美国优先股法律模板之CertificateofIncorporation20

LastupdatedJune2013Thissampledocumentistheworkproductofacoalitionofattorneyswhospecializeinventurecapitalfinancings,workingundertheauspicesoftheNVCA.Thisdocumentisintendedtoserveasastartingpointonly,andshouldbetailoredtomeetyourspecificrequirements.Thisdocumentshouldnotbeconstruedaslegaladviceforanyparticularfactsorcircumstances.Notethatthissamplepresentsanarrayof(oftenmutuallyexclusive)optionswithrespecttoparticulardealprovisions.AMENDEDANDRESTATEDCERTIFICATEOFINCORPORATIONLastupdatedJune2013iPreliminaryNotesGeneral.TheCertificateofIncorporationisakeydocumentproducedinconnectionwithaventurecapitalportfolioinvestment.Amongotherthings,theCorporation’sCertificateofIncorporationestablishestherights,preferences,privilegesandrestrictionsofeachclassandseriesoftheCorporation’sstock.NoImpairmentClause.Itisnotuncommonforcounseltotheinvestorstoincludea“noimpairment”clauseintheirCertificateofIncorporationdrafts.A“noimpairment”clauseisabroadandgeneralprovisionthatprohibitstheCorporationfromacting(orfailingtoact)inawaythatwouldcircumventtheexpressandspecificprovisionsoftheCertificateofIncorporation.AlthoughDelawarecourtsnarrowlyconstrue“noimpairment”clauses1,suchprovisionscanbedangerous,bothtotheCorporationandtothecontrollinginvestors,becausetheycangiverisetoclaimsofviolationbydisgruntledminorityinvestorslookingforsomegroundsonwhichtobaseaclaim,intheabsenceofanyspecificprotectiveprovisionsintheCertificateofIncorporation.Inaddition,inatransactioninwhichthetermsoftheoutstandingPreferredStockaretobeamended,specificallytheanti-dilutionandconversionrights,certainlawfirmshavetakenthepositionthattheexistenceofa“noimpairment”clauseintheCertificateofIncorporationrequirestheirfirmtoexpressnoopinionwithregardtothestockholderactiontakeninconnectionwiththesubjecttransaction,andinsteadassumeforpurposesoftheiropinionthattheCorporationhascompliedwiththeprovisionsofthe“noimpairment”clause.Ifappropriateattentionispaidtothespecific,substantiveprovisionsoftheCertificateofIncorporation,thereisnoneedforavaguecatchall,whichmaygiverisetotheproblemsdescribedabove.Accordingly,thedraftersintentionallydidnotincludea“noimpairment”clauseinthisCertificateofIncorporation.Pay-to-PlayProvision.ThisCertificateofIncorporationincludesasample“pay-to-play”provision,pursuanttowhichPreferredStockinvestorsarepenalizediftheyfailtoinvesttoaspecifiedextentincertainfutureroundsoffinancing.TheprovisionincludedhereinprovidesforconversionintoCommonStockofsomeoralloftheSeriesAPreferredStockheldbynon-participatinginvestors.AnalternativeprovisionwhichprovidesforconversionofsomeoralloftheSeriesAPreferredStockheldbynon-participatinginvestorsintoanewseriesofPreferredStock(e.g.,SeriesA-1PreferredStock)identicaltotheSeriesAPreferredStockbutwithnoanti-dilutionprotectionandnofurtherpay-to-playprovisionisalsosometimesused.Itisthedrafters’viewthatthislatterprovisionisnotseenveryfrequentlyandthereforeithasbeenintentionallyomittedfromthisCertificateofIncorporation.Intheeventsuchaprovisionisused,carefulattentionshouldbepaidtothemechanicsofimplementingthecreationoftheadditionalseriesofPreferredStock,whichmayincludetheauthorizationofblankcheckpreferred(asdescribedbelow).1SeeKumarv.RacingCorp.ofAm.,Inc.,CaseNo.C.A.12039(Del.Ch.Ct.April26,1991).LastupdatedJune2013iiBlankCheckPreferred.BlankcheckpreferredisthetermusedwhentheCertificateofIncorporationauthorizessharesofundesignatedPreferredStockandgrantstheBoardofDirectorstheauthoritytocreateanewseriesofPreferredStockandestablishtherightsandpreferencesofsuchseries.WithoutthisexpressgrantofauthoritytotheBoard,theCorporationwouldneedtoobtainstockholderapprovaltoamendtheCertificateofIncorporationtocreateanewseriesofPreferredStock.ThedraftersviewtheinclusionofblankcheckpreferredinaCertificateofIncorporationforaventurebackedcompanyasunusual.Itissometimesseen,if(asnotedaboveunder“Pay-to-PlayProvision”)theSeriesAPreferredStocktermsincludeapay-to-playprovisioninwhichtheSeriesAPreferredStockofnon-participatinginvestorsisconvertedintoashadowseriesofSeriesAPreferredStock,inwhichcaseitcanbedesirabletoincludeblankcheckpreferredtofacilitatethecreation(ifnecessary)ofsuchshadowseries.Eveninthosecircumstances,however,Section3oftheSeriesAPreferredStocktermsoftenincludesrestrictionsonthedesignationorissuanceofblankcheckpreferred.Accordingly,thisCertificateofIncorporationassumesthatblankcheckpreferredwillnotbeusedandthedraftersintentionallydidnotincludeaprovisionauthorizingblankcheckpreferred.IntheeventblankcheckpreferredistobeincludedintheCertificateofIncorporation,appropriatereferencestootherpotentialseriesofPreferredStockshouldbeincludedintheSeriesAPreferredStocktermssoastopermittheCorporationtocreateanotherseriesofPreferredStockbymeansofaCertificateofDesignationswithouthavingtorevisethetermsoftheSeriesAPreferredStock(whichcanonlybedonebyaCertificateofAmendment,approvedbystockholders,andnotbyaCertificateofDesignations).Inaddition,intheeventprovisionistobemadeforblankcheckpreferred,appropriateconsiderationshouldalsobegiventobuildinginreferencestosuchotherpo