Document:

Exhibit 10.1

  

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is made and entered into as of February 19, 2021, by and among Akoustis Technologies,
Inc., a Delaware corporation (the “Company”), and the undersigned purchasers (the “Purchasers”).

 

RECITALS

 

WHEREAS, the Company
and the Purchasers desire to enter into this transaction to purchase the Purchased Shares (as defined below) set forth herein pursuant
to the Company’s currently effective Registration Statement on Form S-3 (Registration Number 333-238130) (the “Registration
Statement”) under the Securities Act of 1933, as amended (the “Securities Act”).

 

WHEREAS, the Purchasers
wish to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, shares of common stock,
par value $0.001 per share, of the Company (“Shares”).

 

THE PARTIES HERETO
HEREBY AGREE AS FOLLOWS:

 

1. Purchase
and Sale of Shares.

 

1.1 Sale
and Issuance of Shares. On or prior to the Closing (as defined below), the Company shall have authorized the sale and issuance
to the Purchasers of the number of Shares set forth opposite such Purchaser’s name on Exhibit A hereto (the “Purchased
Shares”) for the aggregate purchase price set forth on Exhibit A hereto (the “Aggregate Purchase Price”). 

 

1.2 Closing.
Subject to the satisfaction (or waiver) of the conditions set forth herein, the Company shall issue and sell to the Purchaser,
and the Purchaser agrees to purchase from the Company on the Closing Date (as defined below), the Purchased Shares for the Aggregate
Purchase Price (the “Closing”).  The time and date of the Closing (the “Closing Date”)
shall be as soon as practicable, but in no event later than 10:00 a.m., Eastern Time, on February 23, 2021. The Closing shall
be effected by the electronic exchange of documents and signatures by electronic transmission, or by such other means or at such
other place as the parties shall agree.  Prior to the Closing, the Purchaser will initiate an irrevocable wire transfer for
the Aggregate Purchase Price to the account designated by the Company and following confirmation of receipt of such payment, the
Company shall cause Broadridge Financial Solutions, Inc., the Company’s transfer agent, through the Depository Trust Company
(“DTC”) Fast Automated Securities Transfer Program, to credit the number of Purchased Shares purchased by the
Purchasers to the respective Purchasers’ or their designees’ balance accounts (to be provided by the Purchasers to
the Company in writing at least one business day prior to the Closing) with DTC through its Deposit Withdrawal Agent Commission
system.  As used herein, “business day” means any day other than a Saturday, Sunday or other day on which banking
institutions located in Huntersville, North Carolina are authorized or obligated by law or executive order to close.

 

     

     

    

 

2. Representations
and Warranties of the Company. The Company hereby represents and warrants to each Purchaser that, as of the date hereof, except
as set forth in the SEC Reports (as defined below):

 

2.1 Incorporation,
Good Standing and Qualification.

 

(a) The
Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of
its incorporation and has all requisite corporate power and authority to (i) execute, deliver and perform its obligations
under this Agreement, (ii) to issue and sell the Purchased Shares pursuant to this Agreement, and (iii) to carry on its
business as now conducted and as presently proposed to be conducted.  The Company is duly qualified to transact business and
is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires
such qualification, except to the extent that the failure to be so qualified would not, individually or in the aggregate (1) have
a material adverse effect on the assets, business, condition (financial or otherwise), management, operations, earnings results
or prospects of the Company and its subsidiaries, considered as one entity, (2) prevent or materially interfere with consummation
of the transactions contemplated hereby, or (3) result in the delisting of shares of Common Stock from the Nasdaq Capital Market
(the occurrence of any such effect, prevention, interference or result described in the foregoing clauses (1), (2) or (3) being
herein referred to as a “Material Adverse Effect”).

 

(b) Each
of the Company’s “subsidiaries” (for purposes of this Agreement, as defined in Rule 405 under the Securities
Act) has been duly incorporated or organized, as the case may be, and is validly existing as a corporation, partnership or limited
liability company, as applicable, in good standing under the laws of the jurisdiction of its incorporation or organization and
has the power and authority (corporate or other) to carry on its business as now conducted and as presently proposed to be conducted.
Each of the Company’s subsidiaries is duly qualified as a foreign corporation, partnership or limited liability company,
as applicable, to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership
or leasing of property requires such qualification, except to the extent that the failure to be so qualified would not, individually
or in the aggregate, have a Material Adverse Effect.

 

2.2 Authorization.
All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement, the performance of all obligations of the Company hereunder, and the authorization, issuance (or
reservation for issuance), sale and delivery of the Purchased Shares hereunder has been taken or will be taken prior to the Closing,
and, assuming due authorization, execution and delivery by the Purchasers, this Agreement constitutes a valid and legally binding
obligation of the Company, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally and
(ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

2.3 Valid
Issuance of Shares. The Purchased Shares, when issued, sold and delivered in accordance with the terms of this Agreement for
the consideration set forth herein, will be duly and validly issued, fully paid, and nonassessable, and will be free of restrictions
on transfer other than restrictions on transfer under this Agreement, the Company’s certificate of incorporation and under
applicable state and federal securities laws.  The Purchased Shares will not be subject to preemptive rights or rights of
first refusal that have not been waived or complied with.

 

2.4 No
Consents. No approval, authorization, consent or order of or filing with any federal, state, local or foreign governmental
or regulatory commission, board, body, authority or agency, or of or with any self-regulatory organization or other non-governmental
regulatory authority (including, without limitation, the Nasdaq Capital Market) (“Consent”), or approval of
the Company’s stockholders, is required in connection with the issuance and sale of the Purchased Shares or the consummation
of the transactions contemplated hereby, other than (i) registration of Shares under the Securities Act, which has been effected,
(ii) any necessary qualification under the securities or blue sky laws of the various jurisdictions in which the Purchased
Shares are being offered; (iii) under the FINRA Rules or (iv) any filings required under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), which have been or will be made when and how required.

 

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2.5 Offering.
The issuance by the Company of the Purchased Shares has been registered under the Securities Act and the Purchased Shares are
being issued pursuant to the Registration Statement. The Registration Statement is effective and available for the issuance of
the Purchased Shares thereunder and the Company has not received any notice that the U.S. Securities and Exchange Commission (the
“SEC”) has issued or intends to issue a stop-order with respect to the Registration Statement or that the SEC
otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends
or has threatened in writing to do so.

 

2.6 Litigation.
As of the date hereof, there is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently
threatened against the Company that questions the validity of this Agreement or the right of the Company to enter into this Agreement
or to consummate the transactions contemplated hereby.

 

2.7 No
Conflicts. Neither the execution and delivery by the Company of, nor the performance by the Company of its obligations under,
this Agreement will conflict with, contravene, result in a breach or violation of, or imposition of any lien, charge or encumbrance
upon any assets of the Company or any of its subsidiaries pursuant to, or constitute a default under (i) any statute, law,
rule, regulation, judgment, order or decree of any governmental body, regulatory or administrative agency or court having jurisdiction
over the Company or any of its subsidiaries; (ii) the certificate of incorporation or bylaws of the Company or the organizational
documents of any subsidiary; or (iii) any contract, agreement, obligation, covenant or instrument to which the Company or
any of its subsidiaries (or any of their assets) are subject or bound, other than, in the cases of clauses (i) and (iii),
such conflicts, breaches, violations, liens, charges, encumbrances and defaults that would not, individually or in the aggregate,
have a Material Adverse Effect.

 

2.8 SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act or the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof
(the foregoing materials being collectively referred to herein as the “SEC Reports”), on a timely basis or
has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. 
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and
the Exchange Act and the rules and regulations of the SEC promulgated thereunder, as applicable, and none of the SEC Reports,
when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
No executive officer of the Company has failed in any respect to make the certifications required of him or her under Section 302
or 906 of the Sarbanes-Oxley Act of 2002.  The financial statements of the Company included in the SEC Reports comply in
all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto
as in effect at the time of filing.  Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as
may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may
not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

2.9 Absence
of Certain Events and Changes. Since the date of the last day of the period covered by the Company’s most recently filed
periodic report covering an annual or quarterly period with the SEC, (i) there has not been any event, change or development
which, individually or in the aggregate, has had or is reasonably likely to have a Material Adverse Effect and (ii) the Company
has not declared or made any dividend or distribution of cash or other property to its stockholders.

 

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3. Representations
and Warranties of the Purchaser. Each Purchaser hereby represents and warrants that:

 

3.1 Organization;
Authorization. The Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization.  The Purchaser has full power and authority to enter into this Agreement and, assuming due authorization,
execution and delivery by the Company, this Agreement constitutes a valid and legally binding obligation of the Purchaser, enforceable
in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and
other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws
relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

3.2 Receipt
and Review of Information. The Purchaser acknowledges its receipt and review prior to its execution of this Agreement of the
prospectus supplement describing the Purchased Shares and the offering thereof, including the base prospectus attached thereto.

 

3.3 No
Governmental Review. The Purchaser understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Purchased Shares or the fairness or suitability of the investment
in the Purchased Shares nor have such authorities passed upon or endorsed the merits of the offering of the Purchased Shares.

 

3.4 No
Conflicts. Neither the execution and delivery by the Purchaser of, nor the performance by the Purchaser of its obligations
under, this Agreement will conflict with, contravene, result in a breach or violation of, or imposition of any lien, charge or
encumbrance upon any assets of the Purchaser or any of its subsidiaries pursuant to, or constitute a default under (i) any
statute, law, rule, regulation, judgment, order or decree of any governmental body, regulatory or administrative agency or court
having jurisdiction over the Purchaser or any of its subsidiaries; (ii) the certificate of incorporation or bylaws or other
organizational or constitutive documents of the Purchaser or the organizational documents of any of its subsidiaries; or (iii) any
contract, agreement, obligation, covenant or instrument to which the Purchaser or any of its subsidiaries (or any of their assets)
are subject or bound, other than, in the cases of clauses (i) and (iii), such conflicts, breaches, violations, liens, charges,
encumbrances and defaults that would not, individually or in the aggregate, have a material adverse effect on the ability of the
Purchaser to perform its obligations hereunder.

 

3.5 No
Consents. No Consent is required to be obtained or filed by the Purchaser in connection with the authorization, execution
and delivery of this Agreement or with the subscription for the Purchased Shares.

 

3.6 Purchaser
Status. At the time the Purchaser was offered the Purchased Shares, it was, and as of
the date hereof it is, either: (a) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or
(a)(8) under the Securities Act or (b) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities
Act.

  

3.7 Experience
of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Purchased Shares, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic
risk of an investment in the Purchased Shares and, at the present time, is able to afford a complete loss of such investment.

 

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4. Conditions
of the Purchaser’s Obligations at the Closing. The obligations of the Purchaser under Section 1.2 of this Agreement
with respect to the Closing are subject to the fulfillment on or before the Closing of each of the following conditions:

 

4.1 Performance.
The Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.

 

4.2 Representations
and Warranties. The representations and warranties of the Company contained in Section 2 shall have been true on and
as of the Closing.

 

4.3 Qualifications.
All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance, purchase and sale of the Purchased Shares pursuant to this
Agreement shall be duly obtained and effective as of the Closing.

 

4.4 Proceedings
and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all
documents incident thereto shall be reasonably satisfactory in form and substance to the Purchaser, and it shall have received
all such counterpart original and certified or other copies of such documents as it may reasonably request.

 

5. Conditions
of the Company’s Obligations at the Closing. The obligations of the Company to the Purchaser under this Agreement with
respect to the Closing are subject to the fulfillment on or before the Closing of each of the following conditions by the Purchaser:

 

5.1 Performance.
The Purchaser shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.

 

5.2 Representations
and Warranties. The representations and warranties of the Purchaser contained in Section 3 shall have been true on and
as of the Closing.

 

5.3 Qualifications.
All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance, purchase and sale of the Purchased Shares pursuant to this
Agreement shall be duly obtained and effective as of the Closing.

 

6. Miscellaneous.

 

6.1 Survival
of Warranties. The warranties, representations and covenants of the Company and the Purchaser contained in or made pursuant
to this Agreement shall survive the Closing and shall in no way be affected by any investigation of the subject matter thereof
made by or on behalf of the Purchaser or the Company.

 

6.2 Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties (including transferees of any Purchased Shares). 
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

 

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6.3 Governing
Law. This Agreement shall be governed by and construed in accordance with and governed by the law of the State of Delaware,
without regard to the conflicts of laws principles thereof.  Any action brought, arising out of, or relating to this Agreement
shall be brought in the Court of Chancery of the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction
of said Court in respect of any claim relating to the validity, interpretation and enforcement of this Agreement executed by the
Company and the Purchaser, and hereby waives, and agrees not to assert, as a defense in any action, suit or proceeding in which
any such claim is made that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable
in such courts, or that the venue thereof may not be appropriate or that this agreement may not be enforced in or by such courts. 
The parties hereby consent to and grant the Court of Chancery of the State of Delaware jurisdiction over such parties and over
the subject matter of any such claim and agree that mailing of process or other papers in connection with any such action, suit
or proceeding in the manner provided in Section 6.7, or in such other manner as may be permitted by law, shall be valid and
sufficient thereof.

 

6.4 WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

6.5 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

6.6 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

6.7 Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business
hours of the recipient, if not, then on the next business day or (c) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt.

 

6.8 Broker’s
Fees. Each party hereto represents and warrants that no agent, broker, investment banker, person or firm acting on behalf of
or under the authority of such party hereto is or will be entitled to any broker’s or finder’s fee or any other commission
directly or indirectly in connection with the transactions contemplated herein, except for an advisory fee to be paid by the Company
to its financial advisor. Each party hereto further agrees to indemnify each other party for any claims, losses or expenses incurred
by such other party as a result of the representation in this Section 6.8 being untrue.

 

6.9 Expenses.
Irrespective of whether the Closing is effected, each party shall bear their own costs and expenses incurred with respect to the
negotiation, execution, delivery and performance of this Agreement.  If any action at law or in equity is necessary to enforce
or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and
necessary disbursements in addition to any other relief to which such party may be entitled.

 

6.10 Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Purchaser.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder
of securities purchased pursuant to this Agreement, each future holder of all such securities, and the Company.

 

6.11 Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

6.12 Entire
Agreement. This Agreement and the documents referred to herein constitute the entire agreement among the parties and no party
shall be liable or bound to any other party in any manner by any warranties, representations, or covenants except as specifically
set forth herein or therein.

 

6.13 Nasdaq
Listing. The Company shall use all commercially reasonable efforts to have the Purchased Shares acquired by the Purchasers
at the Closing authorized for listing on Nasdaq.

 

[Remainder of page
intentionally left blank.]

 

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IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above written.

  

	 	Company:
	 	 
	 	AKOUSTIS TECHNOLOGIES, INC.
	 	 
	 	 
	 	By:	                     
	 	Name:	 
	 	Title:	 
	 	 
	 	PurchaserS:
	 	 
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:EX-4.2

 Exhibit 4.2 

DESCRIPTION OF REGISTRANT’S SECURITIES 

As of December 31, 2020, First Financial Bankshares, Inc. (the “Company,” “we,” or “our”) had one class of
securities, our common stock, par value $0.01 per share (“common stock”), registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 

DESCRIPTION OF COMMON STOCK 
 General

 We are incorporated in the State of Texas. The rights of our shareholders are generally covered by Texas law and our Amended and
Restated Certificate of Formation (the “certificate of formation”) and our Amended and Restated Bylaws, as amended (the “bylaws”). The terms of our common stock are therefore subject to Texas law, including the Texas Business
Organizations Code (the “TBOC”), the common and constitutional law of Texas and federal law governing bank holding companies. 

The following description of our common stock is a summary and is subject to, and is qualified in its entirety by reference to, the provisions
of our certificate of formation and our bylaws. For more detailed information about the rights of our common stock, you should refer to our certificate of formation and bylaws and the applicable provisions of Texas law, including the TBOC, for
additional information. 
 Authorized Capital Stock 

We are authorized to issue 200,000,000 shares of common stock, par value $0.01 per share. All outstanding shares of our common stock are fully
paid and non-assessable. 
 Voting Rights 

Holders of our common stock are entitled to one vote per share in the election of directors and on all other matters submitted to a vote at a
meeting of shareholders. No shareholder has the right of cumulative voting. 
 If a quorum exists, action on any matter, including the
election of directors, shall be approved by the affirmative vote of a majority of the votes cast, unless our certificate of formation, bylaws or the TBOC require a greater number of affirmative votes. In the event that the number of director
nominees exceeds the number of directors to be elected, the directors (not exceeding the authorized number of directors as fixed by the board of directors in accordance with our certificate of formation or bylaws) shall be elected by a plurality of
the voting power of the shares entitled to vote who are present, in person or by proxy, at any such meeting and entitled to vote on the election of directors. Our bylaws provided that a majority of the votes cast means that the number of shares
voted “for” a proposal, including the election of directors, must exceed the number of shares voted “against,” or “withheld” for, that proposal, and an abstention shall not constitute a vote cast. 

No Preemptive or Similar Rights 
 Our
common stock has no preemptive or conversion rights and is not entitled to the benefits of any redemption or sinking fund provision. 
 Dividend Rights

 Holders of our common stock are entitled to dividends when, as and if declared by our board of directors out of funds legally
available for dividends. 

 Liquidation Rights 

In the event of our liquidation, the holders of our common stock will be entitled to share ratably in any distribution of our assets after
payment of all debts and other liabilities. 
 Certain Business Combination Restrictions 

We are subject to the affiliated business combinations provisions of Chapter 21, Subchapter M of the TBOC (Sections 21.601 through 21.610),
which provide that a Texas corporation may not engage in certain business combinations, including mergers, consolidations and asset sales, with a person, or an affiliate or associate of such person, who is an “affiliated shareholder”
(generally defined as the holder of 20% or more of the corporation’s voting shares) for a period of three years from the date such person became an affiliated shareholder unless: (1) the business combination or purchase or acquisition of
shares made by the affiliated shareholder was approved by the board of directors of the corporation before the affiliated shareholder became an affiliated shareholder; or (2) the business combination was approved by the affirmative vote of the
holders of at least two-thirds of the outstanding voting shares of the corporation not beneficially owned by the affiliated shareholder, at a meeting of shareholders called for that purpose (and not by written
consent), not less than six months after the affiliated shareholder became an affiliated shareholder. 
 Certain Provisions of Our Certificate of
Formation and Bylaws 
 Advance Notice for Shareholder Proposals and Director Nominations 

Our bylaws contain provisions requiring that advance notice be delivered to the Company of any business to be brought by a shareholder before
an annual meeting of shareholders and provide for certain procedures to be followed by shareholders in nominating candidates for election as directors. Generally, the advance notice provisions require that shareholder proposals be provided to us
between 90 and 120 days prior to the first anniversary of the preceding year’s annual meeting and director nominations be provided to us between 120 and 150 days prior to the first anniversary of the preceding year’s annual meeting in
order to be properly brought before a shareholder meeting. The notice must set forth specific information regarding the shareholder submitting the proposal or nomination and the proposal or director nominee, as described in our bylaws, and must
otherwise comply with the terms of our bylaws. These requirements are in addition to those set forth in the regulations adopted by the SEC under the Exchange Act. 

Special Meetings of Shareholders 

Our bylaws provide that special meetings of our shareholders may be called for any purpose or purposes by (a) the Chairman of our board of
directors joined by at least three members of the board of directors, or (b) a majority of our board of directors, and shall be called by the Chairman of the board of directors or Secretary at the request in writing of shareholders owning not
less than twenty percent (20%) of our issued and outstanding shares entitled to vote at such meeting. Such request for a special meeting shall state the purpose or purposes of the proposed meeting, which purpose or purposes shall be stated in the
notice of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. At a special meeting requested by our shareholders, only the Company and the shareholders who participated in
the written meeting request may propose any item for consideration or nominate directors for election at such meeting. 
 Potential Anti-Takeover
Effect 
 Certain provisions of our certificate of formation and bylaws could make the acquisition of control of our company and/or
the removal of our existing management more difficult, including those that provide as follows: 
  

	 	•	 	 cumulative voting in the election of our board of directors, which would otherwise allow less than a majority of
shareholders to elect director candidates, is expressly denied under our certificate of formation and bylaws; 

	 	•	 	 our bylaws limit the ability of shareholders to call a special meeting except in compliance with the procedures
described above, which require shareholders owning not less than twenty percent (20%) of our issued and outstanding shares entitled to vote at such meeting to request a special meeting; 

 

	 	•	 	 subject to certain limitations set forth in our bylaws, our board of directors fixes the size of the board of
directors, may create new directorships and may appoint new directors to serve in such newly-created positions until the next election of one or more directors by our shareholders; 

 

	 	•	 	 our bylaws may be altered, amended or repealed and new bylaws may be adopted by our board of directors, subject
to repeal or change by action of the shareholders, at any meeting of the board of directors at which a quorum is present, provided notice of the proposed alteration, amendment, or repeal is contained in the notice of the meeting, unless (a) our
certificate of formation or the TBOC wholly or partly reserves the power exclusively to our shareholders; or (b) in amending, repealing, or adopting a bylaw, the shareholders expressly provide that the board of directors may not amend, repeal,
or readopt that bylaw; and 

  

	 	•	 	 we have advance notice procedures with respect to shareholder proposals and the nomination of candidates for
election as directors. 

 These provisions are expected to discourage coercive takeover practices and inadequate takeover
bids. They are also designed, in part, to encourage persons seeking to acquire control of the Company to first negotiate with our board of directors. We believe that the benefits of increased protection give us the potential ability to negotiate
with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us and that these benefits outweigh the disadvantages of discouraging the proposals. Negotiating with the proponent could result in an improvement of the terms of
the proposal. 
 Stock Exchange Listing 

Our common stock is traded on the Nasdaq Global Select Market under the symbol “FFIN.” 

Transfer Agent and Registrar 
 The
transfer agent and registrar for our common stock is Continental Stock Transfer & Trust Company at 1 State Street, 30th Floor, New York, NY 10004-1561.

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