Document:

Exhibit 4.1

 

Certificate of Designations of the Preferred Stock

 

Of

 

Genaissance Pharmaceuticals, Inc.

 

To be Designated

 

Series A Preferred Stock

 

Genaissance
Pharmaceuticals, Inc., a Delaware corporation (the “Corporation”), pursuant to
authority conferred on the Board of Directors of the Corporation by the Amended
and Restated Certificate of Incorporation of the Corporation (the “Certificate
of Incorporation”) and in accordance with the provisions of Section 151 of the
General Corporation Law of the State of Delaware (the “DGCL”), certifies that
the Board of Directors of the Corporation, by unanimous written consent in
accordance with the provisions of Section 141(f) of the DGCL, duly adopted the
following resolution:

 

RESOLVED:
That, pursuant to the authority expressly granted to and vested in the Board of
Directors of the Corporation in accordance with the provisions of its
Certificate of Incorporation, a series of Preferred Stock of the Corporation be
and hereby is established, consisting of 460,000 shares, to be designated
“Series A Preferred Stock” (hereinafter “Series A Preferred Stock”);
that the Board of Directors be and hereby is authorized to issue such shares of
Series A Preferred Stock from time to time and for such consideration and
on such terms as the Board of Directors shall determine; and that, subject to
the limitations provided by law and by the Certificate of Incorporation, the
powers, designations, preferences and relative, participating, optional or
other special rights of, and the qualifications, limitations or restrictions
upon, the Series A Preferred Stock shall be as follows:

 

1.                                       Designation,
Par Value and Number.  460,000
shares of authorized Preferred Stock of the Corporation are hereby designated
as “Series A Preferred Stock” and constituted as a series of preferred stock,
having a par value of $.001 per share (the “Series A Preferred Stock”).  In accordance with the terms hereof, each
share of Series A Preferred Stock shall have the same relative rights as and be
identical in all respects with each other share of Series A Preferred Stock.

 

2.                                       Dividends.  To the extent permitted under the Delaware
General Corporation Law, the Corporation shall pay dividends to the holders of
the Series A Preferred Stock as provided in this Section 2.  

 

1

 

(a)                                  General.  Dividends on each issued and outstanding
share of Series A Preferred Stock shall accrue at a rate of 2% per annum
(subject to Section 4(c) and Section 6(b)) on the Accreted Value
of such share of Series A Preferred Stock as of the immediately preceding
Dividend Payment Date (or, for the initial Dividend Period, as of the Original
Issuance Date) from and including the Original Issuance Date of such share of
Series A Preferred Stock until the first to occur of (i) the date on which the
Liquidation Value or the Make-Whole Redemption Price of such share of Series A
Preferred Stock is paid to the holder thereof in accordance with Section 4,
(ii) the date on which such share of Series A Preferred Stock is converted into
shares of Common in accordance with Section 5 (in which case, any
accrued dividends shall then be forfeited) or (iii) the date on which such
share of Series A Preferred Stock is otherwise acquired by the
Corporation.  Such dividends shall
accrue whether or not they have been declared and whether or not there are
profits, surplus or other funds of the Corporation legally available for the
payment of dividends, and such dividends shall be cumulative such that all
accrued and unpaid dividends shall be fully paid or declared before any
dividends may be made with respect to any Junior Securities.  Dividends shall accrue on a daily basis
(computed on the basis of a 365-day year).

 

(b)                                 Payment
of Dividends.  The Corporation shall
pay, out of funds legally available therefor, any accrued dividends in respect
of each share of Series A Preferred Stock semi-annually in arrears on January 5
and July 5 of each year (each such date being a “Dividend Payment Date” and
each such semi-annual period ending on such Dividend Payment Date being a “Dividend
Period”).  Each such dividend
shall be payable to the holders of record of shares of Series A Preferred Stock
on December 15 and June 15, respectively, as they appear on the stock records
of the Corporation at the close of business on such record date.  An amount equal to any such accrued
dividends not paid with respect to any Dividend Period shall be added to the
Accreted Value of the Series A Preferred Stock; provided, that,
any such amounts shall remain as accrued and unpaid dividends for all purposes
hereunder notwithstanding such amounts being added to the Accreted Value.  Such increased Accreted Value after each
Dividend Period shall be used for purposes of calculating dividends for
succeeding Dividend Periods (except to the extent any such accrued dividends
included in the Accreted Value are subsequently declared and paid).

 

(c)                                  Distribution
of Partial Dividend Payments.  If at
any time the Corporation pays less than the total amount of dividends then
accrued with respect to the Series A Preferred Stock, such payment shall be
distributed pro rata among the holders of the outstanding shares of Series A
Preferred Stock based upon the aggregate dividends accrued and payable on such
outstanding shares of Series A Preferred Stock held by each such holder.

 

(d)                                 Treatment
of Accrued and Unpaid Dividends Upon Conversion.  Upon any conversion of shares of Series A Preferred Stock into
Common in accordance with Section 5, any accrued and unpaid dividends on
the Series A Preferred Stock shall be forfeited.

 

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(e)                                  Participation
in Common Dividends.  In the event
that the Corporation declares or pays a dividend or makes any distribution on
the Common, then the holders of the outstanding shares of Series A Preferred
Stock (based on the number of shares of Common into which such shares of Series
A Preferred Stock are convertible as of the record date for such dividend or
distribution) and the holders of the Common shall share pro rata in such
dividend or distribution.

 

(f)                                    Partial
Dividend Period.  Dividends payable
on the shares of Series A Preferred Stock for any period less than a full
Dividend Period shall be computed on the basis of a 365-day year and the actual
number of days elapsed in the period for which such dividend is payable.

 

3.                                       Voting
Rights.

 

(a)                                  General.  The holders of the Series A Preferred Stock
shall be entitled to notice of all stockholders meetings in accordance with the
Bylaws of the Corporation, and except as otherwise required by applicable law
or in this Section 3, the holders of the
Series A Preferred Stock shall be entitled to vote on all matters submitted to
the stockholders of the Corporation for a vote, voting as a single class with
the Common, with the holders of Series A Preferred Stock entitled to one vote
for each share of Common issuable upon conversion of the Series A Preferred
Stock held as of the record date for such vote or, if no record date is
specified, as of the date of such vote or date of any written consent, as the
case may be.

 

(b)                                 Special
Series A Preferred Stock Restrictions. 
In addition to the voting rights contained in Section 3(a) or as
otherwise required by applicable law, so long as the Investor or its Affiliates
own in the aggregate at least 60,000 shares of Series A Preferred Stock (as
adjusted for any stock split, stock dividend, recapitalization or otherwise),
the Corporation shall not, without the vote or written consent of the holders
of 66-2/3% of the shares of Series A Preferred Stock then outstanding (the “Supermajority
Preferred Holders”):

 

(i)                                     alter
or change the rights, preferences or privileges of the Series A Preferred
Stock, including any increase in the number of authorized shares of Series A
Preferred Stock, whether as a result of any amendment, repeal, modification or
supplement to any provision of the Certificate of Incorporation of the
Corporation, this Certificate of Designation or the Bylaws of the Corporation,
or by merger, consolidation or otherwise;

 

(ii)                                  except
for the issuance and sale of the Series A Preferred Stock pursuant to the
Series A Purchase Agreement and the Warrant, authorize, issue or enter into any
agreement providing for the issuance (contingent or otherwise) of any capital
stock or other equity securities of the Corporation (or any securities
convertible into or exchangeable for any capital stock or other equity
securities of the Corporation) having rights, preference, privileges or
priorities pari  passu with or senior to the Series A Preferred
Stock (including any issuances of Series A Preferred Stock other than pursuant
to the Series A Purchase Agreement and the Warrant);

 

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(iii)                               pay,
or authorize or obligate the Corporation to pay, any dividend or make any other
distribution in respect of any Junior Securities (other than a dividend payable
solely in shares of Common);

 

(iv)                              directly
or indirectly redeem, purchase or otherwise acquire any of the Corporation’s
capital stock or other equity securities (including warrants, options and other
rights to acquire such capital stock or other equity securities) other than (A)
the Series A Preferred Stock pursuant to the terms of this Certificate of
Designation and (B) shares of its capital stock or other equity securities
repurchased or otherwise acquired (i) upon the termination of employment of an
officer, employee, director or consultant of the Corporation or (ii) in
connection with the surrender of shares of capital stock or other equity
securities, in each case pursuant to an option agreement or restricted stock
purchase agreement or comparable agreement approved by the Board);

 

(v)                                 (A)
liquidate, dissolve or wind up the Corporation, (B) commence a voluntary case
under any applicable bankruptcy law, (C) consent to the appointment of, or
taking possession by, a receiver of the Corporation or for all or substantially
all of the property and assets of the Corporation or (D) effect any general
assignment for the benefit of creditors of the Corporation;

 

(vi)                              create,
incur, assume or suffer to exist any Indebtedness, except that the Corporation
may incur Indebtedness if the amount of Indebtedness outstanding at such time
(including the Indebtedness so incurred) does not exceed (A) $7,000,000 at any
time after the Warrant has been exercised by the Investor or (B) $11,000,000 at
any time if the Warrant has not been exercised by the Investor;

 

(vii)                           create,
incur, assume or suffer to exist any Liens on the Corporation’s assets, other
than Permitted Liens;

 

(viii)                        change in
any material way the nature of the Corporation’s business; or

 

(ix)                                agree
to do any of the foregoing.

 

4.                                       Liquidity
Events.

 

(a)                                  Significant
Event.  Upon any Significant Event:

 

(i)                                     Each
holder of Series A Preferred Stock shall be entitled to receive for each share
of Series A Preferred Stock held by such holder immediately prior to such
Significant Event, prior and in preference to any distribution or payment made
upon or with respect to any Junior Securities, irrespective of whether such
distribution or payment is made by the Corporation or any other Person, an
amount (the “Liquidation Value”) equal to either (A)(1) the Accreted Value
of such share of Series A Preferred Stock on the date of distribution or
payment plus (2) all dividends (whether or not declared) accrued since
the end of the previous Dividend Period on such share of Series A Preferred
Stock or, (B) if elected by the Supermajority Preferred Holders, the amount to
which the holder of such share of Series A Preferred Stock would be entitled
assuming

 

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all of the shares of Series A Preferred Stock
had been converted into shares of Common in accordance with Section 5(a)(i)
immediately prior to such Significant Event. 
If upon any Significant Event the assets and/or proceeds to be
distributed to the holders of the Series A Preferred Stock are insufficient to
permit payment to such holders of the aggregate amount which they are entitled
to receive under Section 4(a)(i)(A), then the entire amount of assets
and/or proceeds available to the Corporation’s stockholders upon such
Significant Event shall be distributed pro rata among such holders of the
Series A Preferred Stock based upon the aggregate amounts due to each such holder
with respect to such shares of Series A Preferred Stock if such assets and/or
proceeds were sufficient to permit payment in full.

 

(ii)                                  With
respect to any Significant Event involving the Corporation’s merger,
consolidation or similar transaction, except as otherwise consented to by the
Supermajority Preferred Holders, the Corporation shall not effect such
Significant Event unless the agreement or plan of merger or consolidation or
other applicable agreement provides that the consideration payable to the
stockholders of the Corporation shall be allocated among the holders of capital
stock of the Corporation in accordance with the priorities set forth in this Section
4(a).

 

(iii)                               After
the payment and/or distribution to the holders of the Series A Preferred Stock
of the amounts set forth in Section 4(a)(i), the holders of the Series A
Preferred Stock shall not be entitled to any further payment or distribution.

 

(b)                                 Form
of Consideration.  Whenever the
distribution provided for in this Section 4 shall be payable in property
other than cash, the value of such distribution shall be the Fair Market Value
of such property.

 

(c)                                  Mandatory
Redemption Upon Certain Significant Events.  If a Significant Event occurs prior to the fifth anniversary of
the Closing Date, then, unless the Supermajority Preferred Holders elect
otherwise, the Corporation shall redeem each then outstanding share of Series A
Preferred Stock at a per share purchase price equal to the sum of (i) the
Accreted Value of such shares of Series A Preferred Stock on the date of
redemption, plus (ii) all dividends (whether or not declared) accrued
since the end of the previous Dividend Period on such share of Series A
Preferred Stock, plus (iii) the sum of the remaining dividends that
would have accrued and/or been payable on one share of Series A Preferred Stock
pursuant to Section 2 from the date of redemption pursuant to this Section
4(c) through the fifth anniversary of the Closing Date had such share of
Series A Preferred Stock not been so redeemed (the sum of clauses (i), (ii) and
(iii) being referred to herein as the “Make-Whole Redemption Price”).  If the Corporation (or its successor with
respect to any Significant Event) does not have sufficient funds legally
available to redeem on any redemption date all shares of Series A Preferred
Stock, the Corporation (or its successor) shall redeem a pro rata portion of
each holder’s shares of such stock out of funds legally available therefor,
based on the respective amounts which would otherwise be payable in respect of
the shares to be redeemed if the legally available funds were sufficient to
redeem all such shares, and shall redeem the remaining shares to have been
redeemed as soon as practicable after the Corporation (or its successor) has
funds legally available therefor; provided, that, with respect to any
shares

 

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of Series A Preferred Stock
that were to have been redeemed and are not, the Make-Whole Redemption Price
shall be re-calculated such that with respect to the remaining dividends
determined in accordance with clause (iii) of this Section 4(c), the
dividend rate shall be increased to 10% per annum for purposes of Section
2(a) for any shares of Series A Preferred Stock that are not so redeemed.

 

5.                                       Conversion.

 

(a)                                  Conversion
Procedure.

 

(i)                                     Subject
to Section 5(c), at any time and from time to time, a holder of Series A
Preferred Stock shall have the right to convert any share(s) of Series A
Preferred Stock into the number of shares of Common computed by dividing
(X) the Original Issue Price by (Y) the Conversion Price then in effect
for such share of Series A Preferred Stock.

 

(ii)                                  Each
conversion of Series A Preferred Stock pursuant to Section 5(a) shall be
effected by delivery, to the office of the Corporation or to any transfer agent
for such shares, of (A) duly endorsed certificates for the shares being
converted and (B) written notice to the Corporation that the holder elects to
convert such shares.  Conversion
pursuant to Section 5(a) shall be deemed to occur immediately prior to
the close of business on the date the certificates and notice are
delivered.  At the time any such
conversion has been effected, the rights of the holders of shares of Series A
Preferred Stock so converted shall cease with respect to such converted shares
of Series A Preferred Stock, and such holders entitled to receive Common upon
conversion of such Series A Preferred Stock shall be treated for all purposes
as the record holders of such shares of Common on the date conversion is deemed
to have been effected.

 

(iii)                               As
soon as practicable after (x) a conversion has been effected and (y) the
certificate(s) representing the converted shares of Series A Preferred Stock
have been surrendered to the principal office of the Corporation or to any
transfer agent for such shares, the Corporation shall deliver to the converting
holder:

 

(A)                              a certificate or
certificates representing the number of shares of Common issuable by reason of
such conversion in such name or names and such denomination or denominations as
the converting holder has specified;

 

(B)                                a certificate
representing any shares of Series A Preferred Stock which were represented by
the certificate or certificates delivered to the Corporation or to any transfer
agent in connection with such conversion but which were not converted; and

 

(C)                                any amount payable
under Section 5(a)(vi) with respect to such conversion.

 

(iv)                              The
Corporation shall not close its books on a Business Day against the transfer of
Series A Preferred Stock or of Common issued or issuable upon conversion of
Series A Preferred Stock in any manner that interferes with the timely

 

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conversion of Series A Preferred Stock.  At any time that a conversion of shares of
Series A Preferred Stock pursuant to this Section 5(a) has occurred, the
shares of Series A Preferred Stock so converted shall not thereafter be
reissued, sold or transferred or deemed to be issued and outstanding for any
purpose and the number of shares of Series A Preferred Stock authorized to be
issued by the Corporation shall be reduced by the number of shares of Series A
Preferred Stock so converted.

 

(v)                                 The
Corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Common, solely for the purpose of issuance upon the
conversion of shares of the Series A Preferred Stock, such number of shares of
Common as are issuable upon the conversion of all outstanding Series A
Preferred Stock.  All shares of Common
which are so issuable shall, when issued in accordance with the terms hereof,
be duly and validly issued, fully paid and nonassessable.  The Corporation shall not take any action
that would cause the number of authorized but unissued shares of Common to be
less than the number of such shares required to be reserved hereunder for
issuance upon conversion of the Series A Preferred Stock.

 

(vi)                              If
any fractional interest in a share of Common would, except for the provisions
of this subparagraph, be delivered upon any conversion of any shares of Series
A Preferred Stock, the Corporation, in lieu of delivering the fractional share
therefor, may pay an amount to the holder thereof equal to the Market Price of
such fractional interest as of the date of conversion.  The determination as to the amount of any
cash payment in lieu of the issuance of fractional shares shall be based upon
the total number of shares of Series A Preferred Stock being converted at any
one time by the holder thereof, not upon each share of Series A Preferred Stock
being converted at any one time by the holder thereof.

 

(vii)                           If any
holder surrenders shares of Series A Preferred Stock for conversion after the
close of business on the record date for the payment of a dividend and prior to
the opening of business on the Dividend Payment Date for such dividend, then,
notwithstanding such conversion, the dividend payable on such Dividend Payment
Date will be paid to the registered holder of such shares on such record date.

 

(viii)                        If a
holder converts shares of Series A Preferred Stock, the Corporation shall pay
any documentary, stamp or similar issue or transfer tax due on the issue of
Common upon the conversion.  The holder,
however, shall pay to the Corporation the amount of any tax which is due (or
shall establish to the satisfaction of the Corporation the payment thereof or
that no such payment is due) if the shares are to be issued in a name other
than the name of such holder.

 

(b)                                 Effect
on Conversion Price of Certain Events. 
For purposes of determining the applicable Conversion Price under Section
5, the following shall be applicable:

 

(i)                                     Subdivisions
or Combinations of Common.  If the
Corporation at any time subdivides (by any stock split, stock dividend,
recapitalization or

 

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otherwise) one or more classes of its
outstanding shares of Common into a greater number of shares, the Conversion
Price in effect immediately prior to such subdivision shall be reduced
proportionately, and if the Corporation at any time combines (by reverse stock
split or otherwise) one or more classes of its outstanding shares of Common
into a smaller number of shares, the Conversion Price in effect immediately
prior to such combination shall be increased proportionately.

 

(ii)                                  Recapitalization,
Reorganization, Reclassification, Consolidation, Merger or Sale. Any
recapitalization, reorganization, reclassification, consolidation, merger or
similar transaction, in each case which is effected in such a manner that the
holders of Common are entitled to receive (either directly or upon subsequent
liquidation) stock, securities or assets with respect to or in exchange for
Common, and which does not otherwise qualify as a Fundamental Change, is
referred to herein as an “Organic Change.”  Prior to the consummation of any Organic Change, the Corporation
shall make appropriate provisions to insure that each of the holders of Series
A Preferred Stock shall thereafter have the right to acquire and receive, in
lieu of the shares of Common immediately theretofore acquirable and receivable
upon the conversion of such holder’s Series A Preferred Stock, such shares of
stock, securities or assets as such holder would have received in connection
with such Organic Change if such holder had converted its Series A Preferred
Stock immediately prior to such Organic Change.  In each such case, the Corporation shall also make appropriate
provisions to insure that the provisions of this Section 5(b) shall
thereafter be applicable to the securities issuable upon conversion of the
Series A Preferred Stock and shall provide the holders of Series A Preferred
Stock with notice thereof.

 

(iii)                               Notices.  As soon as practicable after any adjustment
of the Conversion Price, the Corporation shall give written notice thereof to
all holders of Series A Preferred Stock, setting forth in reasonable detail and
certifying the calculation of such adjustment.

 

(c)                                  Mandatory
Conversion.  If, on or after the
third anniversary of the Closing Date, the Market Price of the Common exceeds
$7.00 (as adjusted for any stock split, stock dividend, recapitalization or
otherwise) for 23 consecutive Business Days, the Corporation may elect,
beginning on the first Business Day following such 23 Business Day period and
at any time thereafter while any shares of Series A Preferred Stock remain
outstanding, to require the holders of all (but not less than all) outstanding
shares of Series A Preferred Stock to convert such shares into Common pursuant
to the terms of this Section 5 (a “Mandatory Conversion”).  In case of such election, the Corporation
shall give written notice to each holder of outstanding shares of Series A
Preferred Stock.  Any such conversion
shall be deemed to have been effected, without further action by any party,
immediately prior to the close of business on the fifth Business Day after the
Corporation delivers notice of its election of a Mandatory Conversion to the
holders of Series A Preferred Stock Shares. 
At the time any such conversion has been effected, the rights of the
holders of shares of Series A Preferred Stock so converted shall cease with
respect to such converted shares of Series A Preferred Stock, and such holders
entitled to receive Common upon conversion of such Series A Preferred Stock
shall be treated for all purposes as the record holders of such shares of
Common on the date conversion is

 

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deemed to have been
effected.  The provisions of Section
5(a) (other than Section 5(a)(ii)) shall apply to a Mandatory
Conversion under this Section 5(c).

 

6.                                       Redemptions.

 

(a)                                  Optional
Redemption.  The Supermajority
Preferred Holders shall have the right to require the Corporation to redeem all
(but not less than all) of the outstanding shares of Series A Preferred Stock
on the third, fourth or fifth anniversary of the Closing Date.  The Supermajority Preferred Holders shall
elect such optional redemption by delivering a written notice of such election
to the Corporation (the “Redemption Notice”) at least 30 calendar
days prior to the applicable anniversary date (the “Optional Redemption Date”).  Subject to Section 6(b), the
Corporation shall be obligated to consummate the redemption of each outstanding
share of Series A Preferred Stock on the applicable Optional Redemption Date by
paying to each holder thereof a per share redemption price (the “Redemption
Price”) in cash equal to (i) the Accreted Value of such share of
Series A Preferred Stock on the Optional Redemption Date plus (ii) all
dividends (whether or not declared) accrued on such share of Series A Preferred
Stock since the end of the previous Dividend Period as of the Optional
Redemption Date.  If the Supermajority
Preferred Holders do not elect to require the redemption of all outstanding
shares of Series A Preferred Stock during the redemption election periods
described in this Section 6(a), then the Corporation shall have no
further obligation under this Section 6(a) to redeem any shares of
Series A Preferred Stock, and any right of redemption contained in this Section
6(a) shall be deemed to have expired and thereafter be null and void.

 

(b)                                 Deferral
of Redemption.   If, upon any
optional redemption election made by the Supermajority Preferred Holders
pursuant to Section 6(a), the available cash resources of the
Corporation are (i) insufficient to permit payment to the holders of the Series
A Preferred Stock of the aggregate Redemption Price or (ii) sufficient, but the
Corporation elects to defer payment to the holders of the Series A Preferred Stock
of the aggregate Redemption Price under this paragraph, then the Corporation
shall have the option to defer the payment of such aggregate Redemption Price
for a period of up to 12 months; provided, that, during any such
deferral period, the dividend rate for the Series A Preferred Stock shall be
increased to 10% per annum for purposes of Section 2(a).  If the Corporation does not have sufficient
funds legally available to redeem on any redemption date all shares of Series A
Preferred Stock, the Corporation shall redeem a pro rata portion of each
holder’s shares of such stock out of funds legally available therefor, based on
the respective amounts which would otherwise be payable in respect of the
shares to be redeemed if the legally available funds were sufficient to redeem
all such shares, and shall redeem the remaining shares to have been redeemed as
soon as practicable after the Corporation has funds legally available therefor;
provided, that, during any such period for which shares of Series A
Preferred Stock were to have been redeemed and are not, the dividend rate for
any outstanding shares of Series A Preferred Stock shall be increased to 10%
per annum for purposes of Section 2(a).

 

9

 

(c)                                  Mandatory
Redemption.  In addition to the
mandatory redemption required by Section 4(c), upon the occurrence of
any of the following, the Corporation shall, unless the Supermajority Preferred
Holders elect otherwise, redeem all of the outstanding shares of Series A Preferred
Stock at a per share purchase price equal to the Make-Whole Redemption Price:

 

(i)                                     the
failure of the Common to be quoted on the Nasdaq National Market of The Nasdaq
Stock Market or listed on the New York Stock Exchange;

 

(ii)                                  the
Corporation issues any shares of Common (or any securities convertible into or
exchangeable for Common) for a per share purchase price of less than $2.25 (as
adjusted for any stock split, stock dividend, recapitalization or otherwise)
(other than (A) shares issued as consideration in a Permitted Acquisition and
(B) shares issued pursuant to the terms of any agreement outstanding on the
date hereof and shares of capital stock, options, restricted stock or other
stock based awards to purchase capital stock, issued to employees, directors,
advisors or consultants of the Corporation pursuant to a stock option,
restricted stock or other stock based award or equity incentive plan approved
by the Board);

 

(iii)                               any
breach or inaccuracy in any representation or warranty of the Corporation (as
determined as of the time such representation or warranty is made) contained in
the Series A Purchase Agreement or the Registration Rights Agreement that has a
Material Adverse Effect, provided that such representations and warranties
shall survive only until one year from the date of this Certificate of
Designation;

 

(iv)                              any
breach by the Corporation of any of its covenants, or any failure of the
Corporation to perform any of its obligations, in the Series A Purchase
Agreement or the Registration Rights Agreement that has a Material Adverse
Effect;

 

(v)                                 
(A) an involuntary case shall be commenced against the Corporation and the
petition shall not be dismissed, stayed, bonded or discharged within sixty (60)
calendar days after commencement of the case or a court having jurisdiction in
the premises shall enter a decree or order for relief in respect of the
Corporation in an involuntary case, under any applicable bankruptcy, insolvency
or other similar law now or hereinafter in effect, or any other similar relief
shall be granted under any applicable federal, state, local or foreign law; (B)
a decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over the Corporation or over all or a
substantial part of the property of the Corporation shall be entered; (C) an
interim receiver, trustee or other custodian of the Corporation or of all or a
substantial part of the property of the Corporation shall be appointed or a
warrant of attachment, execution or similar process against any substantial
part of the property of the Corporation shall be issued and any such event
shall not be stayed, dismissed, bonded or discharged within sixty (60) calendar
days after entry, appointment or issuance; or (D) the Corporation shall (1)
commence a voluntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, (2) consent to the entry of an order
for relief in an

 

10

 

involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any such law, (3) consent to the
appointment of or taking possession by a receiver, trustee or other custodian
for all or a substantial part of its property, (4) make any assignment for the
benefit of creditors or (5) take any corporate action to authorize any of the
foregoing.

 

(vi)                              any
default under the terms of any agreement under which the Corporation has incurred
Indebtedness exceeding $500,000 (excluding any agreement entered into prior to
October 7, 2003); or

 

(vii)                           failure
of the Corporation to in good faith (A) attempt to file a shelf registration
statement on Form S-3 within 45 calendar days of the Closing Date or (B)
attempt to cause a shelf registration statement on Form S-3 to be declared
effective by the Securities and Exchange Commission within 120 calendar days of
the Closing Date, in each case, registering for re-sale, among other
securities, the shares of Common into which the shares of Series A Preferred
Stock owned by the Investor are convertible pursuant to Section 5.

 

(d)                                 Redeemed
Shares.  All rights pertaining to
shares of Series A Preferred Stock that are redeemed pursuant to this Section
6 shall cease, and such shares shall not thereafter be (i) reissued, sold
or transferred, (ii) entitled to any dividends accruing after the date of
redemption or (iii) deemed to be issued and outstanding for any purpose
whatsoever.

 

7.                                       General.

 

(a)                                  The
Corporation shall keep at its principal office (or at the office of its
counsel) a register for the registration of Series A Preferred Stock.  Upon the surrender of any certificate
representing Series A Preferred Stock at such place, the Corporation shall, at
the request of the record holder of such certificate, execute and deliver a new
certificate or certificates in exchange therefor representing in the aggregate
the number of shares represented by the surrendered certificate.  Each such new certificate shall be
registered in such name and shall represent such number of shares as is
requested by the holder of the surrendered certificate and shall be
substantially identical in form to the surrendered certificate.

 

(b)                                 Upon
receipt of evidence reasonably satisfactory to the Corporation (an affidavit of
the registered holder shall be satisfactory) of the ownership and the loss,
theft, destruction or mutilation of any certificate evidencing shares of Series
A Preferred Stock, and in the case of any such loss, theft or destruction, upon
receipt of indemnity reasonably satisfactory to the Corporation (provided that
if the holder is a financial institution or other institutional investor its
own agreement shall be satisfactory), or, in the case of any such mutilation upon
surrender of such certificate, the Corporation shall execute and deliver in
lieu of such certificate a new certificate of like kind representing the number
of shares of such class represented by such lost, stolen, destroyed or
mutilated certificate and dated the date of such lost, stolen, destroyed or
mutilated certificate.

 

11

 

(c)                                  Except
as otherwise expressly provided hereunder, all notices referred to herein shall
be in writing and shall be delivered by registered or certified mail, return
receipt requested and postage prepaid, by reputable overnight courier service,
charges prepaid, or by personal delivery, and shall be deemed to have been
given (i) three (3) Business Days after being sent by registered or certified
mail, (ii) one (1) Business Day after being deposited with such an overnight
courier service, and (iii) upon delivery, if by personal delivery, if mailed or
delivered (A) to the Corporation, at its principal executive offices, or (B) to
any stockholder, at such holder’s address as it appears in the stock records of
the Corporation (unless otherwise indicated by any such holder).

 

8.                                       Definitions.  Capitalized terms used but not otherwise
defined in this Certificate of Designation shall have the meaning given to such
terms in the Series A Purchase Agreement. 
The following terms shall have the following meanings for purposes of
this Certificate of Designation:

 

“Accreted Value” means, with respect to one
share of Series A Preferred Stock, $22.50, plus the amount of any
dividends added to such Accreted Value in accordance with Section 2, minus
the amount of any dividends included in Accreted Value that are subsequently
declared and paid (subject to equitable adjustments by the Board acting in good
faith to reflect stock splits of shares of Series A Preferred Stock, stock
dividends in respect of shares of Series A Preferred Stock, stock combinations
of shares of Series A Preferred Stock, recapitalizations and like occurrences).

 

“Board” means the Board of Directors of the
Corporation.

 

“Business Day” is defined in the Series A
Purchase Agreement.

 

“Closing Date” is defined in the Series A
Purchase Agreement.

 

“Common”  means the Corporation’s Common Stock,
$0.001 par value per share.

 

“Conversion Price” means, with respect to
each share of Series A Preferred Stock, initially $2.25 for such share, subject
to adjustment from time to time in accordance with Section 5(b).

 

“Dividend Payment Date” is defined in Section
2(b).

 

“Dividend Period” is defined in Section
2(b).

 

“EBITDA” means earnings before interest,
taxes, depreciation and amortization expenses, in each case calculated in
accordance with GAAP.

 

“Fair Market Value” means fair market value
as determined in good faith by the Board. 
Any securities shall be valued as follows: (i) securities not subject to
investment letter or other similar restrictions on free marketability:

 

(A)                              if traded on a securities
exchange or The Nasdaq Stock Market, the value shall be based on a formula
approved in good faith by the Board and derived from the closing prices of the
securities on such exchange or The Nasdaq Stock Market over a specified time
period;

 

(B)                                if actively traded
over-the-counter, the value shall be based on a formula approved in good faith
by the Board and derived from the

 

12

 

closing prices
of the securities on such exchange or The Nasdaq Stock Market over a specified
time period; and

 

(C)                                if there is no active
public market, the value shall be the fair market value thereof, as determined
in good faith by the Board;

 

and (ii) the method of valuation of
securities subject to investment letter or other restrictions on free
marketability (other than restrictions arising solely by virtue of a
stockholder’s status as an affiliate or former affiliate) shall be to make an
appropriate discount from the market value determined as above in clause (i) to
reflect the approximate fair market value thereof, as determined in good faith
by the Board.

 

“Fundamental Change”  means (i) any sale or
transfer of all or substantially all of the assets of the Corporation in any
transaction or series of transactions or (ii) any merger or consolidation to
which the Corporation is a party, except for a merger in which (a) the Corporation
is the surviving corporation, (b) the terms, rights and preferences of the
Series A Preferred Stock are not adversely affected, (c) the Common is not
converted into or exchanged for cash, securities or other property, and (d)
after giving effect to such merger, the holders of the Corporation’s
outstanding capital stock immediately prior to the merger shall continue to own
the Corporation’s outstanding capital stock possessing a majority of the voting
power of the Corporation and the voting power (under ordinary circumstances) to
elect a majority of the Board.

 

“GAAP” is defined in the Series A Purchase
Agreement.

 

“Indebtedness” means (i) all obligations for
borrowed money or in respect of loans or advances; (ii) all obligations
evidenced by bonds, debentures, notes or other similar instruments; (iii) all
obligations in respect of letters of credit, whether or not drawn; (iv) any
Indebtedness of a third Person that is guaranteed by the Corporation; or (v)
any obligations under capitalized leases with respect to which the Corporation
is liable.

 

“Investor” means RAM Trading, Ltd., a Cayman
Islands exempted company.

 

“Junior Securities”  means any of the
Corporation’s equity securities (whether or not currently authorized or
outstanding) which by its terms is junior to the Series A Preferred Stock
(including, without limitation, the Common).

 

“Liens” is defined in the Series A Purchase
Agreement.

 

“Liquidation Value” is defined in Section
4(a)(i).

 

“Make-Whole Redemption Price” is defined in Section
4(c).

 

“Mandatory Conversion” is defined in Section
5(c).

 

“Market Price” is defined in the Series A
Purchase Agreement.

 

“Material Adverse Effect” is defined in the
Series A Purchase Agreement.

 

“Optional Redemption Date” is defined in Section
6(a).

 

“Organic Change” is defined in Section
5(b)(ii).

 

“Original Issuance Date” means, with respect
to any share of Series A Preferred Stock, the date on which the Corporation
initially issues such share of Series A Preferred

 

13

 

Stock, regardless of the number of times a
transfer of such share is made on the stock records maintained by or for the
Corporation and regardless of the number of certificates which may be issued to
evidence such share.

 

“Original Issue Price” means $22.50 (subject
to equitable adjustments by the Board acting in good faith to reflect stock
splits of shares of Series A Preferred Stock, stock dividends in respect of
shares of Series A Preferred Stock, stock combinations of shares of Series A
Preferred Stock, recapitalizations and like occurrences).

 

“Permitted Acquisition” means an acquisition
by the Company of another business entity with respect to which the pro forma
financial statements of the Company prepared in good faith by the Company’s
management reflecting such acquisition, which are submitted to the Board in
connection with its approval of such acquisition, demonstrate that such
acquisition will not result in an overall decrease in the per share
EBITDA of the Company over the four (4) fiscal quarters of the Company
beginning with the second full fiscal quarter following the consummation of
such acquisition.  For purposes of Section
6(c)(ii) of this Certificate of Designation, shares of Common issued by the
Company as consideration in connection with a Permitted Acquisition shall be
deemed issued at a price equal to the Market Price on the Business Day
immediately preceding the day on which the definitive agreement for such
acquisition is executed.

 

“Permitted Liens” is defined in the Series A
Purchase Agreement.

 

“Person” means an individual, a partnership,
a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

 

“Redemption Notice” is defined in Section
6(a).

 

“Redemption Price” is defined in Section
6(a).

 

“Series A Purchase Agreement” means the
Series A Preferred Stock Purchase Agreement, dated as of October 29, 2003,
between the Corporation and the Investor.

 

“Significant Event” means (i) a
liquidation, dissolution or winding up of the Corporation, voluntary or
otherwise, or (ii) a Fundamental Change.

 

“Supermajority Preferred Holders” is defined
in Section 3(b).

 

“Warrant”
is defined in the Series A Purchase Agreement.

 

14

 

IN WITNESS
WHEREOF, Genaissance Pharmaceuticals, Inc. has caused this Certificate to be
signed by Kevin L. Rakin, its President, on this 29th day of October, 2003.

 

 

	
   

  	
  Genaissance
  Pharmaceuticals, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin L.
  Rakin

  	
   

  
	
   

  	
   

  	
  Kevin L.
  Rakin, President

  

 

15

 

AMENDED AND RESTATED

 

CERTIFICATE OF
INCORPORATION

 

OF

 

GENAISSANCE
PHARMACEUTICALS, INC.

 

                I, Gualberto
Ruano, President of Genaissance Pharmaceuticals, Inc., a corporation organized
and existing under and by virtue of the General Corporation Law of the State of
Delaware, do hereby certify as follows:

 

                A. The
original Certificate of Incorporation of Genaissance Pharmaceuticals, Inc. (the
“Corporation”) was filed in the Office of the Secretary of State of the State
of Delaware on February 24, 1992 under the name “BIOS Laboratories, Inc.” and
was amended by: (i) Certificates of Amendment on August 29, 1994; March 18,
1997; August 13, 1997; December 22, 1997; August 24, 1998; February 17, 2000;
March 8, 2000; March 10, 2000; and July 25, 2000; (ii) a Certificate of
Designations on December 22, 1997, which was amended on August 24, 1998,
February 17, 2000, March 10, 2000, July 25, 2000 and July 28, 2000;
(iii) a Certificate of Designations on August 24, 1998 which was amended on
February 17, 2000, July 25, 2000 and July 28, 2000; (iv) a
Certificate of Designations on February 17, 2000 which was amended on March 8,
2000, March 10, 2000, July 25, 2000 and July 28, 2000; and (v) a
Certificate of Designations on March 10, 2000, which was amended on
July 25, 2000 and July 28, 2000.

 

                B. In the
manner prescribed by Sections 242 and 245 of the General Corporation Law of the
State of Delaware, this Amended and Restated Certificate of Incorporation was
duly adopted by the Board of Directors and stockholders of the Company.

 

                C. The text
of the Certificate of Incorporation of the Company is further amended and restated
to read in full as follows:

 

                FIRST:  The name of the Corporation is Genaissance
Pharmaceuticals, Inc.

 

                SECOND:  The address of the registered office of the
Corporation in the State of Delaware is 1209 Orange Street, in the City of
Wilmington, New Castle County, Delaware. The name of its registered agent at
such address is The Corporation Trust Company.

 

                THIRD:  The purpose of the Corporation is to engage
in any lawful act or activity for which corporations may be organized under the
General Corporation Law of Delaware.

 

                FOURTH:  The Corporation shall be authorized to issue
sixty-one million (61,000,000) shares of capital stock, which shall be divided
into fifty-eight million (58,000,000) shares of Common Stock, par value $0.001
per share (the “Common Stock”), two million (2,000,000) shares of non-voting
common stock, par value $0.001 per share (the “Non-Voting Common Stock”) and
one million (1,000,000) shares of Preferred Stock, par value $0.001 per share
(the “Preferred Stock”).

 

 

16

 

                The following
is a statement of the designations, preferences, voting powers, qualifications,
special or relative rights and privileges in respect of the authorized capital
stock of the Corporation.

 

PREFERRED STOCK

 

                The Board of
Directors is authorized, subject to limitations prescribed by law and the
provisions of this Article FOURTH, to provide by resolution for the issuance of
the shares of Preferred Stock in one or more series, and by filing a
certificate pursuant to the applicable law of the State of Delaware, to
establish from time to time the number of shares to be included in each such
series, and to fix the designations, powers, preferences and rights of the
shares of each such series and the qualifications, limitations or restrictions
thereof.

 

                The authority
of the Board with respect to each series shall include, but shall not be
limited to, determination of the following:

 

                (a) The
number of shares constituting that series and the distinctive designation of
that series;

 

                (b) The
dividend rate, if any, on the shares of that series, whether dividends shall be
cumulative, and if so, from which date or dates, and the relative rights of
priority, if any, of payment of dividends on shares of the series;

 

                (c) Whether
that series shall have voting rights, in addition to the voting rights provided
by law, and, if so, the terms of such voting rights;

 

                (d) Whether
that series shall have conversion privileges, and, if so, the terms and
conditions of such conversion, including provision for adjustment of the
conversion rate in such events as the Board of Directors shall determine;

 

                (e) Whether
or not the shares of that series shall be redeemable, and if so, the terms and
conditions of such redemption, including the date or dates upon or after which
they shall be redeemable, and the amount per share payable in case of
redemption, which amount may vary under different conditions and at different
redemption dates;

 

                (f) Whether
that series shall have a sinking fund for the redemption or purchase of shares
of that series, and if so, the terms and amount of such sinking fund;

 

                (g) The
rights of the shares of that series in the event of voluntary or involuntary
liquidation, dissolution or winding up of the Corporation, and the relative
rights of priority, if any, of payment of shares of that series;

 

                (h) Any other
relative rights, preferences and limitations of that series.

 

COMMON STOCK AND
NON-VOTING COMMON STOCK

 

                The Common
Stock and the Non-Voting Common Stock are subject to the rights and preferences
of the Preferred Stock as hereinbefore set forth or authorized.

 

 

17

 

                The Common
Stock and the Non-Voting Common Stock shall be identical in all respects and
shall have equal rights and privileges, except as otherwise expressly provided
herein. The relative powers, preferences, rights, qualifications, limitation
and restrictions of the shares of the Common Stock and the Non-Voting Common
Stock are as follows:

 

                1. VOTING.
Subject to the provisions of any applicable law or of the by-laws of the
Corporation, as from time to time amended, with respect to the fixing of a
record date for the determination of stockholders entitled to vote, and except
as otherwise provided herein or by law or by the resolution or resolutions
providing for the issue of any series of Preferred Stock, the holders of
outstanding shares of Common Stock shall have exclusive voting rights for the
election of directors and for all other purposes, each holder of record of
shares of Common Stock being entitled to one vote for each share of Common
Stock standing in his name on the books of the Corporation. Except as provided
under the Delaware General Corporation Law, the holders of the Non-Voting
Common Stock are not entitled to vote.

 

                2. DIVIDENDS.
Subject to the rights of any one or more series of Preferred Stock, the holders
of Common Stock and Non-Voting Common Stock shall be entitled to receive such
dividends from time to time as may be declared by the Board of Directors out of
any funds of the Corporation legally available for the payment of such
dividends.

 

                3.
LIQUIDATION. In the event of the liquidation, dissolution, or winding up of the
Corporation, whether voluntary or involuntary, after payment shall have been
made to the holders of the Preferred Stock of the full amount to which they are
entitled, the holders of Common Stock and Non-Voting Common Stock shall be
entitled to share ratably according to the number of shares of Common Stock and
Non-Voting Common Stock held by them in all remaining assets of the Corporation
available for distribution to its stockholders.

 

                4. CONVERSION
OF NON-VOTING COMMON STOCK.

 

                (a) OPTIONAL
CONVERSION. Subject to applicable banking regulations, each share of Non-Voting
Common Stock shall be convertible, at the option of the holder thereof, at any
time and from time to time, into shares of Common Stock at the rate (subject to
equitable adjustment as may be necessary to account for stock splits, stock
dividends or any reorganization, combination of shares or similar capital
adjustment) of one share of Common Stock for each share of Non-Voting Common
Stock by surrendering the certificate or certificates for such shares of
Non-Voting Common Stock, together with written notice that such holder elects
to convert all or any portion of the shares of Non-Voting Common Stock
represented by such certificate or certificates and any other documents
required by the transfer agent or the Corporation, to the office of the
transfer agent (which shall be the principal office of the Corporation if it
serves as its own transfer agent). Such notice shall state the names of the
nominees, if any, in which such holder wishes the certificate or certificates
for the shares of Common Stock to be issued. The date of receipt of such
certificates and notice by the transfer agent (or by the Corporation if it
serves as its own transfer agent) shall be the conversion date. The Corporation
shall, as soon as practicable after such conversion date, issue and deliver at
such office to such holder of Non-Voting Common Stock, or to its nominees, a
certificate or certificates for the number of shares of Common Stock to which
such holder shall be entitled, together with cash in lieu of any fraction of a
share.

 

 

18

 

                (b) RESERVING
COMMON STOCK. The Corporation shall reserve and keep available out of its
authorized but unissued Common Stock such number of shares of Common Stock as
shall from time to time be sufficient to effect the conversion of all
outstanding shares of Non-Voting Common Stock.

 

ISSUANCE

 

                Subject to
the provisions of this Amended and Restated Certificate of Incorporation and
except as otherwise provided by law, the shares of stock of the Corporation, regardless
of class, may be issued for such consideration and for such corporate purposes
as the Board of Directors may from time to time determine.

 

                FIFTH:  The following provisions are inserted for
the management of the business and for the conduct of the affairs of the
Corporation:

 

                1. The
directors shall be divided into three classes, as nearly equal in number as the
then total number of directors constituting the entire Board permits, with the
term of office of one class expiring each year. The initial Class I directors
elected by the stockholders of the Corporation shall hold office for a term
expiring at the 2001 annual meeting of stockholders; the initial Class II
directors elected by the stockholders of the Corporation shall hold office for
a term expiring at the 2002 annual meeting of stockholders; and the initial
Class III directors elected by the stockholders of the Corporation shall hold
office for a term expiring at the 2003 annual meeting of stockholders. At each
such annual meeting of stockholders and at each annual meeting thereafter,
successors to the class of directors whose term expires at that meeting shall
be elected for a term expiring at the third annual meeting following their
election and until their successors shall be elected and qualified, subject to
prior death, resignation, retirement or removal. If the number of directors is
changed, any increase or decrease shall be apportioned among the classes so as
to maintain the number of directors in each class as nearly equal as possible,
but in no event will a decrease in the number of directors shorten the term of
any incumbent director. Notwithstanding the foregoing, and except as otherwise
required by law, whenever the holders of any one or more series of Preferred
Stock shall have the right, voting separately as a class, to elect one or more
directors of the Corporation, the election, terms of office and other features
of such directorships shall be governed by the terms of the vote establishing
such series, and such directors so elected shall not be divided into classes
pursuant to this Article FIFTH unless expressly provided by such terms. This
Section 1 of Article FIFTH may not be amended, revised or revoked, in whole or
in part, except by the affirmative vote of the holders of 80% of the voting
power of the shares of all classes of stock of the Corporation entitled to vote
for the election of directors, considered for the purposes of this Article
FIFTH as one class of stock.

 

                2. Each
director chosen to fill a vacancy in the Board of Directors shall be elected to
complete the term of office of the director who is being succeeded. In the case
of any election of a new director to fill a directorship created by an
enlargement of the Board, the Board shall in such election assign the class of
directors to which such additional director is being elected, and each director
so elected shall hold office for the same term as the other members of the
class to which the director is assigned.

 

 

19

 

                3. Except as
otherwise determined by the Board of Directors in establishing a series of
Preferred Stock as to directors elected by holders of such series, at any
special meeting of the stockholders called at least in part for the purpose,
any director or directors may, by the affirmative vote of the holders of at
least a majority of the stock entitled to vote for the election of directors,
be removed from office for cause. The provisions of this subsection shall be
the exclusive method for the removal of directors. This Section 3 of Article
FIFTH may not be amended, revised or revoked, in whole or in part, except by
the affirmative vote of the holders of 80% of the voting power of the shares of
all classes of stock of the Corporation entitled to vote for the election of
directors, considered for the purposes of this Article FIFTH as one class of
stock.

 

                4. Elections
of directors need not be by ballot.

 

                5. The Board
of Directors of the Corporation is expressly authorized to adopt, amend or
repeal the by-laws of the Corporation.

 

                6. A director
of the Corporation shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except for liability (i) for any breach of the director’s duty of loyalty to
the Corporation or its stockholders, (ii) for acts or omissions not in good
faith or that involve intentional misconduct or a knowing violation of law,
(iii) under Section 174 of the Delaware General Corporation Law, or (iv) for
any transaction from which the director derived an improper personal benefit.
If the Delaware General Corporation Law is amended after approval by the
stockholders of this Article FIFTH to authorize corporate action further
eliminating or limiting the personal liability of directors, then the liability
of a director of the Corporation shall be eliminated or limited to the fullest
extent permitted by the Delaware General Corporation Law, as so amended from
time to time.

 

                Any repeal or
modification of this Section 6 of Article FIFTH shall not increase the personal
liability of any director of this Corporation for any act or occurrence taking
place before such repeal or modification, nor otherwise adversely affect any
right or protection of a director of the Corporation existing at the time of
such repeal or modification.

 

                7. Meetings
of stockholders may be held anywhere within or without the State of Delaware.
The books of the Corporation may be kept outside the State of Delaware at such
place or places as may be designated from time to time by the Board of
Directors or in the by-laws of the Corporation.

 

                SIXTH: No
action required to be taken or that may be taken at any annual or special
meeting of stockholders of the Corporation may be taken by written consent
without a meeting, and the power of stockholders to consent in writing, without
a meeting, to the taking of any action is specifically denied.

 

                This Article
SIXTH may not be amended, revised or revoked, in whole or in part, except by
the affirmative vote of the holders of 80% of the voting power of the shares of
all classes of stock of the Corporation entitled to vote for the election of
directors, considered for the purposes of this Article SIXTH as one class of
stock.

 

 

20

 

                SEVENTH: The
Corporation reserves the right to amend, alter, change or repeal any provisions
contained in this Amended and Restated Certificate of Incorporation in the
manner now or hereafter prescribed by statute, and all rights conferred upon stockholders
are granted subject to this reservation.

 

 

21

 

 

                IN WITNESS
WHEREOF, the undersigned has duly executed this Amended and Restated
Certificate of Incorporation in the name and on behalf of Genaissance
Pharmaceuticals, Inc. on the 7th  day of August, 2000 and
the statements contained herein are affirmed as true under penalties of
perjury.

 

 

	
   

  	
  /s/ Gualberto Ruano

  
	
   

  	
  Gualberto Ruano

  
	
   

  	
  President and Chief Executive Officer

  

 

 

22Exhibit 4.2

 

	
  RESTRICTED SECURITIES

  	
  SEE LEGENDS ON REVERSE SIDE

  
	
   

  
	
  NUMBER

  	
   

  	
  State of Delaware

  	
   

  	
  SHARES

  
	
   

  	
  [SEAL]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [XXX]

  	
   

  	
  Genaissance Pharmaceuticals, Inc.

  	
   

  	
  NON ASSESSABLE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series A Preferred Stock

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $.001 par value per share

  	
   

  	
   

  
						

 

This
Certifies that        Specimen                                                                                                                     

is the owner of
**(0)**                                                      
Shares of the Capital Stock of Genaissance
Pharmaceuticals, Inc. transferable only on the books of the
Corporation by the holder hereof in person or by Attorney upon surrender of
this Certificate properly endorsed.

 

In
Witness Whereof, the said Corporation has caused this
Certificate to be signed by its duly authorized officers and its Corporate Seal
to be hereunto affixed this    day of                  A.D.
20      .

 

	
   

  	
   

  	
  [SEAL]

  	
   

  	
   

  
	
  President

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

© GOES 365

 

 

 

	
  Genaissance

  
	
  Pharmaceuticals, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Certificate

  
	
  for

  
	
  **0**

  
	
   

  
	
   

  
	
  SHARES

  
	
  OF

  
	
  Capital Stock

  
	
  ISSUED TO

  
	
   

  
	
  Specimen

  
	
   

  
	
  
  

  

  

  
	
   

  
	
  DATED

  
	
   

  
	
   

  
	
  
  

  

  

  
	
   

  

 

 

 

	
  For Value
  Received,        hereby sell
  assign and transfer unto                                                                           

  
	
                                                                                                                                                                    Shares

  
	
  of the
  Capital Stock represented by the within Certificate and do hereby irrevocably
  constitute and appoint

  
	
                                                                                                                                                                              

  
	
  to transfer
  the said Stock on the books of the within named Corporation with full power
  of substitution in the premises.

  
	
  Dated                                                                           

  
	
  In presence of

  
	
                                                                                      

  

 

NOTICE.
THE SIGNATURE OF THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
THE FACE OF THE CERTIFICATE ON EVERY PARTICULAR, WITHOUT ALTERATIONS OR
ENLARGEMENT OR ANY CHANGE WHATEVER.

 

 

The securities represented by
this certificate have not been registered under the Securities Act of 1933, as
amended (the “Act”), or under applicable state securities laws, and may not be
sold, assigned, pledged or otherwise transferred except pursuant to an
effective registration under the Act or in a transaction which qualifies as an
exempt transaction under the Act, the rules and regulations promulgated
thereunder and the securities law of any applicable state.

 

The Corporation has more than
one class of stock authorized to be issued. 
The Corporation will furnish without charge to each stockholder upon
written request a copy of the full text of the preferences, voting powers,
qualifications and special and relative rights of the shares of each class of
stock (and any series thereof) authorized to be issued by the Corporation as
set forth in the Certificate of incorporation of the Corporation and amendments
thereto filed with the Secretary of State of the State of Delaware.

 

The shares represented by this
certificate are subject to restrictions on transfer pursuant to the terms and
conditions of a Series A Preferred Stock Purchase Agreement and a Registration
Rights Agreement, each dated as of October 29, 2003, and each as amended from
time to time, copies of which the Corporation will furnish to the holder of
this certificate upon request and without charge.  As more fully set forth in Section 5.13(b) of the Series A
Preferred Stock Purchase Agreement and subject to such agreement, these shares
may be pledged in connection with a bona fide margin account.

 

The securities represented by
this certificate are held by a person who may be deemed to be an affiliate of
the Corporation for purpose of Rule 144 promulgated under the Act.

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