Document:

wbwb-ex1010_51.htm

 

Exhibit10.10

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is made and entered into this 12th day of December, 2018 in Shenzhen by and between:

 

 

Party A: Shenchuang Dachen(Shenzhen) Technology Co.,Ltd

Uniform Social Credit Code: 91440300MA5FE53C7T

Address: B203-A03, Hongji Garden Phase-3, Center city zone 4, Longgang District, Shenzhen

 

Party B: Zhang Jinlin 

 

Party A is referred to hereinafter as “Pledgee”, Party B is referred to hereinafter as “Pledgor”. Each of the parties is referred to hereinafter as “party”, and collectively as the “parties”.

 

WHEREAS:

 

	
1.
	
Party A, a wholly foreign-owned enterprise incorporated under the laws of the People’s Republic of China (hereinafter referred to as “China”);

 

	
2.
	
Party B, the shareholder of 58 Life Circle (Shenzhen) Technology Co., Ltd. (hereinafter referred to as “Target Company”), holds 14% of the equity interest in the Target Company;

 

	
3.
	
The Exclusive Consulting Service Agreement and the Intellectual Property License Agreement entered into by and between Party A and the Target Company this 12th day of December, 2018;

 

	
4.
	
The Business Operation Agreement and the Exclusive Option Agreement entered into by and between the parties and associates this 12th day of December, 2018;

 

	
5.
	
the Load Agreement (the aforesaid Exclusive Consulting Service Agreement, Intellectual Property License Agreement, Business Operation Agreement, Exclusive Option Agreement and this Agreement collectively referred to as “Transaction Documents”) entered into by and between the parties this 12th  day of December, 2018, and Party B intends to pledge 14% of the equity interest in the Target Company to Party A as security for the loans under the Load Agreement;

 

	
6.
	
Party B agrees to pledge 14% of the equity interest in the Target Company held by it to Party A as security for the loans under the Load Agreement;

 

	
7.
	
The Parties intend to modify the Equity Pledge Agreement subject to the changes of the Transaction Documents and the equity status of the Target Company.

 

1

 

NOW, THEREFORE, in consideration of the above, the parties through amicably consultation hereby agree as follows:

 

	
1.
	
Pledge

 

	
 
	
1.1
	
The Pledgee and the Pledgor agree that the Pledgor shall pledge a total of 14% of the equity interest in the Target Company (hereinafter referred to as the “Pledged Equity”) held by it to Party A as security for the full performance of its Contractual Obligations subject to the terms and conditions of this Agreement. For the avoidance of doubt, the Contractual Obligations under this Agreement refer to all obligations and liabilities of the Pledgor under the Transaction Documents and its representations, commitment and warranties given under the Transaction Documents, as well as all the obligations and responsibilities of the Target Company under the Transaction Documents and its representations, commitment and warranties given under the Transaction Documents.

 

	
 
	
1.2
	
The scope of the Pledged Equity security extends to the loan and its interest (if applicable) under the Transaction Documents, the total service fee shall be collected by the Pledgee, liquidated damages (if any), indemnification, and the costs for the achievement of the pledge (including, but not limited to, legal fees, arbitration fees, the cost arising from the evaluation and auction of Pledged Equity etc.).

 

	
 
	
1.3
	
The Pledgor and the Target Company agree to record the agreed Pledged Equity under this Agreement in the register of shareholders of the Target Company within three days after the date of this Agreement. The original register of the shareholders and the original certificate of equity contribution of the Target Company shall be handed over to the Pledgee for safekeeping.

 

	
 
	
1.4
	
The Pledgor and the Target Company shall make their best efforts to complete the registration of the equity pledge under this Agreement with the industry and commerce administration authorities within 30 days after the date of this Agreement and make their best efforts to maintain the continuing validity of the equity pledge registration.

 

	
2.
	
Exercise of Pledge

 

	
 
	
2.1
	
If any Contractual Obligation is breached or failed to perform, the Pledgee has a right to dispose of all or part of the Pledged Equity held by any shareholder of the Target Company (whether such shareholders were in breach of Contractual Obligation or not) and shall have priority to reimburse the fees set forth in Article 1.2 hereof from the proceeds of disposal of the Pledged Equity.

 

	
 
	
2.2
	
The Pledgee shall give a notice of default to the Pledgor when the Pledgee exercises the Pledge. Subject to Article 6.1 hereof, the Pledgee may exercise its right to dispose of the pledge at the same time as the notice of default is given under Article 6.1 or at any time after the notice of default is given.

 

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2.3
	
The Pledgor shall not preclude the Pledgee from exercising the Pledge in accordance with this Agreement and shall give actively necessary assistance, so that the Pledgee could smoothly exercise the Pledge.

 

	
 
	
2.4
	
If the proceeds from the disposal of the Pledged Equity subject to Article 2.1 hereof are insufficient to reimburse all the costs set out in Article 1.2 hereof, the Pledgor has an obligation to make up the difference. If the said proceeds remain outstanding after the reimbursement of all costs set out in Article 1.2 hereof, it shall be dealt with in accordance with the relevant provisions of the Exclusive Option Agreement.

 

	
3.
	
The Proceeds of the Pledged Equity

 

	
 
	
3.1
	
During the term of this Agreement, the Pledgor shall be entitled to receive all proceeds (if any) arising out of the Pledged Equity, including, but not limited to dividends and other proceeds arising out of the Pledged Equity.

 

	
4.
	
Declarations, Warranties and Commitments

 

	
 
	
4.1
	
The Pledgor, individually and jointly, declares, warrants and commits to the Pledgee that:

 

	
 
	
A.
	
it has full authority to enter into this Agreement and to perform its obligations under this Agreement; it has authorized its authorized representatives to sign this Agreement, and the provisions of this Agreement shall be legally binding upon it from the date of this Agreement.

 

	
 
	
B.
	
the Pledgor is the lawful holder of the Pledged Equity and has the right to pledge the Pledged Equity to the Pledgee; there will not be any legal or de facto obstacles for the latter to exercise the pledge in the future. 

 

	
 
	
C.
	
the Target Company is a duly incorporated limited liability company and validly existing under the laws of China. It is officially registered with the industry and commerce administration authorities and has passed the annual inspection (if necessary).

 

	
 
	
D.
	
the execution, delivery and performance of this Agreement:

 

	
 
	
(a)
	
shall not conflict with or violate the provisions of the following documents, or violate the provisions of the following documents upon receipt of the relevant notice or from time to time:

	
 
	
(i)
	
Business License, Articles of Association, License, approval of incorporation by the government authorities, agreements relating to its incorporation or any other programmatic documents;

	
 
	
(ii)
	
any laws of China or other regulations binding upon it;

	
 
	
(iii)
	
any contracts or other documents that Pledgor and the Target Company is a party to or binding upon them or their assets;

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(b)
	
shall not cause any mortgage or other encumbrances on the assets of the Target Company or entitle any third party to set up any mortgage or encumbrance on its assets;

	
 
	
(c)
	
shall not cause termination or modification of the terms of any contracts or other documents that the Target Company is a party to or binding upon on it or its assets, or entitled any other third party to terminate or modify the terms of such documents;

	
 
	
(d)
	
shall not cause the suspension, revocation, damage, forfeiture or non-renewal of any approval, permit, registration, etc. of the appropriate government authorities.

 

	
 
	
E.
	
no mortgage, pledge, or other form of security, priority, legal mortgage, property preservation, attachment, trusteeship, lease, option, or other form of encumbrance (hereinafter collectively referred to as “Encumbrance”) on the Pledged Equity at the effective date of this Agreement.

 

	
 
	
F.
	
except with the prior written consent of the Pledgee, the Pledgor shall not:

 

	
 
	
(a)
	
transfer or otherwise dispose of the Pledged Equity;

 

	
 
	
(b)
	
directly or indirectly cause or allow any encumbrance other than the agreed Encumbrance set up on the Pledge Equity under the Transaction Documents.

 

	
 
	
G.
	
it shall not commit any act that results in or is likely to result in a reduction in the value of the Pledged Equity or affect the validity of the pledge under this Agreement without the prior written consent of the Pledgor. If the Pledged Equity interest is reduced from any obvious value to the extent that it endangers the rights of the Pledgee, the Pledgor shall immediately notify the Pledgee and shall, at the reasonable request of the Pledgee, provide other property to the satisfaction of the Pledgee as security and take the necessary action to settle the aforesaid incident or reduce its adverse impact. The Pledgor further warrants that the operations of the Target Company shall comply in all material respects with the laws of China and shall maintain the continued validity of the business licenses and qualifications of the Target Company during the term of this Agreement.

 

	
 
	
H.
	
it shall comply with and enforce all laws and regulations in respect to the Pledge Equity, and to present notice, instruction or proposal to the Pledgee within five days upon receipt of such notice, instruction or proposal issued or formulated by the competent authorities in respect of the pledge; and to comply with such notice, direction or proposal, or challenge and make representations on such matters at the reasonable request of or with the consent of the Pledgee. 

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I.
	
with the prior written consent of the Pledgee, any Pledgor may accept the equity interest in the Target Company transferred by other Pledgors or subscribe additional registered capital of the Target Company. The transferred equity transferred or the newly increased registered capital of the Target Company subscribed by the Pledgor is also the Pledged Equity. After the Pledgor has transferred the transferred equity or increased the capital to the Target Company, the Pledgor and the Target Company shall be responsible for recording the changed equity pledge in the name of the shareholders of the Target Company and shall register the Pledged Equity with the industry and commerce administration authorities. 

 

	
 
	
J.
	
it shall notify immediately the Pledgee of any event or notice received which may affect the equity or any part thereof, and any warranties, obligations, or any event or notice received in respect to the modification of this Agreement by the Pledgor.

 

	
 
	
K.
	
if the Pledgee needs relevant legal documents (such as certificates, licenses and authorizations etc.) when it disposes of the Pledged Equity subject to the terms and conditions of this Agreement, it shall unconditionally provide or ensure to obtain such documents and shall afford all facilities. The Pledgor warrants that upon the Pledged Equity is transferred to the Pledgee or its designated beneficiary, the Pledgor and/or the Target Company will implement all formalities required by law unconditionally, to enable the Pledgee or its designated beneficiaries to lawfully and validly acquire the equity interest in the Target Company, including, but not limited to issue relevant certification, enter into equity transfer agreements and other relevant documents.

 

	
 
	
L.
	
it shall make a commitment to the Pledgee that it will comply with and perform all warranties, commitments, agreements, representations and conditions for the benefit of the Pledgee. If the Pledgor fails or does not fully perform its warranties, commitments, agreements, representations and conditions, the Pledgor shall indemnify the Pledgee for all losses suffered thereby.

 

	
 
	
M.
	
the Pledgor hereby warrants to the Pledgee that it has made all proper arrangements and signed all necessary documents to ensure that the performance of this Agreement shall not be affected or obstructed by its heirs, guardians, creditors, spouses and others who may thus acquire its equities or related rights in the event of its death, incapacity, bankruptcy, divorce or other circumstances that may affect the exercise of shareholder’s rights.

 

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5.
	
Effectiveness, Term and Cancellation

 

	
 
	
5.1
	
This Agreement shall enter into force after it has been signed by the parties hereto.

 

	
 
	
5.2
	
This Agreement shall remain in force until all Transaction Documents other than this Agreement have been terminated or the Contractual Obligations of the security have been full performed. The Pledgor and the Target Company shall take every action to ensure the continued validity of the registration of the equity pledge during such period. The allowance for any breach of contract by the Pledgor or any delay in the exercise of any of its rights under the cooperation agreement by the Pledgee shall not affect the right of the Pledgee to require the Pledgor and the Target Company to exercise its rights under the Transaction Documents at any time in the future subject to the Transaction Documents or the rights of the Pledgee arising out of the subsequent violation of the Transaction Documents by the Pledgor or the Target Company.

 

	
 
	
5.3
	
For the avoidance of doubt, if the industry and commerce administration authorities handling the registration of equity pledge requires to specify the term of equity pledge in respect of the pledge registration, the term of equity pledge registered with the industry and commerce administration authorities shall be at least the same term as the term of service under the aforesaid Exclusive Consulting Service Agreement (i.e. 10 years). The Pledgor agrees that if the Contractual Obligations secured by the equity pledge under this Agreement have not been fully performed upon the expiration of the term of the registered equity pledge, the Pledgor has an obligation to maintain the equity pledge registration continue in force in accordance with Article 5.2 hereof.

 

	
 
	
5.4
	
If this Agreement or other Trading Documents have been completely canceled or terminated, the Pledgee shall cancel the equity pledge under this Agreement at the request of the Pledgor in writing. The Pledgor and the Target Company shall record the cancellation of the equity pledge in the register of shareholders of the Target Company and process the cancellation procedure of the registration of equity pledge with the industry and commerce administration authorities. The expenses arising out of the cancellation of the equity pledge shall be borne by the Pledgor and the Target Company.

 

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6.
	
Liability for Default

 

	
 
	
6.1
	
Unless otherwise provided in this Agreement, if a party (hereinafter referred as “Defaulting Party”) fails to perform certain obligation under this Agreement or otherwise violate this Agreement, then the other party (hereinafter referred as “Aggrieved Party”) may:

 

	
 
	
A.
	
give written notice to the Defaulting Party specifying the nature and scope of the breach and demand the Defaulting Party cure the breach at its cost within a reasonable time specified in the notice (hereinafter referred as “Cure Period”); and

 

	
 
	
B.
	
If the Defaulting Party fails to remedy the breach within the Cure Period (or, if there is no Cure Period, at any time after such breach), the Aggrieved Party is entitled to cause the Defaulting Party liable for all the consequences of its breach and all actual loss to the Aggrieved Party arising out of the breach, including, but not limited to, the legal fee, litigation expenses and arbitration fee arising out of litigation or arbitration in respect of such breach. The Aggrieved Party shall also have the right to request the relevant arbitral institution or court to make an order on the performance and/or enforcement of the provisions hereof. The exercise of the aforesaid remedy by the Aggrieved Party shall not affect the exercise of any other remedy by it subject to this Agreement and the law.

 

	
7.
	
Governing Law and Resolution of Disputes

 

	
 
	
7.1
	
The construction, validity, interpretation as well as dispute arising out of this Agreement shall be governed by the relevant laws of China.

 

	
 
	
7.2
	
All disputes arising out of or in connection with this Agreement shall be amicably resolved by the parties. In the event that any such dispute cannot be amicably resolved by the Parties within thirty days, then any Party may have a right to submit such dispute to Shenzhen-Hongkong-Macao Office of Zhanjiang Court of International Arbitration in Shenzhen. The arbitration shall be conducted by three arbitrators in accordance with the arbitration rules in force at that time. The Petitioner and the Respondent shall designate an arbitrator respectively, and the third arbitrator shall be appointed by Zhanjiang Court of International Arbitration. If the Petitioner and the Respondent are more than two persons (natural person or legal representative), the arbitrator shall be appointed by such persons through amicably negotiation in written. The award of the arbitration shall be final and binding on the parties. During the course of arbitration, the parties shall continue to perform their obligations under this Agreement, except the disputed matters or obligations submitted to arbitration. The arbitrators shall have the right to make an appropriate award in the light of the actual circumstances, to give Party A appropriate legal relief, including imposing restrictions on the business, shares or assets of the Target Company and prohibiting the Target Company to transfer or dispose of its business, shares or assets and enter into liquidation.

 

	
 
	
7.3
	
During the settlement of the dispute, the parties shall continue to perform the remaining provisions hereof, except disputed matters.

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8.
	
Confidentiality

 

	
 
	
8.1
	
A party (hereinafter referred to as “Disclosing Party”) may disclose its confidential information to the other party (hereinafter referred to as “Receiving Party”) (including, but not limited to business information, customer information, financial information, contracts etc.) from time to time before the date  of this Agreement and during the term of this Agreement. The Receiving Party shall keep such information confidential and shall not use such information for the purposes other than those specified in this Agreement. The foregoing provision does not apply to:

	
 
	
(a)
	
information that was known to the Receiving Party prior to the disclosure thereof to the Receiving Party by the Disclosing Party, as evidenced by written records;

	
 
	
(b)
	
information that is or becomes part of the public domain without violation of this Agreement by the Receiving Party at present or in the future;

	
 
	
(c)
	
information that is disclosed to the receiving party by a third party under no obligation of confidentiality;

	
 
	
(d)
	
information disclosed by either party in accordance with relevant laws, regulations or regulatory requirements, or to its legal or financial advisers for the purpose of normal operation.

 

	
 
	
8.2
	
The foregoing confidentiality obligation of the parties under this Agreement shall survive after expiration or termination of this Agreement.

 

	
9.
	
Force Majeure

 

	
 
	
9.1
	
Force Majeure means unforeseeable, unavoidable and insurmountable events which cause a party fails to perform, in whole or in part, its obligation under this Agreement, including, but not limited to earthquakes, typhoons, floods, fires, wars, strikes, riots, governmental acts, legal provisions or changes in their application.

 

	
 
	
9.2
	
In the event of Force Majeure, the obligations affected by Force Majeure events shall automatically terminated during periods of delay caused by such events and the term of performance shall be automatically extended. The period of extension is the period of suspension. The affected party shall not be penalized or liable for such delay. The parties shall seek a fair solution and make every reasonable effort to minimize the impact of Force Majeure through amicably consultation immediately.

 

8

 

	
10.
	
Miscellaneous

 

	
 
	
10.1
	
Neither party shall change this Agreement after the effectiveness of this Agreement, unless with the written consent of the parties.

 

	
 
	
10.2
	
This Agreement constitutes the entire agreement of the parties with respect to the subject matter of this Agreement and supersedes all prior consultations, negotiations and agreements between the parties with respect to the subject matter.

 

	
 
	
10.3
	
If a party fails or delays to exercise any of its rights under this Agreement shall not constitute a waiver of such right by such Party, and if such party has exercised its rights in whole or in part shall not preclude further exercise of such rights.

 

	
 
	
10.4
	
During the term of this Agreement, the Pledgor shall not assign any part or all of its rights or obligations under this Agreement to any third party without the prior written consent of the Pledgee, provided that Pledgee shall have the right to assign all or part of its rights and obligations under this Agreement. This Agreement shall be legally binding upon the parties hereto and its legal successors and assigns.

 

	
 
	
10.5
	
This Agreement is prepared both in Chinese and English. The English Version is translated from the Chinese Version. If any differences exist concerning the same issue, the Chinese Version shall prevail.

 

	
 
	
10.6
	
This Agreement is made out in two (2) originals and each party will keep one (1), the other originals will be kept in relevant authority for registration and the Target Company for file.

 

[The remainder of this page intentionally left blank]

 

 

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[Signature Page]

 

	
[                       ] (seal)
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
Legal Representative / Authorized Representative :
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Zhang Jinlin (signature) :
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

 

 

10Exhibit

Exhibit 4.2

Description of Common Stock
Our authorized common stock consists of:
	
		
	 
	 

	•   1,925,000,000 shares of common stock.
	 

	 
	 

Each authorized share of common stock has a par value of $1.00. As of December 31, 2019, 796,238,402 shares of common stock were outstanding, and 140,649,683 shares of common stock were held as treasury shares. 

In the discussion that follows, we have summarized the material provisions of our restated certificate of incorporation and by-laws relating to our common stock. This discussion is subject to the relevant provisions of Delaware law and is qualified in its entirety by reference to our restated certificate of incorporation and by-laws. You should read the provisions of the restated certificate of incorporation and by-laws as currently in effect for more details regarding the provisions described below and for other provisions that may be important to you. 

Common Stock
Each share of common stock has one vote in the election of each director and on all other matters voted on generally by the stockholders. No share of common stock affords any cumulative voting rights. This means that the holders of a majority of the voting power of the shares voting for the election of directors can elect all directors to be elected if they choose to do so. Holders of common stock will be entitled to dividends in such amounts and at such times as our board of directors in its discretion may declare out of funds legally available for the payment of dividends. Dividends on the common stock will be paid at the discretion of our board of directors after taking into account various factors, including:
    
•    our financial condition and performance;
    
•    our cash needs and capital investment plans;
    
•    our obligations to holders of any preferred stock we may issue;
    
•    income tax consequences; and

•    the restrictions Delaware and other applicable laws then impose.

In addition, the terms of the loan agreements, indentures and other agreements we enter into from time to time may restrict the payment of cash dividends.

If we liquidate or dissolve our business, the holders of common stock will share ratably in all assets available for distribution to stockholders after our creditors are paid in full and the holders of all series of our outstanding preferred stock, if any, receive their liquidation preferences in full.

The common stock has no preemptive rights and is not convertible or redeemable or entitled to the benefits of any sinking or repurchase fund. All issued and outstanding shares of common stock are fully paid and nonassessable. Any shares of common stock we may offer and sell under this prospectus will also be fully paid and nonassessable.
Our outstanding shares of the common stock are listed on the New York Stock Exchange and trade under the symbol “MRO.” Any additional shares of common stock we may offer and sell under this prospectus will also be listed on the New York Stock Exchange.

The transfer agent and registrar for the common stock is Computershare Trust Company, N.A.

Limitation on Directors’ Liability

Delaware law authorizes Delaware corporations to limit or eliminate the personal liability of their directors to them and their stockholders for monetary damages for breach of a director’s fiduciary duty of care. The duty of care requires that, when acting on behalf of the corporation, directors must exercise an informed business judgment based on all material information reasonably available to them. Absent the limitations Delaware law authorizes, directors of Delaware corporations are accountable to those corporations and their stockholders for monetary damages for conduct constituting gross negligence in the exercise of their duty of care. Delaware law enables Delaware corporations to limit available relief to equitable remedies such as injunction or rescission. Our restated certificate of incorporation limits the liability of the members of our board of directors by providing that no director will be personally liable to us or our stockholders for monetary damages for any breach of the director’s fiduciary duty as a director, except for liability:

•    for any breach of the director’s duty of loyalty to us or our stockholders;
    
•    for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
    
•    for unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; and
    
•    for any transaction from which the director derived an improper personal benefit.

	
		
	 
	 

This provision could have the effect of reducing the likelihood of derivative litigation against our directors and may discourage or deter our stockholders or management from bringing a lawsuit against our directors for breach of their duty of care, even though such an action, if successful, might otherwise have benefited us and our stockholders. Our by-laws provide indemnification to our officers and directors and other specified persons with respect to their conduct in various capacities.

Statutory Business Combination Provision

As a Delaware corporation, we are subject to Section 203 of the Delaware General Corporation Law. In general, Section 203 prevents an “interested stockholder,” which is defined generally as a person owning 15% or more of a Delaware corporation’s outstanding voting stock or any affiliate or associate of that person, from engaging in a broad range of “business combinations” with the corporation for three years following the date that person became an interested stockholder unless:

•    before that person became an interested stockholder, the board of directors of the corporation approved the transaction in which that person became an interested stockholder or approved the business combination;
    
•    on completion of the transaction that resulted in that person’s becoming an interested stockholder, that person owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, other than stock held by (1) directors who are also officers of the corporation or (2) any employee stock plan that does not provide employees with the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
    
•    following the transaction in which that person became an interested stockholder, both the board of directors of the corporation and the holders of at least two-thirds of the outstanding voting stock of the corporation not owned by that person approve the business combination.
	
		
	 
	 

Under Section 203, the restrictions described above also do not apply to specific business combinations proposed by an interested stockholder following the announcement or notification of designated extraordinary transactions involving the corporation and a person who had not been an interested stockholder during the previous three years or who became an interested stockholder with the approval of a majority of the corporation’s directors, if a majority of the directors who were directors prior to any person’s becoming an interested stockholder during the previous three years, or were recommended for election or elected to succeed those directors by a majority of those directors, approve or do not oppose that extraordinary transaction.
Other Matters
Some of the provisions of our restated certificate of incorporation and by-laws discussed below may have the effect, either alone or in combination with the provisions of our restated certificate of incorporation discussed above and Section 203 of the Delaware General Corporation Law, of making more difficult or discouraging a tender offer, proxy contest, merger or other takeover attempt that our board of directors opposes but that a stockholder might consider to be in its best interest.

Our restated certificate of incorporation provides that our stockholders may act only at an annual or special meeting of stockholders and may not act by written consent. Our by-laws provide that special meetings may be called by our board of directors or upon the written request of stockholders who individually, or collectively, have continuously held 20% or more of the outstanding shares of our common stock for at least one year prior to the date we receive such request.

Our restated certificate of incorporation provides that the number of directors will be fixed from time to time by, or in the manner provided in, our by-laws, but will not be less than three.

Our by-laws contain advance-notice and other procedural requirements that apply to stockholder nominations of persons for election to our board of directors at any annual meeting of stockholders and to stockholder proposals that stockholders take any other action at any annual meeting. A stockholder proposing to nominate a person for election to the board of directors or proposing that any other action be taken at an annual meeting of stockholders must give our corporate secretary written notice of the proposal not less than 90 days and not more than 120 days before the first anniversary of the date on which we first mailed our proxy materials for the immediately preceding year’s annual meeting of stockholders. These stockholder proposal deadlines are subject to exceptions if the pending annual meeting date is more than 30 days prior to or more than 30 days after the first anniversary of the immediately preceding year’s annual meeting. Our by-laws prescribe specific information that any such stockholder notice must contain. These advance-notice provisions may have the effect of precluding a contest for the election of directors or the consideration of stockholder proposals if the proper procedures are not followed, and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal, without regard to whether consideration of those nominees or proposals might be harmful or beneficial to us and our stockholders.

In addition to the director nomination provisions described above, our by-laws contain a “proxy access” provision that provides that any stockholder or group of twenty or fewer stockholders (collectively, an “eligible stockholder”) who have owned 3% or more of our outstanding common stock continuously for at least three years, meeting specified eligibility requirements, may include up to a specified number of director nominees in our proxy materials for an annual meeting. An eligible stockholder proposing to nominate a person for election to the board of directors through the proxy access provision must provide us with a notice requesting the inclusion of the director nominee in our proxy materials and other required information not less than 90 days nor more than 120 days prior to the first anniversary of the date on which we first mail our proxy materials for the preceding year’s annual meeting of stockholders. The maximum number of stockholder nominees that may be included in the proxy statement pursuant to these provisions may not exceed 25% of the number of directors in office as of the last day on which notice requesting proxy access may be delivered by an eligible stockholder. In addition an eligible stockholder may include a written statement of not more than 500 words supporting the candidacy of such stockholder nominee. The complete proxy access provision for director nominations are set forth in our by-laws. 

Our restated certificate of incorporation provides that our stockholders may adopt, amend and repeal our by-laws at any regular or special meeting of stockholders by an affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on that action, provided the notice of intention to adopt, amend or repeal the by-laws has been included in the notice of that meeting.

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