Document:

bxrx-ex410_83.htm

 

 

Exhibit 4.10

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934

Baudax Bio, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s common stock, par value $0.01 per share (“Common Stock”) is registered under Section 12(b) of the Exchange Act. The following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our amended and restated articles of incorporation (“Articles of Incorporation”) and amended and restated bylaws (“Bylaws”) each of which is incorporated by reference as an exhibit to our Annual Report on Form 10-K filed with the SEC on February 16, 2021. We encourage you to read our Articles of Incorporation, Bylaws and the applicable provisions of the Pennsylvania Business Corporation Law (“PBCL”), for additional information. 

References to “Baudax,” “we,” and the “Company” herein are, unless the context otherwise indicates, only to Baudax Bio, Inc. and not to any of its subsidiaries.

Common Stock

Authorized Capital Stock: Our authorized capital stock consists of 110,000,000 shares, 100,000,000 of which are designated as Common Stock and 10,000,000 of which are designated as undesignated preferred stock with a par value of $0.01 (“Preferred Stock”). Shares of our Common Stock have the following rights, preferences and privileges:

Voting Rights: Holders of our Common Stock are entitled to one vote for each share held on all matters submitted to a vote of shareholders, including the election of directors, and do not have cumulative voting rights. Directors are elected by a plurality of the votes cast.

Dividends: Subject to preferences that may be applicable to any then-outstanding shares of Preferred Stock, holders of our Common Stock may be entitled to receive ratably dividends when, as, and if declared by our board of directors out of funds legally available therefor, subject to any preferential dividend rights of outstanding Preferred Stock. In the event of our liquidation, dissolution, or winding up, holders of our Common Stock will be entitled to ratably receive the net assets of our company available after the payments of all debts and other liabilities and subject to the prior rights of the holders of any then-outstanding shares of Preferred Stock.

No Preemptive or Similar Rights: Holders of our Common Stock have no preemptive, subscription, redemption or conversion rights.

Transfer Agent and Registrar: The transfer agent and registrar for our Common Stock is Broadridge Corporate Issuer Solutions, Inc.

Listing: Our Common Stock is listed on the Nasdaq Capital Market under the symbol “BXRX.” 

Preferred Stock

Our board of directors has the authority, without further action by our shareholders, to issue up to 10,000,000 shares of Preferred Stock in one or more series, to establish from time to time the number of shares to be included in each such series, to fix the dividend, voting and other rights, preferences and privileges of the shares of each wholly unissued series and any qualifications, limitations or restrictions thereon, and to increase or decrease the number of shares of any such series, but not below the number of shares of such series then outstanding. Our board of directors may authorize the issuance of Preferred Stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our Common Stock. The issuance of Preferred Stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in our control and may adversely affect the market price of the Common Stock and the voting and other rights of the holders of our Common Stock. 

We have no current plans to issue any shares of Preferred Stock.

 

 

 

Anti-Takeover Effects of Our Articles of Incorporation and Our Bylaws

Provisions of our Articles of Incorporation and Bylaws may delay or discourage transactions involving an actual or potential change of control or change in our management, including transactions in which shareholders might otherwise receive a premium for their shares, or transactions that our shareholders might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our Common Stock. Among other things, our Articles of Incorporation and Bylaws:

	
 
	
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divide our board of directors into three classes with staggered three-year terms;

 

	
 
	
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provide that a special meeting of shareholders may be called only by a majority of our board of directors, the chairman of our board of directors, the chief executive officer or the president;

 

	
 
	
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establish advance notice procedures with respect to shareholder proposals to be brought before a shareholder meeting and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors;

 

	
 
	
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provide that shareholders may only act at a duly organized meeting;

	
 
	
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provide that certain provisions of the amended and restated articles of incorporation may only be amended with the affirmative vote of 66 2/3% of the holders of the outstanding shares of capital stock; and

 

	
 
	
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provide that members of our board of directors may be removed from office by our shareholders only for cause by the affirmative vote of 75% of the total voting power of all shares entitled to vote generally in the election of directors.

Our Articles of Incorporation also provide that, unless we consent in writing to the selection of an alternative forum, a state or federal court located within the County of Philadelphia in the Commonwealth of Pennsylvania will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of our company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees or our shareholders, (iii) any action asserting a claim arising pursuant to any provision of the PBCL, or (iv) any action asserting a claim peculiar to the relationships among or between our company and our officers, directors and shareholders.

The exclusive forum provision described above is intended to apply to the fullest extent permitted by law, including to actions arising under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act. However, the enforceability of exclusive forum provisions in the governing documents of other companies has been challenged in legal proceedings, and it is possible that a court could find our forum selection provision to be inapplicable or unenforceable with respect to actions arising under the Securities Act or the Exchange Act. Even if it is accepted that our exclusive forum provision applies to actions arising under the Securities Act, shareholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder.

Anti-Takeover Provisions under Pennsylvania Law

Pennsylvania Anti-Takeover Law

Provisions of the PBCL applicable to us provide, among other things, that:

	
 
	
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we may not engage in a business combination with an “interested shareholder,” generally defined as a holder of 20% of a corporation’s voting stock, during the five-year period after the interested shareholder became such except under certain specified circumstances;

 

	
 
	
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holders of our Common Stock may object to a “control transaction” involving us (a control transaction is defined as the acquisition by a person or group of persons acting in concert of at least 20% of the outstanding voting stock of a corporation), and demand that they be paid a cash payment for the “fair value” of their shares from the “controlling person or group”;

 

	
 
	
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holders of “control shares” will not be entitled to voting rights with respect to any shares in excess of specified thresholds, including 20% voting control, until the voting rights associated with such shares are restored by the affirmative vote of a majority of disinterested shares and the outstanding voting shares of the Company; and

 

	
 
	
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any “profit,” as defined, realized by any person or group who is or was a “controlling person or group” with respect to us from the disposition of any equity securities of within 18 months after the person or group became a “controlling person or group” shall belong to and be recoverable by us.

Pennsylvania-chartered corporations may exempt themselves from these and other anti-takeover provisions. Our Articles of Incorporation do not provide for exemption from the applicability of these or other anti-takeover provisions in the PBCL.

 

 

 

The provisions noted above may have the effect of discouraging a future takeover attempt that is not approved by our board of directors but which individual shareholders may consider to be in their best interests or in which shareholders may receive a substantial premium for their shares over the then current market price. As a result, shareholders who might wish to participate in such a transaction may not have an opportunity to do so. The provisions may make the removal of our board of directors or management more difficult. Furthermore, such provisions could result our company being deemed less attractive to a potential acquiror and/or could result in our shareholders receiving a lesser amount of consideration for their shares of our Common Stock than otherwise could have been available either in the market generally and/or in a takeover.bxrx-ex1034_82.htm

 

Exhibit 10.34

 

STOCK OPTION AWARD AGREEMENT

UNDER THE BAUDAX BIO, INC.
2019 EQUITY INCENTIVE PLAN

THIS STOCK OPTION AWARD AGREEMENT (this “Agreement”) is made by Baudax Bio, Inc. (the “Company”) and the participant named on the grant schedule attached hereto (the “Grantee”).

RECITALS

WHEREAS, the Company desires to award a stock option to the Grantee under the Baudax Bio, Inc. 2019 Equity Incentive Plan (the “Plan”), pursuant to the terms of this Agreement.

NOW, THEREFORE, in consideration of these premises and the agreements set forth herein, the parties, intending to be legally bound hereby, agree as follows:

1.Grant Schedule.  Certain terms of this Nonqualified Option are set forth on the grant schedule attached hereto (the “Grant Schedule”), which Grant Schedule constitutes a part of this Agreement.

2.Grant of an Option.  On the grant date set forth on the Grant Schedule (the “Grant Date”) and pursuant to the Plan, the Company has awarded to the Grantee a Nonqualified Option to purchase the number of shares of Common Stock set forth on the Grant Schedule, subject to the restrictions and on the terms and conditions set forth in this Agreement and the Plan (the “Option”).  The terms of the Plan are hereby incorporated into this Agreement by this reference, as though fully set forth herein.  Capitalized terms used but not defined herein will have the same meaning as defined in the Plan.

3.Vesting.

(a)Subject to the further provisions of this Agreement, the Option will vest and become exercisable as set forth on the Grant Schedule.

(b)For purposes of any service-based portions of the vesting schedule applicable to the Option, service with the Company will be deemed to include service with any Affiliate of the Company (for only so long as such entity remains an Affiliate).

(c)Neither the Plan nor this Option will confer upon the Grantee any right to continue in employment or service with the Company or any of its Affiliates, or limit in any respect the right of the Company or its Affiliates to discharge the Grantee at any time, with or without cause and with or without notice.

(d)If the Grantee goes on a leave of absence, the Company may adjust any service-based portions of vesting schedule applicable to the Option in accordance with the terms of such leave.  Except as provided in the preceding sentence, service will be deemed to continue while the Grantee is on a bona fide leave of absence, if (i) such leave was approved by the Company in writing and (ii) continued crediting of service for such purpose is expressly required by the terms of such leave or by applicable law.  Service will be deemed to terminate when such leave ends, unless the Grantee then immediately returns to active work.

4.Transferability.  The Option is not transferable or assignable other than by will or by the laws of descent and distribution.  Any other attempt to transfer the Option, whether voluntary or involuntary, by operation of law or otherwise, will be ineffective.  During the Grantee’s lifetime, the Option is exercisable only by the Grantee.  Subject to the foregoing and the terms of the Plan, the terms and conditions of the Option will be binding upon the Grantee’s executors, administrators and heirs.

 

 

5.Expiration.

(a)Unvested Portion of Option.  In the event of the Grantee’s termination of service with the Company, any unvested portion of the Option will be forfeited immediately and automatically, without any action on the part of the Company.

(b)Vested Portion of Option.  The Grantee’s right to exercise any vested portion of the Option shall expire on the earliest to occur of the following:

i.immediately upon the termination of the Grantee’s service with the Company for Cause, as described in Section 7(e)(iv) of the Plan;

ii.one year after termination of the Grantee’s service with the Company due to death or Disability;

iii.three months after termination of the Grantee’s service with the Company for any other reason; or

iv.the tenth anniversary of the Grant Date.

6.Exercise of Option.

(a)To exercise any vested portion of the Option, the Grantee must (i) provide the Company with written notice of the Grantee’s intention to exercise the Option and the number of Option Shares (which must be a whole number) that the Grantee intends to acquire, and (ii) deliver a check for the Option Price (as set forth on the Grant Schedule) multiplied by the number of Option Shares being acquired.  As an alternative to delivering a check the Grantee may choose to exercise any vested portion of the Option hereunder on a “cashless” basis.  Under this method, the Grantee does not have to remit the Option Price in cash.  Instead, the Option Price is paid by reducing the number of Option Shares otherwise issuable to the Grantee upon exercise by such number of Option Shares having a Fair Market Value (determined at the time of exercise) equal to the Option Price.  The Board may also approve a different method of exercise in accordance with Section 7 of the Plan.

(b)In addition, any exercise of this Option will be conditioned on the Grantee making arrangements satisfactory to the Company to satisfy any tax withholding obligations arising in connection with such exercise.

(c)The Option may not be exercised, and any purported exercise will be void, if the issuance of Common Stock upon such exercise would constitute a violation of any law, regulation or exchange listing requirement.  The Board may from time to time modify the terms of the Option or impose additional conditions on the exercise of the Option as it deems necessary or appropriate to facilitate compliance with any law, regulation or exchange listing requirement.  As a further condition to the exercise of the Option, the Company may require the Grantee to make any representation or warranty as may be required by or advisable under any applicable law or regulation.

7.Issuance of Shares.

(a)Upon exercise of all or a portion of the Option, the Company shall issue to the Grantee, either by book-entry registration or issuance of a stock certificate or certificates, the applicable number of shares of Common Stock.  Any shares of Common Stock issued to the Grantee hereunder shall be fully paid and non-assessable.

(b)The Grantee will not be deemed for any purpose to be, or have rights as, a stockholder of the Company by virtue of the grant of the Option, unless and until the Grantee has exercised the Option and shares of Common Stock are issued in respect thereof.  Upon the issuance of a stock certificate or the making of an appropriate book entry on the books of the transfer agent, the Grantee will have all of the rights of a stockholder.

 

 

8.Applicable Policies.  In consideration for the grant of this Option, the Grantee agrees to be subject to any policies of the Company and its Affiliates regarding clawbacks, securities trading and hedging or pledging of securities that may be in effect from time to time.

9.Change in Control.  Notwithstanding anything to the contrary set forth herein and without limiting the authority of the Board to take additional or different actions under the Plan, upon or immediately prior to (but contingent upon the occurrence of) a Change in Control the Board may, in its sole and absolute discretion and without the need for the Grantee’s consent, cancel the Option in exchange for cash and/or other substitute consideration (which cash or substitute consideration may be subject to vesting on the same basis as the Option) with a value equal to (A) the number of Option Shares, multiplied by (B) the amount, if any, by which the Fair Market Value on the date of the Change in Control exceeds the Option Price; provided, that if the Fair Market Value on the date of the Change in Control does not exceed the Option Price, the Board may cancel the Option without any payment of consideration therefor.

10.Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any party hereto upon any breach or default of any party under this Agreement, will impair any such right, power or remedy of such party, nor will it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring, nor will any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in a writing signed by such party and will be effective only to the extent specifically set forth in such writing.

11.Tax Consequences.  The Grantee acknowledges that the Company has not advised the Grantee regarding the tax treatment of the Option and that the Company does not guarantee any particular tax treatment.

12.The Plan.  The Grantee acknowledges that the Grantee has received a copy of the Plan, has read the Plan and is familiar with its terms, and accepts the Option subject to all of the terms and provisions of the Plan.  Pursuant to the Plan, the Board is authorized to interpret this Agreement and the Plan and to adopt rules and regulations not inconsistent with the Plan as it deems appropriate.  The Grantee agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under this Agreement or the Plan.

13.Electronic Delivery of Documents.  The Grantee authorizes the Company to deliver electronically any prospectuses or other documentation related to this Option, the Plan and any other compensation or benefit plan or arrangement in effect from time to time (including, without limitation, reports, proxy statements or other documents that are required to be delivered to participants in such plans or arrangements pursuant to federal or state laws, rules or regulations).  For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available on the Company’s Intranet site.  Upon written request, the Company will provide to the Grantee a paper copy of any document also delivered to the Grantee electronically.  The authorization described in this paragraph may be revoked by the Grantee at any time by written notice to the Company.

14.Entire Agreement.  This Agreement, including terms of the Grant Schedule and Plan incorporated herein, contains the parties’ entire agreement regarding the Option evidenced hereby and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating thereto.

15.Governing Law.  This Agreement and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement shall be governed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania, without regard to the application of the principles of conflicts of laws.

BAUDAX BIO, INC.

 

By:

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