Document:

lamr-ex103_152.htm

Exhibit 10.3

 

SECOND AMENDMENT TO THE
PURCHASE AND SALE AGREEMENT

THIS SECOND AMENDMENT TO THE PURCHASE AND SALE AGREEMENT (this “Amendment”), dated as of  May 6, 2020, is entered into among each of the entities listed on the signature pages hereto as a New Originator (each, a “New Originator” and collectively, the “New Originators”) or as an Existing Originator (each, an “Existing Originator” and collectively, the “Existing Originators”), LAMAR MEDIA CORP., a Delaware corporation, as servicer (in such capacity, the “Servicer”) and LAMAR QRS RECEIVABLES, LLC (the “Buyer”).

Capitalized terms used but not otherwise defined herein (including such terms used above) have the respective meanings assigned thereto in the Purchase and Sale Agreement described below.

BACKGROUND

A.The parties hereto (other than the New Originators) have entered into a Purchase and Sale Agreement, dated as of December 18, 2018 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Purchase and Sale Agreement”).

B.Concurrently herewith, the Buyer and Lamar TRS Receivables, LLC, as borrowers, the Servicer and PNC Bank, National Association, as administrative agent and as a lender (the “Administrative Agent”) are entering into that certain Second Amendment to the Receivables Financing Agreement, dated as of the date hereof (the “RFA Amendment”).

C.The New Originators desire to become Originators under the Purchase and Sale Agreement pursuant to Section 4.3 of the Purchase and Sale Agreement.

D.The parties hereto desire to join the New Originators to the Purchase and Sale Agreement and to amend the Purchase and Sale Agreement as hereinafter set forth.

NOW THEREFORE, with the intention of being legally bound hereby, and in consideration of the mutual undertakings expressed herein, each party to this Amendment hereby agrees as follows:

SECTION 1.Amendments to the Purchase and Sale Agreement.  The Purchase and Sale Agreement is hereby amended as follows:

(a)With respect to the New Originators, each reference in the Purchase and Sale Agreement to “the Closing Date” or “the date hereof” where applicable to the New Originators shall be deemed to be a reference to “May 6, 2020”.  

(b)With respect to the New Originators, each reference in the Purchase and Sale Agreement to “the Cut-Off Date” when applicable to the New Originators shall be deemed to be a reference to “March 31, 2020”.

(c)Schedule I to the Purchase and Sale Agreement is hereby replaced in its entirety with Schedule I attached hereto.

(d)Schedule II to the Purchase and Sale Agreement is hereby replaced in its entirety with Schedule II attached hereto.

(e)Schedule III to the Purchase and Sale Agreement is hereby replaced in its entirety with Schedule III attached hereto.

 

 

SECTION 2.Joinder.  Each New Originator hereby absolutely and unconditionally agrees to become a party to the Purchase and Sale Agreement as an “Originator” thereunder and to be bound by all of the provisions thereof, including the provisions of Article IX thereof.  For greater certainty, each New Originator hereby acknowledges that pursuant to (i) Section 1.1 of the Purchase and Sale Agreement, on and after the date hereof it hereby sells all of its right, title and interest in, to and under the Receivables, the Related Rights with respect thereto and all proceeds of the foregoing to the Buyer and (ii) Section 1.5 of the Purchase and Sale Agreement, it has granted and hereby grants a security interest to Buyer in, to and under all of the New Originator’s right, title and interest in and to: (A) the Receivables and the Related Rights now existing and hereafter created by the New Originator transferred or purported to be transferred under the Purchase and Sale Agreement, (B) all monies due or to become due and all amounts received with respect thereto and (C) all books and records of the New Originator to the extent related to any of the foregoing, to secure the New Originator’s obligations under the Purchase and Sale Agreement.  Upon effectiveness of this Amendment, each New Originator shall be an “Originator” for all purposes of the Purchase and Sale Agreement and each of the other Transaction Documents.  Each New Originator further acknowledges that it has received copies of the Purchase and Sale Agreement and the other Transaction Documents.  Each of the parties hereto hereby agrees that the provisions of this Amendment are in all material respects equivalent in form to the “Joinder Agreement” set forth as Exhibit C to the Purchase and Sale Agreement.

SECTION 3.Representations and Warranties of the Originators.  Each of the New Originators and the Existing Originators hereby represents and warrants as of the date hereof as follows:

(a)Representations and Warranties.  The representations and warranties made by it in the Purchase and Sale Agreement and each of the other Transaction Documents to which it is a party are true and correct in all material respects as of the date hereof unless such representations and warranties by their terms refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date.

(b)Enforceability.  The execution and delivery by it of this Amendment, and the performance of its obligations under this Amendment, the RFA Amendment, the Purchase and Sale Agreement (as amended hereby) and the other Transaction Documents to which it is a party are within its organizational powers and have been duly authorized by all necessary action on its part, and this Amendment, the RFA Amendment, the Purchase and Sale Agreement (as amended hereby) and the other Transaction Documents to which it is a party are (assuming due authorization and execution by the other parties thereto) its valid and legally binding obligations, enforceable in accordance with their terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) as such enforceability may be limited by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.

(c)No Event of Default. No Purchase and Sale Termination Event, Unmatured Purchase and Sale Termination Event, Event of Default or Unmatured Event of Default has occurred and is continuing, or would occur as a result of this Amendment, the RFA Amendment or the transactions contemplated hereby or thereby.

SECTION 4.Effect of Amendment; Ratification.  All provisions of the Purchase and Sale Agreement and the other Transaction Documents, as expressly amended and modified by this Amendment, shall remain in full force and effect. After this Amendment becomes effective, all references in the Purchase and Sale Agreement (or in any other Transaction Document) to “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Purchase and Sale Agreement shall be deemed to be references to the Purchase and Sale Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Purchase and Sale Agreement other than as set forth herein. The Purchase and Sale Agreement, as amended by this Amendment, is hereby ratified and confirmed in all respects.

SECTION 5.Effectiveness.  This Amendment shall become effective concurrently with the effectiveness of the RFA Amendment, subject to the condition precedent that the Administrative Agent shall have received counterparts to this Amendment executed by each of the parties hereto.

 

 

SECTION 6.Severability.  Any provisions of this Amendment which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION 7.Transaction Document.  This Amendment shall be a Transaction Document for purposes of the Receivables Financing Agreement.

SECTION 8.Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart hereof by facsimile or other electronic means shall be equally effective as delivery of an originally executed counterpart.

SECTION 9.GOVERNING LAW AND JURISDICTION. 

(a)THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).

(b)EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO (I) WITH RESPECT TO THE BUYER, THE NEW ORIGINATORS, THE EXISTING ORIGINATORS AND THE SERVICER, THE EXCLUSIVE JURISDICTION, AND (II) WITH RESPECT TO EACH OF THE OTHER PARTIES HERETO, THE NON-EXCLUSIVE JURISDICTION, IN EACH CASE, OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK CITY, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT, AND EACH PARTY HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING (I) IF BROUGHT BY THE BUYER, THE SERVICER, ANY NEW ORIGINATOR, ANY EXISTING ORIGINATOR OR ANY AFFILIATE THEREOF, SHALL BE HEARD AND DETERMINED, AND (II) IF BROUGHT BY ANY OTHER PARTY TO THIS AMENDMENT, MAY BE HEARD AND DETERMINED, IN EACH CASE, IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT.  NOTHING IN THIS SECTION 9 SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY OTHER CREDIT PARTY TO BRING ANY ACTION OR PROCEEDING AGAINST THE BUYER OR THE SERVICER OR ANY OF THEIR RESPECTIVE PROPERTY IN THE COURTS OF OTHER JURISDICTIONS.  EACH OF THE BUYER, EACH NEW ORIGINATOR, EACH EXISTING ORIGINATOR AND THE SERVICER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.  THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

SECTION 10.Section Headings.  The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Purchase and Sale Agreement or any provision hereof or thereof.

[Signature pages follow]

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.

 

	
LAMAR QRS RECEIVABLES, LLC,

	
as Buyer

	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
Name:
	
Jay L. Johnson

	
Title:
	
Executive Vice President and Chief

	
 
	
Financial Officer

	
 
	
 

	
LAMAR MEDIA CORP.,

	
as Servicer

	
By:
	
/s/ Jay L. Johnson

	
Name:
	
Jay L. Johnson

	
Title:
	
Executive Vice President, Chief

	
 
	
Financial Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
EXISTING ORIGINATORS:

	
LAMAR ADVERTISING OF MICHIGAN, INC.

	
LAMAR ADVERTISING OF YOUNGSTOWN, INC.

	
LAMAR ADVERTISING SOUTHWEST, INC.

	
LAMAR ELECTRICAL, INC.

	
LAMAR OCI SOUTH CORPORATION

	
LAMAR OHIO OUTDOOR HOLDING CORP.

	
LAMAR PENSACOLA TRANSIT, INC.

	
 

	
TLC PROPERTIES, INC.

	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President ,Chief Financial

	
 
	
 
	
Officer and Treasurer

	
 

	
LAMAR CENTRAL OUTDOOR, LLC

	
THE LAMAR COMPANY, L.L.C.

	
 

	
By:
	
Lamar Media Corp., its Managing Member

	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
LAMAR ADVERTISING OF COLORADO

	
SPRINGS, L.L.C.

	
LAMAR ADVERTISING OF LOUISIANA, L.L.C.

	
LAMAR ADVERTISING OF SOUTH DAKOTA,

	
L.L.C.

	
LAMAR AIR, L.L.C.

	
LAMAR FLORIDA, L.L.C.

	
LAMAR OCI NORTH, L.L.C.

	
LAMAR TENNESSEE, L.L.C.

	
 

	
By:
	
The Lamar Company, L.L.C., its Managing Member

	
By:
	
Lamar Media Corp., its Managing Member

	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
LAMAR TEXAS LIMITED PARTNERSHIP

	
 

	
By:
	
The Lamar Company, L.L.C., its General Partner

	
By:
	
Lamar Media Corp., its Managing Member

	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
TLC FARMS, L.L.C.

	
TLC PROPERTIES, L.L.C.

	
 

	
By:
	
TLC Properties, Inc., its Managing Member

	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

	
 
	
 
	
 

	
LAMAR ADVANTAGE GP COMPANY, LLC

	
LAMAR ADVANTAGE LP COMPANY, LLC

	
TRIUMPH OUTDOOR HOLDINGS, LLC

	
 
	
 
	
 

	
By:
	
Lamar Central Outdoor, LLC, its Managing Member

	
By:
	
Lamar Media Corp., its Managing Member

	
 
	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
LAMAR ADVANTAGE OUTDOOR COMPANY,

	
L.P.

	
 

	
By:
	
Lamar Advantage GP Company, LLC, its General

	
 
	
Partner

	
By:
	
Lamar Central Outdoor, LLC, its Managing Member

	
By:
	
Lamar Media Corp., its Managing Member

	
 
	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

	
 
	
 
	
 

	
LAMAR ADVANTAGE HOLDING COMPANY

	
 
	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
LAMAR ADVERTISING OF PENN, LLC

	
 
	
 

	
By:
	
The Lamar Company, L.L.C., its Class A Member

	
By:
	
Lamar Media Corp., its Managing Member

	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

	
 
	
 

	
By:
	
Lamar Transit, LLC, its Class B Member

	
By:
	
Lamar TRS Holdings, LLC, its Managing Member

	
By:
	
Lamar Media Corp., its Managing Member

	
 
	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
LAMAR OBIE COMPANY, LLC

	
 
	
 

	
By:
	
Lamar Media Corp., its Class A Member

	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief Financial

	
 
	
 
	
Officer and Treasurer

	
 
	
 

	
By:
	
Lamar Transit, LLC, its Class B Member

	
By:
	
Lamar TRS Holdings, LLC, its Managing Member

	
By:
	
Lamar Media Corp., its Managing Member

	
 
	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief

	
 
	
 
	
Financial Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
NEW ORIGINATORS

	
 
	
 

	
ASHBY STREET OUTDOOR CC LLC

	
ASHBY STREET OUTDOOR LLC

	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief

	
 
	
 
	
Financial Officer and Treasurer

	
 
	
 

	
ASHBY STREET OUTDOOR HOLDINGS LLC

	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief

	
 
	
 
	
Financial Officer and Treasurer

	
 
	
 
	
 

	
LAMAR-FAIRWAY BLOCKER 1, LLC

	
LAMAR-FAIRWAY BLOCKER 2, LLC

	
MAGIC MEDIA/LAMAR, LLC

	
FAIRWAY MEDIA GROUP, LLC

	
FAIRWAY OUTDOOR ADVERTISING, LLC

	
FAIRWAY OUTDOOR FUNDING HOLDINGS,

	
LLC

	
FAIRWAY OUTDOOR FUNDING, LLC

	
 
	
 
	
 

	
By:
	
/s/ Jay L. Johnson

	
 
	
Name:
	
Jay L. Johnson

	
 
	
Title:
	
Executive Vice President, Chief

	
 
	
 
	
Financial Officer and Treasurer

 

Purchase and Sale Agreement

 

 

	
Consented to:

	
 

	
PNC BANK, NATIONAL ASSOCIATION,

	
as Administrative Agent and as a Lender

	
 

	
By:
	
/s/ Michael Brown

	
Name:
	
Michael Brown

	
Title:
	
Senior Vice President

 

Purchase and Sale Agreementctmx-ex44_216.htm

Exhibit 4.4

 

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

 

The following summary describes the capital stock of CytomX Therapeutics, Inc. (the “Company,” “we,” “us,” and “our”) and the material provisions of our amended and restated certificate of incorporation and our amended and restated bylaws, the registration rights agreement to which we and a stockholder are parties and of the General Corporation Law of the State of Delaware. Because the following is only a summary, it does not contain all of the information that may be important to you. For a complete description, you should refer to our amended and restated certificate of incorporation, amended and restated bylaws, and registration rights agreement, copies of which are incorporated by reference as exhibits to our Annual Report on Form 10-K.

As of June 30, 2020, CytomX Therapeutics, Inc. (“CytomX”) had common stock, $0.00001 par value per share, registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and listed on The Nasdaq Global Select Market under the trading symbol “CTMX.”  

General

We have authorized 150,000,000 shares of common stock, $0.00001 par value per share, and 10,000,000 shares of preferred stock, $0.00001 par value per share under our amended and restated certificate of incorporation.  As of June 30, 2020, there were outstanding:

	
 
	
•
	
46,190,070 shares of our common stock; and

 

	
 
	
•
	
11,632,550 shares of common stock subject to outstanding stock options.

As of June 30, 2020, there were 31 holders on record of our common stock. This number does not include beneficial owners whose shares are held by nominees in street name.

Common Stock

Voting Rights

Holders of our common stock are entitled to one vote for each share of common stock held of record for the election of directors and on all matters submitted to a vote of stockholders. In the election of directors, a plurality of the votes cast at a meeting of stockholders is sufficient to elect a director. Our stockholders do not have cumulative voting rights in the election of directors. Accordingly, holders of a majority of the voting shares are able to elect all of the directors. In all other matters, except as noted below under “Anti-Takeover Effects of Delaware Law, Our Certificate of Incorporation and Our Bylaws,” a majority vote of common stockholders is generally required to take action under our certificate of incorporation and bylaws.

Dividends

Holders of our common stock are entitled to receive dividends ratably, if any, as may be declared by our board of directors out of legally available funds, subject to any preferential dividend rights of any preferred stock then outstanding.

Liquidation

Upon our dissolution, liquidation or winding up, holders of our common stock are entitled to share ratably in our net assets legally available after the payment of all our debts and other liabilities, subject to the preferential rights of any preferred stock then outstanding.

Other Rights and Preferences

Holders of our common stock have no preemptive, subscription or conversion rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

Preferred Stock

Our board of directors has the authority, without action by the stockholders, to designate and issue up to an aggregate of 10,000,000 shares of preferred stock in one or more series. The board of directors can fix the rights, preferences and privileges of the shares of each series and any of its qualifications, limitations or restrictions. Our board of directors 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 common stock. The issuance of preferred stock, while providing flexibility in connection with possible future financings and acquisitions and other corporate purposes could, under certain circumstances, have the effect of delaying or preventing a change in control of our company and might harm the market price of our common stock. As of June 30, 2020, no shares of preferred stock were outstanding, and we have no present plan to issue any shares of preferred stock.

Registration Rights Agreement

Pursuant to our registration rights agreement, as of June 30, 2020, Amgen Inc. (“Amgen”), the holder of 1,156,069 shares of our common stock, is entitled to require us register the resale of the shares purchased by Amgen pursuant to that certain share purchase agreement, dated September 29, 2017, between the Company and Amgen, on a registration statement to be filed with the Securities and Exchange Commission. The registration rights agreement contains customary indemnification provisions, and terminates if there are no registrable shares outstanding.

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

Our certificate of incorporation and bylaws include a number of provisions that may have the effect of encouraging persons considering unsolicited tender offers or other unilateral takeover proposals to negotiate with our board of directors rather than pursue non-negotiated takeover attempts. These provisions include the items described below.

Removal of Directors 

Our certificate of incorporation and bylaws provide that subject to any limitations imposed by law and the rights of the holders of any series of our preferred stock, the board of directors or any individual director may be removed from office at any time without cause by the affirmative vote of the holders of a majority of the voting power of all the then-outstanding shares of voting stock of our company entitled to vote at an election of directors.

No Written Consent of Stockholders 

Our bylaws provide that all stockholder actions are required to 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.

Staggered Board

Our board of directors is divided into three staggered classes of directors of the same or nearly the same number and each director will be assigned to one of the three classes. At each annual meeting of the stockholders, a class of directors will be elected for a three-year term to succeed the directors of the same class whose terms are then expiring. Our amended and restated certificate of incorporation provides that the number of our directors shall be fixed from time to time by a resolution of the majority of our board of directors. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class shall consist of one third of the board of directors. The division of our board of directors into three classes with staggered three-year terms may delay or prevent stockholder efforts to effect a change of our management or a change in control.

Meetings of Stockholders 

Our bylaws provide that special meetings of stockholders, which our company is not obligated to call more than once per calendar year, may only be called by the chairman of our board of directors, our chief executive officer, or our board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors. In addition, our bylaws will limit the business that may be conducted at an annual meeting of stockholders to those matters properly brought before the meeting.

Advance Notice Requirements 

Our bylaws include advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not later than the close of business on the ninetieth (90th) day nor earlier than the close of business on the one hundred twentieth (120th) day prior to the first anniversary of the annual meeting for the preceding year. The notice must contain certain information specified in the bylaws. These provisions may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.

Amendment to Certificate of Incorporation and Bylaws 

Our certificate of incorporation provides that the affirmative votes of the holders of at least a majority of the voting power of all of the then-outstanding shares of our voting stock will be required to amend certain provisions of our certificate of incorporation, including provisions relating to the size of our board of directors, removal of directors, special meeting of stockholders and actions by written consent. The affirmative votes of the holders of at least a majority of the voting power of all of the then-outstanding shares of our voting stock will be required to amend or repeal our bylaws. In addition, our bylaws may be amended by our board of directors, subject to any limitations set forth in the bylaws.

Blank Check Preferred Stock 

Our certificate of incorporation provides for 10,000,000 authorized shares of preferred stock. The existence of authorized but unissued shares of preferred stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were to determine that a takeover proposal is not in the best interests of us or our stockholders, our board of directors could cause shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group. In this regard, our certificate of incorporation grants our board of directors broad power to establish the rights and preferences of authorized and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying, deterring or preventing a change in control of us.

Section 203 of the Delaware General Corporation Law 

We are subject to the provisions of Section 203 of the Delaware General Corporation Law, as amended. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A “business combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own 

within three years prior to the determination of interested stockholder status, 15 percent or more of the corporation’s voting stock. 

Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions: 

	
 
	
•
	
before the stockholder became interested, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;  

 

	
 
	
•
	
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85 percent of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances; or  

 

	
 
	
•
	
at or after the time the stockholder became interested, the business combination was approved by the board of directors of the corporation and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least 66 2/3 percent of the outstanding voting stock which is not owned by the interested stockholder.  

A Delaware corporation may “opt out” of these provisions with an express provision in its original certificate of incorporation or an express provision in its certificate of incorporation or bylaws resulting from a stockholders’ amendment approved by at least a majority of the outstanding voting shares. We have not opted out of these provisions. As a result, mergers or other takeover or change in control attempts of us may be discouraged or prevented.

Delaware as Sole and Exclusive Forum 

Our bylaws provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary duty owed by, or otherwise wrongdoing by, any of our directors, officers or other employees to us or our stockholders, (iii) any action asserting a claim against us arising pursuant to any provision of the Delaware General Corporation Law, as amended, or our certificate of incorporation or bylaws, (iv) any action to interpret, apply, enforce or determine the validity of our certificate of incorporation or bylaws, or (v) any action asserting a claim against us or any of our directors, officers or employees governed by the internal affairs doctrine.

Limitations of Liability and Indemnification 

As permitted by the Delaware General Corporation Law, as amended, our amended and restated certificate of incorporation and amended and restated bylaws, in each case, limit or eliminate the personal liability of our directors. Consequently, a director will not be personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director, except for liability for: 

	
 
	
•
	
any breach of the director’s duty of loyalty to us or our stockholders;

 

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

 

	
 
	
•
	
any unlawful payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or  

 

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

These limitations of liability do not alter director liability under the U.S. federal securities laws and do not affect the availability of equitable remedies such as an injunction or rescission. 

In addition, our amended and restated bylaws provide that: 

	
 
	
•
	
we will indemnify our directors, officers and, at the discretion of our board of directors, certain employees and agents to the fullest extent permitted by the Delaware General Corporation Law, as amended;  

 

	
 
	
•
	
we will advance expenses, including attorneys’ fees, to our directors and to our officers and certain employees, in connection with legal proceedings, subject to limited exceptions; and 

 

	
 
	
•
	
the indemnification and advancement of expenses provided in our amended and restated bylaws are not exclusive of any other right to which our directors or officers may be entitled under any indemnification agreement we enter into with any individual director, officer, employee or agent.  

We have entered into indemnification agreements with each of our executive officers and directors. The form of these agreements have been approved by our stockholders. These agreements provide that we will indemnify each of our executive officers and directors to the fullest extent permitted by law and advance expenses to each indemnitee in connection with any proceeding in which indemnification is available. 

We have obtained general liability insurance that covers certain liabilities of our directors and officers arising out of claims based on acts or omissions in their capacities as directors or officers, including liabilities under the Securities Act. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the registrant pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. 

The above provisions may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. The provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, the indemnification agreements and the insurance are necessary to attract and retain talented and experienced directors and officers. 

At present, there is no pending litigation or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware of any threatened litigation or proceedings that might result in a claim for such indemnification.

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A. The transfer agent and registrar’s address is 462 South 4th Street, Suite 1600, Louisville, KY 40202.

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