Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
  

 
  

W. R. BERKLEY CORPORATION 
 TO

 THE BANK OF NEW YORK MELLON, as Trustee 
  

 
 SECOND
SUPPLEMENTAL INDENTURE TO 
 INDENTURE DATED MAY 12, 2020 

(SENIOR DEBT SECURITIES) 
 Dated as
of as of March 16, 2021 
  
  

3.550% Senior Notes due 2052 
  

 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	ARTICLE I	  			
		
	Relation to Indenture; Definitions	  			
			
	 Section 1.1.
	 	 APPLICATION OF SECOND SUPPLEMENTAL INDENTURE
	  	 	1	 
	 Section 1.2.
	 	 DEFINITIONS
	  	 	2	 
		
	ARTICLE II	  			
		
	The Series of Securities	  			
			
	 Section 2.1.
	 	 TITLE OF THE SECURITIES
	  	 	2	 
	 Section 2.2.
	 	 GLOBAL FORM
	  	 	2	 
	 Section 2.3.
	 	 LIMITATION ON AGGREGATE PRINCIPAL AMOUNT
	  	 	2	 
	 Section 2.4.
	 	 REGISTRAR, PAYING AGENT AND PLACE OF PAYMENT
	  	 	2	 
	 Section 2.5.
	 	 PRINCIPAL PAYMENT DATE
	  	 	2	 
	 Section 2.6.
	 	 INTEREST AND INTEREST RATES
	  	 	2	 
	 Section 2.7.
	 	 REDEMPTION
	  	 	3	 
	 Section 2.8.
	 	 DENOMINATION
	  	 	4	 
	 Section 2.9.
	 	 CURRENCY
	  	 	4	 
	 Section 2.10.
	 	 SINKING FUND OBLIGATIONS
	  	 	4	 
	 Section 2.11.
	 	 DEFEASANCE AND COVENANT DEFEASANCE
	  	 	4	 
	 Section 2.12.
	 	 PAYMENT OF TAXES
	  	 	4	 
	 Section 2.13.
	 	 LIMITATION ON LIENS ON STOCK OF PRINCIPAL SUBSIDIARIES
	  	 	5	 
	 Section 2.14.
	 	 LIMITATIONS ON ISSUE OR DISPOSITION OF COMMON STOCK OF PRINCIPAL SUBSIDIARIES
	  	 	5	 
	 Section 2.15.
	 	 IMMEDIATELY AVAILABLE FUNDS
	  	 	5	 
		
	ARTICLE III	  			
		
	Miscellaneous Provisions	  			
			
	 Section 3.1.
	 	 TRUSTEE NOT RESPONSIBLE FOR RECITALS
	  	 	5	 
	 Section 3.2.
	 	 PAYMENT OF EXPENSES UPON RESIGNATION OR REMOVAL
	  	 	5	 
	 Section 3.3.
	 	 ADOPTION, RATIFICATION AND CONFIRMATION
	  	 	5	 
	 Section 3.4.
	 	 COUNTERPARTS; ELECTRONIC SIGNATURES
	  	 	6	 
	 Section 3.5.
	 	 GOVERNING LAW
	  	 	6	 

  
 1 

 W. R. BERKLEY CORPORATION 

SECOND SUPPLEMENTAL INDENTURE TO 

INDENTURE DATED MAY 12, 2020 

(SENIOR DEBT SECURITIES) 

$400,000,000 
 3.550% Senior Notes
due 2052 
 SECOND SUPPLEMENTAL INDENTURE, dated as of March 16, 2021, between W. R. BERKLEY CORPORATION, a Delaware corporation (the
“Company”), and THE BANK OF NEW YORK MELLON, a banking corporation, as Trustee (the “Trustee”). 
 RECITALS 

The Company has heretofore executed and delivered to the Trustee an indenture for senior debt securities, dated as of May 12, 2020 (the
“Base Indenture”), providing for the issuance from time to time of series of the Company’s Securities. 
 Section 3.1 of
the Base Indenture provides for various matters with respect to any series of Securities issued under the Indenture to be established in an indenture supplemental to the Base Indenture. 

Section 9.1(4) of the Base Indenture provides for the Company and the Trustee to enter into an indenture supplemental to the Base
Indenture to establish the form or terms of Securities of any series as provided by Sections 2.1 and 3.1 of the Base Indenture. 
 The
Company desires to execute this second supplemental indenture (this “Second Supplemental Indenture,” and the Base Indenture as supplemented by this Second Supplemental Indenture, the “Indenture”) pursuant to Section 2.1 of
the Base Indenture to establish the form, and pursuant to Section 3.1 of the Base Indenture to provide for the issuance, of a series of senior debt securities designated as its 3.550% Senior Notes due 2052 (the “Notes”) in an
aggregate principal amount of $400,000,000. The Notes are a series of the Company’s Securities as referred to in Section 3.1 of the Base Indenture. 

All acts and requirements necessary to make this Second Supplemental Indenture a legal, valid and binding obligation of the Company have been
done. 
 NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the issuance of the series of Securities provided for herein, it is mutually agreed, for the
equal and proportionate benefit of all Holders of the Securities of such series, as follows: 
 ARTICLE I 

RELATION TO INDENTURE; DEFINITIONS 

Section 1.1. APPLICATION OF SECOND SUPPLEMENTAL INDENTURE. Notwithstanding any other provision of this Second Supplemental Indenture, all
provisions of this Second Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes and any such provisions shall not be deemed to apply to any other Securities issued under the Base Indenture and shall not be
deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes. Unless otherwise expressly specified, references in this Second Supplemental Indenture to specific Article numbers or Section numbers
refer to Articles and Sections contained in this Second Supplemental Indenture as they amend or supplement the Base Indenture, and not the Base Indenture or any other document. 

  
 1 

 Section 1.2. DEFINITIONS. For purposes of this Second Supplemental Indenture: 

(a) Capitalized terms used herein without definition shall have the meanings specified in the Base Indenture, as supplemented hereby; 

(b) The terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this Second
Supplemental Indenture; 
 (c) “Fair Value,” when used with respect to Common Stock, means the fair value thereof as determined in
good faith by the Board of Directors; and 
 (d) For the benefit of the Holders of the Notes, Section 1.1 of the Base Indenture shall
be amended by adding the following new definitions: 
 “Base Indenture” has the meaning specified in the recitals hereto. 

“Global Note” has the meaning specified in Section 2.2. 

“Interest Payment Date” means each March 30 and September 30, beginning September 30, 2021. 

“Notes” has the meaning specified in the recitals hereto. 

ARTICLE II 
 THE SERIES OF
SECURITIES 
 Section 2.1. TITLE OF THE SECURITIES. There shall be a series of Securities designated the “3.550% Senior Notes due
2052”. 
 Section 2.2. GLOBAL FORM. The Notes shall be issued initially in the form of fully registered global Securities (the
“Global Notes”) in substantially the form attached as EXHIBIT A hereto, which shall be deposited on behalf of the purchasers of the Notes represented thereby with The Depository Trust Company, New York, New York (the
“Depository”) and registered in the name of Cede & Co., the Depositary’s nominee, duly executed by the Company, authenticated by the Trustee. 

Section 2.3. LIMITATION ON AGGREGATE PRINCIPAL AMOUNT. The aggregate principal amount of the Notes shall initially be limited to
$400,000,000 (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes of such series pursuant to Section 3.4, Section 3.5, Section 3.6, Section 9.5 or
Section 11.7 of the Base Indenture). The Company may, without notice to or consent of the Holders of the Notes, issue additional Securities having the same interest rate, maturity date and other terms as described in the related prospectus
supplement and prospectus; provided that such additional Securities are fungible with the Notes for United States federal income tax purposes. Any additional Securities, together with the Notes offered by the related prospectus supplement, will
constitute a single series of Securities under the Indenture. No additional Securities may be issued if an Event of Default under the Indenture has occurred and is continuing with respect to the Securities. 

Section 2.4. REGISTRAR, PAYING AGENT AND PLACE OF PAYMENT. The Company initially appoints the Trustee as Registrar and Paying Agent for
the Notes and the Corporate Trust Office of the Trustee is hereby designated as the Place of Payment where the Notes may be presented or surrendered for payment, where the Notes may be surrendered for registration or transfer or exchange and where
notices and demand to or upon the Company in respect of the Notes or the Indenture may be sent. 
 Section 2.5. PRINCIPAL PAYMENT DATE.
The principal amount of the Notes outstanding (together with any accrued and unpaid interest) shall be payable in a single installment on March 30, 2052, which date shall be the Stated Maturity of the Notes Outstanding. 

Section 2.6. INTEREST AND INTEREST RATES. The rate at which each Note shall bear interest shall be 3.550% per annum; the date from
which interest shall accrue on each Note shall be March 16, 2021, or the most recent Interest Payment Date to which interest has been paid or duly provided for; the Interest Payment Dates for the 

  
 2 

 
Notes shall be March 30 and September 30 of each year, beginning September 30, 2021; the interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date, will be paid, in immediately available funds, to the Persons in whose names the Note (or predecessor Note) is registered (which shall initially be the Depository) at the close of business on the Regular Record Date for such interest, which
shall be March 15 and September 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. However, interest paid on the Maturity Date or a Redemption Date will be payable to the Person to whom the
principal will be payable. Interest shall be computed on the basis of a 360 day year comprised of twelve 30-day months. For so long as the Notes are represented in global form by one or more Global Notes, all payments of principal (and premium,
if any) and interest shall be made by wire transfer of immediately available funds to the Depository or its nominee, as the case may be, as the registered owner of the Global Note representing such Notes. In the event that definitive Notes shall
have been issued, all payments of principal (and premium, if any) and interest shall be made by wire transfer of immediately available funds to the accounts of the registered Holders thereof; provided, that the Company may at its option pay interest
by check to the registered address of each Holder of a definitive Note. 
 Section 2.7. REDEMPTION. 

(a) Prior to September 30, 2051, the Company may redeem the Notes at its option, in whole or in part, at any time and from time to time at
a Redemption Price equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) an amount, as determined by an Independent Investment Banker, equal to the sum of the present values of the remaining
scheduled payments of principal of and interest on the securities to be redeemed that would be due if the Notes matured on September 30, 2051 (not including any portion of such payments of interest accrued as of the Redemption Date) discounted
to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 20 basis points, in each case, plus accrued and unpaid interest thereon to, but not including, the
Redemption Date. 
 (b) On or after September 30, 2051, the Company may redeem the Notes at its option, in whole or in part, at any
time or from time to time, prior to the date of redemption, at a Redemption Price equal to 100% of the principal amount of such Securities to be redeemed plus accrued and unpaid interest thereon to, but not including, the Redemption Date. 

(c) For the purposes of this Section 2.7, 

“Adjusted Treasury Rate” means, with respect to any Redemption Date: 

 

	 	•	 	 the yield, under the heading which represents the average for the immediately preceding week, appearing in the
most recently published statistical release designated “H.15” published by the Board of Governors of the Federal Reserve System (or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System
and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity) under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue. If no
maturity is within three months before or after the Remaining Life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month; or 

  

	 	•	 	 if such release (or any successor release) is not published during the week preceding the calculation date or
does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Redemption Date. 

 The Adjusted Treasury Rate shall be calculated on the
third Business Day preceding the Redemption Date. 
 “Comparable Treasury Issue” means, with respect to any Redemption Date, the
United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the notes to be redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of those securities (“Remaining Life”). 

  
 3 

 “Comparable Treasury Price” means, with respect to any Redemption Date,
(i) the average of three Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than three such
Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Independent Investment Banker” means, with respect
to any Redemption Date, one of the Reference Treasury Dealers appointed by the Company. 
 “Reference Treasury Dealer” means, with
respect to any Redemption Date: 
  

	 	•	 	 each of BoA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan
Stanley & Co. LLC (or any affiliate of any of the foregoing that is a Primary Treasury Dealer), and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in the
United States (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer; and 

  

	 	•	 	 any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at
5:00 p.m., New York City Time, on the third Business Day preceding such Redemption Date. 
 The Company will mail a notice of
redemption at least 10 days but not more than 60 days before the Redemption Date to each holder of notes to be redeemed. If less than all of the notes are to be redeemed, the trustee will select in a fair and appropriate manner, including
pro rata or by lot, the notes to be redeemed in whole or in part; provided that if the notes are represented by global notes and such global notes are held by The Depository Trust Company, beneficial interests in the notes will be
selected for redemption by The Depository Trust Company in accordance with its standard procedures therefor. 
 Unless the Company defaults
in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the notes or portions thereof called for redemption. 

Section 2.8. DENOMINATION. The Notes shall be issuable only in registered form without coupons and in denominations of $2,000 and
integral multiples of $1,000. 
 Section 2.9. CURRENCY. Principal and interest on the Notes shall be payable in such coin or currency
of the United States of America that at the time of payment is legal tender for payment of public and private debts. 
 Section 2.10.
SINKING FUND OBLIGATIONS. The Company has no obligation to redeem or purchase any Notes pursuant to any sinking fund or analogous requirement or upon the happening of a specified event or at the option of a Holder thereof. 

Section 2.11. DEFEASANCE AND COVENANT DEFEASANCE. The Company has elected to have both Section 4.2(2) (relating to defeasance) and
Section 4.2(3) (relating to covenant defeasance) of the Base Indenture applied to the Notes. 
 Section 2.12. PAYMENT OF TAXES.
The Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary, and lawful claims for labor, materials and supplies, which, if unpaid, might by law become a lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such tax, assessment or governmental charge whose amount, applicability or validity is being contested in good faith by appropriate proceedings or where the failure to effect
such payment is not adverse in any material respect to the Holders of the Notes. 

  
 4 

 Section 2.13. LIMITATION ON LIENS ON STOCK OF PRINCIPAL SUBSIDIARIES. The Company will
not, and it will not permit any Subsidiary of the Company to, at any time directly or indirectly create, assume, incur or permit to exist any Indebtedness secured by a pledge, lien or other encumbrance (any pledge, lien or other encumbrance being
hereinafter in this Section referred to as a “lien”) on the voting securities of Principal Subsidiaries, or the voting securities of a Subsidiary that owns, directly or indirectly, the voting securities of any of the Principal
Subsidiaries, or any subsidiary succeeding to any substantial part of the business conducted by any Principal Subsidiary, without making effective provision whereby the Notes then Outstanding (and, if the Company so elects, any other Indebtedness of
the Company that is not subordinate to the Notes and with respect to which the governing instruments require, or pursuant to which the Company is otherwise obligated or required, to provide such security) shall be equally and ratably secured with
such secured Indebtedness so long as such other Indebtedness shall be secured. For purposes of this Section 2.13 only, “Indebtedness”, in addition to those items specified in Section 1.1 of the Indenture, shall include any
obligation of, or any such obligation guaranteed by, any Person for the payment of amounts due under a swap agreement or other similar instrument or agreement or foreign currency hedge exchange or similar instrument or agreement. 

If the Company shall hereafter be required to secure the Notes equally and ratably with any other Indebtedness pursuant to this Section,
(i) the Company will promptly deliver to the Trustee an Officer’s Certificate stating that the foregoing covenant has been complied with, and an Opinion of Counsel stating that in the opinion of such counsel the foregoing covenant has been
complied with and that any instruments executed by the Company or any Subsidiary of the Company in the performance of the foregoing covenant comply with the requirements of the foregoing covenant and (ii) the Trustee is hereby authorized to
enter into an indenture or agreement supplemental hereto and to take such action, if any, as it may deem advisable to enable it to enforce the rights of the holders of the Notes so secured. 

Section 2.14. LIMITATIONS ON ISSUE OR DISPOSITION OF COMMON STOCK OF PRINCIPAL SUBSIDIARIES. As long as any of the Notes remain
outstanding, the Company will not, and will not permit any Subsidiary to, issue, sell, assign, transfer or otherwise dispose of, directly or indirectly, any of the Common Stock of any Principal Subsidiary (except to the Company or to one or more
Subsidiaries or for the purpose of qualifying directors); provided, however, that this covenant shall not apply if (i) the issuance, sale, assignment, transfer or other disposition is required to comply with the order of a court
or regulatory authority of competent jurisdiction, other than an order issued at the request of the Company or of one of its Subsidiaries; (ii) the entire Common Stock of a Principal Subsidiary then owned by the Company or by its Subsidiaries
is disposed of in a single transaction or in a series of related transactions, for consideration consisting of cash or other property which is at least equal to the Fair Value of such Common Stock; or (iii) after giving effect to the issuance,
sale, assignment, transfer or other disposition, the Company and its Subsidiaries would own directly or indirectly at least 80% of the issued and outstanding Common Stock of such Principal Subsidiary and such issuance, sale, assignment, transfer or
other disposition is made for consideration consisting of cash or other property which is at least equal to the Fair Value of such Common Stock. 

Section 2.15. IMMEDIATELY AVAILABLE FUNDS. All payments of principal and interest shall be made in immediately available funds. 

ARTICLE III 
 MISCELLANEOUS
PROVISIONS 
 Section 3.1. TRUSTEE NOT RESPONSIBLE FOR RECITALS. The recitals herein contained are made by the Company and not by the
Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Second Supplemental Indenture. 

Section 3.2. PAYMENT OF EXPENSES UPON RESIGNATION OR REMOVAL. Upon termination of this Second Supplemental Indenture or the Base
Indenture or the removal or resignation of the Trustee, unless otherwise stated, the Company shall pay to the Trustee all amounts then due upon such termination, removal or resignation. 

Section 3.3. ADOPTION, RATIFICATION AND CONFIRMATION. The Base Indenture, as supplemented and amended by this Second Supplemental
Indenture, is in all respects hereby adopted, ratified and confirmed. 

  
 5 

 Section 3.4. COUNTERPARTS; ELECTRONIC SIGNATURES. This Second Supplemental Indenture
may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. Exchange of signature pages to this Second Supplemental Indenture and the Notes by
facsimile or electronic transmission shall constitute effective execution and delivery of this Second Supplemental Indenture and the Notes. 

Section 3.5. GOVERNING LAW. THIS SECOND SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE
STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed on the day and year first above written. 
  

							
	W. R. BERKLEY CORPORATION
		
	By:	 	             /s/ Richard M.
Baio

		 	Name:	 	Richard M. Baio
		 	Title:	 	Executive Vice President – Chief Financial Officer and Treasurer
		 	
	
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	             /s/ Francine
Kincaid

		 	Name:	 	Francine Kincaid
		 	Title:	 	Vice President

  
 [Signature Page to Second
Supplemental Indenture] 

 EXHIBIT A 

(FORM OF FACE OF NOTE) 
 THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS NOTE IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	Certificate No. 1	  	$400,000,000
	Dated: March 16, 2021	  	CUSIP No. 084423 AV4
		  	ISIN No. US084423AV48

 W. R. BERKLEY CORPORATION 

3.550% Senior Notes due 2052 
 W.
R. BERKLEY CORPORATION, a Delaware corporation (the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered
assigns, the principal sum of 400,000,000 UNITED STATES DOLLARS AND NO CENTS ($400,000,000) on March 30, 2052. The Company further promises to pay interest on said principal sum outstanding from March 16, 2021, or from the most recent
interest payment date (each such date, an “Interest Payment Date”) to which interest has been paid or duly provided for, semiannually in arrears on March 30 and September 30 of each year commencing September 30, 2021 at the
rate of 3.550% per annum, until the principal hereof shall have become due and payable and, until the principal hereof is paid or duly provided for or made available for payment. The amount of interest payable on any Interest Payment Date shall
be computed on the basis of a 360-day year comprised of twelve 30-day months. The amount of interest payable for any partial period shall be computed on the basis of the number of actual days elapsed in a 360-day year of twelve 30-day months. In the
event that any date on which interest is payable on this Note is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect
of any such delay). A “Business Day,” with respect to any Place of Payment or other location, shall mean any day other than a Saturday, Sunday or other day on which banking institutions in such Place of Payment or other location are
authorized or obligated by law, regulation or executive order to close. The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Note (or one or more Predecessor Securities) is registered at the close of business on the March 15 or September 15 prior to such Interest Payment Date. Any such interest installment not punctually paid or duly provided for shall
forthwith cease to be payable to the registered Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date
to be fixed by the Trustee for the payment of such Defaulted Interest, notice whereof shall be given to the Holder of this Note not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which this Note may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

  
 A-1 

 The principal of (and premium, if any) and the interest on this Note shall be payable at the
office or agency of the Company maintained for that purpose in the United States in such coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts; provided,
however, that payment of interest may be made at the option of the Company by check mailed to the registered Holder at such address as shall appear in the Security Register. Notwithstanding the foregoing, so long as the Holder of this Note is
Cede & Co., the payment of the principal of (and premium, if any) and interest on this Note will be made at such place and to such account as may be designated by Cede & Co. All payments of principal and interest hereunder shall be
made in immediately available funds. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, which may be delivered via electronic transmission, this Note shall not be entitled to any benefit under the Indenture or be valid for any
purpose. 
 IN WITNESS WHEREOF, the Company has caused this instrument to be executed. 

 

			
	W. R. BERKLEY CORPORATION
		
	By:	 	
                     
                                         
       

		 	Name:
		 	Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein referred to in the within-mentioned Indenture. 

Dated: March 16, 2021 
 THE BANK OF NEW YORK MELLON, 

as Trustee 
  

			
	By:	 	  

		 	Authorized Signatory

  
 A-2 

 (FORM OF REVERSE OF NOTE) 

This Note is one of a duly authorized issue of securities of the Company, designated as its 3.550% Senior Notes due 2052 (herein referred to
as the “Securities”), issued under and pursuant to an Indenture, dated as of May 12, 2020, between the Company and The Bank of New York Mellon (formerly known as The Bank of New York), as Trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), as supplemented by the Second Supplemental Indenture, dated as of March 16, 2021, between the Company and the Trustee (the Indenture as so supplemented, the
“Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the
Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. 
 All terms used in
this Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 Prior to September 30, 2051,
the Company may redeem the Securities at the Company’s option, in whole or in part, at any time and from time to time at a Redemption Price equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed and
(ii) an amount, as determined by an Independent Investment Banker, equal to the sum of the present values of the remaining scheduled payments of principal of and interest thereon that would be due if the Securities matured on September 30,
2051 (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semiannual basis assuming a 360-day year consisting of twelve 30-day months at the Adjusted Treasury Rate, plus 20
basis points, plus, in either of the above cases, accrued and unpaid interest thereon to, but not including, the Redemption Date. 
 On or
after September 30, 2051, the Company may redeem the Securities at the Company’s option, in whole or in part, at any time or from time to time, prior to the date of redemption, at a Redemption Price equal to 100% of the principal amount of
such Securities to be redeemed plus accrued and unpaid interest thereon to, but not including, the Redemption Date. 
 “Adjusted
Treasury Rate” means, with respect to any Redemption Date: 
  

	 	•	 	 the yield, under the heading which represents the average for the immediately preceding week, appearing in the
most recently published statistical release designated “H.15” published by the Board of Governors of the Federal Reserve System (or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System
and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity) under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue. If no
maturity is within three months before or after the Remaining Life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month; or 

  

	 	•	 	 if such release (or any successor release) is not published during the week preceding the calculation date or
does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Redemption Date. 

 The Adjusted Treasury Rate shall be calculated on the
third Business Day preceding the Redemption Date. 
 “Comparable Treasury Issue” means, with respect to any Redemption Date, the
United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of those Securities (“Remaining Life”). 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of three Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than three such Reference Treasury Dealer Quotations, the average of
all such quotations. 

  
 A-3 

 “Independent Investment Banker” means, with respect to any Redemption Date, one of
the Reference Treasury Dealers appointed by the Company. 
 “Reference Treasury Dealer” means, with respect to any Redemption
Date: 
  

	 	•	 	 each of BoA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan
Stanley & Co. LLC (or any affiliate of any of the foregoing that is a Primary Treasury Dealer), and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in the
United States (a “Primary Treasury Dealer”), the Company will substitute another Primary Treasury Dealer; and 

  

	 	•	 	 any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at
5:00 p.m., New York City Time, on the third Business Day preceding such Redemption Date. 
 The Company will mail a notice of
redemption at least 10 days but not more than 60 days before the Redemption Date to each holder of the Securities to be redeemed. If less than all of the Securities are to be redeemed, the Trustee will select in a fair and appropriate
manner, including pro rata or by lot, the Securities to be redeemed in whole or in part; provided that if the notes are represented by global notes and such global notes are held by The Depository Trust Company, beneficial
interests in the notes will be selected for redemption by The Depository Trust Company in accordance with its standard procedures therefor. 

Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the
Securities or portions thereof called for redemption. 
 If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 

The Indenture contains provisions for satisfaction, discharge and defeasance at any time of the entire indebtedness of this Note upon
compliance by the Company with certain conditions set forth in the Indenture. 
 The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities of each series at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or
in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. No reference herein to the Indenture and no provision of this Note or of the Indenture (other than Section 4.2 of the Indenture) shall alter or impair the
obligation of the Company to pay the principal and interest on the Note at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security
Register, upon surrender of this Note for registration of transfer at the office or agency of the Company maintained under Section 10.2 of the Indenture duly endorsed by, or accompanied by a written instrument of transfer, in form satisfactory
to the Company and the Security Registrar, duly executed by the Holder 

  
 A-4 

 
hereof or his or her attorney duly authorized in writing, and thereupon one or more new Securities of this series, of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. 
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 This global Note is exchangeable for Securities in definitive form only under certain limited circumstances set forth in the
Indenture. Securities of this series so issued are issuable only in registered form without coupons in denominations of $2,000 and any integral multiple of $1,000. As provided in the Indenture and subject to certain limitations herein and therein
set forth, Securities of this series so issued are exchangeable for a like aggregate principal amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same. 

The Company and, by its acceptance of this Note or a beneficial interest therein, the Holder of, and any Person that acquires a beneficial
interest in, this Note agree that for United States federal, state and local tax purposes it is intended that this Note constitute indebtedness. 

THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THE SECURITIES WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

  
 A-5ck1723866-ex41_10.htm

Exhibit 4.1

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE ACT OF 1934

As of December 31, 2020, Select Interior Concepts, Inc. (“we,” “our,” “us,” or the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our Class A common stock. There are no Class B Common Stock or Preferred Shares issued or outstanding.

General

The following description summarizes information about our capital stock. You can obtain more comprehensive information about our capital stock by consulting our amended and restated certificate of incorporation (which we refer to as our “charter”) and our amended and restated bylaws (which we refer to as our “bylaws”), as well as the General Corporation Law of the State of Delaware (which we refer to as the “DGCL”). Under our charter, our authorized capital stock consists of 100,000,000 shares of Class A Common Stock, par value $0.01 per share, 15,000,000 shares of Class B Common Stock, par value $0.01 per share, and 50,000,000 shares of preferred stock, par value $0.01 per share.

Class A Common Stock

Dividend Rights.  Holders of shares of our Class A Common Stock and Class B Common Stock are entitled to ratably receive dividends when and if declared by our board of directors out of funds legally available for that purpose, subject to any statutory or contractual restrictions on the payment of dividends and to any prior rights and preferences that may be applicable to any outstanding preferred stock.

Voting Rights.  Holders of shares of our Class A Common Stock are entitled to one vote per share held of record on all matters to be voted upon by our stockholders. Holders of shares of our Class A Common Stock do not have cumulative voting rights in the election of directors. Holders of shares of our Class A Common Stock and Class B Common Stock vote together as a single class on all matters presented to our stockholders for their vote or approval, except with respect to the amendment of certain provisions of our charter that would alter or change the powers, preferences or special rights of holders of our Class A Common Stock so as to affect them adversely, which amendments must be approved by holders of at least 80% of the issued and outstanding shares of our Class A Common Stock, voting as a separate class, or as otherwise required by applicable law.

Liquidation Rights.  Upon our liquidation, dissolution, distribution of assets or other winding up, holders of shares of our Class A Common Stock and Class B Common Stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and any liquidation preference of any outstanding preferred stock.

Other Matters.  The shares of our Class A Common Stock have no preemptive rights and are not subject to further calls or assessment by us. There are no redemption or sinking fund provisions applicable to our Class A Common Stock. All outstanding shares of our Class A Common Stock are fully paid and non-assessable.

Listing.  Our Class A Common Stock is currently listed on the NASDAQ Capital Market under the symbol “SIC.”

Class B Common Stock

Dividend Rights.  Holders of shares of our Class B Common Stock and Class A Common Stock are entitled to ratably receive dividends when and if declared by our board of directors out of funds legally available for that purpose, subject to any statutory or contractual restrictions on the payment of dividends and to any prior rights and preferences that may be applicable to any outstanding preferred stock.

Voting Rights.  Holders of shares of our Class B Common Stock are entitled to one vote per share held of record on all matters to be voted upon by the stockholders. Holders of shares of our Class B Common Stock do not 

 

 

have cumulative voting rights in the election of directors. Holders of shares of our Class B Common Stock and Class A Common Stock vote together as a single class on all matters presented to our stockholders for their vote or approval, except with respect to the amendment of certain provisions of our charter that would alter or change the powers, preferences or special rights of holders of our Class A Common Stock so as to affect them adversely, which amendments must be approved by holders of at least 80% of the issued and outstanding shares of our Class A Common Stock, voting as a separate class, or as otherwise required by applicable law.

Liquidation Rights.  Upon our liquidation, dissolution, distribution of assets or other winding up, holders of shares of our Class B Common Stock and Class A Common Stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and any liquidation preference of any outstanding preferred stock.

Conversion.   All of the then outstanding shares of Class B Common Stock were converted into shares of Class A Common Stock, based on the registration statement having been declared effective by the SEC on August 13, 2018, and the shares of our Class A Common Stock being listed on the NASDAQ Capital Market on August 16, 2018.

Other Matters.  The shares of our Class B Common Stock have no preemptive or conversion rights and are not subject to further calls or assessment by us. There are no redemption or sinking fund provisions applicable to our Class B Common Stock. All outstanding shares of our Class B Common Stock are fully paid and non-assessable.

Preferred Stock

Our charter provides that our board of directors is expressly authorized to provide for the issuance of shares of preferred stock in one or more series, and to fix the number of shares constituting such series, the designation of such series, the powers (including voting powers), if any, of the shares of such series, the preferences and relative, participating, optional, special or other rights, if any, of the shares of such series, and the qualifications, limitations or restrictions, if any, of the shares of such series, as shall be stated and expressed in the resolution or resolutions of our board of directors providing for the issuance of such series and as may be permitted by the DGCL.

Certain Provisions of Delaware Law and of our Charter and Bylaws

The following summary of certain provisions of the DGCL and of our charter and bylaws does not purport to be complete and is subject to and qualified in its entirety by reference to the DGCL and our charter and bylaws, copies of which have been filed as exhibits to our Annual Report on Form 10-K.

Our Board of Directors

Our charter and bylaws provide that our board of directors shall consist of not less than three nor more than 12 members, the exact number of which shall be fixed from time to time exclusively by action of our board of directors. Our bylaws provide that, unless otherwise required by applicable law and subject to the rights, if any, of holders of any series of our preferred stock, any vacancy arising through death, resignation, removal, or an increase in the number of directors constituting our board of directors may only be filled by the majority vote of the remaining directors in office, even if less than a quorum is present, or by the sole remaining director. 

Pursuant to our bylaws, each member of our board of directors who is elected at our annual meeting of our stockholders, and each director who is elected in the interim to fill vacancies and newly created directorships, will hold office for a one (1) year term or until the next annual meeting of our stockholders, and until his or her successor is elected and qualified, or until their earlier death, resignation or removal. Pursuant to our bylaws, directors will be elected by a plurality of votes cast by the shares present in person or by proxy at a meeting of stockholders and entitled to vote thereon, a quorum being present at such meeting.

 

 

Removal of Directors

Our bylaws provide that, subject to the rights, if any, of holders of Class A common stock, and unless otherwise required by applicable law, any director may be removed from office, but only for cause, and by the affirmative vote of the holders of at least a majority of the voting power of our capital stock entitled to vote generally in the election of directors. This provision, when coupled with the exclusive power of our board of directors to fill vacant directorships, precludes stockholders from removing incumbent directors except with the affirmative vote of the holders of at least a majority of the voting power of our capital stock entitled to vote generally in the election of directors and from filling the vacancies created by such removal.

Meetings of Stockholders

Pursuant to our bylaws, an annual meeting of our stockholders for the purpose of the election of directors and the transaction of any other business will be held on a date and at the time and place, if any, determined by our board of directors. Each of our directors is elected by our stockholders to serve for a one (1) year term or until the next annual meeting, and until his or her successor is duly elected and qualified, or until their earlier death, resignation or removal. In addition, the chairman of our board of directors, our chief executive officer, our president, or a majority of our board of directors may call a special meeting of our stockholders for any purpose, but business transacted at any special meeting of our stockholders shall be limited to the purposes stated in the notice of such meeting.

Elimination of Stockholder Action by Written Consent

Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of stock entitled to vote thereon were present and voted, unless the company’s certificate of incorporation provides otherwise. Our charter expressly eliminates the right of our stockholders to act by written consent. Stockholder action must take place at the annual or a special meeting of our stockholders.

Charter Amendments

Unless a higher vote is required by its certificate of incorporation, the affirmative vote of a majority of the outstanding stock entitled to vote is required to amend a Delaware corporation’s certificate of incorporation. However, amendments which make changes relating to the capital stock by increasing or decreasing the par value or the aggregate number of authorized shares of a class, or by altering or changing the powers, preferences or special rights of a class so as to affect them adversely, also require the affirmative vote of a majority of the outstanding shares of such class, even though such class would not otherwise have voting rights.

Pursuant to our charter, in addition to any votes required by applicable law and subject to the express rights, if any, of the holders of any series of preferred stock, the affirmative vote of the holders of at least 66 2/3 % of the voting power of our capital stock entitled to vote generally in the election of directors shall be required to amend, alter or repeal any provision, or adopt any new or additional provision, in a manner inconsistent with our charter provisions relating to the management of our Company by our board of directors, the calling of special meetings of our stockholders, the prohibition against stockholder action by written consent, and amendment of our charter. In addition, pursuant to our charter, we reserve the right at any time and from time to time to amend, alter, change or repeal any provision contained in our charter, and any other provision authorized by Delaware law in force at such time may be added in the manner prescribed by our charter or by applicable law, and all rights, preferences and privileges conferred upon stockholders, directors or any other persons pursuant to the charter are granted subject to the foregoing reservation of rights. Notwithstanding the foregoing, no amendment, alteration or repeal to our charter provisions relating to indemnification or the exculpation of directors shall adversely affect any right or protection existing under our charter immediately prior to such amendment, modification or repeal.

 

 

Bylaw Amendments

Our board of directors has the power to alter, amend, or repeal our bylaws or adopt any new provision authorized by the laws of the State of Delaware in force at such time. Under our charter, the stockholders have the power to amend, alter or repeal our bylaws, or adopt any new provision authorized by the laws of the State of Delaware in force at such time, at a duly called meeting of the stockholders, solely with, notwithstanding any other provisions of our bylaws or any provision of law which might otherwise permit a lesser vote or no vote, the affirmative vote of at least 66 2/3 % of the voting power of our capital stock enabled to vote thereon.

Advance Notice of Director Nominations and New Business

Our bylaws provide that, with respect to an annual meeting of stockholders, the proposal of any business to be considered by our stockholders at an annual meeting of stockholders (other than nominations for election to the board of directors) may be made only (i) pursuant to the notice of the meeting (or any supplement thereto) given by or at the direction of our board of directors (or any duly authorized committee thereof), (ii) otherwise properly brought before an annual meeting of stockholders by or at the direction of our board of directors (or any duly authorized committee thereof), or (iii) otherwise properly brought before an annual meeting of stockholders by a stockholder who is a stockholder of record on the date of the giving of such notice and who is entitled to vote at such meeting and who complies with the notice procedures set forth in our bylaws, including a requirement to provide certain information about the stockholder and its affiliates and the business proposal.

With respect to special meetings of stockholders, only the business specified in our notice of meeting may be brought before the meeting. Nominations of persons for election to our board of directors may be made at an annual or special meeting of stockholders at which directors are to be elected only (i) pursuant to our notice of the meeting (or any supplement thereto), provided, however, that reference in our notice of meeting to the election of directors or the election of members of the board of directors shall not include or be deemed to include nominations for election to the board of directors, (ii) by or at the direction of our board of directors (or any duly authorized committee thereof), or (iii) by a stockholder who is a stockholder of record on the date of the giving of such notice and who is entitled to vote at such meeting and who complies with the notice procedures set forth in our bylaws, including a requirement to provide certain information about the stockholder and its affiliates and the nominee.

Anti-Takeover Provisions

Our charter and bylaws and Delaware law contain provisions that may delay or prevent a transaction or a change in control of our Company that might involve a premium paid for shares of our common stock or otherwise be in the best interests of our stockholders, which could adversely affect the market price of our common stock. Certain of these provisions are described below.

Selected Provisions of our Charter and Bylaws.    Our charter and/or bylaws contain anti-takeover provisions that:

	
 
	
•
	
authorize our board of directors, without further action by the stockholders, to issue up to 50,000,000 shares of preferred stock in one or more series, and with respect to each such series, to fix the number of shares constituting that series, the powers, rights and preferences of the shares of that series, and the qualifications, limitations and restrictions of that series;

	
 
	
•
	
require that, subject to the express rights, if any, of the holders of any series of preferred stock, actions to be taken by our stockholders may be taken only at an annual or special meeting of our stockholders and not by written consent;

	
 
	
•
	
specify that special meetings of our stockholders can be called only by the chairman of our board of directors, our chief executive officer, our president, or the majority of our board of directors;

	
 
	
•
	
provide that our bylaws may be amended by our board of directors without stockholder approval;

 

 

	
 
		

	
 
	
•
	
provide that, subject to the express rights, if any, of the holders of any series of preferred stock, directors may be removed from office only by the affirmative vote of the holders of at least a majority of the voting power of our capital stock entitled to vote generally in the election of directors;

	
 
	
•
	
provide that vacancies on our board of directors or newly created directorships resulting from an increase in the number of our directors may be filled only by a vote of a majority of directors then in office, even though less than a quorum;

	
 
	
•
	
provide that, subject to the express rights, if any, of the holders of any series of preferred stock, any amendment, alteration or repeal of our charter provisions, or the adoption of any new or additional provision, inconsistent with our charter provisions relating to the management of our Company by our board of directors, the calling of special meetings of our stockholders, the prohibition against stockholder action by written consent, and amendment of our charter, requires the affirmative vote of the holders of at least 66 2/3 % of the voting power of our capital stock entitled to vote generally in the election of directors;

	
 
	
•
	
provide that the stockholders may amend, alter or repeal our bylaws, or adopt new or additional provisions of our bylaws, only with the affirmative vote of at least 66 2/3 % of the voting power of our capital stock entitled to vote generally; and

	
 
	
•
	
establish advance notice procedures for stockholders to submit nominations of candidates for election to our board of directors and other proposals to be brought before a stockholders meeting.

Delaware Anti-Takeover Statute.    In our charter we elected to be subject to Section 203 of the DGCL, an anti-takeover statute. In general, Section 203 of the DGCL prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the time the person became an interested stockholder, unless the business combination or the acquisition of shares that resulted in a stockholder becoming an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns 15% or more of a corporation’s voting stock or is our affiliate or associate and was the owner of 15% or more of our outstanding voting stock at any time within the three-year period immediately before the date of determination. The existence of this provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by our board of directors, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

Choice of Forum

Our bylaws provide that the state or federal courts located within the State of Delaware will be the exclusive forum for: (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, (iv) any civil action to interpret, apply, enforce or determine the validity of the provisions of our charter or our bylaws, or (v) any action asserting a claim governed by the internal affairs doctrine. Our bylaws also provide that the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. Furthermore, our bylaws provide that any person or entity purchasing or otherwise acquiring any interest in any of our securities will be deemed to have notice of and consented to the choice of forum provisions of our bylaws described above. These choice of forum provisions may limit a stockholder’s ability to bring a claim in a judicial forum that such stockholder finds favorable for disputes with us or any of our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. The enforceability of similar choice of forum provisions in other companies’ bylaws has been challenged in legal proceedings, and it is possible that, in connection with one or more actions or proceedings described above, a court could find the choice of forum provisions contained in our bylaws to be inapplicable or unenforceable.

 

 

Limitations on Liability, Indemnification of Directors and Officers, and Insurance

The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors’ fiduciary duties as directors, subject to certain exceptions, by provision of the corporation’s certificate of incorporation. Our charter contains a provision eliminating the personal liability of our directors to the fullest extent permitted by the DGCL. In addition, our bylaws include provisions that require us to indemnify, to the fullest extent allowable under the DGCL, our directors and officers for monetary damages for actions taken as our director or officer, or for serving at our request as a director or officer or another position at another corporation or enterprise, as the case may be. Our bylaws also provide that we must advance reasonable expenses to our directors and officers, subject to our receipt of an undertaking from the indemnified party as may be required under the DGCL.

We are also expressly authorized by the DGCL to carry directors’ and officers’ insurance to protect us, our directors, officers and certain employees for some liabilities. The limitation of liability and indemnification and advancements provisions in our charter and bylaws, respectively, may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. However, our charter provision eliminating the personal liability of our directors to the fullest extent permitted by the DGCL does not limit or eliminate our rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission in the event of a breach of a director’s fiduciary duties, including the duty of care. The indemnification provisions will not alter the liability of directors under the federal securities laws. In addition, your investment may be adversely affected to the extent that, in a derivative or direct suit, we pay the litigation costs of our directors and officers and the costs of settlement and damage awards against directors and officers pursuant to these indemnification and advancements provisions. There is currently no pending material litigation or proceeding against any of our directors, officers or employees for which indemnification or advancement is sought.

We maintain standard policies of insurance that provide coverage (i) to our directors and officers against losses arising from claims made by reason of breach of duty or other wrongful act, and (ii) to us with respect to indemnification and advancement payments that we may make to such directors and officers.

We have entered into indemnification agreements with each of our directors and executive officers. These indemnification agreements will require us to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. We believe that the limitation of liability provision in our charter and the indemnification agreements will facilitate our ability to continue to attract and retain qualified individuals to serve as directors and officers.

Insofar as the above described indemnification provisions permit indemnification of directors, officers or persons controlling us for liability arising under the Securities Act, we understand that in the opinion of the SEC, this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

Authorized but Unissued Shares

Our authorized but unissued shares of common stock will be available for future issuance without your approval. We may use additional shares for a variety of purposes, including future offerings to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued shares of common stock could render more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

Transfer Agent and Registrar

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

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