Document:

tgtx_Ex4_5

		

			 

		

		
			Exhibit 4.5
		

		
			DESCRIPTION OF SECURITIES
		

		
			 
		

		
			When used herein, the terms “we,” “our,” and “us” refer to TG Therapeutics, Inc.
		

		
			 
		

		
			DESCRIPTION OF CAPITAL STOCK
		

		
			 
		

		
			The following summary of the terms of our common stock may not be complete and is subject to, and qualified in its entirety by reference to, the terms and provisions of our amended and restated certificate of incorporation and our restated bylaws. You should refer to, and read this summary together with, our amended and restated certificate of incorporation and restated bylaws to review all of the terms of our common stock that may be important to you.
		

		
			 
		

		
			Common Stock
		

		
			 
		

		
			Under our certificate of incorporation, we are authorized to issue a total of 150,000,000 shares of common stock, par value $0.001 per share. All outstanding shares of our common stock are fully paid and nonassessable. Our common stock is listed on the Nasdaq Capital Market under the symbol “TGTX.”
		

		
			 
		

		
			Dividends
		

		
			 
		

		
			Subject to the dividend rights of the holders of any outstanding series of preferred stock, holders of our common stock are entitled to receive ratably such dividends and other distributions of cash or any other right or property as may be declared by our board of directors out of our assets or funds legally available for such dividends or distributions.
		

		
			 
		

		
			Voting Rights
		

		
			 
		

		
			The holders of our common stock are entitled to one vote for each share of common stock owned by that stockholder on every matter properly submitted to the stockholders for their vote. Stockholders are not entitled to vote cumulatively for the election of directors.
		

		
			 
		

		
			Liquidation and Dissolution
		

		
			 
		

		
			In the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, holders of common stock would be entitled to share ratably in our assets that are legally available for distribution to stockholders after payment of liabilities. If we have any preferred stock outstanding at such time, holders of the preferred stock may be entitled to distributions and/or liquidation preferences. In either such case, we must pay the applicable distribution to the holders of our preferred stock (if any) before we may pay distributions to the holders of common stock.
		

		
			 
		

		
			Other
		

		
			 
		

		
			Holders of our common stock have no conversion, redemption, preemptive, subscription or similar rights.
		

		
			 
		

		
			Transfer Agent
		

		
			 
		

		
			American Stock Transfer and Trust Company serves as the transfer agent and registrar for all of our common stock.
		

		
			 
		

		
			Preferred Stock
		

		
			 
		

		
			Under the terms of our restated certificate of incorporation, our board of directors is authorized to issue up to 10,000,000 shares of preferred stock, par value $0.001 per share. Our board of directors may issues shares of preferred stock in one or more series without stockholder approval, and has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. We may amend from time to time our restated certificate of incorporation to increase the number of authorized shares of preferred stock. Any such amendment would require the
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			 
		

		
			approval of the holders of a majority of the voting power of the shares entitled to vote thereon. As of the current date, we have 10,000,000 shares of preferred shares authorized, but no shares of preferred stock outstanding.
		

		
			 
		

		
			 It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of the holders of common stock until the board of directors determines the specific rights of the holders of preferred stock. However, effects of the issuance of preferred stock include restricting dividends on common stock, diluting the voting power of common stock, impairing the liquidation rights of common stock, and making it more difficult for a third party to acquire us, which could have the effect of discouraging a third party from acquiring, or deterring a third party from paying a premium to acquire, a majority of our outstanding voting stock.
		

		
			 
		

		
			The particular terms of any series of preferred stock being offered by us will be described in the applicable prospectus supplement relating to that series of preferred stock. Those terms may include:
		

		
			 
		

		
			      the title and liquidation preference per share of the preferred stock and the number of shares offered;
		

		
			 
		

		
			      the purchase price of the preferred stock;
		

		
			 
		

		
			      the dividend rate (or method of calculation);
		

		
			 
		

		
			      the dates on which dividends will be paid and the date from which dividends will begin to accumulate;
		

		
			 
		

		
			      any redemption or sinking fund provisions of the preferred stock;
		

		
			 
		

		
			      any listing of the preferred stock on any securities exchange or market;
		

		
			 
		

		
			      any conversion provisions of the preferred stock;
		

		
			 
		

		
			      the voting rights, if any, of the preferred stock; and
		

		
			 
		

		
			      any additional dividend, liquidation, redemption, sinking fund and other rights, preferences, privileges, limitations and restrictions of the preferred stock.
		

		
			 
		

		
			The preferred stock will, when issued, be fully paid and non-assessable.
		

		
			 
		

		
			DESCRIPTION OF WARRANTS
		

		
			 
		

		
			We may issue warrants to purchase shares of our common stock and/or preferred stock in one or more series together with other securities or separately, as described in each applicable prospectus supplement.
		

		
			 
		

		
			The prospectus supplement relating to any warrants we offer will include specific terms relating to the offering. These terms will include some or all of the following:
		

		
			 
		

		
			      the title of the warrants;
		

		
			 
		

		
			      the aggregate number of warrants offered;
		

		
			 
		

		
			      the designation, number and terms of the shares of common stock purchasable upon exercise of the warrants and procedures by which those numbers may be adjusted;
		

		
			 
		

		
			      the exercise price of the warrants;
		

		
			 
		

		
			      the dates or periods during which the warrants are exercisable;
		

		
			 
		

		
			      the designation and terms of any securities with which the warrants are issued;
		

		
			 
		

		
			
		

		
			

		 

		

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			      if the warrants are issued as a unit with another security, the date on and after which the warrants and the other security will be separately transferable;
		

		
			 
		

		
			      if the exercise price is not payable in U.S. dollars, the foreign currency, currency unit or composite currency in which the exercise price is denominated;
		

		
			 
		

		
			      any minimum or maximum amount of warrants that may be exercised at any one time;
		

		
			 
		

		
			      any terms relating to the modification of the warrants;
		

		
			 
		

		
			      any terms, procedures and limitations relating to the transferability, exchange or exercise of the warrants; and
		

		
			 
		

		
			      any other specific terms of the warrants.
		

		
			 
		

		
			DESCRIPTION OF DEBT SECURITIES
		

		
			 
		

		
			We may offer debt securities which may be senior, subordinated or junior subordinated and may be convertible. Unless otherwise specified in the applicable prospectus supplement, our debt securities will be issued in one or more series under an indenture to be entered into between us and a trustee. We will issue the debt securities offered by any prospectus supplement under an indenture to be entered into between us and the trustee identified in the applicable prospectus supplement. The terms of the debt securities will include those stated in the indenture and those made part of the indenture by reference to the Trust Indenture Act of 1939, as in effect on the date of the indenture. The indenture will be subject to and governed by the terms of the Trust Indenture Act of 1939.
		

		
			 
		

		
			The following description briefly sets forth certain general terms and provisions of the debt securities that we may offer. The particular terms of the debt securities offered by any prospectus supplement and the extent, if any, to which these general provisions may apply to the debt securities, will be described in the related prospectus supplement. Accordingly, for a description of the terms of a particular issue of debt securities, reference must be made to both the related prospectus supplement and to the following description.
		

		
			 
		

		
			The aggregate principal amount of debt securities that may be issued under the indenture is unlimited. The debt securities may be issued in one or more series as may be authorized from time to time pursuant to a supplemental indenture entered into between us and the trustee or an order delivered by us to the trustee. For each series of debt securities we offer, a prospectus supplement will describe the following terms and conditions of the series of debt securities that we are offering, to the extent applicable:
		

		
			 
		

		
			      title and aggregate principal amount;
		

		
			 
		

		
			      whether the debt securities will be senior, subordinated or junior subordinated;
		

		
			 
		

		
			      applicable subordination provisions, if any;
		

		
			 
		

		
			      provisions regarding whether the debt securities will be convertible or exchangeable into other securities or property of the Company or any other person;
		

		
			 
		

		
			      percentage or percentages of principal amount at which the debt securities will be issued;
		

		
			 
		

		
			      maturity date(s);
		

		
			 
		

		
			      interest rate(s) or the method for determining the interest rate(s);
		

		
			 
		

		
			
		

		
			

		 

		

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			      whether interest on the debt securities will be payable in cash or additional debt securities of the same series;
		

		
			 
		

		
			      dates on which interest will accrue or the method for determining dates on which interest will accrue and dates on which interest will be payable;
		

		
			 
		

		
			      whether the amount of payment of principal of, premium, if any, or interest on the debt securities may be determined with reference to an index, formula or other method;
		

		
			 
		

		
			      redemption, repurchase or early repayment provisions, including our obligation or right to redeem, purchase or repay debt securities under a sinking fund, amortization or analogous provision;
		

		
			 
		

		
			      if other than the debt securities’ principal amount, the portion of the principal amount of the debt securities that will be payable upon declaration of acceleration of the maturity;
		

		
			 
		

		
			      authorized denominations;
		

		
			 
		

		
			      form;
		

		
			 
		

		
			      amount of discount or premium, if any, with which the debt securities will be issued, including whether the debt securities will be issued as “original issue discount” securities;
		

		
			 
		

		
			      the place or places where the principal of, premium, if any, and interest on the debt securities will be payable;
		

		
			 
		

		
			      where the debt securities may be presented for registration of transfer, exchange or conversion;
		

		
			 
		

		
			      the place or places where notices and demands to or upon the Company in respect of the debt securities may be made;
		

		
			 
		

		
			      whether the debt securities will be issued in whole or in part in the form of one or more global securities;
		

		
			 
		

		
			      if the debt securities will be issued in whole or in part in the form of a book-entry security, the depository or its nominee with respect to the debt securities and the circumstances under which the book-entry security may be registered for transfer or exchange or authenticated and delivered in the name of a person other than the depository or its nominee;
		

		
			 
		

		
			      whether a temporary security is to be issued with respect to such series and whether any interest payable prior to the issuance of definitive securities of the series will be credited to the account of the persons entitled thereto;
		

		
			 
		

		
			      the terms upon which beneficial interests in a temporary global security may be exchanged in whole or in part for beneficial interests in a definitive global security or for individual definitive securities;
		

		
			 
		

		
			      the guarantors, if any, of the debt securities, and the extent of the guarantees and any additions or changes to permit or facilitate guarantees of such debt securities;
		

		
			 
		

		
			      any covenants applicable to the particular debt securities being issued;
		

		
			 
		

		
			      any defaults and events of default applicable to the debt securities, including the remedies available in connection therewith;
		

		
			 
		

		
			      currency, currencies or currency units in which the purchase price for, the principal of and any premium and any interest on, such debt securities will be payable;
		

		
			 
		

		
			
		

		
			

		 

		

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			      time period within which, the manner in which and the terms and conditions upon which the Company or the purchaser of the debt securities can select the payment currency;
		

		
			 
		

		
			      securities exchange(s) on which the debt securities will be listed, if any;
		

		
			 
		

		
			      whether any underwriter(s) will act as market maker(s) for the debt securities;
		

		
			 
		

		
			      extent to which a secondary market for the debt securities is expected to develop;
		

		
			 
		

		
			      provisions relating to defeasance;
		

		
			 
		

		
			      provisions relating to satisfaction and discharge of the indenture;
		

		
			 
		

		
			      any restrictions or conditions on the transferability of the debt securities;
		

		
			 
		

		
			      provisions relating to the modification of the indenture both with and without the consent of holders of debt securities issued under the indenture;
		

		
			 
		

		
			      any addition or change in the provisions related to compensation and reimbursement of the trustee;
		

		
			 
		

		
			      provisions, if any, granting special rights to holders upon the occurrence of specified events;
		

		
			 
		

		
			      whether the debt securities will be secured or unsecured, and, if secured, the terms upon which the debt securities will be secured and any other additions or changes relating to such security; and
		

		
			 
		

		
			      any other terms of the debt securities that are not inconsistent with the provisions of the Trust Indenture Act (but may modify, amend, supplement or delete any of the terms of the indenture with respect to such series of debt securities).
		

		
			 
		

		
			General
		

		
			 
		

		
			One or more series of debt securities may be sold as “original issue discount” securities. These debt securities would be sold at a substantial discount below their stated principal amount, bearing no interest or interest at a rate which at the time of issuance is below market rates. One or more series of debt securities may be variable rate debt securities that may be exchanged for fixed rate debt securities.
		

		
			 
		

		
			United States federal income tax consequences and special considerations, if any, applicable to any such series will be described in the applicable prospectus supplement.
		

		
			 
		

		
			Debt securities may be issued where the amount of principal and/or interest payable is determined by reference to one or more currency exchange rates, commodity prices, equity indices or other factors. Holders of such debt securities may receive a principal amount or a payment of interest that is greater than or less than the amount of principal or interest otherwise payable on such dates, depending upon the value of the applicable currencies, commodities, equity indices or other factors. Information as to the methods for determining the amount of principal or interest, if any, payable on any date, the currencies, commodities, equity indices or other factors to which the amount payable on such date is linked and certain additional United States federal income tax considerations will be set forth in the applicable prospectus supplement.
		

		
			 
		

		
			The term “debt securities” includes debt securities denominated in U.S. dollars or, if specified in the applicable prospectus supplement, in any other freely transferable currency or units based on or relating to foreign currencies.
		

		
			 
		

		
			We expect most debt securities to be issued in fully registered form without coupons and in denominations of $2,000 and any integral multiples thereof. Subject to the limitations provided in the indenture and in the prospectus supplement, debt securities that are issued in registered form may be transferred or exchanged at the principal
		

		
			
		

		
			

		 

		

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			corporate trust office of the trustee, without the payment of any service charge, other than any tax or other governmental charge payable in connection therewith.
		

		
			 
		

		
			Global Securities
		

		
			 
		

		
			The debt securities of a series may be issued in whole or in part in the form of one or more global securities that will be deposited with, or on behalf of, a depositary identified in the prospectus supplement. Global securities will be issued in registered form and in either temporary or definitive form. Unless and until it is exchanged in whole or in part for the individual debt securities, a global security may not be transferred except as a whole by the depositary for such global security to a nominee of such depositary or by a nominee of such depositary to such depositary or another nominee of such depositary or by such depositary or any such nominee to a successor of such depositary or a nominee of such successor. The specific terms of the depositary arrangement with respect to any debt securities of a series and the rights of and limitations upon owners of beneficial interests in a global security will be described in the applicable prospectus supplement.
		

		
			 
		

		
			Governing Law
		

		
			 
		

		
			The indenture and the debt securities shall be construed in accordance with and governed by the laws of the State of New York.
		

		
			 
		

		
			DESCRIPTION OF UNITS
		

		
			 
		

		
			We may issue, in one more series, units comprised of shares of our common stock or preferred stock, warrants to purchase common stock or preferred stock, debt securities or any combination of those securities. Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included security. The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held or transferred separately, at any time or at any time before a specified date.
		

		
			 
		

		
			We may evidence units by unit certificates that we issue under a separate agreement. We may issue the units under a unit agreement between us and one or more unit agents. If we elect to enter into a unit agreement with a unit agent, the unit agent will act solely as our agent in connection with the units and will not assume any obligation or relationship of agency or trust for or with any registered holders of units or beneficial owners of units. We will indicate the name and address and other information regarding the unit agent in the applicable prospectus supplement relating to a particular series of units if we elect to use a unit agent.
		

		
			 
		

		
			We will describe in the applicable prospectus supplement the terms of the series of units being offered, including:
		

		
			 
		

		
			      the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;
		

		
			 
		

		
			      any provisions of the governing unit agreement that differ from those described herein; and
		

		
			 
		

		
			      any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units.
		

		
			 
		

		
			The other provisions regarding our common stock, preferred stock, warrants and debt securities as described in this section will apply to each unit to the extent such unit consists of shares of our common stock, preferred stock, warrants and/or debt securities.
		

		
			 
		

		 

		

			6ex_173464.htm

 

Exhibit 4.2

 

DESCRIPTION OF CATHAY GENERAL BANCORP’S COMMON STOCK

 

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

As of the date of filing of our annual report on Form 10-K for the year ended December 31, 2019, Cathay General Bancorp (referred to herein as the “Company,” “we,” “us,” or “our”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), consisting of shares of our common stock, par value $0.01 per share.

 

The following is a brief description of the terms of our common stock. This summary does not purport to be complete in all respects. This description is subject to and qualified in its entirety by reference to our restated certificate of incorporation and our amended and restated bylaws (each as amended), copies of which have been filed with the SEC as exhibits to our annual report on Form 10-K.

 

General

 

Our restated certificate of incorporation, as amended, provides the authority to issue 100,000,000 shares of common stock, par value $0.01 per share. As of February 14, 2020, there were 79,648,638 shares of common stock outstanding. Each share of our common stock has the same relative rights and is identical in all respects to each other share of our common stock.

 

Voting Rights

 

Holders of our common stock are entitled to one vote for each share that they hold and are vested with all of the voting power except as our board of directors has provided, or may provide in the future, with respect to preferred stock or any other class or series of preferred stock that the board of directors may hereafter authorize.

 

Except in very limited circumstances, holders of our common stock may not cumulate their votes in the election of directors, which means that a majority of the outstanding shares of common stock are generally able to elect all of the directors standing for election each year, subject to the rights of any preferred stock that is then issued and outstanding.

 

Dividends

 

Although we have historically paid cash dividends on our common stock, we are not required to do so. Holders of our common stock are entitled to receive dividends if, as and when declared by our board of directors, out of any funds legally available for dividends subject to certain restrictions on payment of dividends imposed by the Delaware General Corporation Law and state and federal banking laws. The amount of future dividends will depend on our earnings, financial condition, capital requirements and other factors, and will be determined by our board of directors. We may issue securities, including preferred stock that have preference over our common stock with respect to the payment of dividends or other distributions. The terms of our Junior Subordinated Notes also limit our ability to pay dividends.

 

As a holding company, our ability to pay distributions is affected by the ability of our subsidiaries to pay dividends. The ability of our bank subsidiary Cathay Bank (the “Bank”) and our ability to pay dividends in the future is, and could in the future be further, limited by bank regulatory requirements and capital guidelines. The Bank’s ability to pay dividends to us is limited to the extent it is not current in paying interest on its subordinated debt or if another event of default has occurred.

 

Liquidation Rights

 

The holders of our common stock will become entitled to participate ratably in the distribution of any of our assets remaining after we have paid all of our debts and liabilities and after we have paid to the holders of any class of stock having preference over the common stock in the event of liquidation, dissolution or winding-up, the full preferential amounts, if any, to which they are entitled.

 

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Certain Provisions of California and Federal Law

 

The following discussion is a summary of certain provisions of California and federal law and regulations, relating to stock ownership and transfers and business combinations, all of which may be deemed to have “antitakeover” effects. The description of these provisions is necessarily general and reference should be made to the actual laws and regulations and to the restated certificate of incorporation and amended and restated bylaws of the Company (each as amended).

 

With certain limited exceptions, federal regulations prohibit a person or company or a group of persons deemed to be “acting in concert” from, directly or indirectly, acquiring more than 10% (5% if the acquirer is a bank holding company) of any class of our voting stock or obtaining the ability to control in any manner the election of a majority of our directors or otherwise direct the management or policies of our company without prior notice or application to, and the approval of, the Federal Reserve. Companies investing in banks and bank holding companies receive additional review and may be required to become bank holding companies, subject to regulatory supervision.

 

Under the California Financial Code, no person shall, directly or indirectly, acquire control of a California state bank or its holding company unless the Department of Business Oversight has approved such acquisition of control. A person would be deemed to have acquired control of the Company, and thereby indirectly control of the Bank, if such person, directly or indirectly, has the power (i) to vote 25% or more of the voting power of the Company or (ii) to direct or cause the direction of the management and policies of the Company. For purposes of this law, a person who, directly or indirectly, owns or controls 10% or more of the Company’s common stock would be presumed to control the Company.

 

Miscellaneous

 

Shares of our common stock are not redeemable, and have no subscription, conversion or preemptive rights. Outstanding shares of our common stock are validly issued, fully paid and non-assessable. Holders of our common stock are not, and will not be, subject to any liability as stockholders.

 

NASDAQ Listing

 

Our common stock is listed on the NASDAQ Global Select Market under the symbol “CATY.”

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company.

 

 

ANTI-TAKEOVER PROVISIONS IN

THE COMPANY’S CERTIFICATE OF INCORPORATION AND BYLAWS

 

The following includes a brief description of certain of the provisions of the Company’s restated certificate of incorporation and amended and restated bylaws (each as amended). This description is subject to and qualified in its entirety by reference to our restated certificate of incorporation and amended and restated bylaws (each as amended), copies of which have been filed with the SEC as exhibits to our annual report on Form 10-K.

 

General

 

Our restated certificate of incorporation and amended and restated bylaws (each as amended) contain certain provisions that deal with matters of corporate governance and certain rights of stockholders which might be deemed to have a potential “anti-takeover” effect. These provisions may have the effect of discouraging a future takeover attempt which is not approved by the board of directors but which individual stockholders may deem to be in their best interest, or in which stockholders may receive a substantial premium for their shares over then current market prices. As a result, stockholders who might desire to participate in such a transaction may not have an opportunity to do so. Such provisions will also render the removal of an incumbent board of directors or management more difficult.

 

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Certain Certificate of Incorporation Provisions

 

Our restated certificate of incorporation has certain provisions that could make more difficult the acquisition of the Company by means of a tender offer, a proxy contest, merger or otherwise. These provisions include: (i) a requirement that any “Business Combination” (as defined in the restated certificate of incorporation) be approved by the affirmative vote of not less than 80% of the voting power of the then outstanding shares, voting together as a single class, excluding voting stock beneficially owned by an interested stockholder unless certain conditions are met, including without limitation: (a) the Business Combination is approved by a majority of “Continuing Directors” (as defined in the restated certificate of incorporation) or certain minimum price requirements are satisfied, (b) consideration to be received by holders of a particular series of stock is in cash or in the same form as has been previously paid by an “Interested Stockholder” (as defined in the restated certificate of incorporation) in connection with its acquisition of beneficial ownership of shares of such class, (c) there has been no failure to declare and pay at the regular date thereof any full regular dividends payable in accordance with the terms of any outstanding capital stock, other than common stock, except as approved by a majority of the Continuing Directors, (d) there has been no reduction in the amount, or change in the frequency of payment, of any dividends regularly paid on the common stock, (e) the Interested Stockholder has not received the benefit, directly or indirectly, of any loans, advances, guarantees, pledges or other financial assistance or tax credits or tax advantages by the Company, and (f) a proxy or information statement describing the Business Combination has been mailed to all stockholders of the Company at least 30 days prior to consummation of such Business Combination, (ii) a requirement that any “Stock Repurchase” (as defined in the restated certificate of incorporation) from an Interested Stockholder shall be approved by the affirmative vote of a majority of the votes entitled to be cast by the holders of such stock which is beneficially owned by persons other than such Interested Stockholder, voting together as a single class, unless (a) the Stock Repurchase is made pursuant to a tender offer or exchange offer made available on the same basis to all holders of such class of capital stock, or (b) the Stock Repurchase is made pursuant to an open market program approved by a majority of the Continuing Directors, and (iii) the ability of the board of directors to issue preferred stock at such time and on such terms and conditions as it deems appropriate.

 

Directors

 

Certain provisions of our restated certificate of incorporation and amended and restated bylaws (each as amended) will impede changes in majority control of the board of directors. Our restated certificate of incorporation and/or amended and restated bylaws (each as amended) provide that: our board is divided into three classes so that approximately one-third of the total number of directors is elected each year (this “classified” board of directors is intended to provide for continuity of the board of directors and to make it more difficult and time consuming for a stockholder group to use its voting power to gain control of the board of directors without consent of the incumbent board of directors); any vacancy occurring in the board of directors, including a vacancy created by an increase in the number of directors, is generally filled by a majority vote of the directors then in office for the remainder of the unexpired term; a director, in general, may be removed from office at any time only for cause and only by the affirmative vote of eighty percent (80%) of the then-outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class; stockholders may vote their shares cumulatively for directors in the event there is a holder of forty percent (40%) or more of our outstanding capital stock entitled to vote; prohibition on taking action by stockholder written consent or for stockholders to call for a special meeting; and procedures for the nomination of directors and submission of matters to the vote of our stockholders.

 

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Delaware Anti-Takeover Statute

 

We are subject to Section 203 of the Delaware General Corporation Law, which prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years after the date of the transaction in which the person becomes an interested stockholder, unless:

 

	 	
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			before that date, the board of directors of the corporation approves either the business combination or the transaction that resulted in the stockholder’s becoming an interested stockholder;

			

 

	 	
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			upon consummation of the transaction that resulted in the stockholder’s becoming an interested stockholder, the interested stockholder owns at least 85% of the outstanding voting stock, excluding shares held by directors, officers and employee stock plans; or

			

 

	 	
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			on or after the consummation date, the business combination is approved by the board of directors and by the affirmative vote at an annual or special meeting of stockholders of at least 66-2/3% of the outstanding voting stock that is not owned by the interested stockholder.

			

 

For purposes of Section 203, a business combination includes a merger, asset sale or other transaction resulting in a financial benefit to the interested stockholder. An interested stockholder is generally a person who, together with affiliates and associates of that person, (a) owns 15% or more of the corporation’s voting stock or (b) is an affiliate or associate of the corporation and was the owner of 15% or more of the outstanding voting stock of the corporation at any time within the three year period immediately prior to the date on which it is to be determined whether such person is an interested stockholder.

 

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