Document:

Exhibit 10.5

 

SERVICES AGREEMENT

 

THIS
SERVICES AGREEMENT (the “Agreement”) made and entered into as of the 10th day of January, 2022, by and among Pedro Arnt
(“Arnt”), with an email of [****], and Aleph Group, Inc, a Cayman company (“Aleph”), with an email of [****]
(and copy to [****]).

 

W I T N E S S E T H:

 

WHEREAS, Aleph wishes
to engage the services of Arnt as Director of its Board of Directors and Arnt desires to provide such services, upon the terms and conditions
set forth in this Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants hereinafter contained, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.            
RECITALS. The above recitals are true and correct and incorporated herein by this reference. 

 

 2.             TERM; DUTIES/RESPONSIBILITIES. 

 

(a)          
From January 10, 2022 through January 10, 2026 (the “Term”), Arnt shall be member of the Board of Directors and Audit Committee of Aleph,
at which time the Term shall end unless the parties extend or renew this Agreement prior to the expiration of the Term, subject to earlier
termination under Paragraph 6 hereof; provided however, the Term may be extended, in which case the parties shall sign an amendment to
this Agreement or a new agreement. 

 

(b)          
Arnt agrees that throughout the Term hereof he will devote his skill and attention to his duties hereunder, and that he will faithfully
and to the best of his ability perform his duties hereunder and use his best efforts to promote the interests of Aleph and its group
of companies. 

 

(c)          
Arnt shall not serve in any officer position in Aleph or in any director or officer position of Aleph’s subsidiaries unless he shall
be specifically elected to any such position. Arnt may not bind Aleph or execute any documentation on behalf of Aleph. Arnt shall be
entitled to reimbursement of reasonable business expenses only if pre-approved in writing by Aleph CEO, [****].

 

3.            
ARNT PARTICIPATION. As compensation for the above-referenced services, Arnt shall receive the following: 

 

 (a)           Arnt shall receive the following equity participation in Aleph:

 

(i)        Equity interest in the issued and outstanding capital stock of Aleph equivalent to $1,500,000.00 (the “Equity Interest”),
subject to clause (ii) below. Arnt shall not be entitled to any equity interest in any Aleph subsidiary. Following Arnt’s receipt
of his Equity Interest in accordance with clause (ii) below, Arnt’s Equity Interest shall thereupon be subject to dilution along
with the other shareholders of Aleph. Arnt’s Equity Interest percentage and resulting restricted stock shall be subject to possible
change as set forth in this clause (a) or in the Shareholders’ Agreement (as defined below). Arnt shall execute a joinder to the Shareholders’
Agreement as a pre-condition to receiving or having any interest in any capital stock of Aleph.

  

     

     

    

 

(ii)       Arnt’s Equity Interest shall be in the form of restricted capital stock of Aleph (as fully paid and non-assessable) earned, vested,
and payable to him in four installments as follows: (1) one-quarter of the Equity Interest (being equity of Aleph equivalent to $375,000
at a Company Valuation of $2.5 billion, to be represented by newly issued restricted capital shares of Aleph) on January 10, 2023, (2)
one-quarter of the Equity Interest (being equity of Aleph equivalent to $375,000 at a Company Valuation of $2.5 billion, to be represented
by newly issued restricted capital shares of Aleph) on January 10, 2024, (3) one-quarter of the Equity Interest (being equity of Aleph
equivalent to $375,000 at a Company Valuation of $2.5 billion, to be represented by newly issued restricted capital shares of Aleph) on
January 10, 2025, and (4) one-quarter of the Equity Interest (being equity of Aleph equivalent to $375,000 at a Company Valuation of $2.5
billion, to be represented by newly issued restricted capital shares of Aleph) on January 10, 2026. Arnt shall be entitled to each restricted
stock installment on each of the above-indicated dates unless the Term ends prior to January 10, 2026, (y) by Arnt terminating this Agreement
pursuant to Paragraph 6(c)(iii), then he shall not be entitled to any restricted stock of Aleph still to be due to him (but he, or his
estate, shall retain any prior restricted stock already vested and given to him under clauses (1), (2) and/or (3) above, if applicable),
or (z) by Aleph terminating this Agreement for reasons other than Arnt’s breach, as defined in Paragraph 6(a), in which case Arnt
shall be entitled to restricted capital stock as follows: Arnt shall receive a pro-rata percentage (based on the number of months of service
provided prior to the termination date). Any restricted stock not fully vested, issued, and paid to Arnt under this clause (ii) shall
lapse and be null and void. All restricted capital stock to be issued to Arnt shall be free and clear of encumbrances and liens, but subject
to the Shareholders’ Agreement of Aleph, as may be amended from time to time (the “Shareholders’ Agreement”).

 

(iii)      The shareholders
of Aleph shall appropriately as to be agreed dilute their equity interests on a pro-rata basis at the relevant time(s) based on the calculations
set forth in clause (ii) above to accommodate and recognize Arnt’s vested and issued Equity Interest.

 

(iv)      If Arnt is subject to federal income tax on his restricted capital stock vesting and being issued to him based on either or both of the
2 above installment dates under clause (ii)(1), (2), (3) and/or (4) above, then upon Arnt presenting supporting documentation to Aleph
of his federal tax liability solely relating to each such vesting and issuance, Aleph, if satisfied with such documentation, shall cause
itself (or any Aleph subsidiary), as applicable, to loan him the amount of such federal tax liability and his restricted stock shall be
pledged to or as directed by Aleph as security for the repayment, in accordance with such loan documentation as shall be agreed to in
advance between the parties at the relevant time(s). The loan(s) shall accrue interest at 2% per annum from the date(s) of any such advance(s)
until such loan proceeds shall be paid in full, and such loan amount(s) shall be repaid at any time from Arnt from any dividends he may
receive, but no later than full repayment with interest by July 1, 2026 (the “Loan Extension Date”) by him personally, if
there is no earlier event in which Arnt receives dividend payment(s) subject to earlier termination and accelerated repayment of the loan
due to any default or termination under any provision of Paragraph 6. In the event Arnt does not repay the loan in full by the Loan Extension
Date pursuant to the loan documentation then he shall lose a number of Aleph shares for the total loan amount, based on the LTM EBITDA
for year 4 (ending at January 10, 2026) times 11 as the enterprise value, and any remaining Aleph shares, if applicable, shall be released to him but still
subject the Shareholders’ Agreement.

 

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(b)          
There shall be no employer-employee, joint venture, or partnership relationship between the parties by virtue of this Agreement. Arnt,
as a non-employee, shall not be entitled to salary compensation or other payments, nor to participate in any benefits and benefit programs
or plans which Aleph may establish from time to time during the Term hereof. 

 

 

(c)           This Paragraph 3 shall survive any expiration or earlier termination of this Agreement.

 

4.            
CONFIDENTIAL INFORMATION. Arnt understands and agrees that all proprietary information relating to Aleph (including its subsidiaries
and affiliates), shall be treated by Arnt as confidential (the “Confidential Information”); therefore, Arnt has entered into and executed
the Non-Disclosure and Confidentiality Agreement with Aleph (the “NDA”) attached hereto as Exhibit “A” and made a part hereof by
this reference as if set forth verbatim herein. The parties agree that the provisions of the NDA shall apply to Arnt with Aleph thereunder.
Any breach by Arnt of the covenants in this Paragraph 4 or the NDA will cause irreparable injury and incalculable damage to Aleph, and
Aleph shall be entitled to apply for injunctive relief for same in any court of competent jurisdiction in addition to all other remedies
which may be available to it on a cumulative basis at law and/or in equity. This Paragraph 4 shall survive any expiration or earlier
termination of this Agreement. 

 

5.            
NOTICES. Any notice or other communication required or desired to be given shall be in writing and shall be sent by certified
mail, return receipt requested; and each such notice shall be deemed given upon deposit in any depository therefor maintained by the
United States. Notice may also be given by hand delivery/courier delivery, by email, or by facsimile, to the appropriate addresses for
Aleph and Arnt as set forth at the outset of this Agreement or on file with the parties, which any party may change as to such party
upon 10 days' prior notice to the other party. Neither party shall frustrate receipt of any notice. 

 

 

 6.             BREACH, DEFAULT, AND TERMINATION. 

 

(a)
           Any of the following events shall constitute a breach of this Agreement by either party:

 

(i)        An affirmative
act of insolvency or the filing of a petition under any bankruptcy reorganization, insolvency, or any law for the relief of, or relating
to debt, or the appointment of a receiver or trustee to take possession of any property of such party; or

 

 

(ii)       A breach
of any representation or warranty, or non-fulfillment of any covenant or obligation by such party.

 

(b)           Upon any breach by either party of this Agreement, the non-breaching party shall give the breaching party notice of such breach
pursuant to the notice provisions of Paragraph 5 hereof and the non-breaching party shall have five business days once notice has
been so given thereunder to cure such breach and if not cured (or be diligently attempting such cure) within such period of time,
the non-breaching party shall have the right to declare this Agreement in default and immediately terminate this Agreement upon
notice to the breaching party pursuant to said notice provisions. Upon such default, the non-breaching party shall be entitled to
pursue whatever remedies may be available to it/him on a cumulative basis at law and/or in equity.

 

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(c)           This Agreement
may be terminated: (i) upon the death or permanent disability of Arnt, (ii) upon mutual agreement of the parties, (iii) by either party
without cause upon 30 days’ prior written notice to the other party, or (iv) upon default by either party of this Agreement pursuant to
Paragraph 6(b). Upon any termination, all sums or other interests, which shall otherwise be due to either party shall be promptly paid,
and all Confidential Information shall be returned to or as directed by Aleph.

 

7.
             INDEMNIFICATION. Aleph shall indemnify Arnt (whether through
its insurance or otherwise) in connection with him acting as Director of Aleph or in any other capacity under this Agreement to be effective
as of January 10, 2022 pursuant to the Indemnification Agreement attached hereto as Exhibit “B” and/or the D&O Insurance Policy
attached hereto as Exhibit “C”, as applicable, and made a part hereof by this reference as if set forth verbatim herein.
This Paragraph 7 shall survive any expiration or earlier termination of this Agreement.

 

 

8.             MISCELLANEOUS
PROVISIONS. This Agreement embodies the entire understanding and agreement of the parties hereto in relation to the subject
matter hereof, and no promise, condition, representation, or warranty, express or implied, not herein set forth shall bind any party
hereto. None of the terms and conditions of this Agreement may be changed, modified, waived, or cancelled orally or otherwise except
in a writing signed by the parties hereto, specifying such change, modification, waiver, or cancellation. A waiver at any time of
compliance with any of the terms or conditions of this Agreement shall not be considered a modification, cancellation, or waiver of
such terms and conditions of any preceding or succeeding breach thereof unless expressly so stated. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs, executors, personal representatives, legal
representatives, successors, and permitted assigns. This Agreement shall not be assigned by Arnt as it is personal between him and
Aleph but may be assigned by Aleph to an affiliate if applicable. There shall be no third-party beneficiaries to this Agreement. The
invalidity or unenforceability of any particular provision of this Agreement or portions thereof shall not affect the other
provisions or portions thereof, and this Agreement shall be construed in all respects as if any such invalid or unenforceable
provisions or portions thereof were omitted. This Agreement may be executed in multiple counterparts, each of which shall constitute
an original and all of which shall constitute one and the same agreement. This Agreement shall be governed by and construed under
the internal laws of the State of Florida without regard to any conflicts of law principles thereof. In the event of a dispute
arising out of, or any action is brought to enforce, this Agreement which shall result in litigation, the prevailing party in such
litigation shall be entitled to promptly receive reimbursement of its or his reasonable legal fees, costs, and expenses from the
other party, at trial and through any applicable appeal, and venue for such litigation shall be the state or federal courts located
in Miami-Dade County, Florida, which by this reference the parties hereto irrevocably and unconditionally agree to submit to such
venue. Each party, at no additional cost to it or him, shall, upon the reasonable request of the other party, execute and deliver or
cause to be executed and delivered such agreements, documents, certificates, and instruments and perform such other acts as may be
necessary or desirable in order to fully effectuate the purposes, terms and conditions of this Agreement, whether at or after the
date hereof. Each party hereto has the authority and capacity to enter into, deliver, and perform under this Agreement. All headings
in this Agreement are only for convenience and do not interpret this Agreement. Both parties shall be deemed to have drafted this
Agreement and any ambiguities shall not be construed against either party as a drafter. This Paragraph 8, and any other provisions
hereof which by their nature should survive, shall survive expiration or any earlier termination of this Agreement.

 

[Signature Page Next Following]

 

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IN WITNESS WHEREOF, the parties have
caused this Agreement to be duly executed as of the day and year first above written.

 

	 	Aleph Group, Inc
	 	 
	 	By:	[****]
	 	[****], CEO
	 	 
	 	[****] 
	 	Pedro Arnt

 

    5EX-4.3

  Exhibit 4.3

  DESCRIPTION OF THE REGISTRANT’S CAPITAL STOCK

  REGISTERED PURSUANT TO SECTION 12 OF THE

  SECURITIES EXCHANGE ACT OF 1934

   

  The following descriptions of our capital stock and certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws are summaries and are qualified by reference to the amended and restated certificate of incorporation and the amended and restated bylaws, copies of which have been filed as exhibits to this Annual Report on Form 10-K, as well as to the applicable provisions of the Delaware General Corporation Law.

  Our authorized capital stock consists of 1,000,000,000 shares of common stock, par value $0.0001 per share, and 200,000,000 shares of preferred stock, par value $0.0001 per share.

  Common stock

  Voting rights

  Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Our amended and restated certificate of incorporation and amended and restated bylaws do not provide for cumulative voting rights. Because of this, the holders of a plurality of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose. With respect to matters other than the election of directors, at any meeting of the stockholders at which a quorum is present or represented, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at such meeting and entitled to vote on the subject matter shall be the act of the stockholders, except as otherwise required by law. The holders of a majority of the stock issued and outstanding and entitled to vote, present in person or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of the stockholders.

  Dividends

  Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of our common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.

  Liquidation

  In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock.

  Rights and preferences

  Holders of our common stock have no preemptive, conversion, subscription or other rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of our preferred stock that we may designate in the future.

  Fully paid and nonassessable

  All of our outstanding shares of common stock are fully paid and nonassessable.

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  Preferred stock

  Our board of directors has the authority, without further action by the stockholders, to issue up to 200,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, redemption rights, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The issuance of preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in our control or other corporate action.

  Registration rights

  Certain holders of our common stock are entitled to certain registration rights pursuant to our investors’ rights agreement, as amended. Holders of such shares of our common stock have the right to require us to register the offer and sale of their shares or to include their shares in any registration statement we file, in each case as described below. In addition, with respect to the shares of our common stock issued pursuant to a license agreement with Mirati Therapeutics (Mirati) dated August 3, 2020, Mirati and we agreed to negotiate and enter into a registration rights agreement.

  Demand registration rights

  Certain holders of shares of our common stock are entitled to certain demand registration rights. At any time beginning after 180 days following the date of our initial public offering, the holders of at least 50% of the shares having registration rights can request that we file a registration statement to register the offer and sale of their shares. We are only obligated to effect up to two such registrations. Each such request for registration must cover securities the anticipated aggregate gross proceeds of which, before deducting underwriting discounts and expenses, is at least $10 million. These demand registration rights are subject to specified conditions and limitations, including the right of the underwriters to limit the number of shares included in any such registration under certain circumstances. If we determine that it would be materially detrimental to us and our stockholders to effect such a demand registration, we have the right to defer such registration, not more than once in any twelve month period, for a period of up to 90 days.

  Form S-3 registration rights

  Certain holders of shares of our common stock are entitled to certain Form S-3 registration rights. When we are eligible to file a registration statement on Form S-3, the holders of the shares having these rights can request that we register the offer and sale of their shares of our common stock on a registration statement on Form S-3 so long as the request covers securities the anticipated aggregate public offering price of which is at least $1 million. These stockholders may make an unlimited number of requests for registration on a registration statement on Form S-3. However, we will not be required to effect a registration on Form S-3 if we have effected two such registrations within the twelve month period preceding the date of the request. These Form S-3 registration rights are subject to specified conditions and limitations, including the right of the underwriters to limit the number of shares included in any such registration under certain circumstances. Additionally, if we determine that it would be seriously detrimental to us and our stockholders to effect such a demand registration, we have the right to defer such registration, not more than once in any twelve month period, for a period of up to 90 days.

  Piggyback registration rights

  Certain holders of shares of our common stock are entitled to certain “piggyback” registration rights. If we propose to register the offer and sale of shares of our common stock under the Securities Act, the holders 

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  of these shares can request that we include their shares in such registration, subject to certain marketing and other limitations, including the right of the underwriters to limit the number of shares included in any such registration statement under certain circumstances. As a result, whenever we propose to file a registration statement under the Securities Act, other than with respect to (1) a registration related to any employee benefit plan or a corporate reorganization or other transaction covered by Rule 145 promulgated under the Securities Act, (2) a registration relating to the offer and sale of debt securities, (3) a registration on any registration form that does not permit secondary sales or (4) a registration pursuant to the demand or Form S-3 registration rights described in the preceding two paragraphs above, the holders of these shares are entitled to notice of the registration and have the right, subject to certain limitations, to include their shares in the registration.

  Expenses of registration

  We will pay all expenses relating to any demand registrations, Form S-3 registrations and piggyback registrations, subject to specified exceptions.

  Termination

  The registration rights terminate upon the earliest of (1) the date that is four years after the closing of our initial public offering, (2) immediately prior to the closing of certain liquidation events and (3) as to a given holder of registration rights, the date after the closing of our initial public offering when such holder of registration rights can sell all of such holder’s registrable securities during any 90-day period pursuant to Rule 144 promulgated under the Securities Act.

  Anti-takeover effects of certain provisions of Delaware law, our amended and restated certificate of incorporation and our amended and restated bylaws

  Certain provisions of Delaware law and certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws summarized below may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders.

  Preferred stock

  Our amended and restated certificate of incorporation contains provisions that permit our board of directors to issue, without any further vote or action by the stockholders, shares of preferred stock in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting rights (if any) of the shares of the series and the powers, preferences or relative, participation, optional and other special rights, if any, and any qualifications, limitations or restrictions, of the shares of such series.

  Classified board

  Our amended and restated certificate of incorporation provides that our board of directors is divided into three classes, designated Class I, Class II and Class III. Each class will be an equal number of directors, as nearly as possible, consisting of one third of the total number of directors constituting the entire board of directors. The term of initial Class I directors terminates on the date of the 2021 annual meeting, the term of the initial Class II directors terminates on the date of the 2022 annual meeting, and the term of the initial Class III directors terminates on the date of the 2023 annual meeting. At each annual meeting of stockholders beginning in 2021, the class of directors whose term expires at that annual meeting will be subject to reelection for a three-year term.

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  Removal of directors

  Our amended and restated certificate of incorporation provides that stockholders may only remove a director for cause by a vote of no less than a majority of the shares present in person or by proxy at the meeting and entitled to vote.

  Director vacancies

  Our amended and restated certificate of incorporation authorizes only our board of directors to fill vacant directorships.

  No cumulative voting

  Our amended and restated certificate of incorporation provides that stockholders do not have the right to cumulate votes in the election of directors.

  Special meetings of stockholders

  Our amended and restated certificate of incorporation and amended and restated bylaws provide that, except as otherwise required by law, special meetings of the stockholders may be called only by the Chairperson of our board of directors, by the majority of the board of directors or by our Chief Executive Officer or our President.

  Advance notice procedures for director nominations

  Our amended and restated bylaws provide that stockholders seeking to nominate candidates for election as directors at an annual or special meeting of stockholders must provide timely notice thereof in writing. To be timely, a stockholder’s notice generally must be delivered to and received at our principal executive offices before notice of the meeting is issued by the secretary of the Company, with such notice being served not less than 90 nor more than 120 days before the meeting. Although the amended and restated bylaws do not give the board of directors the power to approve or disapprove stockholder nominations of candidates to be elected at an annual meeting, the amended and restated 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.

  Action by written consent

  Our amended and restated certificate of incorporation and amended and restated bylaws provide that any action to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by written consent.

  Amending our certificate of incorporation and bylaws

  Our amended and restated certificate of incorporation may be amended or altered in any manner provided by the Delaware General Corporation Law (DGCL). Our amended and restated bylaws may be adopted, amended, altered or repealed by stockholders only upon approval of at least majority of the voting power of all the then outstanding shares of the common stock, except for any amendment of the above provisions, which would require the approval of a two-thirds majority of our then outstanding common stock. Additionally, our amended and restated certificate of incorporation provides that our bylaws may be amended, altered or repealed by the board of directors.

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  Authorized but unissued shares

  Our authorized but unissued shares of common stock and preferred stock are available for future issuances without stockholder approval, except as required by the listing standards of Nasdaq, and may be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock may render more difficult or discourage an attempt to obtain control of the Company by means of a proxy contest, tender offer, merger or otherwise.

  Exclusive jurisdiction

  Our amended and restated bylaws provide that, unless we consent to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for any derivative action or proceeding brought on our behalf, any action asserting a claim of breach of fiduciary duty, any action asserting a claim arising pursuant to the DGCL, any action regarding our amended and restated certificate of incorporation or amended and restated bylaws, or any action asserting a claim against us that is governed by the internal affairs doctrine. Our amended and restated bylaws further provide that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. Any person or entity purchasing or otherwise acquiring any interest in our securities shall be deemed to have notice of and consented to these provisions. Although we believe these provisions benefit us by providing increased consistency in the application of law for the specified types of actions and proceedings, the provisions may have the effect of discouraging lawsuits against us or our directors and officers.

  Nothing in our amended and restated bylaws precludes stockholders that assert claims under the Exchange Act from bringing such claims in federal court, subject to applicable law. We note that stockholders cannot waive compliance (or consent to non-compliance) with the federal securities laws and the rules and regulations thereunder.

  Business combinations with interested stockholders

  We are governed by Section 203 of the DGCL. Subject to certain exceptions, Section 203 of the DGCL prohibits a public Delaware corporation from engaging in a business combination (as defined in such section) with an “interested stockholder” (defined generally as any person who beneficially owns 15% or more of the outstanding voting stock of such corporation or any person affiliated with such person) for a period of three years following the time that such stockholder became an interested stockholder, unless (1) prior to such time the board of directors of such corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; (2) upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of such corporation at the time the transaction commenced (excluding for purposes of determining the voting stock of such corporation outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (a) by persons who are directors and also officers of such corporation and (b) by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer); or (3) at or subsequent to such time the business combination is approved by the board of directors of such corporation and authorized at a meeting of stockholders (and not by written consent) by the affirmative vote of at least 66 2/3% of the outstanding voting stock of such corporation not owned by the interested stockholder.

   

  Our amended and restated certificate of incorporation and our amended and restated bylaws provide that we must indemnify our directors and officers to the fullest extent authorized by the DGCL. We are expressly authorized to, and do, carry directors’ and officers’ insurance providing coverage for our directors, officers and certain employees for some liabilities. In addition to the indemnification required in our amended and restated certificate of incorporation and amended and restated bylaws, we have entered into an indemnification agreement with each member of our board of directors and each of our officers. These agreements provide 

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  for the indemnification of our directors and officers for certain expenses and liabilities incurred in connection with any action, suit, proceeding or alternative dispute resolution mechanism or hearing, inquiry or investigation that may lead to the foregoing, to which they are a party, or are threatened to be made a party, by reason of the fact that they are or were a director, officer, employee, agent or fiduciary of our company, or any of our subsidiaries, by reason of any action or inaction by them while serving as an officer, director, agent or fiduciary, or by reason of the fact that they were serving at our request as a director, officer, employee, agent or fiduciary of another entity. In the case of an action or proceeding by or in the right of our company or any of our subsidiaries, no indemnification will be provided for any claim where a court determines that the indemnified party is prohibited from receiving indemnification. We believe that these indemnification provisions and insurance are useful to attract and retain qualified directors and executive officers.

  The limitation on liability and indemnification provisions in our certificate of incorporation and bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. 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. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

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