eTrade 2001 Annual Report Download - page 90

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Certain provisions of our certificate of incorporation and bylaws may discourage, delay or prevent a third party from acquiring control
of us in a merger, acquisition or similar transaction that a shareowner may consider favorable. Such provisions include:
authorization for the issuance of “blank check” preferred stock,
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provision for a classified board of directors with staggered, three-year terms,
the prohibition of cumulative voting in the election of directors,
a super-majority voting requirement to effect business combinations or certain amendments to our certificate of incorporation
and bylaws,
limits on the persons who may call special meetings of shareowners,
the prohibition of shareowner action by written consent, and
advance notice requirements for nominations to the board of directors or for proposing matters that can be acted on by
shareowners at shareowner meetings.
Attempts to acquire control of us may also be delayed or prevented by our stockholder rights plan. The stockholder rights plan is
designed to enhance the ability of our Board of Directors to protect shareowners against, among other things, unsolicited attempts to
acquire control of us that do not offer an adequate price to all shareowners or are otherwise not in the best interests of us and our
shareowners. In addition, certain provisions of our stock incentive plans, management retention and employment agreements
(including severance payments, stock option acceleration, and loan forgiveness with associated tax gross-ups), and Delaware law may
also discourage, delay or prevent someone from acquiring or merging with us.
RISKS RELATING TO THE REGULATION OF OUR BUSINESS
2002. EDGAR Online, Inc.