Document:

Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

This SUBSCRIPTION AGREEMENT
(this “Subscription Agreement”) is made by and between Enochian BioSciences Inc., a Delaware corporation (the “Company”),
and the other signatories listed on the signature pages hereto (each, a “Subscriber”, and collectively, the “Subscribers”)
as of March ____, 2021.

WHEREAS, subject to the
terms and conditions set forth in this Subscription Agreement, and pursuant to Regulation S under the Securities Act of 1933, as amended
(the “Securities Act”), the Company desires to issue and sell to each Subscriber, and each Subscriber desires to purchase
from the Company, the number of shares set forth next to such Subscriber’s name on the signature page a hereto (the “Shares”)
of the Company’s common stock, $0.0001 par value per share (“Common Stock”), in a private placement to Persons
(as defined below) who are not U.S. Persons under Regulation S (the “Offering”); and

WHEREAS, each Subscriber
understands that the Offering is being made without registration of the Common Stock under the Securities Act, or any securities law of
any state of the United States or of any other jurisdiction, and is being made to only non-U.S. Persons.

NOW, THEREFORE, for and
in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows:

1.                  
Subscription for Shares. 

(a)                
Subscription for Shares. Subject to the terms and conditions hereinafter set forth, each Subscriber
hereby irrevocably subscribes for and agrees to purchase the Shares at a price per Share equal to the average of the closing sale prices
of the Common Stock as reported on the Nasdaq Capital Market for the 20 trading days prior to the third day before Closing (the “Purchase
Price”), and the Company agrees to sell such Shares to such Subscriber for the Purchase Price, subject to the Company’s
right, in its sole discretion, to reject this subscription, in whole or in part, at any time prior to the Closing (as defined below).
Each Subscriber acknowledges that such Subscriber is not entitled to cancel, terminate or revoke this Subscription Agreement. Each Subscriber
further acknowledges that the Shares will be subject to restrictions on transfer as set forth in this Subscription Agreement. 

2.                  
Terms of Subscription.

(a)                
Payment. Each Subscriber shall make payment for the Shares to an account designated by the
Company in an amount equal to the Purchase Price by wire transfer of immediately available funds at or prior to the Closing.

(b)               
Acceptance of Subscription and Issuance of Shares.  It is understood and agreed that the Company
shall have the sole right, at its complete discretion, to accept or reject this subscription, in whole or in part, for any reason and
that the same shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer of the Company and delivered
to each Subscriber at the Closing (as defined below). Notwithstanding anything in this Subscription Agreement to the contrary, the Company
shall have no obligation to issue any of the Shares to any Person who is a resident of a jurisdiction in which the issuance of Shares
to such Person would constitute a violation of securities, “blue sky”, or other similar laws.

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(c)                
Closing. The Offering may be consummated at such place (or by electronic transmission) as
may be reasonably determined by the Company (the “Closing”) to occur on a date and at a time as may be mutually acceptable
to the Company and each Subscriber, in any case, prior to March 25, 2021, subject to satisfaction of the terms herein. Three days prior
to Closing, the Company shall inform each Subscriber in writing of the Purchase Price as determined pursuant to Section 1(a) and
the date and time of Closing, which shall be binding upon the Company and each Subscriber.

(d)               
Closing Deliverables. At the Closing: (i) Each Subscriber shall deliver the Purchase Price;
and (ii) the Company shall deliver a share certificate representing the Shares to such Subscriber that bears an appropriate legend referring
to the fact that the Shares are subject to transfer restrictions as set forth in the Securities Act.

3.                  
Representations and Warranties of Subscriber.

Each Subscriber represents
and warrants to the Company that:

(a)                
Reliance on Exemptions. Such Subscriber understands that the Shares are being offered and
sold in reliance upon specific exemptions from registration provided in the Securities Act, and acknowledges that the Offering has not
been reviewed by the Securities and Exchange Commission or any state agency because it is intended to be an offering exempt from the registration
requirements of the Securities Act pursuant to Regulation S under the Securities Act. Such Subscriber understands that the Company is
relying upon, and intends that the Company rely upon, the truth and accuracy of, and such Subscriber’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of such Subscriber set forth herein in order to determine the availability
of such exemptions and the eligibility of Subscriber to acquire the Shares. The Company may only make offers to sell the Shares to an
individual, corporation, association, general or limited partnership, joint venture, trust, estate, limited liability company, other legal
entity or organization, or the foreign equivalent of any of the foregoing (each, a “Person”) outside the United States
in this Offering and, if applicable, at the time any buy order is originated, the buyer is outside the United States. Such Subscriber
has not received an offer to purchase Shares inside the United States and will not originate a buy order inside the United States. 

(b)               
Non-U.S. Person Such Subscriber is not and is not acquiring the securities for the account
or benefit of any of the following (each, a “U.S. Person”):

(i)                 
a natural person resident in the United States;

(ii)               
a partnership or corporation organized or incorporated under the laws of the United States;

(iii)             
an estate of which any executor or administrator is a U.S. Person;

(iv)              
a trust of which any trustee is a U.S. Person;

(v)               
an agency or branch of a foreign entity located in the United States;

(vi)              
a non-discretionary account or similar account (other than an estate or trust) held by a dealer or
other fiduciary for the benefit or account any of the foregoing; or

(vii)            
a partnership or corporation (A) organized or incorporated under the laws of any foreign jurisdiction,
and (B) formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act, unless
it is organized or incorporated, and owned, by accredited investors (as defined in Regulation D under the Securities Act) who are not
natural persons, estates or trusts.

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(d)               
Investment Purpose. The Shares are being purchased for such Subscriber’s own account,
for investment purposes only and not with a view to sale or resale, distribution or fractionalization of the securities under applicable
U.S. federal or state securities laws. Such Subscriber is not acquiring such securities for the account or benefit of any U.S. Person
and was not organized for the specific purpose of acquiring such securities. Such Subscriber will not (i) resell or offer to resell the
securities, or any portion thereof, or (ii) engage in hedging transactions, in each case, except in accordance with the terms of this
Agreement and in accordance with Regulation S under the Securities Act, pursuant to registration under the Securities Act or pursuant
to an available exemption from registration under the Securities Act and otherwise in compliance with all applicable securities laws.
Furthermore, prior to engaging in any hedging transaction or any resale of the securities, or any portion thereof, by such Subscriber,
such Subscriber shall provide the Company with an opinion of counsel acceptable to the Company in its sole discretion and in a form acceptable
to the Company in its sole discretion, that any such proposed sale or hedging transaction is in compliance with the Securities Act or
an exemption therefrom. Such Subscriber has no contract, undertaking, agreement, or arrangement with any Person to sell, distribute, transfer,
or pledge to such Person or anyone else the Shares which such Subscriber hereby subscribes to purchase, or any interest therein, and such
Subscriber has no present plans to enter into any such contract, undertaking, agreement, or arrangement. Such Subscriber agrees that the
Company and its affiliates shall not be required to give effect to any purported transfer of such Shares except upon compliance with the
foregoing restrictions. 

(e)                
Risk of Investment. Such Subscriber recognizes that the purchase of the Shares involves a
high degree of risk in that: (i) an investment in the Company is highly speculative and only investors who can afford the loss of their
entire investment should consider investing in the Company and the Shares; (ii) transferability of the Shares is limited; and (iii) the
Company may require substantial additional funds to operate its business and there can be no assurance that the Offering will be completed.

(f)                 
Use of Proceeds. Such Subscriber understands that the net proceeds of the Offering will be
used in the development of the Company’s therapies, and for working capital and general corporate purposes.

(g)               
Prior Investment Experience. Such Subscriber understands the business in which the Company
is engaged and has such knowledge and experience in business and financial matters that such Subscriber is capable of evaluating the merits
and risks of the investment in the Shares. Such Subscriber has prior investment experience, and Subscriber recognizes the highly speculative
nature of this investment. 

(h)               
Information and Non-Reliance. 

(i)                 
Such Subscriber acknowledges that such Subscriber has carefully reviewed this Subscription Agreement,
which such Subscriber acknowledges has been provided to such Subscriber. Such Subscriber has been given the opportunity to ask questions
of, and receive answers from, the Company concerning the terms and conditions of this Offering and the Subscription Agreement and to obtain
such additional information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense,
necessary to verify the accuracy of same as such Subscriber reasonably desires in order to evaluate the investment. Such Subscriber understands
the Subscription Agreement, and such Subscriber has had the opportunity to discuss any questions regarding the Subscription Agreement
with such Subscriber’s counsel or other advisor. Notwithstanding the foregoing, the only information upon which such Subscriber
has relied is that set forth in the Subscription Agreement and the results of independent investigation by such Subscriber. Such Subscriber
has received no representations or warranties from the Company, its employees, agents or attorneys in making this investment decision
other than as set forth in the Subscription Agreement. Such Subscriber does not desire to receive any further information.

(ii)               
Such Subscriber represents that it is not relying on (and will not at any time rely on) any communication
(written or oral) of the Company, as investment advice or as a recommendation to purchase the Shares, it being understood that information
and explanations related to the terms and conditions of the Shares and the Subscription Agreement shall not be considered investment advice
or a recommendation to purchase the Shares.

(iii)             
Such Subscriber confirms that the Company has not (i) given any guarantee or representation as to
the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) an of investment
in the Shares or (ii) made any representation to such Subscriber regarding the legality of an investment in the Shares under applicable
legal investment or similar laws or regulations. In deciding to purchase the Shares, such Subscriber is not relying on the advice or recommendations
of the Company and such Subscriber has made its own independent decision that the investment in the Shares is suitable and appropriate
for such Subscriber.

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(i)                 
Tax Consequences. Such Subscriber acknowledges that the Offering may involve tax consequences
and that the contents of the Subscription Agreement do not contain tax advice or information. Such Subscriber acknowledges that such Subscriber
must retain such Subscriber’s own professional advisors to evaluate the tax and other consequences of an investment in the Shares.
Such Subscriber intends to acquire the Shares without regard to tax consequences.

(j)                 
Transfer or Resale. Such Subscriber understands that the Shares have not been registered under
the Securities Act or the securities laws of any state and, as a result thereof, are subject to substantial restrictions on transfer.
Such Subscriber acknowledges that such Subscriber may be precluded from selling or otherwise disposing of the Shares for an indefinite
period of time and that in no circumstance may the Shares be transferred to any U.S. Person for six (6) months. Such Subscriber understands
and hereby acknowledges that the Company is under no obligation to register the Shares under the Securities Act. Such Subscriber consents
that the Company may, if it desires, permit the transfer of the Shares out of Subscriber’s name only when Subscriber’s request
for transfer is accompanied by an opinion of counsel reasonably satisfactory to the Company that neither the sale nor the proposed transfer
results in a violation of the Securities Act or any applicable state “blue sky” laws. Such Subscriber also understands that
sales or transfers of the Shares are further restricted by the Confidentiality Agreement (as defined below). Such Subscriber acknowledges
and agrees that such Subscriber will not sell or transfer the Shares to any Person prior to the earlier of (i) the date on which public
disclosure of the Confidential Information, as defined and covered by the Confidentiality Agreement, is made in accordance with terms
of the Confidentiality Agreement or (ii) October 1, 2021. Notwithstanding any of the foregoing, such Subscriber acknowledges that the
Company may refuse to register any transfer of the Shares if such transfer is not made in accordance with the provisions of this Regulation
S under the Securities Act or this Section 3(j).

(k)               
Due Authorization; Enforcement. Such Subscriber has all requisite power and authority (and
in the case of an individual, capacity) to purchase and hold the Shares, to execute, deliver and perform such Subscriber’s obligations
under this Subscription Agreement and when executed and delivered by such Subscriber, this Subscription Agreement will constitute legal,
valid and binding agreements of such Subscriber enforceable against such Subscriber in accordance with their terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally, and except as enforceability may be subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

(l)                 
Address. The residence address of such Subscriber furnished by such Subscriber on the signature
page hereto is such Subscriber’s principal residence if such Subscriber is an individual or its principal business address if it
is a corporation, partnership, trust or other entity.

(m)              
Compliance with Laws. Such Subscriber will comply with all applicable laws and regulations
in effect in any jurisdiction in which such Subscriber purchases or sells Shares and obtain any consent, approval or permission required
for such purchases or sales under the laws and regulations of any jurisdiction to which such Subscriber is subject or in which such Subscriber
makes such purchases or sales, and the Company shall have no responsibility therefore. Such Subscriber shall not effect any transactions
in the Company’s securities other than the purchase of the Shares while Subscriber is in possession of material non-public information,
until such time all material non-public information has been disclosed by the Company.

(n)               
Accuracy of Representations and Warranties. The information set forth herein concerning such
Subscriber is true and correct. Such Subscriber understands that, unless such Subscriber notifies the Company in writing to the contrary
at or before the Closing, each of such Subscriber’s representations and warranties contained in this Subscription Agreement will
be deemed to have been reaffirmed and confirmed as of the Closing, taking into account all information received by such Subscriber.

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(o)               
Entity Representation. If such Subscriber is a corporation, partnership, trust or other entity,
such entity further represents and warrants that it was not formed for the purpose of investing in the Company.

(p)                Confidentiality. Such
Subscriber has executed and delivered to the Company that certain Confidentiality Agreement in the form attached hereto as Annex
A (the “Confidentiality Agreement”).

4.                  
Representations and Warranties of the Company.

The Company represents
and warrants to each Subscriber that:

(a)                
Organization. The Company is organized and validly existing in good standing under the laws
of the state of Delaware. 

(b)               
Due Authorization, Enforcement and Valid Issuance. The Company has all requisite power and
authority to execute, deliver and perform its obligations under this Subscription Agreement, and when executed and delivered by the Company,
this Subscription Agreement will constitute legal, valid and binding agreements of the Company enforceable against the Company in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally, and except as enforceability may be subject to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The Shares have been duly authorized
and, when issued and paid for in accordance with the terms of this Subscription Agreement, will be duly and validly issued, fully paid
and nonassessable.

(c)                
Noncontravention. The execution and delivery of this Subscription Agreement and the consummation
of the transactions contemplated hereby will not conflict with or constitute a violation of, or default under (i) any material agreement
to which the Company is a party or by which it or any of its properties are bound or (ii) the organizational documents of the Company.

5.                  
Conditions to Obligations of each Subscriber and the Company. 

The
obligations of each Subscriber to purchase and pay for the Shares specified on the signature page hereto and of the Company to sell the
Shares are subject to the satisfaction at or prior to the Closing of the following conditions precedent: 

(a)                
Representations and Warranties. The representations and warranties of such Subscriber contained
in Section 3 hereof and of the Company contained in Section 4 hereof shall be true and correct as of the Closing in all
respects with the same effect as though such representations and warranties had been made as of the Closing.

6.                  
Legends. 

The
certificates representing the Shares sold pursuant to this Subscription Agreement will be imprinted with legends in substantially the
following form:

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) AND MAY NOT BE SOLD OR TRANSFERRED
EXCEPT IN ACCORDANCE WITH REGULATION S PROMULGATED UNDER THE ACT. IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED. HEDGING TRANSACTIONS INVOLVING THE SECURITIES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE CONDUCTED EXCEPT IN COMPLIANCE WITH THE ACT.”

Certificates may also bear any other legend
language that may be determined by the Company and its counsel from time to time.

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7.                  
United States Anti-Money Laundering Program. Each Subscriber understands that the Company’s
Board of Directors is required to comply with applicable anti-money laundering provisions under the United States PATRIOT Act of 2001,
as amended (the “USA PATRIOT Act”). As a condition to acceptance of each Subscriber’s investment in the Company,
such Subscriber makes the representations and agreements set forth on Annex B attached hereto, and agrees to provide to
the Company true and correct copies of the applicable documentation pursuant to the requirements of Annex C, attached hereto.
The Company reserves the right to request such additional information as is necessary to verify the identity of each Subscriber and the
underlying beneficial owner of such Subscriber’s interest in the Company. In the event of delay or failure by such Subscriber to
produce any information required for verification purposes, the Company may refuse to accept a subscription or may cause the withdrawal
of such Subscriber from the Company.

8.                  
Miscellaneous

(a)                
Notice. Any notices, consents, waivers or other communications required or permitted to be
given under the terms of this Subscription Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by email or facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one (1) business day after deposit with an overnight courier service, in each
case properly addressed to the party to receive the same. The addresses, email and facsimile numbers for such communications shall be:

If to the Company:

 

                Enochian BioSciences Inc.

2080 Century Park East

Suite # 906

90067 Los Angeles, CA

Phone: (786) 888-1685

E-mail: lpuche@enochianbio.com

Attention: Luisa Puche

 

with a copy to:                     K&L Gates LLP

200 South Biscayne Boulevard

Suite 3900

Miami, FL 33131

Facsimile:(305) 359-3306

E-mail: clayton.parker@klgates.com

Attention:Clayton E. Parker, Esq.

 

If to a Subscriber, to its residence
address (or mailing address, if different), email and facsimile number set forth at the end of this Subscription Agreement, or to such
other address, email and/or facsimile number and/or to the attention of such other individual as specified by written notice given to
the Company five (5) calendar days prior to the effectiveness of such change.

(b)               
Entire Agreement; Amendment. This Subscription Agreement and the Confidentiality Agreement,
supersede all other prior oral or written agreements between each Subscriber, the Company, their affiliates and Persons acting on their
behalf with respect to the matters discussed herein, and constitutes the entire understanding of the parties with respect to the matters
covered herein. No provision of this Subscription Agreement may be amended or waived other than by an instrument in writing signed by
the Company and each Subscriber.

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(c)                
Severability. If any provision of this Subscription Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Subscription
Agreement in that jurisdiction or the validity or enforceability of any provision of this Subscription Agreement in any other jurisdiction.

(d)               
Governing Law. This Subscription Agreement shall be governed by and construed in accordance
with the laws of the state of Florida, without giving effect to any choice of law or conflict of law provision or rule.

(e)                
Consent to Personal Jurisdiction and Venue; Waiver of Jury Trial; Waiver of Service of Process
Each Subscriber hereby consents to personal jurisdiction and exclusive venue in the Circuit Court in and for Miami-Dade County, Florida.
Furthermore, each Subscriber and Company hereby expressly waive a trial by jury in any action between such Subscriber and the Company
arising out of or in connection with this Agreement. For purposes of this Section, the term “Subscriber” includes any
business entity owned or controlled by the Subscriber. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such Notices
on this signature page of this Subscription Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by
law.

(f)               
Successors and Assigns. This Subscription Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns. A Subscriber shall not assign its rights hereunder without the prior
written consent of the Company.

(g)               
No Third Party Beneficiaries. This Subscription Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

(h)                 
Notification of Changes. Each Subscriber hereby covenants and agrees to notify the Company
upon the occurrence of any event prior to the closing of the purchase of the Shares pursuant to this Subscription Agreement which would
cause any representation, warranty or covenant of such Subscriber contained in this Subscription Agreement to be false or incorrect. 

(i)                 
Further Assurances. Each party shall do and perform, or cause to be done and performed, all
such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the
other party may reasonably request in order to carry out the intent and accomplish the purposes of this Subscription Agreement and the
consummation of the transactions contemplated hereby.

(j)               
Legal Representation. Each Subscriber acknowledges that: (i) such Subscriber has read this
Subscription Agreement and the annexes referred to herein; (ii) such Subscriber understands that the Company has been represented in the
preparation, negotiation and execution of the Subscription Agreement; and (iii) such Subscriber understands the terms and conditions of
the Subscription Agreement and is fully aware of their legal and binding effect.

(k)                 
Expenses. Each party will bear its own costs and expenses (including legal and accounting
fees and expenses) incurred in connection with this Subscription Agreement and the transactions contemplated hereby.

(l)              
Counterparts. This Subscription Agreement may be executed in counterparts, all of which shall
be considered one and the same agreement. The exchange of signature pages by electronic signature, by electronic mail in “portable
document format” (“.pdf”) form or by any other electronic means intended to preserve the original graphic and pictorial
appearance of a document shall constitute effective execution and delivery of this Agreement as to the parties.

[SIGNATURE PAGES FOLLOW]

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SUBSCRIBER SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

IN WITNESS WHEREOF,
and intending to be legally bound hereby, each Subscriber has caused this Subscription Agreement to be duly executed as of as of the date
first set forth above, and by executing this signature page, hereby executes, adopts and agrees to all terms, conditions, and representations
contained in the foregoing Subscription Agreement and hereby subscribes for the Shares offered by the Company in the amount set forth
below.

SUBSCRIBER:

 

 

__________________

Signature

 

 

__________________

Print Name

 

 

	 
	
    Shares (number of shares of Common Stock subscribed for): ____________

	or
	Dollars (amount of Common Stock subscribed for in US Dollars): _____________________
	 

 

	Residence Address:	 	Mailing Address, if different from Residence Address:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

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COMPANY SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

IN WITNESS WHEREOF,
and intending to be legally bound hereby, Enochian Biosciences Inc. has caused this Subscription Agreement to be duly executed as of as
of the date first set forth above, and by executing this signature page, hereby executes, adopts and agrees to all terms, conditions,
and representations contained in the foregoing Subscription Agreement.

 

Accepted and Agreed:

ENOCHIAN BIOSCIENCES INC.

By:_____________________________

Name:_______________

Title:_______________

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Annex
A

 

 

 

    10

     

    

 

Annex
B

 

UNITED STATES ANTI-MONEY LAUNDERING

REPRESENTATIONS AND WARRANTIES

In connection with the acquisition of the Company’s
Shares, each Subscriber hereby represents, warrants and covenants to the Company as follows:

1.                  
Such Subscriber has reviewed the website of the U.S. Treasury Department’s Office of
Foreign Assets Control (“OFAC”), and conducted such other investigation as such Subscriber deems necessary or prudent, prior
to making these representations and warranties. Such Subscriber acknowledges that U.S. federal regulations and executive orders administered
by OFAC prohibit, among other things, engaging in transactions with, and the provision of services to, certain foreign countries, territories,
entities and individuals.

2.                  
All evidence of identity provided in connection with such Subscriber’s acquisition of
Shares is genuine and all related information furnished is accurate. 

3.                  
Such Subscriber understands and agrees that the investment of funds is prohibited by or restricted
with respect to any persons or entities: (i) acting, directly or indirectly, on behalf of terrorists or terrorist organizations, including
those persons, entities and organizations that are included on any of the OFAC lists; (ii) residing or having a place of business in a
country or territory named on such lists or which is designated as a Non-Cooperative Jurisdiction by the Financial Action Task Force on
Money Laundering (“FATF”), or whose subscription funds are transferred from or through such a jurisdiction; (iii) (A) that
are a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act or (B) that are a foreign bank other than a “Regulated
Affiliate” that is barred, pursuant to its banking license, from conducting banking activities with the citizens of, or with the
local currency of, the country that issued the license or (C) whose subscription funds are transferred from or through the entities listed
in foregoing clauses (A) and (B); or (iv) residing in, or organized under the laws of, a jurisdiction designated by the Secretary of the
Treasury under Sections 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns. Such persons
or entities in (i) through (iv) are collectively referred to as “Restricted Persons.” Neither such Subscriber, nor any person
or entity controlling, controlled by, or under common control with, such Subscriber, any investors in such Subscriber (if such Subscriber
is a pooled investment vehicle) or any person or entity for whom such Subscriber is acting as agent, representative, intermediary, nominee
or similar capacity (each such investor in such Subscriber and each such person for whom such Subscriber acts as agent, representative,
intermediary, nominee or in a similar capacity, an “Underlying Beneficial Owner”) in connection with the acquisition of Shares
is a Restricted Person.

4.                  
No funds tendered for the acquisition of Shares are directly or indirectly derived from activities
that may contravene U.S. federal, state or non-U.S. laws and regulations, including anti-money laundering laws, rules and regulations,
and no capital contribution in relation to Shares acquired by such Subscriber or, if applicable, any Underlying Beneficial Owner will
be derived from any illegal or illegitimate activities.

 

5.                  
To the extent such Subscriber has any Underlying Beneficial Owners, such Subscriber: (i) has carried
out thorough due diligence as to, and established the identities of, the Underlying Beneficial Owners and any related persons to the extent
required by applicable law and regulations (“Related Persons”); (ii) holds the evidence of such identities and will maintain
all such evidence for at least five years from the date of the completion of the liquidation of the Company; and (iii) will make such
information available to the Company upon the Company’s request. 

 

6.                  
Such Subscriber acknowledges and understands that the Company, in its sole discretion, may decline
to accept any subscription for Shares by a person who is a “Covered Person” within the meaning of the Guidance on Enhanced
Scrutiny for Transactions that May Involve the Proceeds of Foreign Official Corruption, issued by the U.S. Department of the Treasury,
et al., January, 2001. Accordingly, such Subscriber agrees to inform the Company, prior to its acquisition of Shares, if such Subscriber
or any person controlling, controlled by, or under common control with, such Subscriber, or for whom such Subscriber is acting as agent
or nominee in connection with the acquisition of Shares, is a Covered Person.

7.                  
Such Subscriber agrees to provide any information (including confidential information about such
Subscriber and, if applicable, any Underlying Beneficial Owner or Related Person) to any person deemed necessary by the Company, in its
sole and absolute discretion, to comply with its anti-money laundering responsibilities and policies and any laws, rules and regulations
applicable to an investment held or proposed to be held by the Company.

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8.                  
Such Subscriber authorizes and permits the Company, using its own reasonable business judgment, to
report information about such Subscriber, or any person controlling, controlled by, or under common control with such Subscriber, to appropriate
authorities, and such Subscriber agrees not to hold them liable for any loss or injury that may occur as the result of providing such
information.

9.                  
Such Subscriber agrees that, in the event of a material change with respect to the information provided
in connection with the purchase of the Shares, such Subscriber will provide the Company promptly with updated information affected by
the material change.

10.               
Such Subscriber agrees that, notwithstanding any statement to the contrary in any agreement into
which it has entered that relates to the Company, or any statement to the contrary in any private placement memorandum of the Company,
if the Company determines that such Subscriber has appeared on a list of known or suspected terrorists or terrorist organizations compiled
by any U.S. or non-U.S. governmental agency, or that any information provided by such Subscriber in connection with the acquisition of
Shares is no longer true or accurate, the Company, without limiting any other rights available under any agreement between the Company
and such Subscriber, shall be authorized to take any action it deems necessary or appropriate as a result thereof. The Company may be
obligated to “freeze the account” of such Subscriber, either by prohibiting additional capital contributions, restricting
any distributions and/or declining any requests to transfer such Subscriber’s Shares. In addition, in any such event, such Subscriber
may forfeit its Shares, may be forced to withdraw from the Company or may otherwise be subject to the remedies required by law, and such
Subscriber shall have no claim against the Company nor its officers, directors, employees, agents, control persons, affiliates and professional
advisors and such parties shall be held harmless and indemnified by such Subscriber in accordance with the indemnification section of
this Agreement for any form of damages as a result of any of the actions described in this paragraph. The Company may also be required
to report such action and to disclose such Subscriber’s identity or provide other information with respect to such Subscriber to
OFAC or other governmental entities.

11.               
Such Subscriber acknowledges and agrees that any distributions paid to it by the Company will be
paid to, and any contributions made by it to the Company will be made from, an account in such Subscriber’s name unless the Company,
in its sole discretion, agrees otherwise.

12.               
Such Subscriber understands, acknowledges and agrees that the acceptance of this Agreement, together
with the appropriate remittance, will not breach any applicable money laundering or related rules or regulations (including, without limitation,
any statutes, rules or regulations in effect under the laws of the U.S.A. pertaining to prohibitions on money laundering or to transacting
business or dealing in property that may be blocked or may belong to Specially Designated Nationals, as such term is used by OFAC). 

    12

     

    

 

Annex
C

ANTI-MONEY LAUNDERING DOCUMENTATION

Each Subscriber has delivered, or is concurrently delivering herewith,
the true, correct and applicable documentation noted below that is applicable to such Subscriber:

		(i)	Individuals (each of the following):

		(A)	Certified (notarized) copy of passport or other valid government identification document displaying the
true name, signature, date of birth and photograph of such Subscriber (with certified English translation, if necessary); and

		(B)	Copy of a recent bank statement or utility bill showing such Subscriber’s current home address.

		(ii)	Corporate (each of the following):

		(A)	Certificate of Incorporation (or equivalent) with evidence of any name changes;

		(B)	Certificate of Good Standing;

		(C)	Director resolution authorizing the investment, if applicable;

		(D)	Current list or register of Directors;

		(E)	Specimen signatures of persons authorized to bind such Subscriber with regard to its investments with
name and office held printed underneath or Powers of Attorney or Letters of Authority (if applicable);

		(F)	Information on at least two Directors (see (i) above for individuals and (ii) for all other entities);

		(G)	Evidence of identity for authorized signatories and all beneficial owners of such Subscriber >25% OR
comfort letter (see (i) above for individuals and (ii) for all other entities); and

		(H)	Signed copy of such Subscriber’s latest available financial statements.

		(iii)	Limited Partnership (or Limited Liability Company) (each of the following):

		(A)	Certificate of Limited Partnership (or equivalent) (evidencing registered address) with evidence of any
name changes;

		(B)	Certified copy of the limited partnership agreement (or equivalent);

		(C)	Limited partnership mandate (or equivalent) for making the investment (if any);

		(D)	Specimen signatures of persons authorized to bind such Subscriber with regard to its investments with
name and office held printed underneath or Powers of Attorney or Letters of Authority (if applicable);

		(E)	Information on the individual(s) that control the general partner (or managing member, if applicable)
(see (i) above for individuals and (ii) for all other entities);

		(F)	Evidence of identity for authorized signatories and all beneficial owners of such Subscriber >25% OR
comfort letter (see (i) above for individuals and (ii) for all other entities); and

		(G)	Signed copy of such Subscriber’s latest available financial statements.

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		(iv)	Trust (each of the following):

		(A)	Certified copy of Trust Deed/Agreement (including trust name, nature of trust, trustees, authorizations,
date of trust and principal address);

		(B)	Information about the trustee(s) and settlor(s) (or beneficial owner(s), if different than the settlor(s))
(see (i) above for individuals and (ii) for all other entities); and

		(C)	Signed copy of such Subscriber’s latest available financial statements.

		(v)	Private Pension Plans or Not For Profit (including Foundations and Charities) (each of the
following):

		(A)	Certified copy of the entity’s formation documents;

		(B)	An explanation of the nature of the entity’s purpose and operations;

		(C)	Evidence of identity for authorized signatories, anyone who gives instructions on behalf of the entity
and all beneficial owners of such Subscriber >25% OR comfort letter (see (i) above for individuals and (ii) for all other entities);
and

		(D)	Confirmation of not for profit designation from the applicable government authority.

		(vi)	Financial Institutions (additional requirements):

In addition to the applicable requirements
above, banks, brokers and other financial institutions must deliver a representation letter in the form determined by the Company indicating
that they have established and implemented anti-money laundering procedures reasonably designed to achieve compliance with the USA PATRIOT
Act.

Each Subscriber acknowledges that the Company
and its affiliates may require further identification of such Subscriber or source of funds before the subscription can be processed,
and the Company and its officers, directors, employees, agents, control persons, affiliates and professional advisors shall be held harmless
and indemnified in accordance with the indemnification provisions of the Subscription Agreement as a result of a failure to process the
subscription if such information as has been required by the Company has not been provided by such Subscriber. Such Subscriber agrees
to provide any information deemed necessary by the Company in its sole and absolute discretion to comply with its anti-money laundering
policies and obligations.

 

    14Document

Exhibit 4.2
DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

In this document, the “Company,” “we,” “us” and “our”  refer to Rocket Companies, Inc., a Delaware corporation. The following description of our capital stock summarizes certain provisions of our amended and restated certificate of incorporation (the “certificate of incorporation”) and our amended and restated bylaws (the “bylaws”). The description is intended as a summary, and is qualified in its entirety by reference to our certificate of incorporation and our bylaws, copies of which have been filed as exhibits to this Annual Report on Form 10-K. References to “RHI” refer to Rock Holdings Inc., our principal stockholder. 
Capital Stock

        Our certificate of incorporation authorizes capital stock consisting of 10,000,000,000 shares of Class A common stock, par value $0.00001 per share (the “Class A common stock”), 6,000,000,000 shares of Class B common stock, par value $0.00001 per share (the “Class B common stock”), 6,000,000,000 shares of Class C common stock, par value $0.00001 per share (the “Class C common stock”), 6,000,000,000 shares of Class D common stock, par value $0.00001 per share (the “Class D common stock”), and 500,000,000 shares of preferred stock, par value $0.00001 per share (the “preferred stock”).

Our Class A common stock is registered under Section 12(b) of the Securities Exchange Act of 1934, as amended, and is listed on the New York Stock Exchange (the “Exchange”) under the ticker symbol “RKT.”

Common Stock

Voting

The holders of our Class A common stock, Class B common stock, Class C common stock and Class D common stock vote together as a single class on all matters submitted to stockholders for their vote or approval, except (i) as required by applicable law or (ii) any amendment (including by merger, consolidation, reorganization or similar event) to our certificate of incorporation that would affect the rights of the Class A common stock and the Class C common stock in a manner that is disproportionately adverse as compared to the Class B common stock or Class D common stock, or vice versa, in which case the holders of Class A common stock and Class C common stock or the holders of Class B common stock and Class D common stock, as applicable, shall vote together as a class.

Subject to the next sentence, holders of our Class A common stock and Class C common stock are entitled to one vote on all matters submitted to stockholders for their vote or approval. Holders of our Class B common stock and Class D common stock are entitled to 10 votes on all matters submitted to stockholders for their vote or approval. At any time when the aggregate voting power of the outstanding common stock or preferred stock beneficially owned by RHI or any entity disregarded as separate from RHI for U.S. federal income tax purposes (the “RHI Securities”) would be equal to or greater than 79% of the total voting power of our outstanding stock, the number of votes per share of each RHI Security shall be reduced such that the aggregate voting power of all of the RHI Securities is equal to 79%.

Dividends

The holders of Class A common stock and Class B common stock are entitled to receive dividends when, as and if declared by our board of directors out of legally available funds. Under our certificate of incorporation, dividends may not be declared or paid in respect of Class B common stock unless they are declared or paid in the 

2

same amount and same type of cash or property (or combination thereof) in respect of Class A common stock, and vice versa. With respect to stock dividends, holders of Class B common stock must receive Class B common stock while holders of Class A common stock must receive Class A common stock.

The holders of our Class C common stock and Class D common stock do not have any right to receive dividends other than dividends consisting of shares of our (i) Class C common stock, paid proportionally with respect to each outstanding share of our Class C common stock, and (ii) Class D common stock, paid proportionally with respect to each outstanding share of our Class D common stock, in each case in connection with stock dividends.

Merger, Consolidation, Tender or Exchange Offer

        The holders of Class B common stock and Class D common stock are not entitled to receive economic consideration for their shares in excess of that payable to the holders of Class A common stock and Class C common stock, respectively, in the event of a merger, consolidation or other business combination requiring the approval of our stockholders or a tender or exchange offer to acquire any shares of our common stock. However, in any such event involving consideration in the form of securities, the holders of Class B common stock and Class D common stock are entitled to receive securities that have no more than 10 times the voting power of any securities distributed to the holders of Class A common stock and Class C common stock.

Liquidation or Dissolution

        Upon our liquidation or dissolution, the holders of our Class A common stock and Class B common stock are entitled to share ratably in those of our assets that are legally available for distribution to stockholders after payment of liabilities and subject to the prior rights of any holders of preferred stock then outstanding. Other than their par value, the holders of our Class C common stock and Class D common stock do not have any right to receive a distribution upon a liquidation or dissolution of the Company.

Conversion, Transferability and Exchange

Our certificate of incorporation provides that each share of our Class B common stock is convertible at any time, at the option of the holder, into one share of Class A common stock, and each share of our Class D common stock is convertible at any time, at the option of the holder, into one share of Class C common stock. Our certificate of incorporation further provides that each share of our Class B common stock will automatically convert into one share of Class A common stock, and each share of our Class D common stock will automatically convert into one share of our Class C common stock, immediately prior to any transfer of such share except for certain transfers described in our certificate of incorporation, including (i) transfers to or among the direct or indirect equityholders of RHI (the “Rock Equityholders”), (ii) transfers following which the Class B common stock or Class D common stock continues to be held by RHI or a permitted transferee and, in each case, the Rock Equityholders or the direct or indirect equityholders of such permitted transferee immediately prior to such transfer or transfers continue to hold a majority of the beneficial interests of RHI or such permitted transferee, as applicable, following such transfer or transfers, (iii) transfers to family members, trusts solely for the benefit of RHI, any Rock Equityholder or permitted transferee or their respective family members and other tax and estate planning vehicles, (iv) transfers to partnerships, corporations and other entities controlled by, or a majority of which is beneficially owned by, RHI, any Rock Equityholder or permitted transferee, their respective family members or other permitted entities, (v) certain transfers to charitable trusts or organizations that are exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, (vi) transfers to an individual mandated under a qualified domestic relations order or (vii) transfers to a legal or personal representative in the event of the death or disability. In addition, each share of our Class B common stock will automatically convert into one share of Class A common stock, and each share of our Class D common stock will automatically convert into one share of our Class C common stock if RHI, the Rock Equityholders and their permitted transferees own less than 10% of the aggregate number of shares of our issued and outstanding common stock. Shares of our Class A common stock and Class C common stock are not 

3

subject to any conversion right. Additionally, except as set forth above, the Class B common stock and the Class D common stock will not be automatically converted into Class A common stock or Class C common stock, respectively, at a certain specified time.

Among other exceptions described in our certificate of incorporation, the RHI Parties are permitted to pledge shares of Class D common stock and/or Class B common stock that they hold from time to time without causing an automatic conversion to Class C common stock or Class A common stock, as applicable, provided that any pledged shares are not transferred to or registered in the name of the pledgee. Subject to the terms of the Exchange Agreement, by and among RKT Holdings, LLC (“Holdings”), the Company, RHI, Dan Gilbert and any other holder of non-voting common interest units in Holdings (such units, “Holdings Units”), and shares of Class C common stock or Class D common stock from time to time party thereto, dated as of August 5, 2020 (the “Exchange Agreement”), RHI may exchange its Holdings Units, together with a corresponding number of shares of our Class D common stock or Class C common stock for, at our option (as the sole managing member of Holdings), (i) shares of our Class B or Class A common stock, as applicable, on a one-for-one basis or (ii) cash (based on the market price of our Class A common stock). Upon exchange, each share of our Class D common stock or Class C common stock so exchanged will be cancelled.

Other Provisions

None of the Class A common stock, Class B common stock, Class C common stock or Class D common stock has any preemptive or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class A common stock, Class B common stock, Class C common stock or Class D common stock.

At such time as no Holdings Units remain exchangeable for shares of our Class B common stock, our Class D common stock will be cancelled.

Preferred Stock

        We are authorized to issue up to 500,000,000 shares of preferred stock. Our board of directors is authorized, subject to limitations prescribed by Delaware law and our certificate of incorporation, to determine the terms and conditions of the preferred stock, including whether the shares of preferred stock will be issued in one or more series, the number of shares to be included in each series and the powers, designations, preferences and rights of the shares. Our board of directors is also authorized to designate any qualifications, limitations or restrictions on the shares without any further vote or action by the stockholders. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of our Company and may adversely affect the voting and other rights of the holders of our Class A common stock, Class B common stock, Class C common stock and Class D common stock, which could have a negative impact on the market price of our Class A common stock.

Corporate Opportunity

Our certificate of incorporation provides that none of RHI and its affiliates other than the Company and its subsidiaries (such entities, the “RHI Affiliated Entities”) nor any officer, director, member, partner or employee of any RHI Affiliated Entity (each, an “RHI Party”) has any duty to refrain from engaging in the same or similar business activities or lines of business, doing business with any of our clients or suppliers or employing or otherwise engaging or soliciting for employment any of our directors, officers or employees, and none of our directors or officers shall be liable to us or to any of our subsidiaries or stockholders for breach of any fiduciary or other duty under statutory or common law, as a director or officer or controlling stockholder or otherwise, by reason of any such activities, or for the presentation or direction to, or participation in, any such activities by any RHI Party.
In our certificate of incorporation, to the fullest extent permitted by applicable law, we renounce any interest or expectancy that we have in any business opportunity, transaction or other matter in which any RHI Party participates or desires or seeks to participate in, even if the opportunity is one that we might reasonably be deemed 

4

to have pursued or had the ability or desire to pursue if granted the opportunity to do so. To the fullest extent permitted by applicable law, each such RHI Party has no duty to communicate or offer such business opportunity to us and is not liable to us or any of our stockholders for breach of any fiduciary or other duty under statutory or common law, as a director or officer or controlling stockholder, or otherwise, by reason of the fact that such RHI Party pursues or acquires such business opportunity, directs such business opportunity to another person or fails to present such business opportunity, or information regarding such business opportunity, to us.
The Exchange Agreement specifies that we will not amend the provisions of our certificate of incorporation renouncing corporate opportunities without the consent of RHI for so long as RHI holds any Holdings Units.
Notwithstanding the foregoing, our certificate of incorporation does not renounce any interest or expectancy we may have in any business opportunity, transaction or other matter that is offered to an RHI Party who is one of our directors or officers and who is offered such opportunity solely in his or her capacity as one of our directors or officers, as reasonably determined by such RHI Party.
Certain Certificate of Incorporation, Bylaw and Statutory Provisions

The provisions of our certificate of incorporation and bylaws and of the Delaware General Corporation Law (the “DGCL”) summarized below may have an anti-takeover effect and may delay, defer or prevent a tender offer or takeover attempt.
Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws

Our certificate of incorporation and bylaws contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and that may have the effect of delaying, deferring or preventing a future takeover or change in control of the Company unless such takeover or change in control is approved by our board of directors.
These provisions include:
Dual Class Capital Structure. Our certificate of incorporation provides for a dual class common stock structure, which provides RHI with the ability to control the outcome of matters requiring stockholder approval, even if it beneficially owns significantly less than a majority of the shares of our outstanding common stock, including the election of directors and significant corporate transactions, such as a merger or sale of substantially all of our assets.
Classified Board. Our certificate of incorporation provides that our board of directors is divided into three classes of directors, with the classes as nearly equal in number as possible. As a result, approximately onethird of our board of directors is elected each year. The classification of directors has the effect of making it more difficult for stockholders to change the composition of our board. Our certificate of incorporation also provides that, subject to any rights of holders of preferred stock to elect additional directors under specified circumstances, the number of directors is fixed exclusively pursuant to a resolution adopted by our board of directors. Our board of directors has seven members. At any meeting of the board of directors, except as otherwise required by law, a majority of the total number of directors then in office will constitute a quorum for all purposes.
Removal of Directors. Our certificate of incorporation provides that until the RHI Parties beneficially own less than a majority of the combined voting power of our common stock, any director may be removed with or without cause by the affirmative vote of a majority of our outstanding shares of common stock. After the RHI Parties cease to beneficially own a majority of the combined voting power of the common stock, our certificate of incorporation provides that any director may only be removed with cause by the affirmative vote of holders of 75% of the combined voting power of our outstanding common stock eligible to vote in the election of directors, voting together as a single class.

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Vacancies. Each director is to hold office until his or her successor is duly elected and qualified or until his or her earlier death, resignation or removal. Vacancies and newly created directorships on the board of directors may be filled at any time by the remaining directors or our stockholders, provided that, after the RHI Parties cease to beneficially own a majority of the combined voting power of our common stock, vacancies on our board of directors, whether resulting from an increase in the number of directors or the death, removal or resignation of a director, will be filled only by our board of directors and not by stockholders.
Amendments to Certificate of Incorporation and Bylaws. The DGCL generally provides that the affirmative vote of the holders of a majority of the total voting power of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation or bylaws, unless either a corporation’s certificate of incorporation or bylaws require a greater percentage. Our certificate of incorporation and bylaws provide that, after the RHI Parties cease to beneficially own a majority of the combined voting power of our common stock, the affirmative vote of holders of 75% of the combined voting power of our outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal our bylaws or specified provisions of our certificate of incorporation, including those relating to the classified board, actions by written consent of stockholders, calling of special meetings of stockholders, business combinations and these vote requirements to amend our certificate of incorporation and bylaws. This requirement of a supermajority vote to approve certain amendments to our certificate of incorporation and bylaws could enable a minority of our stockholders to exercise veto power over any such amendments.
Special Meetings of Stockholders. Our certificate of incorporation and bylaws also provide that, subject to any special rights of the holders of any series of preferred stock, special meetings of the stockholders can only be called by the chairman of the board or the chief executive officer, or by the board of directors. Except as described above, stockholders are not permitted to call a special meeting or to require the board of directors to call a special meeting.
Action by Written Consent. Our certificate of incorporation provides that stockholder action can be taken by written consent in lieu of a meeting; provided that after the RHI Parties cease to beneficially own a majority of the combined voting power of our common stock, stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting.
Advance Notice Procedures. Our bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at an annual meeting are only able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given us timely written notice, in proper form, of the stockholder’s intention to bring that business before the meeting. Although the bylaws do not give our board of directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special or annual meeting, the bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the Company.
Authorized but Unissued Shares. Our authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval, subject to applicable Exchange rules. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of a majority of our common stock by means of a proxy contest, tender offer, merger or otherwise.
Business Combinations with Interested Stockholders. Our certificate of incorporation provides that we will not be subject to Section 203 of the DGCL, an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder, unless the business combination is approved in a prescribed manner. An interested stockholder includes a person, individually or 

6

together with any other interested stockholder, who within the last three years has owned 15% or more of our voting stock. Accordingly, we are not subject to any anti-takeover effects of Section 203. Nevertheless, our certificate of incorporation includes a provision that restricts us from engaging in any business combination with an interested stockholder for three years following the date that person becomes an interested stockholder. Such restrictions, however, shall not apply to any business combination between RHI, any direct or indirect equityholder of RHI or any person that acquires (other than in connection with a registered public offering) our voting stock from RHI or any of its affiliates or successors or any “group,” or any member of any such group, to which such persons are a party under Rule 13d-5 of the Exchange Act and who is designated in writing by RHI as an “RHI Transferee,” on the one hand, and us, on the other hand.
Headquarters in Detroit. Our certificate of incorporation provides that we shall not transfer our corporate headquarters outside of Detroit, Michigan unless we have received the affirmative vote of holders of 75% of the combined voting power of our outstanding common stock.
Directors’ Liability; Indemnification of Directors and Officers
Our bylaws limit the liability of our directors to the fullest extent permitted by the DGCL and provide that we will provide them with customary indemnification and advancement rights. In connection with our initial public offering, we entered into customary indemnification agreements with each of our executive officers and directors that provide them, in general, with customary indemnification and advancement rights in connection with their service to us or on our behalf.
Choice of Forum
Our certificate of incorporation requires, to the fullest extent permitted by law, that (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 stockholders to us or our stockholders, (iii) any action asserting a claim against us arising pursuant to any provision of the DGCL or our certificate of incorporation or our bylaws or (iv) any action asserting a claim against us governed by the internal affairs doctrine will have to be brought only in the Third Judicial Circuit, Wayne County, Michigan (or, if the Third Judicial Circuit, Wayne County, Michigan lacks jurisdiction over such action or proceeding, then another state court of the State of Michigan or, if no state court of the State of Michigan has jurisdiction, then the United States District Court for the Eastern District of Michigan) or the Court of Chancery of the State of Delaware (or if the Court of Chancery of the State of Delaware lacks jurisdiction, any other state court of the State of Delaware, or if no state of the State of Delaware has jurisdiction, the federal district court for the District of Delaware), unless we consent in writing to the selection of an alternative forum. Additionally, our certificate of incorporation states that the foregoing provision does not apply to claims arising under the Securities Act, the Exchange Act or other federal securities laws for which there is exclusive federal or concurrent federal and state jurisdiction. Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. The exclusive forum provisions may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers or stockholders, which may discourage lawsuits with respect to such claims. Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder as a result of our exclusive forum provisions.

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