Document:

ttph-ex410_680.htm

EXHIBIT 4.10

 

DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT

General

The following description of the capital stock of Tetraphase Pharmaceuticals, Inc. (the “Company”) is intended as a summary only and therefore is not a complete description of the Company’s capital stock. This description is based upon, and is qualified by reference to, the Company’s restated certificate of incorporation, as amended (the “Certificate of Incorporation”), and its amended and restated bylaws (the “Bylaws”), which are filed as exhibits to the Annual Report on Form 10-K, of which this Exhibit 4.10 is a part.

The Company’s authorized capital stock consists of 125,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”), and 5,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”), all of which Preferred Stock is undesignated. 

Common Stock

Holders of Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by the Company’s stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. In general, except (1) for the election of directors, (2) as described below under “—Delaware Anti-Takeover Law and Certain Charter and Bylaw Provisions”, (3) in the future to the extent that the Company has two or more classes or series of stock outstanding with separate voting rights and (4) as otherwise required by law, any matter to be voted on by the Company’s stockholders at any meeting, shall be decided by the affirmative vote of the Company’s stockholders having a majority in voting power of the votes cast by the stockholders present or represented and voting on such matter.

Holders of Common Stock are entitled to receive proportionately any dividends as may be declared by the Company’s board of directors, subject to any preferential dividend rights of outstanding Preferred Stock.

In the event of the Company’s liquidation or dissolution, the holders of Common Stock are entitled to receive proportionately all assets available for distribution to stockholders after the payment of all debts and other liabilities and subject to the prior rights of any of the Company’s outstanding Preferred Stock.

Holders of Common Stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of holders of Common Stock are subject to and may be adversely affected by the rights of the holders of shares of any series of Preferred Stock that may be designated and issued in the future.

Preferred Stock

Under the terms of the Certificate of Incorporation, the Company’s board of directors is authorized to issue 5,000,000 shares of Preferred Stock, par value $0.001 per share, in one or more series without stockholder approval. The board of directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of Preferred Stock.

The Preferred Stock could have other rights, including economic rights that are senior to the Common Stock that could adversely affect the market value of the Common Stock. The issuance of the Preferred Stock may also have the effect of delaying, deferring or preventing a change in control of the Company without any action by the shareholders.

Delaware Anti-Takeover Law and Certain Charter and Bylaw Provisions

Delaware law, the Certificate of Incorporation and the Bylaws contain provisions that could have the effect of delaying, deferring or discouraging another party from acquiring control of the Company. These provisions, which are summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of the Company to first negotiate with the Company’s board of directors.

 

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Staggered Board; Removal of Directors

The Certificate of Incorporation and Bylaws divide the Company’s board of directors into three classes with staggered three-year terms. In addition, a director may be removed only for cause and only by the affirmative vote of the holders of at least 75% of the votes that all of the Company’s stockholders would be entitled to cast in an annual election of directors. Any vacancy on the Company’s board of directors, including a vacancy resulting from an enlargement of the Company’s board of directors, may be filled only by vote of a majority of the directors then in office. The classification of the Company’s board of directors and the limitations on the removal of directors and filling of vacancies could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of the Company.

Stockholder Action by Written Consent; Special Meetings

The Certificate of Incorporation provides that any action required or permitted to be taken by the stockholders must be effected at a duly called annual or special meeting of such holders and may not be effected by any consent in writing by such holders. The Certificate of Incorporation and Bylaws also provide that, except as otherwise required by law, special meetings of the stockholders can only be called by the chairman of the board, the chief executive officer or the board of directors.

Advance Notice Requirements for Stockholder Proposals

The Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at an annual meeting may only consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors or by a stockholder of record on the record date for the meeting who is entitled to vote at the meeting and who has delivered timely written notice in proper form to the Company’s secretary of the stockholder’s intention to bring such business before the meeting. These provisions could have the effect of delaying until the next stockholder meeting stockholder actions that are favored by the holders of a majority of the outstanding voting securities. These provisions could also discourage a third party from making a tender offer for the Common Stock, because even if the third party acquired a majority of the Company’s outstanding voting stock, it would be able to take action as a stockholder, such as electing new directors or approving a merger, only at a duly called stockholders meeting and not by written consent.

Delaware Business Combination Statute

Section 203 of the General Corporation Law of the State of Delaware, or the DGCL, is applicable to the Company. Section 203 of the DGCL restricts some types of transactions and business combinations between a corporation and a 15% stockholder. A 15% stockholder is generally considered by Section 203 to be a person owning 15% or more of the corporation’s outstanding voting stock. Section 203 refers to a 15% stockholder as an “interested stockholder.” Section 203 restricts these transactions for a period of three years from the date the stockholder acquires 15% or more of the Company’s outstanding voting stock. With some exceptions, unless the transaction is approved by the board of directors and the holders of at least two-thirds of the outstanding voting stock of the corporation, Section 203 prohibits significant business transactions such as:

	
 
	
•
	
a merger with, disposition of significant assets to or receipt of disproportionate financial benefits by the interested stockholder, and

	
 
	
•
	
any other transaction that would increase the interested stockholder’s proportionate ownership of any class or series of the Company’s capital stock.

The shares held by the interested stockholder are not counted as outstanding when calculating the two-thirds of the outstanding voting stock needed for approval.

 

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The prohibition against these transactions does not apply if:

	
 
	
•
	
prior to the time that any stockholder became an interested stockholder, the board of directors approved either the business combination or the transaction in which such stockholder acquired 15% or more of the Company’s outstanding voting stock, or

	
 
	
•
	
the interested stockholder owns at least 85% of the Company’s outstanding voting stock as a result of a transaction in which such stockholder acquired 15% or more of the Company’s outstanding voting stock. Shares held by persons who are both directors and officers or by some types of employee stock plans are not counted as outstanding when making this calculation.

Amendment of Certificate of Incorporation and Bylaws

The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation or bylaws, unless a corporation’s certificate of incorporation or bylaws, as the case may be, requires a greater percentage. The Bylaws may be amended or repealed by a majority vote of the board of directors or by the affirmative vote of the holders of at least 75% of the votes that all stockholders would be entitled to cast in any annual election of directors. In addition, the affirmative vote of the holders of at least 75% of the votes that all stockholders would be entitled to cast in any annual election of directors is required to amend or repeal or to adopt any provisions inconsistent with any of the provisions of the Certificate of Incorporation described above under “—Staggered Board; Removal of Directors” and “—Stockholder Action by Written Consent; Special Meetings”.

 

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EXHIBIT 10.20

 

NINTH AMENDMENT TO LEASE

THIS NINTH AMENDMENT TO LEASE (this “Ninth Amendment”) is made as of January 31, 2020 by and between ARE-480 ARSENAL STREET, LLC, a Delaware limited liability company (“Landlord”), and TETRAPHASE PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).

RECITALS

ALandlord and Tenant are parties to that certain Lease Agreement dated as of November 16, 2006, as amended by that certain First Amendment to Lease dated as of September 9, 2011, as further amended by that certain Second Amendment to Lease dated as of March 15, 2012, as further amended by that certain Third Amendment to Lease dated as of September 18, 2012, as further amended by that certain Fourth Amendment to Lease dated as of November 20, 2013, as further amended by that certain Fifth Amendment to Lease dated as of September 4, 2014, as further amended by that certain Sixth Amendment to Lease dated as of March 24, 2015, as further amended by that certain Seventh Amendment to Lease dated as of June 18, 2015, and as further amended by that certain Eighth Amendment to Lease dated as of November 29, 2018 (as amended, the “Lease”) Pursuant to the Lease, Tenant leases certain premises containing approximately 37,438 rentable square feet (the “Premises”) in a building located at 480 Arsenal Street, Watertown, Massachusetts (“Building”) The Premises are more particularly described In the Lease. Capitalized terms used herein without definition shall have the meanings defined for such terms in the Lease.

BLandlord and Tenant desire, subject to the terms and cond1t1ons set forth below, to, among other things, reflect the surrender of a portion of the Premises consisting of approximately 15,899 rentable square feet of the Project, as more particularly shown on Exhibit A attached hereto (the “Surrender Premises”) as of 11:59 p.m. on January 31, 2020 (the “Surrender Date”).

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual promises and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

	
1.
	
Surrender of Surrender Premises   The Lease with respect to the Surrender Premises shall terminate as provided for In the Lease on the Surrender Date Tenant shall voluntarily surrender the Surrender Premises on such date m accordance with all surrender requirements contained in the Lease and in the condition in which Tenant is required to surrender the Premises as of the expiration of the Lease From and after the Surrender Date, Tenant shall have no further rights of any kind with respect to the Surrender Premises. Notwithstanding the foregoing, those provisions of the Lease which, by their terms, survive the termination of the Lease shall survive the surrender of the Surrender Premises and termination of the Lease with respect to the Surrender Premises as provided for herein. Nothing herein shall excuse Tenant from Its obligations under the Lease with respect to the Surrender Premises prior to the Surrender Date.

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EXHIBIT 10.20

 

	
2.
	
Definition of Premises.  Commencing February 1, 2020, the defined terms “Premises” and “Rentable Area of Premises” on Page 1 of the Lease, respectively, are deleted in their entirety and replaced with the following

“Premises: That certain portion of the Building, containing approximately 21,539 rentable square feet, consisting of: (i) approximately 13,711 rentable square feet (the “Second Expansion Premises”), and (ii) approximately 7,828 rentable square feet (the “Third Expansion Premises”), all as shown on Exhibit A.”

“Rentable Area of Premises: 21,539 sq ft.”

Commencing on February 1, 2020, Exhibit A of the Lease shall be amended to delete the Surrender Premises.

	
3.
	
Base Rent   Tenant shall continue to pay Base Rent for the entire Premises (including the Surrender Premises) as provided for in the Lease through the Surrender Date Commencing on February 1, 2020, Tenant shall continue to pay Base Rent with respect to the remaining Premises (but not the Surrender Premises) through the Eighth Amendment Expiration Date.

	
4.
	
Tenant’s Share of Operating Expenses    Commencing February 1, 2020, the defined term “Tenant’s Share of Operating Expenses” on Page 1 of the Lease 1s deleted in its entirety and replaced with the following

“Tenant’s Share of Operating Expenses: 15.30%”

	
5.
	
OFAC.  Tenant and, to the best of Tenant’s knowledge, ail beneficial owners of Tenant are currently (a) in compliance with and shall at all times during the Term of the Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U S Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the Term of the Lease be listed on, the Specially Designated Nationals and Blocked Persons List maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a US person is prohibited from conducting business under the OFAC Rules.

	
6.
	
Miscellaneous.

a.This Ninth Amendment 1s the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions This Ninth Amendment may be amended only by an agreement in writing, signed by the parties hereto.

b.Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with the transaction reflected in this Ninth Amendment and that no Broker brought about this transaction Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction.

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EXHIBIT 10.20

 

c.This Ninth Amendment is binding upon and shall inure to the benefit of the parties hereto, and their respective successors and assigns.

d.This Ninth Amendment may be executed in 2 or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument Counterparts may be delivered via facsimile, electronic mall (including pdf or any electronic signature process complying with the U.S. federal ESIGN Act of 2000) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes Electronic signatures shall be deemed original signatures for purposes of this Ninth Amendment and all matters related thereto, with such electronic signatures having the same legal effect as original signatures. 

e.Except as amended and/or modified by this Ninth Amendment, the Lease is hereby ratified and confirmed and all other terms of the Lease shall remain in full force and effect, unaltered and unchanged by this Ninth Amendment in the event of any conflict between the provisions of this Ninth Amendment and the provisions of the Lease, the prov1s1ons of this Ninth Amendment shall prevail whether or not specifically amended by this Ninth Amendment, all of the terms and provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose and Intent of this Ninth Amendment.

 

[Signatures are on the next page]

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EXHIBIT 10.20

 

IN WITNESS WHEREOF, the parties hereto have executed this Ninth Amendment as of the day and year first above written.

 

								
	
LANDLORD:
	
ARE-480 ARSENAL STREET, LLC,
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By
	
 
	
ALEXANDRIA REAL ESTATE EQUITIES, L.P.,
a Delaware limited partnership,
managing member

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By
	
 
	
ARE-QRS CORP,
a Maryland corporation,
general partner

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
By:
	
 
	
/s/ Cary Dean

	
 
	
 
	
 
	
 
	
 
	
Its
	
 
	
Senior Vice President RE Legal Affairs

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TENANT:
	
TETRAPHASE PHARMACEUTICALS, INC.
a Delaware corporation

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Maria Stahl

	
 
	
Its
	
 
	
CBO and General Counsel 

 

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