Document:

Document

Exhibit 4.9

DESCRIPTION OF THE COMPANY’S SECURITIES REGISTERED
UNDER SECTION 12 OF THE EXCHANGE ACT OF 1934
The summary of general terms and provisions of the capital stock of Salarius Pharmaceuticals, Inc. (the “Company”) set forth below does not purport to be complete and is subject to and qualified by reference to the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and Amended and Restated Bylaws (the “Bylaws,” and together with the Certificate of Incorporation, the “Charter Documents”), each of which is included as an exhibit to the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and incorporated by reference herein. For additional information, please read the Charter Documents and the applicable provisions of the Delaware General Corporation Law (the “DGCL”).
Authorized Capital Stock
The Company is authorized to issue up to 110,000,000 shares, of which (i) 100,000,000 have been designated common stock, par value $0.0001 per share (“Common Stock”), and (ii) 10,000,000 have been designated preferred stock, par value $0.0001 per share (“Preferred Stock”).
Common Stock
Voting Rights
The holders of shares of Common Stock have the exclusive power to vote on all matters presented to the Company’s stockholders unless Delaware law or the certificate of designation for an outstanding series of Preferred Stock gives the holders of that series of Preferred Stock the right to vote on certain matters. Each holder of shares of Common Stock is entitled to one vote per share. 
When a quorum is present at any meeting, the vote of the holders of a majority of the voting power of the Common Stock entitled to vote and present in person or represented by proxy shall decide any question brought before such meeting, unless the question is one upon which by express provision of the Charter Documents or by law, a different vote is required in which case such express provision shall govern and control the decision of such question. Directors are elected by a plurality of the voting power of the shares present in person or represented by proxy and entitled to vote on the election of directors at a meeting at which a quorum is present, and stockholders are not entitled to cumulate their votes for the election of directors.
Dividend Rights
Subject to any prior rights of any Preferred Stock then outstanding, the holders of shares of Common Stock are entitled to receive dividends ratably out of funds legally available, when and if declared by the Company’s board of directors (the “Board”).
No Preemptive or Similar Rights
The Common Stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions.
Right to Receive Liquidation Distributions
If the Company becomes subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to the stockholders of the Company would be distributable ratably among the holders of the Common Stock and any participating Preferred Stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of Preferred Stock.
Anti-Takeover Provisions in Charter Documents

Certain provisions of the Charter Documents, which are summarized below, may have the effect of delaying, deferring or preventing another person from acquiring control of the Company. These provisions may discourage takeovers, coercive or otherwise, and are also designed, in part, to encourage persons seeking to acquire control of the Company to negotiate first with the Board. The Company believes that the benefits of increased protection of the Company’s potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire the Company because negotiation of these proposals could result in an improvement of their terms.  These provisions include the following:
Board of Directors Vacancies. Pursuant to the Charter Documents, the Board may fill vacant directorships. In addition, directors may only be removed for cause and only upon the affirmative vote of at least sixty-six and two-thirds percent of the voting power of outstanding voting stock. In addition, the number of directors constituting the Board may be set only by a resolution adopted by a majority vote of the Board. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of the Company and will make it more difficult to change the composition of the Board, which will promote continuity of management. 
Classified Board. The Charter Documents provide that the Board is classified into three classes of directors, with each class serving three-year staggered terms. A third-party may be discouraged from making a tender offer or otherwise attempting to obtain control of the Company as it is more difficult and time-consuming for stockholders to replace a majority of the directors on a classified board of directors.
Stockholder Action; Special Meeting of Stockholders. Pursuant to Section 228 of the Delaware General Corporation Law (“DGCL”), any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of stock entitled to vote thereon were present and voted, unless the Certificate of Incorporation provides otherwise. The Certificate of Incorporation provides that stockholders may not take action by written consent but may only take action at annual or special meetings of stockholders. As a result, a holder controlling a majority of the Company’s capital stock would not be able to amend the Bylaws or remove directors without holding a meeting of stockholders called in accordance with the Charter Documents. The Bylaws provides that special meetings of the stockholders may be called only upon a resolution approved by a majority of the total number of directors that the Company would have if there were no vacancies. These provisions might delay the ability of the Company’s stockholders to force consideration of a proposal or for stockholders controlling a majority of the Company’s capital stock to take any action, including the removal of directors.
Advance Notice Requirements for Stockholder Proposals and Director Nominations. The Bylaws provide advance notice procedures for stockholders seeking to bring business before the Company’s annual meeting of stockholders or to nominate candidates for election as directors at the Company’s annual meeting of stockholders. The Bylaws specify certain requirements regarding the form and content of a stockholder’s notice and prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions might preclude stockholders from bringing matters before the Company’s annual meeting of stockholders or from making nominations for directors at the Company’s annual meeting of stockholders if the proper procedures are not followed. These provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of the Company. 
No Cumulative Voting. The DGCL provides that stockholders are not entitled to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. The Certificate of Incorporation does not provide for cumulative voting.
Amendment of Charter Provisions and Bylaws. The Charter Documents provides that the Bylaws may be adopted, amended, altered or repealed by either (i) a vote of a majority of the total number of directors of the Board or (ii) in addition to any other vote otherwise required by law, the affirmative vote of the holders of at least sixty-six and two-thirds percent of the voting power of all of the then outstanding shares of capital stock entitled to vote generally in the election of directors. 
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Our Charter Documents also provide that the provisions of the Certificate of Incorporation relating to provisions relating to the management of the business, Board, director liability, indemnification and forum selection., may only be amended, altered, changed or repealed by the affirmative vote of the holders of at least sixty-six and two-thirds percent of the voting power of all of the Company’s outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. 
Issuance of Undesignated Preferred Stock. The Board has the authority, without further action by the Company’s stockholders, to designate and issue shares of preferred stock with rights and preferences, including super voting, special approval, dividend or other rights or preferences on a discriminatory basis. The existence of authorized but unissued shares of undesignated preferred stock would enable the Board to render more difficult or to discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or other means.
Business Combinations with Interested Stockholders. The Company is subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination, such as a merger, with an interested stockholder (i.e., subject to certain exceptions, a person or group owning 15% or more of the corporation’s voting stock) for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. 
Forum Selection. The Charter Documents provide that unless the Company consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will, to the fullest extent permitted by applicable law, be the sole and exclusive forum for:
•any derivative action or proceeding brought on behalf of the Company;
•any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of the Company to the Company or the Company’s stockholders;
•any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of the Company to the Company or its stockholders; and
•any action asserting a claim against Salarius governed by the internal affairs doctrine.
in each such case, subject to such Court of Chancery of the State of Delaware having personal jurisdiction over the indispensable parties named as defendants therein. The Charter Documents also provides that any person or entity purchasing or otherwise acquiring any interest in shares of the Company’s capital stock will be deemed to have notice of, and to have consented to, this forum selection provision.
Although these provisions benefit the Company by providing increased consistency in the application of Delaware law for the specified types of actions and proceedings, the provisions may have the effect of increasing the costs of and discouraging lawsuits against the Company’s directors, officers, employees and agents. The enforceability of similar exclusive forum provisions in other companies’ charters has been challenged in legal proceedings, and it is possible that, in connection with one or more actions or proceedings described above, a court could rule that this provision in the Certificate of Incorporation is inapplicable or unenforceable. For example, the choice of forum provisions summarized above are not intended to, and would not, apply to suits brought to enforce any liability or duty created by the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or other claim for which the federal courts have exclusive jurisdiction. Additionally, there is uncertainty as to whether the Company’s choice of forum provisions would be enforceable with respect to suits brought to enforce any liability or duty created by the Securities Act of 1933, as amended (the “Securities Act”), or other claims for which the federal courts have concurrent jurisdiction, and in any event stockholders will not be deemed to have waived the Company’s compliance with federal securities laws and rules and regulations thereunder.
Listing
The Common Stock is listed on the Nasdaq under the symbol “SLRX.”
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Exhibit 10.7

EXECUTION COPY

CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE 
THIS CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made by and between Scott Jordan (“Employee”) and Salarius Pharmaceuticals, Inc. (the “Company”).  Employee and the Company may be referred to collectively herein as “Parties” or individually herein as “Party.” Following execution of this Agreement by both of the Parties, this Agreement shall become effective immediately following the expiration of the revocation period described in Section 20 of this Agreement without revocation by Employee (the “Effective Date”).
WHEREAS, Employee is currently employed by the Company;
WHEREAS, Employee and the Company have entered into that certain Amended and Restated Employment Agreement, dated September 10, 2019 (as amended, the “Employment Agreement”);
WHEREAS, Employee and the Company have agreed that employee’s employment with the Company will terminate on April 30, 2020 (the “Separation Date”); and
WHEREAS, the Parties wish to resolve all outstanding claims and disputes between them in an amicable manner.
NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements set forth in this Agreement, the sufficiency of which the Parties acknowledge, it is agreed as follows:
1.In consideration for Employee’s promises in this Agreement, the Company agrees to pay to Employee the severance benefits provided for under the Employment Agreement, which the Parties agree provide for (i) $201,667 (equal to eleven months of Employee’s current base salary) as severance, less all applicable withholdings and deductions, which shall be paid in equal monthly installments in accordance with the Company’s standard payroll practices, beginning on the first regularly scheduled payroll date following the Effective Date until the severance is paid in full (the “Cash Severance Pay”), and (ii) provided Employee elects and pays to continue health insurance under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or state law equivalent or enrolls in individual marketplace health insurance benefits, reimbursement for the monthly cost of the applicable premiums for Employee and his covered dependents at the Company-paid rate in effect as of the Separation Date, less all applicable withholdings and deductions, until the earlier of (x) the end of the eleven-month period following the Separation Date or (y) the date that Employee becomes covered under another employer group health plan, which such reimbursements shall be paid in equal monthly or semi-monthly installments in accordance with the Company’s standard payroll practices, beginning on the first regularly scheduled payroll date in the next calendar month after the 
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Separation Date (the “Healthcare Continuation Pay”).  The Cash Severance Pay and Healthcare Continuation Pay are collectively referred to herein as the “Separation Pay”.
2.The Parties agree that the Separation Pay are in full, final and complete settlement of all claims Employee has or may have against the Company, its past and present parents, subsidiaries, affiliates, officers, directors, members, owners, employees, attorneys, agents, successors and assigns (collectively, “Releasees”).
3.Nothing in this Agreement shall be construed as an admission of liability by the Releasees, and the Company specifically disclaims any liability to or wrongful treatment of Employee on the part of the Releasees.
4.Employee represents that he has not filed any complaints or charges against the Company with the Equal Employment Opportunity Commission, or with any other federal, state or local agency or court, and covenants that he will not seek to recover damages or other monies on any claim released in this Agreement.
5.Employee agrees that he will not solicit or encourage any of the Company’s employees to litigate claims or file administrative charges against the Releasees.  Nothing in this Agreement is intended to restrict Employee from providing testimony or documents pursuant to a lawful subpoena or other compulsory legal process, from providing truthful information upon lawful request in connection with a governmental investigation or legal proceeding that has been independently initiated by another individual or governmental body, in which case Employee agrees to notify the Company immediately so that it has the opportunity to contest same.
6.Employee covenants not to sue, and fully and forever releases and discharges Releasees from any and all legally waivable claims, liabilities, damages, demands, and causes of action or liabilities of any nature or kind, whether now known or unknown, asserted or unasserted (“Claims”), including but not limited to Claims arising out of or in any way connected with Employee’s employment with the Company or the termination of that employment.  This release includes but is not limited to Claims arising under federal, state or local laws prohibiting employment discrimination or relating to leave from employment, including but not limited to Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. section 1981, the Age Discrimination in Employment Act, as amended, the Equal Pay Act, the Americans with Disabilities Act, as amended, the Family and Medical Leave Act, as amended, the Texas Commission on Human Rights Act, the Texas Labor Code (including the Texas Payday Act), the Texas Anti-Retaliation Act, the Texas Whistleblower Act, Claims for wrongful termination, Claims for attorneys’ fees or costs, and any and all Claims in contract, tort, or premised on any other legal theory.  Employee acknowledges that, other than compensation earned in the current payroll period through the Separation Date but not yet paid (if any), Employee has been paid in full all compensation owed to Employee by the Company as a result of Employee’s employment, as of the date of execution of this Agreement.
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7.Notwithstanding the foregoing, nothing in this Agreement shall constitute a waiver or release by Employee of any rights or Claims arising after the date Employee executes this Agreement.  In addition, this release does not cover any Claims that cannot be waived at law, and Employee is not releasing herein any rights to file a charge with the Equal Employment Opportunity Commission or any other governmental administrative agency.  However, Employee has waived and released any claim Employee may have for damages or reinstatement based on any alleged discrimination and may not recover damages in any proceeding conducted by the EEOC or similar state agency.
8.Employee, on behalf of himself, and his heirs, representatives, and assigns, agrees and covenants not to commence, maintain or prosecute any action or proceeding of any kind against Releasees based on any of the Claims waived and released in Section 6.  Notwithstanding the foregoing, this covenant not to sue does not preclude Employee from enforcing or challenging this Agreement or filing an action in civil court or a charge before a governmental administrative agency under any statute that prohibits such a covenant not to sue.
9.Employee represents that he is unaware of any claim that he may have or could assert against Releasees that has not been released by this Agreement, and that he has not assigned, transferred or conveyed any claim(s) released by this Agreement.
10.  Confidentiality
(a)Employee acknowledges that all confidential information regarding the Company’s business compiled, created or obtained by, or furnished to, Employee during the course of or in connection with his employment with the Company is the Company’s exclusive property.  Upon or before Effective Date of this Agreement, Employee will return to the Company all originals and copies of any material containing confidential information or other work product or property of the Company and will delete from his personal computer or other electronic storage devices such information.  Employee further agrees that he will not, directly or indirectly, use or disclose either such confidential information or the confidential information of third parties to which Employee had access by virtue of his employment with the Company.  Employee represents that he has not given or disclosed such information to any third party except as required in the performance of his duties for the Company.  Employee will also return to the Company upon or before the Effective Date of this Agreement any items in his possession, custody or control that are the property of the Company, including, but not limited to, his laptop, files, credit cards, identification card, flash drives, passwords and office keys, as applicable.  Employee represents that he has not deleted, destroyed, or removed from the Company’s premises or electronic technology systems any Company property (including the work product of Employee) or confidential information since being provided this Agreement for consideration, and that Employee will not do so unless expressly directed to do so by the Company.
(b)Employee acknowledges and reaffirms in its entirety the terms of the Employment Agreement and any other prior agreement with the Company (collectively, the “Prior Agreements”).  Nothing in this Agreement is intended to or shall be construed to 
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modify, impair or terminate any obligation of Employee pursuant to the Prior Agreements that continues after the termination of Employee’s employment.
(c)Employee acknowledges and the Company agrees that Employee may disclose confidential information in confidence to federal, state, or local government officials, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or regulation or making other disclosures that are protected under the whistleblower provisions of state or federal laws or regulations.  Employee may also disclose confidential information in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal.  Nothing in this Agreement is intended to conflict with federal law protecting confidential disclosures of a trade secret to the government or in a court filing, 18 U.S.C. § 1833(b), or to create liability for disclosures of confidential information that are expressly allowed by 18 U.S.C. § 1833(b).
11.Employee agrees that he will treat the existence and terms of this Agreement as confidential and will not discuss the Agreement with anyone other than:  (i) his counsel or tax advisor as necessary to secure their professional advice, (ii) his spouse, or (iii) as may be required by law, and he will, in so doing, advise those individuals of the need to treat the existence and terms of this Agreement as confidential.
12.  Employee agrees to refrain from making any disparaging or unfavorable comments, in writing or orally, about the Releasees, or their operations, policies, or procedures.  Nothing in this Agreement is intended to restrict Employee from testifying truthfully in any action or proceeding in which he has been subpoenaed to appear or ordered to produce documents or from responding truthfully to other compulsory legal process or from providing truthful information as otherwise required by law; provided, however, that he shall notify the Company immediately of his receipt of any subpoena or order to produce documents relating to the Company or any of its current or former partners or employees, so that they may have the opportunity to contest same.  This Section 12 does not in any way restrict or impede Employee from exercising protected rights, including rights under the National Labor Relations Act or the federal securities laws, including the Dodd-Frank Act, to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order.  Employee shall promptly provide written notice of any such order to David Arthur at 2450 Holcombe Blvd, Suite J-608, Houston, TX 77021.
13.Employee agrees to cooperate fully with the Company in connection with any internal or external investigation or the defense of any formal or informal claim or demand asserted against the Company, its employees, or officers or directors, and as to which Employee has, or may have, knowledge, by voluntarily providing truthful and full information.  Such cooperation will occur during normal business hours, and the Company will reimburse Employee for reasonable, pre-approved documented expenses incurred in connection with this cooperation.
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14.Employee agrees that his compliance with, and agreement to, Sections 4 through 13 of this Agreement is material to this Agreement and that, in the event of any material breach of his obligations under any of those Sections, or his failure to perform pursuant to those Sections, the Company shall be entitled to withhold or recover all but $200.00 of the Separation Pay paid or payable to Employee, which Employee agrees shall constitute sufficient and adequate consideration for his promises in the Agreement, including without limitation his undertakings pursuant to Section 7 of this Agreement, and the Option Extension Benefit shall be revoked.
15.This Agreement shall be binding on the Company and Employee and upon their respective heirs, representatives, successors and assigns, and shall run to the benefit of the Releasees.
16.This Agreement sets forth the entire agreement between Employee and the Company, and fully supersedes any and all prior agreements or understandings between them regarding its subject matter, except that Employee continues to be bound by his contractual obligations in the Prior Agreements.  This Agreement may only be modified by written agreement signed by both Parties for that express purpose.
17.The Company and Employee agree that in the event any provision of this Agreement is deemed to be invalid or unenforceable by any court or administrative agency of competent jurisdiction, or in the event that any provision cannot be modified so as to be valid and enforceable, then that provision shall be deemed severed from the Agreement and the remainder of the Agreement shall remain in full force and effect.
18.This Agreement in all respects shall be interpreted and entered under the laws of Texas.  The language of all parts of this Agreement in all cases shall be construed as a whole, according to its fair meaning, and not strictly for or against any of the Parties.
19.This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which when taken together, shall be and constitute one and the same instrument.
20.Employee acknowledges that he has been given at least twenty-one (21) days to consider this Agreement and that he has seven (7) days from the date he executes this Agreement in which to revoke it and that this Agreement will not be effective or enforceable until after the seven (7)-day revocation period ends without revocation by Employee.  Revocation can be made by delivery of a written notice of revocation to David Arthur of the Company at 2450 Holcombe Blvd, Suite J-608, Houston, TX 77021 by midnight at Company headquarters on or before the seventh (7th) calendar day after Employee signs the Agreement.
21.Employee acknowledges that he has been advised to consult with an attorney of his choice with regard to this Agreement.  Employee hereby acknowledges that he understands the significance of this Agreement and represents that the terms of this Agreement are fully understood and voluntarily accepted by him.  Employee represents and 
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acknowledges that no representation, statement, promise, inducement, threat or suggestion has been made by the Company to influence him to sign this Agreement except such statements as are expressly set forth herein, and that he has executed this Agreement voluntarily.
[Signature Page Follows]

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PLEASE READ CAREFULLY.
THIS CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

															
	Dated:	3/18/2020		/s/ Scott Jordan	
				Scott Jordan	
					
				SALARIUS PHARMACEUTICALS, INC.	
	Dated:	3/18/2020		By:	/s/ David Arthur
					Name: David Arthur
					Title: Chief Executive Officer

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