by Wainwright and the Company, please sign in
the space provided below, whereupon this letter shall constitute a binding Agreement as of the date indicated above.

 

	 	Very truly yours,
	 	 	 
	 	H.C. WAINWRIGHT & CO., LLC
	 	 	 
	 	By:	/s/
    Edward D. Silvera
	 	Name:	Edward
    D. Silvera
	 	Title:	Chief
    Operating Agreement
	 	Date:	2/26/2020

 

Accepted
and Agreed:

 

Cocrystal
Pharma, Inc.

 

	By:	/s/
    Gary Wilcox	 
	Name:	Gary
    Wilcox	 
	Title:	Chief
    Executive Officer	 

 

    	 	9slno-ex429_382.htm

 

Exhibit 4.29

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE ACT OF 1934

Soleno Therapeutics, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock, par value $0.001 per share.

As used in this summary, the terms “Soleno,” “the Company,” “we,” “our” and “us” refer to Soleno Therapeutics, Inc.

The following is a description of the material terms and provisions relating to our common stock.  The following description is a summary that is not complete and is subject to and qualified in its entirety by reference to our amended and restated certificate of incorporation and our amended and restated bylaws, and to provisions of the Delaware General Corporation Law.  Copies of our amended and restated certificate of incorporation and our amended and restated bylaws, each of which may be amended from time to time, are included as exhibits to the Annual Report on Form 10-K to which this description is an Exhibit.

General

Our authorized capital stock consists of 110,000,000 shares, all with a par value of $0.001 per share, 100,000,000 of which are designated as Common Stock and 10,000,000 of which are designated Convertible Preferred Stock.

Common Stock

Holders of Common Stock are entitled to one vote per share on matters on which our stockholders vote. There are no cumulative voting rights. Subject to any preferential dividend rights of any outstanding shares of preferred stock, holders of Common Stock are entitled to receive dividends, if declared by our board of directors, out of funds that we may legally use to pay dividends. If we liquidate or dissolve, holders of Common Stock are entitled to share ratably in our assets once our debts and any liquidation preference owed to any then-outstanding preferred stockholders are paid. Our certificate of incorporation does not provide the Common Stock with any redemption, conversion or preemptive rights.

Anti-takeover provisions

Amended and Restated Certificate of Incorporation and Bylaws

Our amended and restated certificate of incorporation provides for our board of directors to be divided into three classes with staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms. Because our stockholders do not have cumulative voting rights, our stockholders holding a majority of the voting power of our shares of Common Stock outstanding will be able to elect all of our directors. The directors may be removed by the stockholders only for cause upon the vote of holders of a majority of the shares then entitled to vote at an election of directors. Furthermore, the authorized number of directors may be changed only by resolution of our board of directors, and vacancies and newly created directorships on our board of directors may, except as otherwise required by law or determined by our board, only be filled by a majority vote of the directors then serving on our board of directors, even though less than a quorum. Our amended and restated certificate of incorporation and amended and restated bylaws provide that all stockholder actions must be effected at a duly called meeting of stockholders and not by a consent in writing. A special meeting of stockholders may be called only by a majority of our whole board of directors, the chair of our board of directors, our chief executive officer or our president. Our amended and restated bylaws also provide that 

 

 

stockholders seeking to present proposals before a meeting of stockholders to nominate candidates for election as directors at a meeting of stockholders must provide timely advance notice in writing, and specify requirements as to the form and content of a stockholder’s notice.

Our amended and restated certificate of incorporation further provides that the affirmative vote of holders of at least 66 2/3% of the voting power of all of the then outstanding shares of voting stock, voting as a single class, will be required to amend certain provisions of our certificate of incorporation, including provisions relating to the structure of our board of directors, the size of our board of directors, removal of directors, special meetings of stockholders, actions by written consent and cumulative voting. The affirmative vote of holders of at least 66 2/3% of the voting power of all of the then outstanding shares of voting stock, voting as a single class, will be required to amend or repeal our bylaws, although our bylaws may be amended by a simple majority vote of our board of directors; provided that any bylaw amendment adopted by our stockholders that specifies the votes necessary for the election of directors will not be further amended or repealed by our board of directors.

The foregoing provisions make it more difficult for our existing stockholders to replace our board of directors as well as for another party to obtain control of our company by replacing our board of directors. Since our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change the control of our company.

These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage certain types of transactions that may involve an actual or threatened acquisition of our company. These provisions are also designed to reduce our vulnerability to an unsolicited acquisition proposal and to discourage certain tactics that may be used in proxy rights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of deterring hostile takeovers or delaying changes in control of our company or our management. As a consequence, these provisions also may inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts.

Section 203 of the Delaware General Corporation Law

We are subject to Section 203 of the Delaware General Corporation Law, or Section 203, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:

 

	
 
	
•
	
 
	
before such date, our board of directors approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

 

	
 
	
•
	
 
	
upon closing 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 began, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned by: (i) persons who are directors and also officers; and (ii) 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

 

	
 
	
•
	
 
	
on or after such date, the business combination is approved by our board of directors and authorized at an annual or special meeting of the 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.

In general, Section 203 defines business combination to include the following:

 

	
 
	
•
	
 
	
any merger or consolidation involving the corporation and the interested stockholder;

 

-2-

 

	
 

 
	
•
	
 
	
any sale, transfer, pledge or other disposition of ten percent (10%) or more of the assets of the corporation involving the interested stockholder;

 

	
 
	
•
	
 
	
subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

 

	
 
	
•
	
 
	
any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or

 

	
 
	
•
	
 
	
the receipt by the interested stockholder of the benefit of any loss, advances, guarantees, pledges or other financial benefits by or through the corporation.

In general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.

Limitation on Liability and Indemnification Matters

Our amended and restated certificate of incorporation and amended and restated bylaws provide that we will indemnify our directors and officers, and may indemnify our employees and other agents, to the fullest extent permitted by the Delaware General Corporation Law, which prohibits our amended and restated certificate of incorporation from limiting the liability of our directors for the following:

 

	
 
	
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any breach of the director’s duty of loyalty to the corporation or its stockholders;

 

	
 
	
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any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;

 

	
 
	
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unlawful payments of dividends or unlawful stock repurchases or redemptions; or

 

	
 
	
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any transaction from which the director derived an improper personal benefit.

If Delaware law is amended to authorize corporate action further eliminating or limiting the personal liability of a director, then the liability of our directors will be eliminated or limited to the fullest extent permitted by Delaware law, as so amended. Our amended and restated certificate of incorporation does not eliminate a director’s duty of care and in appropriate circumstances, equitable remedies, such as injunctive or other forms of non-monetary relief, remain available under Delaware law. This provision also does not affect a director’s responsibilities under any other laws, such as the federal securities laws or other state or federal laws. Under our amended and restated bylaws, we will also be empowered to purchase insurance on behalf of any person whom we are required or permitted to indemnify.

In addition to the indemnification required in our amended and restated certificate of incorporation and amended and restated bylaws, we have entered into indemnification agreements with each of our current directors and officers. These agreements provide indemnification for certain expenses and liabilities incurred in connection with any action, suit, proceeding, or alternative dispute resolution mechanism, or hearing, inquiry, or investigation that may lead to the foregoing, to which they are a party, or are threatened to be made a party, by reason of the fact that they are or were a director, officer, employee, agent, or fiduciary of our company, or any of our subsidiaries, by reason of any action or inaction by them while serving as an officer, director, agent, or fiduciary, or by reason of the fact that they were serving at our request as a director, officer, employee, agent, or fiduciary of another entity. In the case of an action or proceeding by, or in the right of, our company or any of our subsidiaries, no indemnification will be provided for any claim where a court determines that the indemnified party is prohibited from receiving indemnification. We believe that these bylaw provisions and indemnification agreements are necessary to attract and retain qualified persons as directors and officers. We also maintain directors’ and officers’ liability insurance.

The limitation of liability and indemnification provisions in our amended and restated certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. They may also reduce the likelihood of derivative litigation against directors and officers, even though an action, if successful, might benefit us and our stockholders. A stockholder’s investment may be harmed to the 

	

	
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extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. Insofar as we may provide indemnification for liabilities arising under the Securities Act to our directors, officers, and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the Securities Exchange and Commission, such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. There is no pending litigation or proceeding naming any of our directors or officers as to which indemnification is being sought, nor are we aware of any pending or threatened litigation that may result in claims for indemnification by any director or officer.

 

Transfer agent and registrar

The transfer agent and registrar for our Common Stock is American Stock Transfer & Trust Company, LLC.

 

	

	
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