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ALAMO GROUP INC.
2019 EQUITY INCENTIVE PLAN
PERFORMANCE SHARE UNIT AWARD AGREEMENT

[DATE]
[NAME AND ADDRESS]

Dear [NAME]:

Pursuant to the terms of the Alamo Group Inc. (the “Company”) 2019 Equity Incentive Plan (the “2019 Plan”), the Company has granted you an award (the “Award”) of performance share units as described in this award agreement (this “Agreement”).  These are performance-based restricted stock units as described under Section 8 of the 2019 Plan.

Participant Name:  [Name]
Grant Date:  [Date]
Target Number of Performance Share Units:  [Target Number]
Performance Period:  2020 - 2022 (the “Performance Period”)

The number of performance share units you earn will depend on the actual performance of the Company relative to the performance goals for the three year Performance Period.  The Board has approved the performance goals and related payout schedule as set forth on Exhibit A attached hereto.
The terms and conditions of this Award are governed by the provisions of this Agreement, the 2019 Plan and the performance share unit (“PSU”) terms and conditions attached hereto as Exhibit B (the “PSU Terms and Conditions”) which are incorporated herein by reference. Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the 2019 Plan and/or the PSU Terms and Conditions.

      COMPANY:
      ALAMO GROUP INC.

      By: _____________________
                                                                             Ronald A. Robinson, President & CEO

I hereby acknowledge and accept the Award described above subject to all of the terms and conditions of the 2019 Plan and the PSU Terms and Conditions, as may be amended from time to time, copies of which I have received and read. I further acknowledge receipt of the Company’s recoupment policy (the “Recoupment Policy”) pursuant to which I may be required to forfeit to or reimburse the Company with respect to certain incentive compensation that may be impacted in the event the Company is required to make an accounting restatement.
By signing below, I (i) agree to be bound by the terms and conditions of the 2019 Plan, and the PSU Terms and Conditions; (ii) acknowledge the Company’s Recoupment Policy, as may be amended from time to time, and agree that any performance-based 

compensation paid to me under this Agreement or any other agreement or arrangement with the Company (including annual cash incentive compensation) which is subject to recovery under the Recoupment Policy will be subject to such deductions and recoupment as may be required or permitted therein; (iii) acknowledge that the performance share units that have been awarded to me have no independent economic value, but rather are mere units of measurement to be used in calculating benefits, if any, payable pursuant to the Award; (iv) agree to accept as binding, conclusive and final, all decisions or interpretations of the Board or the Committee regarding any questions arising under this Award, the 2019 Plan or the PSU Terms and Conditions; and (v) acknowledge and agree that, except as otherwise specifically provided in the 2019 Plan or the PSU Terms and Conditions, the vesting of my Award is expressly conditioned on my continuous employment with the Company from the Grant Date through the end of the Performance Period (as such terms are defined above).

Signature:  ____________________________ 
                    [Name]
Date:  ___________________________

EXHIBIT A
Performance goals and payout schedule
[2020 – 2022 Performance Period]

The number of performance share units earned will depend on the actual performance of the Company relative to the performance goals for the three year Performance Period. There are two equally weighted performance goals considered for the Performance Period as follows:

  i. Cumulative Operating Income (Income from Operations) Growth; and

    ii. Return on Invested Capital. 
 
The Board has approved the following regarding performance goals and the related payout schedule for the Performance Period:

												
	Targets and Payout Table
			
	Cumulative OI Growth Target
($ in thousands)
	Payout Multiplier
	ROIC Target
	Payout Multiplier

	-
	200%
	17.7%
	200%

	-
	100%
	16.1%
	100%

	-
	50%
	13.7%
	50%

	Below $419,690
	No Payout
	Below 13.7%
	No Payout

For actual performance values that fall between the levels of performance set out in the above table, straight-line interpolation shall be used to determine the appropriate award multiplier. The number of shares to be issued pursuant to the Award shall be calculated as follows:

(Target Award Shares) x (Cumulative OI Growth Payout Multiplier x.50) PLUS
(Target Award Shares) x (ROIC Payout Multiplier x .50) 

Cumulative Operating Income Growth - for purposes of measuring performance, the target annual operating income growth rate will be converted into a cumulative operating income amount computed as the sum of all operating income generated during the three-year performance period assuming the target annual growth rate. Actual performance will be calculated as the sum of the Company’s actual consolidated operating income during the three-year performance period in comparison to the target amount of cumulative operating income. 

ROIC  - ROIC for will be measured as the three-year average ROIC calculated for each year within the performance period in accordance with the following formula:

EBIT + Amortization Expense
Total Debt + Total Equity 

Notwithstanding the foregoing, the calculation of the above metrics as well as the determination of whether the performance goals have been met for the Performance Period, and any adjustments to such performance goals, will be made by the Compensation Committee in its sole discretion following the end of the Performance Period.   

EXHIBIT B

PSU Terms and conditions

These PSU Terms and Conditions have been approved by the Board of Directors of Alamo Group Inc. (the “Company”). Awards of performance share units granted pursuant to Section 8 of the Company’s 2019 Equity Incentive Plan (the “2019 Plan”) are subject to and governed by the terms and conditions set forth in the 2019 Plan and the terms and conditions set forth herein, and the terms and conditions of the Company’s Recoupment Policy. In the event of any conflict between the provisions of the 2019 Plan and these terms and conditions, the Committee shall have full authority and discretion to resolve such conflict and any such determination shall be final, conclusive and binding on the Participant and all interested parties.  Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the 2019 Plan or the Award.

1.         Performance Goals.

a.The number of PSUs earned by the Participant for the Performance Period will be determined at the end of the Performance Period based on the level of achievement of the performance goals in accordance with the Award Agreement. All determinations of whether performance goals have been achieved, the number of PSUs earned by the Participant, and all other matters related to this Section 1 shall be made by the Committee in its sole discretion.
b.Promptly following completion of the Performance Period (and no later than seventy-five (75) days following the end of the Performance Period, the Committee will review and certify (a) whether, and to what extent, the performance goals for the Performance Period have been achieved, and (b) the number of PSUs that the Participant shall earn, if any, subject to compliance with the requirements of Section 2 of these terms and conditions.  

2          Terms and Conditions of Award; Vesting.

a.Vesting of PSUs. The PSUs are subject to forfeiture until they vest. Except as otherwise provided herein, the PSUs will vest and become nonforfeitable on the last day of the Performance Period (a) subject to the achievement of the minimum threshold performance goals for payout set forth in the Award Agreement, and (b) provided that the Participant has been a continuous Service Provider from the Grant Date through the last day of the Performance Period. The number of PSUs that vest and become payable under the Award Agreement shall be determined by the Committee based on the level of achievement of the performance goals set forth in the Award Agreement and shall be rounded to the nearest whole PSU.

b.Termination of Relationship as a Service Provider.  Except as otherwise expressly provided herein or in the Award Agreement, if the Participant ceases to be a Service Provider for any reason at any time before all of his or her PSUs have vested, the Participant’s unvested PSUs shall be automatically forfeited at the time at which the Participant ceases to be a Service Provider and neither the Company nor any Affiliate shall have any further obligations to the Participant under the Award Agreement.  

c.Death or Disability.  Notwithstanding Section 2b. above, if the Participant ceases to be a Service Provider during the Performance Period as a result of the Participant’s death or Disability (as hereinafter defined), a portion of the Participants’ unvested PSU’s will vest on such date in a pro rata amount calculated by multiplying the target amount of the Award (assuming achievement of the target performance goal) by a fraction, the numerator of which equals the number of days that the Participant was a Service Provider during the Performance Period and the denominator of which equals the total number of days in the Performance Period. The term “Disability” means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.  The ultimate determination of whether an individual has suffered a Disability shall be made by the Committee in its reasonable discretion.

d.Qualifying Retirement.  Notwithstanding Section 2b. above, if the Participant ceases to be a Service Provider during the Performance Period as a result of a Qualifying Retirement, which shall be defined and determined by the Committee in its sole discretion (by resolution), a portion of the Participant’s unvested PSU’s will vest at the end of the Performance Period in a pro rata amount calculated by multiplying the actual award achieved at the end of the Performance Period (based on actual Company performance) by a fraction, the numerator of which equals the number of days that the Participant was a Service Provider during the Performance Period up to the date of the Qualifying Retirement and the denominator of which equals the total number of days in the Performance Period.  If the Company’s actual performance during the relevant Performance Period results in no payout then the Participant shall not be entitled to receive any Common Shares pursuant to the Award.

e.Effect of a Change in Control.  Notwithstanding Section 2b., and except as may be provided in any Change in Control Agreement between the Company and the Participant, if there is a Change in Control during the Performance Period, a portion of the Participants’ unvested PSU’s will vest on the date of such Change of Control in a pro rata amount calculated by multiplying the amount of the Award (which amount shall be determined by the Committee in its reasonable discretion based on the Company’s expected performance during the relevant Performance Period or, if such 

amount cannot be reasonably determined by the Committee, then the target award amount) by a fraction, the numerator of which equals the number of days that the Participant was a Service Provider during the Performance Period up to the date of the Change of Control and the denominator of which equals the total number of days in the Performance Period.  Common Shares shall be paid pursuant to such vested Awards (if any) no later than sixty (60) days following such Change in Control.

f.Payment of PSUs. Payment in respect of the PSUs earned for the Performance Period shall be made in Common Shares (as defined in the 2019 Plan) and shall be issued to the Participant as soon as practicable following the vesting date and in any event within seventy five (75) days following the vesting date. The Company shall (a) issue and deliver to the Participant the number of Common Shares equal to the number of vested PSUs, and (b) enter the Participant's name on the books of the Company as the shareholder of record with respect to the Common Shares delivered to the Participant.

g.Transferability. Subject to any exceptions set forth herein or in the 2019 Plan, the PSUs or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant, except by will or the laws of descent and distribution, and upon any such transfer by will or the laws of descent and distribution, the transferee shall hold such PSUs subject to all of the terms and conditions that were applicable to the Participant immediately prior to such transfer.
 
h.Rights as Shareholder; Dividend Equivalents.  Except as otherwise provided herein, the Participant shall not have any rights of a shareholder with respect to the shares of Common Shares underlying the PSUs, including, but not limited to, voting rights and the right to receive or accrue dividends or dividend equivalents.   Upon and following the vesting of the PSUs and the issuance of shares, the Participant shall be the record owner of the shares of Common Shares underlying the PSUs unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting and dividend rights). 

3.         No Right to Continued Service. Neither the 2019 Plan nor the Award Agreement shall confer upon the Participant any right to be retained in any position as a Service Provider of the Company. Further, nothing in the 2019 Plan or the Award Agreement shall be construed to limit the discretion of the Company to terminate the Participant's position as a Service Provider at any time, with or without Cause. 

4.         Adjustments.  Notwithstanding anything to the contrary provided herein, the Award and all rights and obligations under the Award Agreement are subject to Section 9 of the 2019 Plan, provided, however, that PSU's shall not be adjusted as a 

result of the payment of any ordinary cash dividend by the Company, and provided further that the provisions set forth in Section 2 of these terms and conditions will apply to determine the acceleration of vesting of PSU’s in the event of a Change of Control.

5.         Tax Liability and Withholding/Parachute Payments.

a.The Participant shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Participant pursuant to the 2019 Plan, the amount of any required withholding taxes in respect of the PSUs and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Participant to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination of such means: 

i.tendering a cash payment;

ii.authorizing the Company to withhold Shares from the number of Shares otherwise issuable or deliverable to the Participant as a result of the vesting of the PSUs; provided, however, that no Shares shall be withheld with a value exceeding the amount of tax required to be withheld by law; or

iii.delivering to the Company previously owned and unencumbered Shares.

b.Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("Tax-Related Items"), the ultimate liability for all Tax-Related Items is and remains the Participant's responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting or settlement of the PSUs or the subsequent sale of any shares, and (b) does not commit to structure the PSUs to reduce or eliminate the Participant's liability for Tax-Related Items.

c.Anything in this Agreement to the contrary notwithstanding and except as set forth in subparagraph (d) below, if it is determined that any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Participant, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any reduction (if any) required under this Section 5 (the "Payment"), would be subject to the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax ("Excise Tax"), then the Company will automatically reduce (the "Reduction") the Participant's Payment to the minimum extent necessary to prevent the 

Payment (after the Reduction) from being subject to the Excise Tax, but only if, by reason of the Reduction, the after-tax benefit of the reduced Payment exceeds the after-tax benefit if such Reduction was not made. If the after-tax benefit of the reduced Payment does not exceed the after-tax benefit if the Payment is not reduced, then the Reduction will not apply. If the Reduction is applicable, the Payment will be reduced in such a manner that provides the Participant with the best economic benefit and, to the extent any portions of the Payment are economically equivalent with each other, each will be reduced pro rata.

d.All determinations required to be made under this Section 5, including the after-tax benefit and calculation of the Reduction, will be made by a certified public accounting firm that is selected by the Company prior to the occurrence of a Change in Control (the "Accounting Firm"), which may be the Company's independent auditor, but which firm will not be a firm serving as accountant or auditor for the individual, entity or group effecting the Change in Control. If the Reduction is applicable, the Company will provide the Participant with a written summary of the portions of the Payment that will be reduced. All fees and expenses of the Accounting Firm will be borne solely by the Company. All determinations by the Accounting Firm made under this Section 5 are binding upon the Company and the Participant.

6.         Compliance with Laws. The issuance and transfer of shares of Common Shares in connection with the PSUs shall be subject to compliance by the Company and the Participant with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's shares may be listed. No Common Shares shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the restricted stock shares by any holder thereof in violation of the provisions of the Award Agreement, these terms and conditions or the Certificate of Incorporation or the Bylaws of the Company, will be valid, and the Company will not transfer any such shares on its books nor will any of such shares be entitled to vote, nor will any dividends be paid thereon, unless and until there has been full compliance with such provisions to the satisfaction of the Company.

7.         Notices.  Whenever any notice is required or permitted hereunder, such notice shall be in writing and shall be given by personal delivery, nationally recognized overnight courier, facsimile, first class mail, or certified or registered with return receipt requested at the party’s address as stated in the Award Agreement or at the party’s last known address. Any notice required or permitted to be delivered hereunder shall be deemed to have been duly given on the date which it is personally delivered or, whether actually received or not, on the third business day after mailing or 24 hours after 

transmission by facsimile to the respective parties named below.  Either party may change such party’s address for notices by duly giving notice pursuant hereto.

8.         Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of the Award Agreement shall in no way be construed to be a waiver of such provision or of any other provision.

9.         Governing Law. The Award Agreement and these PSU Terms and Conditions will be construed and interpreted in accordance with the laws of the State of Delaware without regard to conflict of law principles. 

10.       Authority of Committee.  The Committee shall have full authority to interpret and construe the terms of the 2019 Plan and the Award Agreement.  The determination by the Committee as to any such matter of interpretation or construction shall be final, binding, and conclusive.

11.       Binding Effect; Successors and Assigns. The Company may assign any of its rights under the Award Agreement. The Award Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, the Award Agreement will be binding upon the Participant and the Participant's beneficiaries, executors, administrators and the person(s) to whom the PSUs may be transferred by will or the laws of descent or distribution.

12.       Tax Representation.   The Participant hereby represents that he or she has reviewed with his or her own tax advisors the federal, state, local, and foreign tax consequences of the transactions contemplated by the Award Agreement.  The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  The Participant understand that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by the Award Agreement.

13.       Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.Document

        Exhibit 4.3 

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
As of December 31, 2019, Codexis, Inc. (“we,” “us” or “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock, $0.0001 par value per share (“common stock”).
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 amended and restated certificate of incorporation, our certificate of designations of Series A Junior Participating Preferred Stock and our amended and restated bylaws, each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.3 is a part. We encourage you to read our amended and restated certificate of incorporation, our certificate of designations of Series A Junior Participating Preferred Stock, our amended and restated bylaws and the applicable provisions of the Delaware General Corporation Law for additional information.
Authorized Capital Stock
Our authorized capital stock consists of:
•100,000,000 shares of common stock; and
•5,000,000 shares of preferred stock, $0.0001 par value per share, of which 100,000 shares have been designated as Series A Junior Participating Preferred Stock.
Voting Rights
Each holder of our common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. 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 addition, the affirmative vote of holders of 66 2/3% of the voting power of all of the then outstanding voting stock will be required to take certain actions, including amending certain provisions of our amended and restated certificate of incorporation, such as the provisions relating to amending our amended and restated bylaws, the classified board and director liability.
Dividends
Subject to preferences that may be applicable to any then outstanding preferred stock, holders of our common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.
Liquidation
In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then outstanding shares of preferred stock.
Rights and Preferences
Holders of our common stock have no preemptive, conversion, subscription or other rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the 

holders of our common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of our preferred stock that we may designate in the future.
Preferred Stock – Limitations on Rights of Holders of Common Stock
Our board of directors has the authority, without further action by our stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The issuance of our preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon our liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of our company or other corporate action. 
Anti-Takeover Effects of Provisions of our Amended and Restated Certificate of Incorporation, our Amended and Restated Bylaws and Delaware Law
Some provisions of Delaware law and our amended and restated certificate of incorporation and our amended and restated bylaws contain provisions that could make the following transactions more difficult: acquisition of us by means of a tender offer; acquisition of us by means of a proxy contest or otherwise; or removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares.
These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement of their terms.
Delaware Anti-Takeover Statute
We are subject to the provisions of Section 203 of the Delaware General Corporation Law. Under Section 203, we would generally be prohibited from engaging in any business combination with any interested stockholder for a period of three years following the time that this stockholder became an interested stockholder unless:
•prior to this time, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
•upon consummation 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 commenced, excluding shares owned by persons who are directors and also officers, and 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 subsequent to such time, the business combination is approved by the board of directors and authorized at an annual or special meeting of 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.
Under Section 203, a “business combination” includes:
•any merger or consolidation involving the corporation and the interested stockholder;

•any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
•any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder, subject to limited exceptions;
•any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of 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 loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
In general, Section 203 defines an interested stockholder as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by such entity or person.
Undesignated Preferred Stock
The ability to authorize 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 control of us. These and other provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of our company.
Special Stockholder Meetings
Our charter documents provide that a special meeting of stockholders may be called only by our chairman of the board of directors, Chief Executive Officer or President, or by a resolution adopted by a majority of our board of directors.
Requirements for Advance Notification of Stockholder Nominations and Proposals
Our amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors.
Elimination of Stockholder Action by Written Consent
Our amended and restated certificate of incorporation eliminates the right of stockholders to act by written consent without a meeting.
Classified Board; Election and Removal of Directors; Filling Vacancies
Our board of directors is divided into three classes. The directors in each class will serve for a three-year term, one class being elected each year by our stockholders, 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 shares of common stock outstanding will be able to elect all of our directors. Our amended and restated certificate of incorporation provides for the removal of any of our directors only for cause and requires a stockholder vote by the holders of at least a 66 2/3% of the voting power of the then outstanding voting stock. Furthermore, any vacancy on our board of directors, however occurring, including a vacancy resulting from an increase in the size of the board of directors, may only be filled by a resolution of the board of directors unless the board of directors determines that such vacancies shall be filled by the stockholders. This system of electing and removing directors and filling vacancies may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors.

Amendment of Charter Provisions
The amendment of any of the above provisions, except for the provision making it possible for our board of directors to issue preferred stock, would require approval by holders of at least 66-2/3% of the voting power of our then outstanding voting stock.
The provisions of the Delaware General Corporation Law, our amended and restated certificate of incorporation and our amended and restated bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.
Limitations of Liability and Indemnification Matters
Our amended and restated certificate of incorporation contains provisions that limit the liability of our directors for monetary damages to the fullest extent permitted by Delaware law. Consequently, our directors will not be personally liable to us or our stockholders for monetary damages for any breach of fiduciary duties as directors, except 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;
•unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; or
•any transaction from which the director derived an improper personal benefit.
Our amended and restated certificate of incorporation provides that we may, and our amended and restated bylaws provide that we are required to, indemnify our directors and officers, in each case to the fullest extent permitted by Delaware law. Our amended and restated bylaws also provide that we shall advance expenses incurred by a director or officer in advance of the final disposition of any action or proceeding, and permit us to secure insurance on behalf of any officer, director, employee or other agent for any liability arising out of his or her actions in that capacity regardless of whether we would otherwise be permitted to indemnify him or her under Delaware law. We have entered and expect to continue to enter into agreements to indemnify our directors, executive officers and other employees as determined by our board of directors. With specified exceptions, these agreements provide for indemnification for related expenses including, among other things, attorneys’ fees, judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding. 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 our directors and officers for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and our stockholders. Further, a stockholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage.
The Nasdaq Global Select Market Listing
Our common stock is listed on The Nasdaq Global Select Market under the symbol “CDXS.”
Transfer Agent and Registrar

The transfer agent and registrar for our common stock is EQ Shareowner Services.

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