Document:

Exhibit 4.5

	
CI&T Inc.

	
 

	
CI&T Inc.

	
4o PROGRAMA DE OPÇÃO DE COMPRA DE AÇÕES

	
 

	
4th STOCK OPTION PROGRAM

	
O presente 4o Programa de Opção de Compra de Ações (“4o Programa”), alterado pelo Conselho de Administração da CI&T Software S.A. (“CI&T Brasil”) em 29 de outubro de 2021 e aprovado em Reunião do Conselho de Administração da CI&T Inc. (“Companhia”) ocorrida em 29 de outubro de 2021 , consiste na tradução e adaptação do 4o Programa de Opção de Compra de Ações da CI&T Brasil, haja vista a migração do Plano de Opção de Compra de Ações (“Plano”) da CI&T Brasil para a Companhia. Os termos e condições do 4o Programa estão descritas abaixo e as condições individuais aplicáveis a cada um dos Participates serão descritas nos respectivos Contratos de Opção de Compra de Ações (“Contratos de Opção”).

	
 

	
This 4th Stock Option Program ("4th Program"), as amended by CI&T Software S.A. (“CI&T Brasil”) Board of Directors resolution held on October, 29, 2021, and approved by CI&T Inc. (“Company”) Board of Directors resolution held on October, 29, 2021, consists in the translation and adaptation of the 4th Stock Option Program of CI&T Brasil, in view of the migration of Stock Option Plan ("Plan") from CI&T   Brasil   to the Company. The terms and conditions of the 4th Program are described below and the particular conditions applicable to each of the Participants will be described in the respective Stock Option Agreements ("Option Agreements").

	
1.        Participantes. Os Administradores, Executivos, Empregados e Prestadores de Serviço da Companhia ou de suas Controladas, indicados em lista que fica arquivada na sede da Companhia (em conjunto, “Participantes”).

	
 

	
1. Participants. The Managers, Executives, Employees and Service Providers of the Company or of its Subsidiaries indicated in a list which is filed at the Company's headquarters (jointly,   the "Participants").

	
2.      Condições para Exercício. As Opções adquiridas pelo Participate que tenham se tornado Opções Vestidas somente poderão ser exercidas se verificada a ocorrência de algum dos Eventos de Liquidez, desde que, em todos os casos, não seja verificada a ocorrência de uma hipótese de extinção das Opções, conforme previsto no Plano.

	
 

	
2. Conditions for the Exercise. The Options purchased by the Participant that become Vested Options may only be exercised upon occurrence of a Liquidity Event, provided that, in all cases, any event of termination of the Options has occurred, as provided for in the Plan.

	
3.Volume Global e Opções Alienadas. Serão entregues um número de Opções que não superará o limite global aprovado no Plano. Cada Opção, se exercida, corresponderá a 1 (uma) ação representativa a do capital social da Companhia nesta data. O Contrato de Opção celebrado com o Participate preverá a quantidade de Opções a serem adquiridas pelo respectivo Participante.

	
 

	
3. Global Volume and Disposed Options. The number of Options delivered will not exceed the global limit approved in the Plan. Each Option, if exercised, will correspond to 1 (one) share of the Company's capital stock on the date hereof. The Option Agreement entered into with the Participant will  provide  for  the  number  of  Options  to  be purchased by the respective Participant.

	
4.Verificação da Ocorrência de um Evento de Liquidez. São considerados Evento de Liquidez:

	
 

	
4. Verification of the Occurrence of a Liquidity Event. The following events shall be considered Liquidity Events:

	
(i)    a ocorrência de uma oferta pública inicial de ações de emissão da Companhia que resulte na listagem e efetiva negociação de ações de

	
 

	
(i)    occurrence of an initial public offering of shares issued by the Company that results in the listing and effective trading of shares

	1

	
emissão da Companhia B3 S.A. - Brasil, Bolsa, Balcão ou outra bolsa de valores de primeira linha no exterior (“IPO”);

	
 

	
issued by the Company in B3 S.A. – Brasil, Bolsa, Balcão or any other top tier foreign stock exchange ("IPO");

	
(ii)   a ocorrência da transferência da totalidade das ações de emissão da Companhia detidas, diretamente ou indiretamente, por fundos de investimento geridos pela Advent International Corporation (“Advent”) a um Terceiro, que não uma Afiliada da Advent (“Alienação”); ou

	
 

	
(ii)   occurrence of the transfer of the entirety of shares  issued  by  the  Company  directly  or indirectly held by investment funds managed by Advent International Corporation ("Advent") to a Third Party, other than an Affiliate of Advent ("Sale of the Company"); or

	
(iii) a ocorrência da transferência, diretamente ou indiretamente, de ações de emissão da Companhia representativas de mais do que 50% (cinquenta por cento) do capital social votante da Companhia a um Terceiro (“Alteração do Controle”).

	
 

	
(iii)   occurrence of the transfer, directly or indirectly, of shares issued by the Company representing more than fifty percent (50%) of the voting capital stock of the Company to a Third Party ("Change of Control").

	
4.1.      Verificada a ocorrência de um Evento de Liquidez, a Companhia deverá notificar os Participantes sobre a possibilidade de exercício das Opções Vestidas, observado o disposto no Plano, por meio de notificação escrita, entregue pessoalmente ou enviada pelo correio com aviso de recebimento aos endereços indicados no respectivo Contrato de Opção.

	
 

	
4.1.       If a Liquidity Event is verified, the Company shall notify the Participants informing the possibility to exercise the Vested Options, subject to the provisions of the Plan, by means of a written notice, delivered personally or sent by mail with acknowledgment of receipt to the addresses indicated in the respective Option Agreement.

	
4.2.      As Opções se tornarão antecipadamente exercíveis - tornando-se, portanto, Opções Vestidas - se verificada a ocorrência de uma Alienação ou Alteração do Controle, hipótese na qual a Companhia deverá notificar (incluindo o preço a ser pago pelas Ações na Alienação ou Alteração do Controle) os Participantes em até 15 (quinze) dias antes da consumação da Alienação ou Alteração do Controle (“Fechamento”) para que os Participantes notifiquem a Companhia, em até 5 (cinco) dias a contar do recebimento da referida notificação, manifestando seu desejo de exercer ou não as Opções Vestidas.

	
 

	
4.2.       The Options shall become early exercisable - therefore becoming Vested Options - upon occurrence of a Sale of the Company or Change of Control, in which case the Company shall notify the Participants (including the price to be paid for the Shares on the Sale of the Company or Change of Control) no later than fifteen (15) days prior to the consummation  of  the  Sale  of  the Company or Change of Control (“Closing”) so that the Participants can notify the Company within up to five (5) days from receiving such notice of whether or not he/she wishes to exercise the Vested Options.

	
4.3.      Na hipótese do Participante em questão desejar exercer as Opções Vestidas, deverá tomar todas as medidas necessárias a tal exercício, incluindo, mas não se limitando a subscrição e integralização das Ações decorrentes das Opções, ou pagamento do preço de aquisição das Ações da Companhia mantidas em tesouraria, conforme aplicável, no período compreendido entre a data da sua manifestação e 5 (cinco) dias antes do Fechamento.

	
 

	
4.3.       In the case the Participant wishes to exercise the Vested Options, he/she shall take all necessary steps to do so, including, but not limited to, the subscription and payment of the Shares resulting from the Options, or payment for the acquisition of Shares held in treasury, as applicable, in the period comprised between the date of his manifestation and five (5) days prior to the Closing.

	
4.4.      Na hipótese do Participante em questão

	
 

	
4.4.       In the event that the Participant informs

	2

	
informar à Companhia que não deseja exercer suas Opções Vestidas - ou deixar de notificá-la dentro do prazo referido na Cláusula 4.2 acima -, restarão automaticamente canceladas, de pleno direito, independentemente de aviso prévio ou indenização, suas respectivas Opções, ocasião em que o Participante perderá o investimento realizado na aquisição de tais Opções Vestidas.

	
 

	
the Company that he does not wish to exercise his Vested Options - or fails to notify the Company within the period set forth in Clause 4.2 above -his/her Options shall automatically lapse and be cancelled, regardless of prior notice, case which the Participant will lose the investment made to acquire such Vested Options.

	
4.5.       Após o IPO, a Companhia deverá estabelecer janelas de exercício para o exercício das Opções Vestidas, conforme previsto no Contrato de Opção.

	
 

	
4.5.       After an IPO, the Company shall establish exercise windows for the exercise of the Vested Options, as set forth in the Option Agreement.

	
5.          Preço de Aquisição. O preço de aquisição de 1 (uma) Opção pelo Participante (“Preço de Aquisição”) é o previsto no respectivo Contrato de Opção.

	
 

	
5.          Acquisition Price. The acquisition price of one (1) Option to be paid by the Participant (“Acquisition Price”) shall be set forth in the Option Agreement.

	
6.       Preço de Exercício. O preço de exercício, a ser pago pelo Participante, por cada Opção (“Preço de  Exercício”)  será  o  previsto no Contrato de Opção.

	
 

	
6.          Exercise Price. The exercise price to be paid by the Participant for each Option (“Exercise Price”) shall be set forth in the Option Agreement.

	
6.1.      Em caso de não pagamento do Preço de Exercício na forma prevista no Contrato de Opção, as  Opções adquiridas no âmbito do respectivo Contrato de Opção restarão automaticamente canceladas, de pleno direito, independentemente de aviso prévio, e sem que o Participante tenha direito a qualquer reembolso ou indenização, sendo que todos os atos referentes à emissão, subscrição, integralização ou aquisição de Ações, conforme o caso,  eventualmente já   praticados  se  tornarão ineficazes.

	
 

	
6.1.In the event of non-payment of the Exercise Price as set forth in the Option Agreement, the Options  shall automatically lapse and be cancelled, irrespective of prior notice, and without the Participant being entitled to any reimbursement or indemnification, and all acts related to the issuance, subscription, payment or acquisition of Shares, as the case may be, already performed shall become ineffective.

	
7.          Prazo de Carência. As Opções outorgadas a cada Participante tornar-se-ão Opções Vestidas na  medida  em que o Participante permanecer continuamente vinculado como Administrador, Executivo, Empregado ou Prestador de Serviços da Companhia ou de suas Controladas, da data de assinatura do respectivo Contrato de Opção até o término dos prazos de carência abaixo especificados, nas seguintes proporções (“Prazo de Carência”):

	
 

	
7.Vesting Period. Options granted to the Participant shall become Vested Options to the extent that the Participant remains continuously engaged as a Manager, Executive, Employee or Service Provider of the Company or of its Subsidiaries  from  the  date of execution of the Option Agreement until the expiration of the vesting periods specified below, in the following proportions ("Vesting Period"):

	
(i)     15% (quinze por cento) das referidas Opções serão vestidas em 1o de janeiro de 2022;

	
 

	
(i)       fifteen percent (15%) of such Options shall vest on January 1, 2022;

	
(ii)    15% (quinze por cento) das referidas Opções serão vestidas em 1o de janeiro de 2023;

	
 

	
(ii)      fifteen percent (15%) of such Options shall vest on January 1, 2023;

	3

	
(iii)      20% (vinte por cento) das referidas Opções serão vestidas em 1o de janeiro de 2024;

	
 

	
(iii)     twenty percent (20%) of such Options shall vest on January 1, 2024;

	
(iv)      20% (vinte por cento) das referidas Opções serão vestidas em 1o de janeiro de 2025; e

	
 

	
(iv)     twenty percent (20%) of such Options shall vest on January 1, 2025; and

	
(v)       30% (trinta por cento) das referidas Opções serão vestidas em 1o de janeiro de 2026.

	
 

	
(v)      thirty percent (30%) of such Options shall vest on January 1, 2026.

	
Não obstante a regra geral acima, o Conselho de Administração ou o Diretor Presidente poderá definir um Prazo de Carência distinto para determinados Participantes, o qual será refletido no respectivo Contrato de Opção.

	
 

	
Notwithstanding the general rule above, the Board of Directors or the Chief Executive Officer may define a   different Vesting Period for certain Participants, which will be reflected in the respective Option Agreement.

	
O Prazo de Carência será antecipado na hipótese de ocorrência de uma Alienação ou Alteração do Controle, conforme definido na Cláusula 5.3 do Plano. Para que não restem dúvidas, somente uma Alienação ou Alteração do Controle antecipa o Prazo de Carência, sendo certo que a ocorrência de um IPO não antecipa o Prazo de Carência.

	
 

	
The Vesting Period shall be accelerated upon occurrence of a Sale of the Company or Change of Control, as defined in Clause 5.3 of the Plan. For the avoidance of doubt, only a Sale of the Company or Change of Control accelerates the Vesting Period, provided that occurrence of an IPO does not accelerate the Vesting Period.

	
8.          Prazo de Exercício. O Prazo de Exercício tem início após o decurso do Prazo de Carência e terminará quando do que primeiro ocorrer entre (i) a verificação de uma Alienação ou Alteração do Controle e desde que as Opções Vestidas não sejam exercidas antes do Fechamento, nos termos da Cláusula 4.2 acima; ou (ii) caso ocorra um IPO, o decurso do prazo (ii.a) de 12 (doze) meses a contar da data em que o IPO ocorreu, em relação às Opções Vestidas até a data do IPO (inclusive), ou (ii.b) de 12 (doze) meses a contar da data que as Opções se tornarem Opções Vestidas após a data do IPO; sendo certo, no entanto, que o Participante terá o direito de manter até 40.883 (quarenta mil, oitocentos e oitenta e três) Opções Vestidas (ajustadas por desdobramento, grupamento e eventos similares nos termos do Plano) para exercício posterior aos prazos constantes nestes itens (ii.a) e (ii.b), desde que o exercício de referidas Opções Vestidas ocorra até o prazo limite de 1o de janeiro de 2027 e desde que não ocorra o Desligamento do Participante, de modo que na hipótese de Desligamento do Participante o direito de extensão do exercício ora previsto será automaticamente cancelado e o Participante deverá exercer as referidas Opções Vestidas cujo exercício tenha sido estendido no prazo máximo de 12 (doze) meses contados do Desligamento, após o que as mesmas

	
 

	
8.Term of Exercise. The term of exercise begins after the expiration of the Vesting Period and shall remain in force until the first to occur between (i) verification of a Sale of the Company or Change of Control and provided that Vested Options are not exercised prior to the Closing, as set forth in Clause 4.2 above; or (ii) in the event of occurrence of an IPO, expiration of a term (ii.a) of twelve (12)  months counted from the date on which the IPO occurred, in respect of Vested Options vested until and including the date of the IPO, or (ii.b) of twelve (12) months counted from the date on which the Options shall become Vested Options following the date of the IPO; it being understood, however, that the Participant will have the right to keep up to six hundred (40.883) Vested Options (adjusted by split, reverse split and similar events under the terms of the Plan) for exercise after the terms stated in these items (ii.a) and (ii.b), provided that the exercise of said Vested Options occurs until January 1, 2027 and provided further that there is no Termination of the Participant. In the event of Participant’s Termination, the right to extend the exercise term provided herein shall automatically lapse and be cancelled and the Participant shall exercise such Vested   Options which exercise  term  has  been extended within a maximum period of twelve (12) months counted as of the date of the Termination

	4

	
restarão automaticamente extintas, de pleno direito, independentemente de aviso prévio, e sem que referidos Participantes tenham direito a qualquer reembolso ou indenização (“Prazo Máximo de Exercício”).

	
 

	
and the Participants will not be entitled to any refund or indemnity (“Maximum Exercise Term”).

	
9.      Restrições à Transferência de Ações. Na hipótese de um IPO, o Participante somente poderá alienar ou negociar 50% (cinquenta por cento) de suas Ações decorrentes do exercício das Opções Vestidas, e as demais 50% (cinquenta por cento) somente poderão ser alienadas ou negociadas depois de transcorrido 180 (cento e oitenta dias) dias contados da data de exercício das referidas Opções. Em caso de Alienação ou Alteração do Controle, não haverá restrições de prazo à negociação de Ações decorrentes do exercício das Opções, aplicando-se as demais cláusulas e condições previstas neste Programa, no Plano e no Contrato de Opção.

	
 

	
9.Restrictions to the Transfer of Shares. In the event of an IPO, the Participant may only sell or negotiate fifty percent (50%) of its Shares resulting from the exercise of the Options and the remainder fifty percent (50%) can be sold or negotiated only after the lapse of one hundred and eighty (180) days counted from the date of exercise of the Options. In the event of a Sale of the Company or Change of Control, there shall be no restrictions regarding the term for trading the Shares resulting from the exercise of Options, applying, however, the other clauses and conditions provided for in this Program, the Plan and the Option Agreement.

	
10.     Alterações. Quaisquer alterações às disposições deste 4o Programa somente surtirão efeito com relação aos Participantes desde que concordem  expressamente com  tais  alterações, exceto na hipótese prevista na Cláusula 13.4 do Plano, hipóteses em que as alterações independerão da concordância dos Participantes.

	
 

	
10.Changes. Any changes to the provisions of this 4th Program shall only take effect with respect to the Participants to the extent they expressly agree to such changes, except in the case provided for in Clause 13.4 of the Plan, in which case the changes shall not depend on the Participants' agreement.

	
11.     Termos Definidos. Quaisquer termos iniciados com letra maiúscula neste 4o Programa terão os significados que lhes tenham sido atribuídos no Plano, exceto se de outra forma aqui definido.

	
 

	
11.Definitions. Unless otherwise defined herein, the capitalized terms and expressions used in this 4th Program have the same meanings assigned to them in the Plan.

	
12.      Participantes Não-Residentes. Para os Participantes não residentes no Brasil, deverão ser observadas as regras adicionais descritas nos apêndices ao Plano, bem como em outros anexos que venham a ser incorporados ao Plano.

	
 

	
12.Non-Resident Participants. For Participants who are not residents in Brazil, the additional rules described in the appendices to the Plan must be observed, as well as in other appendices that may be incorporated into the Plan.

	
13.      Disposições Gerais. Quaisquer dúvidas ou divergências que possam surgir por parte da Companhia ou dos Participantes com relação às aquisições objeto deste 4o Programa ou quaisquer de suas condições deverão ser apresentadas ao Conselho de Administração.

	
 

	
13General Provisions. Any doubts or divergences that may arise on the part of the Company or the  Participants in relation to the acquisitions object of this 4th Program or any of its conditions shall be  submitted  to  the  Board  of Directors.

	
14.       Conflito de Tradução. Na hipótese de quaisquer questões ou conflitos relacionados a ambas as versões, a versão em português prevalecerá em relação aos Participantes residentes no Brasil e a versão em inglês prevalecerá para os Participantes não residentes no Brasil.

	
 

	
14.Conflict of Translation. In the event of any conflict between the Portuguese and English translation, the Portuguese version shall govern in relation to the Participants residing in Brazil and the English version shall govern for Participants not residing in Brazil.

	5Exhibit 4.4
​

 Description of Securities Registered Under Section 12 of the Securities Exchange Act of 1934, as amended
As of October 31, 2021, FuelCell Energy, Inc. (the “Company,” “we,” “us,” and “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) – our common stock, par value $0.0001 per share. 
Description of Common Stock
The following description of our common stock is a summary and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, our Certificate of Incorporation, as amended (our “Certificate of Incorporation”), and our Amended and Restated By-laws (our “By-laws”), each of which is filed as an exhibit to our Annual Report on Form 10-K for the fiscal year ended October 31, 2021 and incorporated by reference herein. We encourage you to read our Certificate of Incorporation, our By-laws and the applicable provisions of the General Corporation Law of the State of Delaware (the “DGCL”) for additional information. 
Authorized Capital Stock. Under our Certificate of Incorporation, we are authorized to issue 500,000,000 shares of common stock, par value $0.0001 per share, and 250,000 shares of preferred stock, par value $0.01 per share, in one or more series designated by our board of directors, of which 105,875 shares of our preferred stock have been designated as 5% Series B Cumulative Convertible Perpetual Preferred Stock (“Series B Preferred Stock”). Pursuant to our Certificate of Incorporation, our undesignated shares of preferred stock include all of our shares of preferred stock that were previously designated as Series C Convertible Preferred Stock and Series D Convertible Preferred Stock, as all such shares have been retired and therefore have the status of authorized and unissued shares of preferred stock undesignated as to series. As of December 23, 2021, there were 366,672,894 shares of our common stock outstanding. 
Voting Rights.  The holders of our common stock have one vote per share. Holders of our common stock are not entitled to vote cumulatively for the election of directors. Generally, all matters to be voted on by stockholders (including the election of directors in uncontested elections) must be approved by a majority of the votes properly cast on the matter at a meeting at which a quorum is present, subject to any voting rights granted to holders of any then-outstanding preferred stock. (The voting rights of the outstanding Series B Preferred Stock are described below under the heading “Description of Series B Preferred Stock.”) A plurality voting standard applies in contested director elections (i.e., when the number of nominees for election as directors exceeds the number of directors to be elected at such meeting). 
Dividends.  Holders of our common stock will share ratably in any dividends declared by our board of directors, subject to the preferential rights of any of our preferred stock then outstanding. (The dividend rights of the outstanding Series B Preferred Stock are described below under the heading “Description of Series B Preferred Stock.”) Dividends consisting of shares of our common stock may be paid to holders of shares of our common stock. We have never paid a cash dividend on our common stock and do not anticipate paying any cash dividends on our common stock in the foreseeable future.
Liquidation Rights.  In the event of our liquidation, dissolution or winding up, after payment of liabilities and liquidation preferences on any of our preferred stock then-outstanding, the holders of shares of our common stock are entitled to share ratably in all assets available for distribution. (The liquidation and other rights of the outstanding Series B Preferred Stock are described below under the heading “Description of Series B Preferred Stock”). 
Other Rights.  Holders of shares of our common stock (solely in their capacity as holders of shares of our common stock) have no preemptive rights or rights to convert their shares of our common stock into any other securities. There are no redemption or sinking fund provisions applicable to our common stock.
Listing on The Nasdaq Global Market.  Our common stock is listed on The Nasdaq Global Market under the symbol “FCEL.”
Transfer Agent and Registrar.   The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, New York.

​

​

Description of Series B Preferred Stock
The following description of our Series B Preferred Stock is a summary and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, our Certificate of Incorporation (including the Amended Certificate of Designation for the Series B Preferred Stock (the “Series B Certificate of Designation”)) and our By-laws, each of which is filed as an exhibit to our Annual Report on Form 10-K for the fiscal year ended October 31, 2021 and incorporated by reference herein. We encourage you to read our Certificate of Incorporation, our By-laws and the applicable provisions of the DGCL for additional information.
As of December 23, 2021, there were 64,020 shares of Series B Preferred Stock issued and outstanding. 
Ranking.  Shares of our Series B Preferred Stock rank with respect to dividend rights and rights upon our liquidation, winding up or dissolution:
		●	senior to shares of our common stock;

		●	junior to our debt obligations; and

		●	effectively junior to our subsidiaries’ (i) existing and future liabilities and (ii) capital stock held by others.

​
Dividends.  The Series B Preferred Stock pays cumulative annual dividends of $50.00 per share, which are payable quarterly in arrears on February 15, May 15, August 15 and November 15. Dividends accumulate and are cumulative from the date of original issuance. Unpaid accumulated dividends do not bear interest.
The dividend rate is subject to upward adjustment as set forth in the Series B Certificate of Designation if we fail to pay, or to set apart funds to pay, any quarterly dividend on the Series B Preferred Stock. The dividend rate is also subject to upward adjustment as set forth in the Registration Rights Agreement entered into with the initial purchasers of the Series B Preferred Stock (the “Registration Rights Agreement”) if we fail to satisfy our registration obligations with respect to the Series B Preferred Stock (or the underlying shares of common stock) under the Registration Rights Agreement.
No dividends or other distributions may be paid or set apart for payment on our common stock (other than a dividend payable solely in shares of a like or junior ranking), nor may any stock junior to or on parity with the Series B Preferred Stock be redeemed, purchased or otherwise acquired for any consideration (or any money paid to or made available for a sinking fund for such stock) by us or on our behalf  (except by conversion into or exchange for shares of a like or junior ranking), unless all accumulated and unpaid dividends on the Series B Preferred Stock have been paid or funds or shares of common stock have been set aside for payment of such accumulated and unpaid dividends.
The dividend on the Series B Preferred Stock may be paid in cash or, at the option of the holder, in shares of our common stock, which will be registered pursuant to a registration statement to allow for the immediate sale of these shares of common stock in the public market. 
Liquidation.  The holders of Series B Preferred Stock are entitled to receive, in the event that the Company is liquidated, dissolved or wound up, whether voluntarily or involuntarily, $1,000.00 per share plus all accumulated and unpaid dividends up to but excluding the date of such liquidation, dissolution, or winding up (the “Liquidation Preference”). Until the holders of Series B Preferred Stock receive the Liquidation Preference with respect to their shares of Series B Preferred Stock in full, no payment will be made on any junior shares, including shares of our common stock.  After the Liquidation Preference is paid in full, holders of the Series B Preferred Stock will not be entitled to receive any further distribution of our assets.  As of October 31, 2021, the issued and outstanding shares of Series B Preferred Stock had an aggregate Liquidation Preference of $64.0 million.
Conversion Rights.  Each share of Series B Preferred Stock may be converted at any time, at the option of the holder, into 0.591 shares of our common stock (which is equivalent to an initial conversion price of $1,692.00 per share) plus cash in lieu of fractional shares. The conversion rate is subject to adjustment upon the occurrence of certain events, as described in the Series B Certificate of Designation.  The conversion rate is not adjusted for accumulated 

2
​

​

and unpaid dividends. If converted, holders of Series B Preferred Stock do not receive a cash payment for all accumulated and unpaid dividends; rather, all accumulated and unpaid dividends are canceled.
We may, at our option, cause shares of Series B Preferred Stock to be automatically converted into that number of shares of our common stock that are issuable at the then-prevailing conversion rate. We may exercise our conversion right only if the closing price of our common stock exceeds 150% of the then-prevailing conversion price ($1,692.00 per share as of October 31, 2021) for 20 trading days during any consecutive 30 trading day period, as described in the Series B Certificate of Designation.
If the holders of Series B Preferred Stock elect to convert their shares in connection with certain “fundamental changes” (as defined in the Series B Certificate of Designation and described below), we will in certain circumstances increase the conversion rate by a number of additional shares of common stock upon conversion or, in lieu thereof, we may in certain circumstances elect to adjust the conversion rate and related conversion obligation so that shares of Series B Preferred Stock are converted into shares of the acquiring or surviving company, in each case as described in the Series B Certificate of Designation.
The adjustment of the conversion price is to prevent dilution of the interests of the holders of the Series B Preferred Stock from certain dilutive transactions with holders of our common stock.
Redemption.  We do not have the option to redeem the Series B Preferred Stock. However, holders of the Series B Preferred Stock can require us to redeem all or a portion of their shares of Series B Preferred Stock at a redemption price equal to the Liquidation Preference of the shares to be redeemed in the case of a “fundamental change” (as further described in the Series B Certificate of Designation).  A fundamental change will be deemed to have occurred if any of the following occurs:
		●	any “person” or “group” is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of all classes of our capital stock then outstanding and normally entitled to vote in the election of directors;

		●	during any period of two consecutive years, individuals who at the beginning of such period constituted the board of directors of the Company (together with any new directors whose election to our board of directors or whose nomination for election by the stockholders was approved by a vote of 66 2/3% of our directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the directors of the Company then in office;

		●	the termination of trading of our common stock on The Nasdaq Stock Market and our common stock is not approved for trading or quoted on any other U.S. securities exchange or established over-the-counter trading market in the U.S.; or 

		●	we (i) consolidate with or merge with or into another person or another person merges with or into our Company or (ii) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the assets of the Company and certain of its subsidiaries, taken as a whole, to another person and, in the case of any such merger or consolidation described in clause (i), the securities that are outstanding immediately prior to such transaction (and which represent 100% of the aggregate voting power of our voting stock) are changed into or exchanged for cash, securities or property, unless pursuant to the transaction such securities are changed into or exchanged for securities of the surviving person that represent, immediately after such transaction, at least a majority of the aggregate voting power of the voting stock of the surviving person.

​
Notwithstanding the foregoing, holders of shares of Series B Preferred Stock will not have the right to require us to redeem their shares if: 
		●	the last reported sale price of shares of our common stock for any five trading days within the 10 consecutive trading days ending immediately before the later of the fundamental change or its announcement equaled or exceeded 105% of the conversion price of the Series B Preferred Stock immediately before the fundamental change or announcement; 

3
​

​

		●	at least 90% of the consideration (excluding cash payments for fractional shares and in respect of dissenters’ appraisal rights) in the transaction or transactions constituting the fundamental change consists of shares of capital stock traded on a U.S. national securities exchange or quoted on The Nasdaq Stock Market, or which will be so traded or quoted when issued or exchanged in connection with a fundamental change, and as a result of the transaction or transactions, shares of Series B Preferred Stock become convertible into such publicly traded securities; or

		●	in the case of a merger or consolidation constituting a fundamental change (as described in the fourth bullet above), the transaction is affected solely to change our jurisdiction of incorporation.

​
Moreover, we will not be required to redeem any Series B Preferred Stock upon the occurrence of a fundamental change if a third party makes an offer to purchase the Series B Preferred Stock in the manner, at the price, at the times and otherwise in compliance with the requirements set forth above and such third party purchases all shares of Series B Preferred Stock validly tendered and not withdrawn.
We may, at our option, elect to pay the redemption price in cash, in shares of our common stock valued at a discount of 5% from the market price of shares of our common stock, or in any combination thereof.  Notwithstanding the foregoing, we may only pay such redemption price in shares of our common stock that are registered under the Securities Act of 1933, as amended, and which are eligible for immediate sale in the public market by non-affiliates of our Company.
Voting Rights.  Holders of Series B Preferred Stock currently have no voting rights; however, holders may receive certain voting rights, as described in the Series B Certificate of Designation, if (a) dividends on any shares of Series B Preferred Stock, or any other class or series of stock ranking on parity with the Series B Preferred Stock with respect to the payment of dividends, shall be in arrears for dividend periods, whether or not consecutive, containing in the aggregate a number of days equivalent to six calendar quarters or (b) we fail to pay the redemption price, plus accrued and unpaid dividends, if any, on the redemption date for shares of Series B Preferred Stock following a fundamental change. In each such event, the holders of Series B Preferred Stock (voting separately as a class with all other classes or series of stock ranking on parity with the Series B Preferred Stock with respect to the payment of dividends and upon which like voting rights have been conferred and are exercisable) will be entitled to elect two directors to the Company’s board of directors in addition to those directors already serving on the Company’s board of directors at such time (the “Series B Directors”), at the next annual meeting of the Company’s stockholders (or at a special meeting of the Company’s stockholders called for such purpose, whichever is earlier). The right to elect the Series B Directors will continue for each subsequent annual meeting of the Company’s stockholders until all dividends accumulated on the shares of Series B Preferred Stock have been fully paid or set aside for payment or the Company pays in full or sets aside for payment such redemption price, plus accrued but unpaid dividends, if any, on the redemption date for the shares of Series B Preferred Stock following a fundamental change. The term of office of any Series B Directors will terminate immediately upon the termination of the right of holders of Series B Preferred Stock to elect such Series B Directors, as described in this paragraph. Each holder of Series B Preferred Stock will have one vote for each share of Series B Preferred Stock held in the election of Series B Directors. We previously failed to make timely payment of the accrued dividends on the Series B Preferred Stock with respect to the May 15, 2019 and August 15, 2019 dividend payment dates. Such amounts were fully paid on or about November 15, 2019.
​
So long as any shares of Series B Preferred Stock remain outstanding, we will not, without the consent of the holders of at least two-thirds of the shares of Series B Preferred Stock outstanding at the time (voting separately as a class with all other series of preferred stock, if any, on parity with our Series B Preferred Stock upon which like voting rights have been conferred and are exercisable) issue or increase the authorized amount of any class or series of shares ranking senior to the outstanding shares of the Series B Preferred Stock as to dividends or upon liquidation. In addition, we will not, subject to certain conditions, amend, alter or repeal provisions of our Certificate of Incorporation, including the Series B Certificate of Designation, whether by merger, consolidation or otherwise, so as to adversely amend, alter or affect any power, preference or special right of the outstanding shares of Series B Preferred Stock or the holders thereof without the affirmative vote of not less than two-thirds of the issued and outstanding shares of Series B Preferred Stock.
​
​

4
​

​

Anti-Takeover Provisions
Provisions of our Certificate of Incorporation and By-laws
A number of provisions of our Certificate of Incorporation and By-laws concern matters of corporate governance and the rights of stockholders. Some of these provisions, including, but not limited to, the inability of stockholders to take action by unanimous written consent, certain advance notice requirements for stockholder proposals and director nominations, supermajority voting provisions with respect to any amendment of voting rights provisions, the filling of vacancies on the board of directors by the affirmative vote of a majority of the remaining directors, and the ability of the board of directors to issue shares of preferred stock and to set the voting rights, preferences and other terms thereof without further stockholder action, may be deemed to have an anti-takeover effect and may discourage takeover attempts not first approved by the board of directors, including takeovers which stockholders may deem to be in their best interests. If takeover attempts are discouraged, temporary fluctuations in the market price of shares of our common stock, which may result from actual or rumored takeover attempts, may be inhibited. These provisions, together with the ability of the board of directors to issue preferred stock without further stockholder action, could also delay or frustrate the removal of incumbent directors or the assumption of control by our stockholders, even if the removal or assumption would be beneficial to our stockholders. These provisions could also discourage or inhibit a merger, tender offer or proxy contest, even if favorable to the interests of stockholders, and could depress the market price of our common stock. The board of directors believes these provisions are appropriate to protect our interests and the interests of our stockholders. The board of directors has no present plans to adopt any further measures or devices which may be deemed to have an “anti-takeover effect.”
Delaware Anti-Takeover Provisions
We are subject to Section 203 of the DGCL, which prohibits a publicly-held Delaware corporation from engaging in a “business combination,” except under certain circumstances, with an “interested stockholder” for a period of three years following the date such person became an “interested stockholder” unless:
		●	before such person became an interested stockholder, the board of directors of the corporation approved either the business combination or the transaction that resulted in the interested stockholder becoming an interested stockholder;

		●	upon the consummation of the transaction that resulted in the interested stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares held by directors who are also officers of the corporation and shares held by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

		●	at or following the time such person became an interested stockholder, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders (and not by written consent) by the affirmative vote of the holders of at least 662/3% of the outstanding voting stock of the corporation which is not owned by the interested stockholder.

The term “interested stockholder” generally is defined as a person who, together with affiliates and associates, owns, or, within the three years prior to the determination of interested stockholder status, owned, 15% or more of a corporation’s outstanding voting stock. The term “business combination” includes mergers, asset or stock sales and other similar transactions resulting in a financial benefit to an interested stockholder. Section 203 makes it more difficult for an “interested stockholder” to effect various business combinations with a corporation for a three-year period. The existence of this provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by the board of directors, including discouraging attempts that might result in a premium over the market price for the shares of our common stock held by stockholders. A Delaware corporation may “opt out” of Section 203 with an express provision in its original certificate of incorporation or any amendment thereto. Our Certificate of Incorporation does not contain any such exclusion.

5
​

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]