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EXHIBIT 10.3

NORTHWEST BIOTHERAPEUTICS, INC.

SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     This Second Amended and Restated Investor Rights Agreement (the “Agreement”) is
entered into as of the 22nd day of June, 2007, by and between Northwest
Biotherapeutics, Inc., a Delaware corporation (the “Company”), Toucan Capital Fund II,
L.P. (“Toucan Capital”) and Toucan Partners, LLC (“Toucan Partners” and, collectively with
Toucan Capital, the “Investors”).

Recitals

     Whereas, Toucan Capital holds shares of the Company’s Series A Cumulative Convertible
Preferred Stock (the “Series A Stock”) and Series A-1 Cumulative Convertible Preferred Stock (the
“Series A-1 Preferred Stock” and, together with the Series A Stock, the “Preferred Stock”) and
Toucan Capital is electing to convert all shares of Preferred Stock that it holds into shares of
Common Stock of the Company, pursuant to that certain Conversion Agreement dated of even date
herewith;

     Whereas, Toucan Partners will receive shares of Common Stock of the Company in
conjunction with the Conversion Agreement and holds notes convertible into, and warrants
exercisable for, additional shares of capital stock of the Company;

     Whereas, Toucan Capital and the Company are party to that certain Investor Rights
Agreement (the “Original Agreement”), which was amended and restated in its entirety by the Amended
and Restated Investor Rights Agreement (the “Amended and Restated Agreement”) on April 17, 2006;

     Whereas, the Conversion Agreement is conditioned upon the execution and delivery of
this Agreement; and

     Whereas, in connection with the consummation of the Conversion Agreement, the parties
desire to enter into this Agreement in order to further amend and restate the Amended and Restated
Agreement, add Toucan Partners as a party to the agreement, and to provide Investors with the
registration and other rights as set forth below, subject to the admission of the Company’s Common
Stock for trading on AIM.

     Now, Therefore, in consideration of these premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

SECTION 1. GENERAL.

     1.1 Definitions. As used in this Agreement the following terms shall have the following
respective meanings:

          (a) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

 

          (b) “Form S-3” means such form under the Securities Act as in effect on the date hereof or any
successor or similar registration form under the Securities Act subsequently adopted by the SEC
which permits inclusion or incorporation of substantial information by reference to other documents
filed by the Company with the SEC.

          (c) “Holder” means any person owning of record Registrable Securities that have not been sold
to the public or any assignee of record of such Registrable Securities in accordance with Section
2.10 hereof.

          (d) “Notes” shall mean those certain convertible promissory notes held by Toucan Partners that
are convertible for shares of the Company’s capital stock.

          (e) “Register,” “registered,” and “registration” refer to a registration effected by preparing
and filing a registration statement in compliance with the Securities Act, and the declaration or
ordering of effectiveness of such registration statement or document.

          (f) “Registrable Securities” means (a) Common Stock of the Company held by the Holders or
issuable or issued upon conversion of the Notes and/or Warrants and (b) any Common Stock of the
Company issued as (or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, such above-described securities. Notwithstanding the foregoing, Registrable
Securities shall not include any securities (i) sold by a person to the public either pursuant to a
registration statement or Rule 144, (ii) sold in a private transaction in which the transferor’s
rights under Section 2 of this Agreement are not assigned or (iii) held by a Holder (together with
its affiliates) if, as reflected on the Company’s list of stockholders, such Holder (together with
its affiliates) holds less than 1% of the Company’s outstanding Common Stock (treating all shares
of Preferred Stock on an as converted basis) and all shares of Common Stock of the Company issuable
or issued upon conversion of the Shares held by and issuable to such Holder (and its affiliates)
may be sold pursuant to Rule 144 during any ninety (90) day period.

          (g) “Registrable Securities then outstanding” shall be the number of shares of the Company’s
Common Stock that are Registrable Securities and either (a) are then issued and outstanding or (b)
are issuable pursuant to then exercisable or convertible securities.

          (h) “Registration Expenses” shall mean all expenses incurred by the Company in complying with
Sections 2.2, 2.4 and 2.6 hereof, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, reasonable fees and
disbursements not to exceed one hundred thousand dollars ($100,000) of a single special counsel for
the Holders, blue sky fees and expenses and the expense of any special audits incident to or
required by any such registration (but excluding the compensation of regular employees of the
Company which shall be paid in any event by the Company).

          (i) “SEC” or “Commission” means the Securities and Exchange Commission.

          (j) “Securities Act” shall mean the Securities Act of 1933, as amended.

 

 

          (k) “Selling Expenses” shall mean all underwriting discounts and selling commissions
applicable to the sale.

          (l) “Shares” shall mean the Company’s Common Stock issued pursuant to the Conversion Agreement
held from time to time by the Investors and their permitted assigns and the Capital Stock issuable
upon conversion of the Notes or exercise of the Warrants, and any additional shares of Common Stock
acquired by the Investors after the date hereof (including additional shares of Common Stock of the
Company directly or indirectly issuable upon conversion, exchange or exercise of any securities).

          (m) “Special Registration Statement” shall mean (i) a registration statement relating to any
employee benefit plan or (ii) with respect to any corporate reorganization or transaction under
Rule 145 of the Securities Act, any registration statements related to the issuance or resale of
securities issued in such a transaction or (iii) a registration related to stock issued upon
conversion of debt securities.

          (n) “Warrants” shall mean those certain warrants to purchase capital stock of the Company held
by Toucan Capital dated June 1, 2007 and those certain warrants to purchase capital stock of the
Company held by Toucan Partners dated June 1, 2007, and any such additional warrants issued to
Toucan Partners thereafter.

SECTION 2. REGISTRATION; RESTRICTIONS ON TRANSFER.

     2.1 Restrictions on Transfer.

          (a) Each Holder agrees not to make any disposition of all or any portion of the Shares or
Registrable Securities unless and until:

               (i) there is then in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with such registration statement;
or

               (ii) (A) The transferee has agreed in writing to be bound by the terms of this Agreement, (B)
such Holder shall have notified the Company of the proposed disposition and shall have furnished
the Company with a detailed statement of the circumstances surrounding the proposed disposition,
and (C) if reasonably requested by the Company, such Holder shall have furnished the Company with
an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such shares under the Securities Act. The Company will not require any
transferee pursuant to Rule 144 to be bound by the terms of this Agreement if the shares so
transferred do not remain Registrable Securities hereunder following such transfer.

          (b) Notwithstanding the provisions of subsection (a) above, no such restriction shall apply to
a transfer by a Holder that is (A) a partnership transferring to its partners or former partners in
accordance with partnership interests, (B) a corporation transferring to an affiliate, (C) a
limited liability company transferring to its members or former members in accordance with their
interest in the limited liability company, (D) an individual transferring to the Holder’s family
member or trust for the benefit of an individual Holder, or (E) any other party permitted
under applicable federal and state securities laws; provided that in each case the transferee
will agree in writing to be subject to the terms of this Agreement to the same extent as if he were
an original Holder hereunder.

 

 

          (c) Each certificate representing Shares or Registrable Securities shall be stamped or
otherwise imprinted with legends substantially similar to the following (in addition to any legend
required under applicable state securities laws):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT
SUCH REGISTRATION IS NOT REQUIRED.

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND
CONDITIONS OF A CERTAIN INVESTOR RIGHTS AGREEMENT BY AND BETWEEN THE
STOCKHOLDER AND THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE
OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

          (d) The Company shall be obligated to reissue promptly unlegended certificates at the request
of any Holder thereof if the Holder shall have obtained an opinion of counsel (which counsel may be
counsel to the Company) reasonably acceptable to the Company to the effect that the securities
proposed to be disposed of may lawfully be so disposed of without registration, qualification and
legend, provided that the second legend listed above shall be removed only at such time as the
Holder of such certificate is no longer subject to any restrictions hereunder.

          (e) Any legend endorsed on an instrument pursuant to applicable state securities laws and the
stop-transfer instructions with respect to such securities shall be removed upon receipt by the
Company of an order of the appropriate blue sky authority authorizing such removal.

     2.2 Demand Registration.

          (a) If holders of at least 20% of the Registrable Securities issued or issuable to the Holders
(the “Initiating Holders”) request that the Company file a registration statement on Form SB-2 or
Form S-1 (the “Registration Statement”) covering at least 10% of the Registrable Securities issued
or issuable to the Holders (or any lesser percentage if the anticipated aggregate
offering price would exceed $2,000,000), the Company shall cause the Registrable Securities to
be registered.

 

 

          (b) If the Investor intends to distribute the Registrable Securities covered by their request
by means of an underwriting, it shall so advise the Company as a part of its request made pursuant
to this Section 2.2 or any request pursuant to Section 2.4 and the Company shall include such
information in the written notice referred to in Section 2.2(a) or Section 2.4(a), as applicable.
In such event, the right of any Holder to include its Registrable Securities in such registration
shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of
such Holder’s Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the Holders of a majority of the Registrable Securities held by all Initiating
Holders (which underwriter or underwriters shall be reasonably acceptable to the Company).
Notwithstanding any other provision of this Section 2.2 or Section 2.4, if the underwriter advises
the Company that marketing factors require a limitation of the number of securities to be
underwritten (including Registrable Securities) then the Company shall so advise all Holders of
Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of
shares that may be included in the underwriting shall be allocated to the Holders of such
Registrable Securities on a pro rata basis based on the number of Registrable Securities held by
all such Holders (including the Initiating Holders); provided, however, that the number of shares
of Registrable Securities to be included in such underwriting and registration shall not be reduced
unless all other securities of the Company are first entirely excluded from the underwriting and
registration. Any Registrable Securities excluded or withdrawn from such underwriting shall be
withdrawn from the registration.

          (c) The Company shall not be required to effect a registration pursuant to this Section 2.2:

               (i) if the Company has effected two (2) registrations pursuant to this Section 2.2 in the
preceding twelve (12) months, and such registrations have been declared or ordered effective; or

               (ii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may
be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.4 below and
the Company undertakes promptly to file such Form S-3.

     2.3 Piggyback Registrations. The Company shall notify all Holders of Registrable Securities
in writing at least fifteen (15) days prior to the filing of any registration statement under the
Securities Act for purposes of a public offering of securities of the Company (including, but not
limited to, registration statements relating to secondary offerings of securities of the Company,
but excluding Special Registration Statements) and will afford each such Holder an opportunity to
include in such registration statement all or part of such Registrable Securities held by such
Holder. Each Holder desiring to include in any such registration statement all or any part of the
Registrable Securities held by it shall, within fifteen (15) days after the above-described notice
from the Company, so notify the Company in writing. Such notice shall state the intended method of
disposition of the Registrable Securities by such Holder.

     If a Holder decides not to include all of its Registrable Securities in any registration
statement thereafter filed by the Company, such Holder shall nevertheless continue to have the
right to include any Registrable Securities in any subsequent registration statement or
registration statements as may be filed by the Company with respect to offerings of its securities,
all upon the terms and conditions set forth herein.

 

 

          (a) Underwriting. If the registration statement of which the Company gives notice under this
Section 2.3 is for an underwritten offering, the Company shall so advise the Holders of Registrable
Securities. In such event, the right of any such Holder to include Registrable Securities in a
registration pursuant to this Section 2.3 shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to
the extent provided herein. All Holders proposing to distribute their Registrable Securities
through such underwriting shall enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company. Notwithstanding any
other provision of this Agreement, if the underwriter reasonably determines, in good faith, that
marketing factors require a limitation of the number of shares to be underwritten, the number of
shares that may be included in the underwriting shall be allocated, first, to the Company; second,
to the Holders on a pro rata basis based on the total number of Registrable Securities held by the
Holders; and third, to any stockholder of the Company (other than a Holder) on a pro rata basis;
provided, however, that no such reduction shall reduce the amount of securities of the selling
Holders included in the registration below thirty percent (30%) of the total amount of securities
included in such registration in accordance with the immediately preceding clause. In no event
will shares of any other selling stockholder be included in such registration that would reduce the
number of shares which may be included by Holders without the written consent of Holders of not
less than a majority of the Registrable Securities proposed to be sold in the offering. If any
Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw
therefrom by written notice to the Company and the underwriter, delivered at least ten (10) days
prior to the effective date of the registration statement. Any Registrable Securities excluded or
withdrawn from such underwriting shall be excluded and withdrawn from the registration. For any
Holder which is a partnership, limited liability company or corporation, the partners, retired
partners, members, retired members and stockholders of such Holder, or the estates and family
members of any such partners, retired partners, members and retired members and any trusts for the
benefit of any of the foregoing person shall be deemed to be a single “Holder,” and any pro rata
reduction with respect to such “Holder” shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such “Holder,” as defined in
this sentence.

     2.4 Form S-3 Registration. In case the Company shall receive from any Holder or Holders of
Registrable Securities a written request or requests that the Company effect a registration on Form
S-3 (or any successor to Form S-3) or any similar short-form registration statement and any related
qualification or compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, the Company will:

          (a) promptly give written notice of the proposed registration, and any related qualification
or compliance, to all other Holders of Registrable Securities; and

 

 

          (b) as soon as practicable, effect such registration and all such qualifications and
compliances as may be so requested and as would permit or facilitate the sale and distribution of
all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any other Holder or
Holders joining in such request as are specified in a written request given within fifteen (15)
days after receipt of such written notice from the Company; provided, however, that the Company
shall not be obligated to effect any such registration, qualification or compliance pursuant to
this Section 2.4:

               (i) if Form S-3 is not available for such offering by the Holders, or

               (ii) if the Holders, together with the holders of any other securities of the Company entitled
to inclusion in such registration, propose to sell Registrable Securities and such other securities
(if any) at an aggregate price to the public of less than one million dollars ($1,000,000).

          (c) Subject to the foregoing, the Company shall file a Form S-3 registration statement
covering the Registrable Securities and other securities so requested to be registered as soon as
practicable after receipt of the requests of the Holders. Registrations effected pursuant to this
Section 2.4 shall not be counted as demands for registration or registrations effected pursuant to
Section 2.2.

     2.5 Expenses of Registration. Except as specifically provided herein, all Registration
Expenses incurred in connection with any registration, qualification or compliance pursuant to
Section 2.2, 2.3 or 2.4 herein shall be borne by the Company. All Selling Expenses incurred in
connection with any registrations hereunder, shall be borne by the holders of the securities so
registered pro rata on the basis of the number of shares so registered. The Company shall not,
however, be required to pay for expenses of any registration proceeding begun pursuant to Section
2.2 or 2.3, the request of which has been subsequently withdrawn by the Initiating Holders unless
(a) the withdrawal is based upon material adverse information concerning the Company of which the
Initiating Holders were not aware at the time of such request or (b) the Holders of a majority of
Registrable Securities agree to deem such registration to have been effected as of the date of such
withdrawal for purposes of determining whether the Company shall be obligated pursuant to Section
2.2(c) to undertake any subsequent registration, in which event such right shall be forfeited by
all Holders). If the Holders are required to pay the Registration Expenses, such expenses shall be
borne by the holders of securities (including Registrable Securities) requesting such registration
in proportion to the number of shares for which registration was requested. If the Company is
required to pay the Registration Expenses of a withdrawn offering pursuant to clause (a) above,
then such registration shall not be deemed to have been effected for purposes of determining
whether the Company shall be obligated pursuant to Section 2.2 to undertake any subsequent
registration.

     2.6 Obligations of the Company. Whenever required to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably possible:

          (a) prepare and file within sixty (60) days of the receipt of a request for registration of
Registrable Securities with the SEC a registration statement with respect to such
Registrable Securities and use all reasonable efforts to cause such registration statement to
become effective within one hundred twenty (120) days of such request, and keep such registration
statement effective until the Holder or Holders have completed the distribution related thereto.

 

 

          (b) Prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement for the period set forth in subsection (a)
above.

          (c) Furnish to the Holders such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such other documents as
they may reasonably request in order to facilitate the disposition of Registrable Securities owned
by them.

          (d) Use its best efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by the Holders; provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent to service of
process in any such states or jurisdictions.

          (e) In the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of
such offering. Each Holder participating in such underwriting shall also enter into and perform
its obligations under such an agreement.

          (f) Notify each Holder of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Securities Act of the
happening of any event as a result of which the prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing. The Company will amend or supplement such prospectus
in order to cause such prospectus not to include any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing.

          (g) Use its best efforts to furnish, on the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold through underwriters, (i)
an opinion, dated as of such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and (ii) a letter, dated as of such date,
from the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

 

 

     2.7 Delay of Registration; Furnishing Information.

          (a) No Holder shall have any right to obtain or seek an injunction restraining or otherwise
delaying any such registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 2.

          (b) It shall be a condition precedent to the obligations of the Company to take any action
pursuant to Section 2.2, 2.3 or 2.4 that the selling Holders shall furnish to the Company such
information regarding themselves, the Registrable Securities held by them and the intended method
of disposition of such securities as shall be required to effect the registration of their
Registrable Securities.

          (c) The Company shall have no obligation with respect to any registration requested pursuant
to Section 2.2 or Section 2.4 if the number of shares or the anticipated aggregate offering price
of the Registrable Securities to be included in the registration does not equal or exceed the
number of shares or the anticipated aggregate offering price required to originally trigger the
Company’s obligation to initiate such registration as specified in Section 2.2 or Section 2.4,
whichever is applicable.

     2.8 Liquidated Damages. In the event that the Company shall fail to cause the Registration
Statement to be timely filed, timely declared effective as provided herein, the Company shall pay
as liquidated damages the amount of 1% per month of the aggregate purchase price for the securities
to be sold pursuant to the Registration Statement (or such lesser amount that is the maximum
permitted under applicable rules and regulations of the U.S. Small Business Administration (“SBA”))
provided, however, that in no event shall the aggregate liquidated damages exceed ten percent (10%)
of the aggregate purchase price of the Registrable Securities proposed to be included in the
Registration Statement.

     2.9 Indemnification. In the event any Registrable Securities are included in a registration
statement under Sections 2.2, 2.3 or 2.4:

          (a) To the fullest extent permitted by law, the Company will indemnify and hold harmless each
Holder, the partners, members, officers and directors of each Holder, any underwriter (as defined
in the Securities Act) for such Holder and each person, if any, who controls such Holder or
underwriter within the meaning of the Securities Act or the Exchange Act, against any losses,
claims, damages, or liabilities (joint or several) other than consequential losses of any kind, to
which they may become subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or violations (collectively a
“Violation”) by the Company: (i) any untrue statement or alleged untrue statement of a material
fact contained in such registration statement or incorporated reference therein, including any
preliminary prospectus or final prospectus contained therein or any amendments or supplements
thereto, (ii) the omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or (iii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities
law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state
securities law in connection with the offering covered by

 

 

such registration statement; and the Company will reimburse each such Holder, partner, member,
officer, director, underwriter or controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided however, that the indemnity agreement contained in this Section
2.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the Company, which consent shall not
be unreasonably withheld, nor shall the Company be liable in any such case for any such loss,
claim, damage, liability or action to the extent that it arises out of or is based upon a Violation
which occurs in reliance upon and in conformity with written information furnished expressly for
use in connection with such registration by such Holder, partner, member, officer, director,
underwriter or controlling person of such Holder.

          (b) To the extent permitted by law, each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which such registration qualifications or compliance is
being effected, indemnify and hold harmless the Company, each of its directors, its officers and
each person, if any, who controls the Company within the meaning of the Securities Act, any
underwriter and any other Holder selling securities under such registration statement or any of
such other Holder’s partners, directors or officers or any person who controls such Holder, against
any losses, claims, damages or liabilities (joint or several) to which the Company or any such
director, officer, controlling person, underwriter or other such Holder, or partner, director,
officer or controlling person of such other Holder may become subject under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any of the following statements: (i)
any untrue statement or alleged untrue statement of a material fact contained in such registration
statement or incorporated reference therein, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged
omission to state therein a material fact required to be stated therein, or necessary to make the
statements therein not misleading, or (iii) any violation or alleged violation by the Company of
the Securities Act (collectively, a “Holder Violation”), in each case to the extent (and only to
the extent) that such Holder Violation occurs in reliance upon and in conformity with written
information furnished by such Holder under an instrument duly executed by such Holder and stated to
be specifically for use in connection with such registration; and each such Holder will reimburse
any legal or other expenses reasonably incurred by the Company or any such director, officer,
controlling person, underwriter or other Holder, or partner, officer, director or controlling
person of such other Holder in connection with investigating or defending any such loss, claim,
damage, liability or action if it is judicially determined that there was such a Holder Violation;
provided, however, that the indemnity agreement contained in this Section 2.9(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement
is effected without the consent of the Holder, which consent shall not be unreasonably withheld;
provided further, that in no event shall any indemnity under this Section 2.9 exceed the net
proceeds from the offering received by such Holder.

          (c) Promptly after receipt by an indemnified party under this Section 2.9 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section 2.9,
deliver to the indemnifying party a written notice of the commencement

 

 

thereof and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party shall have the right to retain its own counsel, with the fees and
expenses thereof to be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party represented by such counsel
in such proceeding. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall relieve such indemnifying party of any
liability to the indemnified party under this Section 2.9 to the extent, and only to the extent,
prejudicial to its ability to defend such action, but the omission so to deliver written notice to
the indemnifying party will not relieve it of any liability that it may have to any indemnified
party otherwise than under this Section 2.9.

          (d) If the indemnification provided for in this Section 2.9 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages
or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified
party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or liability in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the Violation(s) or Holder
Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of the indemnified
party shall be determined by a court of law by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission; provided, that in no event shall any contribution by a Holder hereunder
exceed the net proceeds from the offering received by such Holder.

          (e) The obligations of the Company and Holders under this Section 2.9 shall survive completion
of any offering of Registrable Securities in a registration statement and, with respect to
liability arising from an offering to which this Section 2.9 would apply that is covered by a
registration filed before termination of this Agreement, such termination. No indemnifying party,
in the defense of any such claim or litigation, shall, except with the consent of each indemnified
party, consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a
release from all liability in respect to such claim or litigation.

          (f) Notwithstanding any of the foregoing provisions of this Section 2.9, no party shall be
entitled to indemnification against any consequential damages.

     2.10 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Section 2 may be assigned by a Holder to a transferee or
assignee of Registrable Securities (for so long as such shares remain Registrable Securities) that
(a) is a subsidiary, parent, general partner, limited partner, retired partner, member or retired
member, or stockholder of a Holder that is a corporation, partnership or limited liability

 

 

company, (b) is a Holder’s family member or trust for the benefit of an individual Holder, (c)
acquires at least one million (1,000,000) shares of Registrable Securities (as adjusted for stock
splits and combinations); (d) is an entity affiliated by common control (or other related entity)
with such Holder, or (e) is any other permitted assignee or transferee under applicable federal and
state securities laws, provided, however, (i) the transferor shall, within ten (10) days after such
transfer, furnish to the Company written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are being assigned and
(ii) such transferee shall agree to be subject to all restrictions set forth in this Agreement.

     2.11 Limitation on Subsequent Registration Rights. Without the consent of the holders of a
majority of the Registrable Securities, after the date of this Agreement, the Company shall not
enter into any agreement with any holder or prospective holder of any securities of the Company
that would grant such holder rights to demand the registration of shares of the Company’s capital
stock, or to include such shares in a registration statement that would reduce the number of shares
includable by the Holders.

     2.12 Agreement to Furnish Information. If requested by the Company or the representative of
the underwriters of Common Stock (or other securities) of the Company, each Holder shall provide,
within ten (10) days of such request, such information as may be required by the Company or such
representative in connection with the completion of any public offering of the Company’s securities
pursuant to a registration statement filed under the Securities Act. The obligations described in
this Section 2.12 shall not apply to a Special Registration Statement. The Company may impose
stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject
to the foregoing restriction until the end of said day period. Each Holder agrees that any
transferee of any shares of Registrable Securities shall be bound by this Section 2.12. The
underwriters of the Company’s stock are intended third party beneficiaries of this Section 2.12 and
shall have the right, power and authority to enforce the provisions hereof as though they were a
party hereto.

     2.13 Rule 144 Reporting. With a view to making available to the Holders the benefits of
certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to
the public without registration, the Company agrees to use its best efforts to:

          (a) Make and keep public information available, as those terms are understood and defined in
SEC Rule 144 or any similar or analogous rule promulgated under the Securities Act, at all times
after the effective date of the first registration filed by the Company for an offering of its
securities to the general public;

          (b) File with the SEC, in a timely manner, all reports and other documents required of the
Company under the Exchange Act; and

          (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon
request: a written statement by the Company as to its compliance with the reporting requirements
of said Rule 144 of the Securities Act, and of the Exchange Act (at any time after it has become
subject to such reporting requirements); a copy of the most recent annual or quarterly report of
the Company filed with the Commission; and such other reports and
documents as a Holder may reasonably request in connection with availing itself of any rule or
regulation of the SEC allowing it to sell any such securities without registration.

 

 

SECTION 3. COVENANTS OF THE COMPANY.

     3.1 Qualified Small Business. The Company will use best efforts to comply with the reporting
and recordkeeping requirements of Section 1202 of the Internal Revenue Code of 1986, as amended
(the “Code”), any regulations promulgated thereunder and any similar state laws and regulations and
agrees not to repurchase any stock of the Company if such repurchase would cause the Shares not to
so qualify as “Qualified Small Business Stock,” so long as the Company’s Board of Directors
determines that it is in the best interests of and not unduly burdensome to the Company to comply
with the provisions of Section 1202 of the Code.

3.2 Certain Covenants Relating to SBA Matters.

          (a) Use of Proceeds. The Company has used, and shall continue to use, the proceeds from the
sale of the Preferred Stock (the “Proceeds”) for its growth, modernization or expansion. The
Company shall provide each Investor which is a licensed Small Business Investment Company (an “SBIC
Investor”) and the SBA reasonable access to the Company’s books and records for the purpose of
confirming the use of Proceeds.

          (b) Business Activity. For so long as any SBIC Investor holds any securities of the Company,
the Company shall not change the nature of its business activity if such change would render the
Company ineligible as provided in 13 C.F.R. Section 107.720.

          (c) Compliance. So long as any SBIC Investor holds any securities of the Company, the Company
will at all times comply with the non-discrimination requirements of 13 C.F.R. Parts 112, 113 and
117.

          (d) Information for SBIC Investor. Within forty five (45) days after the end of each fiscal
year and at such other times as an SBIC Investor may reasonably request, the Company shall deliver
to such SBIC Investor a written assessment, in form and substance reasonably satisfactory to such
SBIC Investor, of the economic impact of such SBIC Investor’s financing specifying the full-time
equivalent jobs created or retained in connection with such investment, and the impact of the
financing on the Company’s business in terms of profits and on taxes paid by the Company and its
employees. Upon request, the Company agrees to promptly provide each SBIC Investor with sufficient
information to permit such Investor to comply with their obligations under the Small Business
Investment Act of 1958, as amended, and the regulations promulgated thereunder and related thereto;
provided, however, each SBIC Investor agrees that it will protect any information which the Company
labels as confidential to the extent permitted by law. Any submission of any financial information
under this Section shall include a certificate of the Company’s president, chief executive officer,
treasurer or chief financial officer.

          (e) Number of Holders of Voting Securities. So long as any SBIC Investor holds any securities
purchased pursuant to the Purchase Agreement or issued by the Company with respect thereto, the
Company shall notify each SBIC Investor (i) at least fifteen (15) days prior to taking any action
after which the number of record holders of the Company’s voting

 

 

securities would be increased from fewer than fifty (50) to fifty (50) or more, and (ii) of
any other action or occurrence after which the number of record holders of the Company’s voting
securities was increased (or would increase) from fewer than fifty (50) to fifty (50) or more, as
soon as practicable after the Company becomes aware that such other action or occurrence has
occurred or is proposed to occur.

SECTION 4. MISCELLANEOUS.

     4.1 Effectiveness of this Agreement. This Agreement shall be effective immediately upon
Admission.

     4.2 Governing Law. This Agreement shall be governed by and construed under the laws of the
State of Delaware in all respects as such laws are applied to agreements among Delaware residents
entered into and to be performed entirely within Delaware, without reference to conflicts of laws
or principles thereof. The parties agree that any action brought by either party under or in
relation to this Agreement, including without limitation to interpret or enforce any provision of
this Agreement, shall be brought in, and each party agrees to and does hereby submit to the
jurisdiction and venue of, any state or federal court located in the County of Wilmington,
Delaware.

     4.3 Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the parties hereto and their respective
successors, assigns, heirs, executors, and administrators and shall inure to the benefit of and be
enforceable by each person who shall be a holder of Registrable Securities from time to time;
provided, however, that prior to the receipt by the Company of adequate written notice of the
transfer of any Registrable Securities specifying the full name and address of the transferee, the
Company may deem and treat the person listed as the holder of such shares in its records as the
absolute owner and holder of such shares for all purposes, including the payment of dividends or
any redemption price.

     4.4 Entire Agreement. This Agreement, the Exhibits and Schedules hereto, the Purchase
Agreement and the other documents delivered pursuant thereto constitute the full and entire
understanding and agreement between the parties with regard to the subjects hereof and no party
shall be liable or bound to any other in any manner by any oral or written representations,
warranties, covenants and agreements except as specifically set forth herein and therein. Each
party expressly represents and warrants that it is not relying on any oral or written
representations, warranties, covenants or agreements outside of this Agreement.

     4.5 Severability. In the event one or more of the provisions of this Agreement should, for
any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provisions of this Agreement, and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

4.6 Amendment and Waiver.

          (a) Except as otherwise expressly provided, this Agreement may be amended or modified, and
the obligations of the Company and the rights of the Holders under this
Agreement may be waived, only upon the written consent of the Company and the holders of at
least a majority of the then-outstanding Registrable Securities.

 

 

          (b) For the purposes of determining the number of Holders entitled to vote or exercise any
rights hereunder, the Company shall be entitled to rely solely on the list of record holders of its
stock as maintained by or on behalf of the Company.

     4.7 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power,
or remedy accruing to any party, upon any breach, default or noncompliance by another party under
this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a
waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar
breach, default or noncompliance thereafter occurring. It is further agreed that any waiver,
permit, consent, or approval of any kind or character on any party’s part of any breach, default or
noncompliance under the Agreement or any waiver on such party’s part of any provisions or
conditions of this Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement, by law, or
otherwise afforded to any party, shall be cumulative and not alternative.

     4.8 Notices. All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if
not, then on the next business day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent to the party to be notified at the address as set forth
on the signature pages hereof or at such other address or electronic mail address as such party may
designate by ten (10) days advance written notice to the other parties hereto.

     4.9 Titles and Subtitles. The titles of the sections and subsections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement.

     4.10 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one instrument.

     4.11 Aggregation of Stock. All shares of Registrable Securities held or acquired by
affiliated entities or persons or persons or entities under common management or control shall be
aggregated together for the purpose of determining the availability of any rights under this
Agreement.

     4.12 Pronouns. All pronouns contained herein, and any variations thereof, shall be deemed to
refer to the masculine, feminine or neutral, singular or plural, as to the identity of the parties
hereto may require.

     4.13 Termination. This Agreement shall terminate and be of no further force or effect upon an
Acquisition.

[Signature Page Follows]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended
and Restated Investor Rights Agreement as of the date set forth in the first
paragraph hereof.

	 	 	 	 	 	 	 
	COMPANY:	 	INVESTORS:
	 
	 	 	 	 	 	 
	Northwest Biotherapeutics, Inc. 	 	Toucan Capital Fund II, L.P.
	 
	 	 	 	 	 	 
	18701 120th Avenue, NE	 	7600 Wisconsin Avenue
	Suite 101	 	Suite 700
	Bothell, WA 98011	 	Bethesda, MD 20814
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Toucan Partners, LLC
	 
	 	 	 	 	 	 
	 	 	 	 	7600 Wisconsin Avenue
	 	 	 	 	Suite 700
	 	 	 	 	Bethesda, MD 20814
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title:exv10w4

 

EXHIBIT 10.4

DATED JUNE 2007

COLLINS STEWART EUROPE LIMITED (1)

and

NORTHWEST BIOTHERAPEUTICS, INC. (2)

NOMINATED ADVISER AND BROKER AGREEMENT

relating to

NORTHWEST BIOTHERAPEUTICS, INC.

MORRISON | FOERSTER

a multinational partnership

CityPoint, One Ropemaker Street | London EC2Y 9AW

Tel: +44 20 7920 4000 | Fax: +44 20 7496 8500

www.mofo.com

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.	 	INTERPRETATION
	 	 	1	 
	2.	 	CONDITION
	 	 	2	 
	3.	 	TERM
	 	 	3	 
	4.	 	FEES
	 	 	4	 
	5.	 	DUTIES OF THE NOMINATED ADVISER AND BROKER
	 	 	5	 
	6.	 	DUTIES OF THE COMPANY
	 	 	8	 
	7.	 	ADDITIONAL RIGHTS OF COLLINS STEWART
	 	 	13	 
	8.	 	CONFLICTS OF INTERESTS AND DUTIES
	 	 	13	 
	9.	 	CONFIDENTIALITY
	 	 	14	 
	10.	 	TERMS OF REFERENCE
	 	 	15	 
	11.	 	INDEMNITY
	 	 	17	 
	12.	 	ENTIRE AGREEMENT
	 	 	20	 
	13.	 	ASSIGNMENT
	 	 	20	 
	14.	 	THIRD PARTY INVESTIGATION
	 	 	21	 
	15.	 	VARIATION OF TERMS
	 	 	21	 
	16.	 	COUNTERPARTS
	 	 	21	 
	17.	 	NOTICES AND SERVICE OF PROCESS
	 	 	21	 
	18.	 	THIRD PARTY RIGHTS
	 	 	22	 
	19.	 	GOVERNING LAW
	 	 	22	 

 -i- 

 

 

DATED June 2007

PARTIES:

	(1)	 	COLLINS STEWART EUROPE LIMITED, a company incorporated in England and Wales with number
1774003 and whose registered office is at 88 Wood Street, London EC2V 7QR, United Kingdom
(“Collins Stewart”); and
	 
	(2)	 	NORTHWEST BIOTHERAPEUTICS, INC. a company incorporated under the laws of the State of
Delaware, United States and whose registered office is at 18701, 120th Avenue NE,
Suite 101, Bothell, WA 98011, United States (“the Company”).

RECITALS

	(A)	 	The Company is intending to seek admission to trading on the AIM market operated by London
Stock Exchange plc of all of the shares of Common Stock of the Company, issued and to be
issued.
	 
	(B)	 	Collins Stewart has agreed, on the terms set out in this Agreement, to act as nominated
adviser and broker to the Company.

OPERATIVE PROVISIONS

	1.	 	INTERPRETATION
	 
	1.1	 	For the purposes of this Agreement, a reference to a statutory provision includes a reference
to:-

	 	1.1.1	 	a statutory amendment, consolidation or re-enactment;
	 
	 	1.1.2	 	statutory instruments or subordinate legislation or orders made under the
statutory provision; and
	 
	 	1.1.3	 	statutory provisions of which the statutory provision is an amendment,
consolidation or re-enactment

	 	 	but does not include a substituted provision.

1

 

	1.2	 	In this Agreement reference to:

	 	1.2.1	 	a person includes a legal or natural person, partnership, trust, company,
government or local authority department or other body (whether corporate or
unincorporated);
	 
	 	1.2.2	 	an individual includes, where appropriate, his personal representatives;
	 
	 	1.2.3	 	the singular includes a reference to the plural and vice versa; and
	 
	 	1.2.4	 	one gender includes all genders.

	1.3	 	Unless otherwise stated, a reference to a Clause or Schedule is a reference to a clause of,
or schedule to, this Agreement and a reference to this Agreement includes its Schedule.
	 
	1.4	 	Clause headings in this Agreement and in the Schedule are for ease of reference only and do
not affect its construction.
	 
	1.5	 	In this Agreement the expression “business day” shall mean a day, other than a Saturday or
Sunday, on which banks are ordinarily open for business in London and Bothell, Washington,
United States.
	 
	2.	 	CONDITION
	 
	2.1	 	The obligations of the parties under this Agreement are conditional upon the admission of the
entire issued and to be issued share capital of the Company to trading on the AIM market
(“AIM”) operated by London Stock Exchange plc (the “London Stock Exchange”) becoming effective
(“Admission”) pursuant to Rule 6 of the AIM Rules for Companies published from time to time by
the London Stock Exchange (the “AIM Rules”).
	 
	2.2	 	If the condition in Clause 2.1 shall not have been fulfilled by 22 June 2007 (or such later
date as Collins Stewart and the Company may agree but in any event not later than 31 July
2007), this Agreement and the obligations under or pursuant to this Agreement shall cease and
determine and no party shall have any claim against the other under or pursuant to this
Agreement except that the Company shall pay all

2

 

	 	 	reasonable costs, charges and expenses incurred by Collins Stewart, up to a maximum amount
of £15,000 payable on demand, for Collins Stewart to make relevant compliance checks on
Directors, shareholders and other senior employees of the Company as it considers necessary.
	 
	3.	 	TERM
	 
	3.1	 	The Company hereby agrees to retain Collins Stewart as its nominated adviser and broker for a
period of twelve months commencing on the date of Admission (the “Commencement Date”) and
shall continue thereafter unless and until terminated by the Company or Collins Stewart giving
to the other not less than three months prior written notice provided that such notice shall
expire on or after the expiry of the initial twelve month period.
	 
	3.2	 	Notwithstanding the foregoing:-

	 	3.2.1	 	Collins Stewart shall be entitled to resign as nominated adviser and/ or
broker at any time (whereupon this Agreement shall terminate forthwith) if:-

	 	(a)	 	the Company is in material breach of its obligations under this
Agreement or under the AIM Rules or any other agreement, covenant, warranty or
undertaking given to Collins Stewart, the London Stock Exchange or any other
regulatory authority; or
	 
	 	(b)	 	any representation or warranty made to Collins Stewart by or on
behalf of the Company in or in connection with this Agreement or any other
agreement between the Company and Collins Stewart is untrue, inaccurate or
misleading in any material respect;

	 	3.2.2	 	the Company shall be entitled to terminate this Agreement forthwith by notice
in writing to Collins Stewart if:

	 	(a)	 	Collins Stewart is in material breach of its obligations under
this Agreement; or

3

 

	 	(b)	 	Collins Stewart is adjudged not to be fit and proper to conduct
investment business by any regulatory authority or is removed from the list of
nominated advisers maintained by the London Stock Exchange;

	 	3.2.3	 	this Agreement shall terminate forthwith if the Company or Collins Stewart
becomes insolvent or has any winding-up, receivership or administrative order made in
respect of it, or makes or seeks to make any arrangement with its creditors or passes a
resolution for its winding-up or a petition is presented for its winding-up or
administration;
	 
	 	3.2.4	 	this Agreement shall terminate forthwith if the Company’s shares cease to be
admitted to trading on AIM save in circumstances where the Company’s shares are
suspended from trading, provided that, in the opinion of Collins Stewart (acting
reasonably) it is likely that the Company’s shares will be re-admitted to trading
within two months of such suspension; and
	 
	 	3.2.5	 	Collins Stewart shall be entitled to resign, at its sole discretion, at any
time on not less than 30 days’ prior written notice to the Company should it consider
acting reasonably its name or reputation to be likely to be prejudiced by continuing as
the Company’s nominated adviser and/or broker.

	3.3	 	Termination of this Agreement for any reason whatsoever pursuant to this Clause 3 shall be
without prejudice to and shall not be by way of limitation of any claims otherwise available
to any party arising out of the antecedent breach of this Agreement by any other party.
	 
	4.	 	FEES
	 
	4.1	 	The Company shall pay to Collins Stewart for its services under this Agreement an annual fee
(the “Fee”) at the annual rate of £50,000, which amount shall be payable in quarterly
instalments in advance, on 1 January, 1 April, 1 July and 1 October each year (the “Due
Dates”) the first such instalment to be paid on the Commencement Date and shall be a pro rata
payment from the date of Admission until the next Due Date. If this Agreement is terminated
between Due Dates, Collins Stewart shall be entitled to retain only a pro-rated portion of the
fees paid on the Due Date immediately preceding such termination (pro-rated for the period
commencing with

4

 

	 	 	such Due Date and ending on the date the Agreement was terminated) and shall reimburse the
Company for excess fees paid by the Company on such Due Date.
	 
	4.2	 	The Fee and all reasonable costs, charges and expenses referred to in Clause 4.1 shall be
payable, in each case, in pounds sterling together with value added tax, if applicable.
	 
	4.3	 	Any payments made pursuant to this Clause 4 shall be for the performance of Collins Stewart’s
services under this Agreement and shall be in addition to and shall not include any fees or
commissions payable in connection with the proposed placing of shares in the Company by
Collins Stewart (“Placing”) pursuant to the placing agreement of even date between (1) the
Company, (2) the Directors, and (3) Collins Stewart, relating to the Placing (“Placing
Agreement”) and Admission and any advice Collins Stewart may be engaged to provide on any
specific transaction, position or situation on behalf of the Company.
	 
	5.	 	DUTIES OF THE NOMINATED ADVISER AND BROKER
	 
	5.1	 	Collins Stewart is responsible to the London Stock Exchange for advising and guiding the
Company on its responsibilities under the AIM Rules. Collins Stewart will, as the Company’s
nominated adviser, provide general advice to the Company and the Directors in relation to
matters concerning the AIM Rules, and any changes thereto requirements of the London Stock
Exchange and to other matters relevant to a company whose shares are traded on AIM as the
Company may reasonably request from time to time and carry out the responsibilities of
nominated adviser as set out in the AIM Rules for Nominated Advisers published from time to
time by the London Stock Exchange (the “NOMAD Rules”). Any further advice required and
requested by the Company from Collins Stewart in relation to any specific transactions or
matters over and above such general advice shall be the subject of further specific fees to be
agreed in advance between the Company and Collins Stewart in relation to each such specific
transaction or matter.
	 
	5.2	 	Notwithstanding the generality of Clause 5.1, the responsibilities of Collins Stewart as
nominated adviser will also, without limitation, include the following:

5

 

	 	(a)	 	monitoring the trading activity in the shares and, in particular, reporting to
the Company (where appropriate) if there is a substantial movement in the price of, or
trading activity in, the shares;
	 
	 	(b)	 	advising on compliance with the requirements of, and liaising where necessary
with, the AIM team of the London Stock Exchange;
	 
	 	(c)	 	being available at all times to advise and guide the Directors and the Company
as to their respective responsibilities and obligations to ensure compliance, on an
ongoing basis, with the AIM Rules;
	 
	 	(d)	 	providing to the London Stock Exchange such information in relation to the
Company in such form and within such time limits as the London Stock Exchange may
require;
	 
	 	(e)	 	reviewing regularly the Company’s actual trading performance and financial
condition against any profit forecast, estimate or projection (whether or not the same
has been made public by, or on behalf of, the Company) in order to assist the Company
in determining whether a notification is necessary under Rule 17 of the AIM Rules;
	 
	 	(f)	 	providing guidance in respect of making press releases and other public and/or
shareholder communications by the Company, as well as distributing approved press
releases to the appropriate news services as and when required;
	 
	 	(g)	 	advising on and co-ordinating an appropriate investor liaison programme for the
Company;
	 
	 	(h)	 	providing a periodic analysis of the make up of the Company’s share register;
	 
	 	(i)	 	assisting the Company in complying with the regulations of the London Stock
Exchange (including the AIM Rules), and, if applicable, the FSA and the Takeover Panel;
	 
	 	(j)	 	informing the London Stock Exchange if it ceases to be the Nominated Adviser;
and

6

 

	 	(k)	 	abiding by the eligibility criteria (as set out in the NOMAD Rules) at all
times.

	5.3	 	Collins Stewart will, as the Company’s broker, carry out the responsibilities of its broker,
including without limitation:

	 	(a)	 	preparing and publishing research reports on the Company at such intervals as
deemed appropriate by Collins Stewart and the Company (for example on the publication
of results and the occurrence of significant events);
	 
	 	(b)	 	providing the Company with intelligence on its market place and its competitors
and on acquisition, investment or other corporate opportunities and advising the
Directors on such opportunities;
	 
	 	(c)	 	advising the Company on anticipated market reactions to new corporate
initiatives including, for example, acquisitions, disposals and finance raising;
	 
	 	(d)	 	if requested, attend annual general meetings and extraordinary general meetings
of the Company;
	 
	 	(e)	 	provide all the services specified from time to time in the AIM Rules or the
rules of the London Stock Exchange as being the responsibility of a Broker;
	 
	 	(f)	 	provide such other assistance on such terms as Collins Stewart and the Company
may agree in writing from time to time.

	5.4	 	Collins Stewart will also, subject to receipt of the relevant documents from the Company and
for so long as it remains the nominated adviser and broker of the Company, maintain a file
(either in hard copy or electronically) relating to the Company, available at all times to the
London Stock Exchange, containing the documents required to be available therein by the London
Stock Exchange.
	 
	5.5	 	Collins Stewart shall release to a Regulatory Information Service all information received
from the Company which is required to be announced under the AIM Rules within the time limits
required subject to Collins Stewart having received the same in reasonable time to enable it
to do so. Subject to the Company providing relevant information to Collins Stewart, Collins
Stewart shall advise the Company on the

7

 

	 	 	information required to be transmitted to the London Stock Exchange and shall liaise with
the London Stock Exchange on behalf of the Company.
	 
	6.	 	DUTIES OF THE COMPANY
	 
	6.1	 	The Company hereby undertakes to have due regard to all proper and reasonable advice given by
Collins Stewart as a nominated adviser in relation to compliance with the AIM Rules.
	 
	6.2	 	The Company undertakes with Collins Stewart that it will at all times during the continuance
of this Agreement promptly, subject to Clause 8.3:

	 	6.2.1	 	provide Collins Stewart with such management information, including (without
limitation) quarterly financial statements, as it may reasonably require to enable
Collins Stewart to monitor the financial performance of the Company and without
prejudice to Clause 6.2.4 below and give reasonable advance notice to Collins Stewart
of any proposed announcement of profits or losses and dividends in respect of the
shares of the Company;
	 
	 	6.2.2	 	provide Collins Stewart with copies of the audited consolidated financial
statements of the Company and its subsidiaries (if any), approved by the Directors and
the auditors for the time being of the Company, together with a draft Form 10-K of such
results and provide Collins Stewart with copies of the Company’s Form 10-Q, in each
case promptly upon their being available;
	 
	 	6.2.3	 	forthwith upon request, provide Collins Stewart with complete and accurate
copies of all papers and other information laid before any board meeting and of the
minutes of any board meeting;
	 
	 	6.2.4	 	to notify Collins Stewart in advance of and consult with Collins Stewart
regarding any announcement of profits or losses or dividends in respect of any
financial period of the Company and consult with Collins Stewart in advance of its
release regarding any other information which is likely to materially affect the
general character or nature of the business of the Company or is required to be
announced under the AIM Rules or which may need to be made known to the investing
public in order to enable the investing public to

8

 

	 	 	 	appraise the position of the Company to avoid the establishment of a false market in
its securities provided that, for the avoidance of doubt, this Clause 6.2.4 shall
not apply to any announcements or filings required to be made by the Company with
the Securities and Exchange Commission or pursuant to US Federal securities laws
generally;
	 
	 	6.2.5	 	to notify Collins Stewart in advance of, and consult with Collins Stewart at
least four days (or, if it is not reasonably practicable to do so, such shorter period
as is reasonably practicable) prior to the intended date of publication, proofs of the
documents to be sent to holders of the Company’s securities relating to the matters
referred to in Clause 6.2.4 above;
	 
	 	6.2.6	 	not enter into any commitment or agreement or arrangement or knowingly do or
permit to be done any other act or thing which, in any such case, would give rise to
any obligation to issue any share or loan capital of the Company or to grant any
options to acquire shares of the Company (otherwise than under the share option schemes
or plans of the Company in existence at the date hereof) or securities exchangeable or
convertible into shares of the Company, without prior consultation with Collins Stewart
save for the grant of options to employees of the Company in accordance with the rules
of such option scheme;
	 
	 	6.2.7	 	notify Collins Stewart in advance of, and discuss with Collins Stewart, any
matter which it may be necessary to make known to the investing public in order to
avoid the establishment of a false and/or disorderly market in its securities;
	 
	 	6.2.8	 	forward to Collins Stewart for comment proofs of all documents to be sent to
holders of any of the Company’s securities;
	 
	 	6.2.9	 	inform Collins Stewart of any proposed new directors and ensure that each such
proposed new director completes a directors questionnaire and, if Collins Stewart deems
appropriate in the circumstances, pay for Collins Stewart to carry out third party
investigations on any proposed new director;

9

 

	 	6.2.10	 	inform Collins Stewart forthwith upon becoming aware of any breach of the AIM Rules
by the Company and/or any Director or a future director of the Company and to request
the advice and guidance of Collins Stewart in relation to all matters relevant to the
Company’s compliance with the AIM Rules;
	 
	 	6.2.11	 	maintain a code on directors’ and senior employees’ dealings in the form or
substantially the form in place at Admission or otherwise required by the AIM Rules;
	 
	 	6.2.12	 	ensure that at all times one of the Directors or a future director of the Company or
the Company Secretary shall be authorised by the Company and responsible (on behalf of
the Company) for communicating with Collins Stewart with regard to all matters which
are the subject of this Agreement; and
	 
	 	6.2.13	 	maintain a website in compliance with Rule 26 of the AIM Rules.

	6.3	 	The Company represents and warrants to Collins Stewart that all information and documents
relating to the Company disclosed or supplied by any of the Directors or the Company or any
agent of any of them to Collins Stewart or its agents during the term of or in the course of
the negotiations leading up to this Agreement, are or will be true and accurate in all
material respects, and there is and will be no fact not disclosed which would render any such
information or document untrue, inaccurate or misleading.
	 
	6.4	 	The Company shall provide Collins Stewart with all such information and documents as Collins
Stewart may reasonably require to enable it to comply with its obligations to the London Stock
Exchange under the AIM Rules and/or the NOMAD Rules including without limitation, and subject
to Clause 9 any document or other information requested by Collins Stewart to make due and
careful enquiry of, and exercise due skill and care in considering or satisfying, a particular
matter (and to keep an appropriate record of the same) and supply and procure that each
Director supplies, forthwith upon Collins Stewart requesting the same, complete and accurate
copies of any document or any other information which Collins Stewart may require for the
discharge of its duties under Rule 25 of the NOMAD Rules.

10

 

	6.5	 	The Company shall comply with all obligations imposed on it or him (as the case may be),
under the Financial Services and Markets Act 2000 (“FSMA”), the AIM Rules, the Prospectus
Rules published by the Financial Services Authority from time to time (“Prospectus Rules”) and
the Code on Takeovers and Mergers and all such other legislation or regulations as shall
become applicable to a company whose share capital, or any part of it, is traded on AIM.
	 
	6.6	 	In addition to and without limiting any of the other obligations of the Company in this
Agreement, the Company undertakes to Collins Stewart that they shall procure (so far as each
is able) that a meeting (a “Compliance Meeting”) is held:

	 	6.6.1	 	at the principal place of business of the Company from time to time or such
other location as may be agreed in writing between the Company and Collins Stewart for
the purposes of this Clause 6.6.1;
	 
	 	6.6.2	 	of which as much advance written notice as is reasonably practicable (being
not less than five Business Days, where practicable) is given to Collins Stewart;
	 
	 	6.6.3	 	at which Collins Stewart shall be entitled to attend (either in person or by
telephone, video conference facility or other similar electronic communication
facility) and speak;
	 
	 	6.6.4	 	at least once every three months, provided that a Compliance Meeting shall be
held on the date and time specified in written notice from Collins Stewart to the
Company where Collins Stewart, having regard to its obligations under the NOMAD Rules,
believes that a Compliance Meeting is required to be held at such other time;
	 
	 	6.6.5	 	at which at least two Executive Directors are present in person of which one
must be either the Chief Executive Officer or the Chief Financial Officer;
	 
	 	6.6.6	 	at which each Director attends in person or by telephone at least once every
six months;
	 
	 	6.6.7	 	at which the attendees of each Compliance Meeting:

11

 

	 	(a)	 	review and consider, with all due care and attention, the
compliance checklist in the form set out in Schedule 1 (the “Compliance
Checklist”) and which may be updated from time to time by Collins Stewart;
	 
	 	(b)	 	complete the Compliance Checklist, providing as much
information as the attendees reasonably consider should be made available to
Collins Stewart to enable Collins Stewart to comply with its obligations under
the NOMAD Rules;
	 
	 	(c)	 	resolve that the completed Compliance Checklist be approved by
the relevant Compliance Meeting, be signed by a Director present and circulated
to all the Directors and Collins Stewart;

	 	6.6.8	 	a Director present certifies the completed Compliance Checklist as being true
and accurate and signs the completed Compliance Checklist on behalf of all the
attendees of the Compliance Meeting.

	6.7	 	The parties agree that the form of the Compliance Checklist, which at the date of this
Agreement is as set out in Schedule 1, is to include all such information as is desirable to
be notified to Collins Stewart for the purposes of fulfilling its obligations under the NOMAD
Rules. Accordingly, the parties agree that the form of the Compliance Checklist shall be
amended by Collins Stewart from time to time to the satisfaction of Collins Stewart (in its
absolute discretion) with the aim of ensuring (but without limiting the absolute discretion of
Collins Stewart as to the form of the Compliance Checklist from time to time) that the
Compliance Checklist requests all such information as is desirable to be notified to Collins
Stewart for the purposes of fulfilling Collins Stewart’s obligations under the NOMAD Rules or
such other rules, regulations or laws to which Collins Stewart is subject from time to time in
connection with this Agreement.
	 
	6.8	 	The Company shall not during the term of this Agreement issue shares of preferred stock of
the Company (the “Preferred Stock”) to the extent such issuance exceeds 20 per cent. of the
then aggregate of the issued and outstanding shares of common stock of the Company (on a fully
diluted basis taking into account all issued and outstanding warrants, options and other
securities convertible into such shares of

12

 

	 	 	common stock) and the Preferred Stock, take together, without the affirmative of the holders
of not less than a majority of the voting power of all outstanding stock of the Company.
	 
	7.	 	ADDITIONAL RIGHTS OF COLLINS STEWART
	 
	7.1	 	For the period during which Collins Stewart acts as the Company’s nominated adviser and/ or
broker, the Company agrees that Collins Stewart shall have the right to attend (by telephone
or other means) all meetings of the board of directors of the Company.
	 
	7.2	 	Collins Stewart shall, during the period of twelve months from the date of Admission, be
afforded an opportunity to propose its services on the same basis as other investment banks or
financial advisers, to act as the Company’s placing agent and/or underwriter and/or adviser on
any debt or equity financings conducted within the United Kingdom, whether public or private,
on terms to be negotiated between Collins Stewart and the Company, whether institutional or
from a strategic corporate partner. Notwithstanding the foregoing, this clause 7.2 shall not
apply to partnering, co-development or other strategic transactions of the Company.
	 
	7.3	 	Collins Stewart shall, during the period of twelve months from the date of Admission, be
afforded an opportunity to propose its services on the same basis as other investment banks or
financial advisers, to act as the Company’s financial adviser in relation to any extraordinary
corporate transaction (M&A, partnering or other strategic transaction, etc.) that the Company
may undertake in the United Kingdom.
	 
	8.	 	CONFLICTS OF INTERESTS AND DUTIES
	 
	8.1	 	The Company acknowledges that the London Stock Exchange regards a nominated adviser as owing
certain duties solely to the London Stock Exchange and agrees that if at any time a conflict
arises between the duties of Collins Stewart to the Company and the duties of Collins Stewart
to the London Stock Exchange, Collins Stewart shall, after reasonable consultation with the
Company, be entitled to act so as to fulfil its obligations to the London Stock Exchange
without incurring any liability to the Company arising out of such action. Collins Stewart
agrees it will act reasonably to mitigate loss to the Company as a result of such conflict.

13

 

	8.2	 	Neither Collins Stewart nor any director, officer, adviser, shareholder, partner or employee
of Collins Stewart or part undertaking or subsidiary of Collins Stewart (a “Relevant Person”)
will have any duty to disclose to the Company any information which comes to their notice in
the course of carrying on any other business or as a result of, or in connection with, the
provision of services to other persons. The Company acknowledges and agrees that Collins
Stewart and Relevant Persons may be prohibited from disclosing, or it may be inappropriate for
them to disclose, information to the Company even if it relates to the Company.
	 
	8.3	 	The Company undertakes that no information will be supplied to Collins Stewart in breach of
any duty of confidentiality (whether contractual or arising at common law) owed by the Company
to any third party.
	 
	9.	 	CONFIDENTIALITY
	 
	9.1	 	Except as required by law or regulation, each of Collins Stewart and the Company undertakes
to keep confidential any confidential information concerning the business, affairs, directors
or employees of the other which comes into its possession and not to use any such information
for any purposes other than that for which it was provided unless such information:

	 	9.1.1	 	is already in the public domain; or
	 
	 	9.1.2	 	comes into the public domain (otherwise than by breach by the party disclosing
the information); or
	 
	 	9.1.3	 	is already held by the party disclosing the information and is not subject to
a duty of confidentiality; or
	 
	 	9.1.4	 	has been or is obtained by the party disclosing the information from a third
person who, insofar as is known to that party, is not prohibited from transmitting the
information to that party by a contractual, legal or fiduciary obligation to the other
party.

	9.2	 	The Company acknowledges and accepts that Collins Stewart (or any Relevant Person) may be
required to disclose information and deliver documentation relating to the Company and/or the
engagement to governmental or regulatory agencies and

14

 

	 	 	authorities and expressly authorises any such disclosure and delivery provided that Collins
Stewart shall so far as is reasonably practicable liaise with the Company prior to
disclosure of any information.
	 
	9.3	 	Nothing in this Agreement shall oblige the Company to provide Collins Stewart with a copy of
any document or any information which the Company reasonably and in good faith considers is or
may be covered by attorney/client privilege, work-product doctrine or in respect of which it
is restricted from disclosing due to an obligation of confidentiality owed to a third party.
	 
	10.	 	TERMS OF REFERENCE
	 
	10.1	 	Any advice given by Collins Stewart or any Relevant Person to the Company including any
valuations and other written reports or material produced by Collins Stewart or any Relevant
Person is confidential to the Company and provided for its sole use and benefit and may not be
used or relied upon by the Company for any purpose other than that for which it was provided
or (save as required by law or by any regulatory or taxation authority) disclosed to any other
person (other than the Company’s professional advisers who may place no reliance on such
advice) without the prior written consent of Collins Stewart.
	 
	10.2	 	Save as required by the AIM Rules, neither any advice rendered by, nor communication from,
Collins Stewart or any Relevant Person may be quoted or referred to, in any public report,
document, release, announcement or other communication by the Company without the prior
written consent of Collins Stewart.
	 
	10.3	 	Without prejudice to any duties or obligations imposed on Collins Stewart or any Relevant
Person by the FSMA, the FSA Handbook or under the regulatory system (as defined by the
Glossary to the FSA Handbook) (the “Regulations”), Collins Stewart shall act exclusively for
the Company in relation to the subject matter of this Agreement and confirms it is not acting
for any other person or treating any other person as its client in relation to the subject
matter of this Agreement and Collins Stewart will therefore not be responsible to any person
other than the Company for providing the protections afforded to clients of Collins Stewart or
for providing advice in relation to or in connection with such subject matter.

15

 

	10.4	 	The copyright in all correspondence or documentation written or prepared by Collins Stewart
or by any Relevant Person in the course of the duties of this appointment shall remain with
Collins Stewart.
	 
	10.5	 	Collins Stewart shall be entitled to assume that instructions have been properly authorised
by the Company if they are given or purported to be given by any person who is or purports to
be, and is reasonably believed by Collins Stewart to be, a Director or duly authorised agent
of the Company. The Company shall be entitled to assume that advice, guidance and/or
instructions received from or actions taken by Collins Stewart have been properly given and/or
taken and authorised by Collins Stewart if given and/or taken or purported to be given and/or
taken by any person who is or purports to be, and is reasonably believed by the Company to be,
a Director or duly authorised agent of Collins Stewart.
	 
	10.6	 	In providing its services hereunder, Collins Stewart is proposing to classify the Company as
an Intermediate Customer as defined in the FSA Handbook which fact the Company hereby
confirms, and the Company acknowledges that, by virtue of such fact, the Company will not
obtain the benefit of certain of the FSA Rules.
	 
	10.7	 	Without prejudice to Collins Stewart’s duties to provide advice and guidance to the Company
on the AIM Rules pursuant to this Agreement, the Company acknowledges that Collins Stewart is
not responsible for providing any legal advice to the Company in respect of any applicable
laws and regulations and the Company undertakes to obtain appropriate legal advice in respect
of these matters and to communicate to Collins Stewart any such advice as is relevant to the
carrying out of Collins Stewart’s services hereunder.
	 
	10.8	 	The Company acknowledges that, when Collins Stewart gives the Company advice or provides
other services in accordance with this Agreement, Collins Stewart or any Relevant Person or
another client may have an interest, relationship or arrangement that may conflict with the
Company’s interests and would otherwise conflict with the duties owed by Collins Stewart to
the Company. Collins Stewart will be obliged to disregard any such interest when it is acting
for the Company. Collins Stewart has established, as permitted under the rules of the FSA,
“Chinese Wall” procedures designed to ensure that in providing services to any particular
client, individuals are

16

 

	 	 	insulated from information known to individuals working in other divisions. Collins Stewart
accordingly confirms that any confidential information obtained by it in its capacity as
Nominated Adviser to the Company will, through the use of “Chinese Walls”, be kept strictly
confidential from, and will not be disclosed to or used by any division within Collins
Stewart, carrying out brokerage or trading activities (including acting as Broker for the
Company) within Collins Stewart. The Company also accepts that, in acting for it, Collins
Stewart will not be required to disclose to it, nor to make use for its benefit of, any
information known to Collins Stewart which (i) belongs to or is confidential to another
client of Collins Stewart or (ii) belongs to or is confidential to any Relevant Person or
(iii) which belongs to or is confidential to Collins Stewart and relates to some part of its
business other than the provision of corporate finance services.
	 
	10.9	 	The Company acknowledges that all services provided by Collins Stewart pursuant to this
Agreement are subject to the applicable Regulations.
	 
	10.10	 	The Company acknowledges and accepts that Collins Stewart may be required by law or by
regulatory agencies and authorities to disclose information and deliver documents relating to
the Company in relation to Collins Stewart’s engagements hereunder. The Company expressly
authorises any such disclosure or delivery provided that, to the extent allowed, Collins
Stewart will provide the Company with prompt (and where practicable, prior) notice of any such
obligation to disclose information.
	 
	11.	 	INDEMNITY
	 
	11.1	 	No claim shall be made against any Relevant Person by the Company or any Director, officer,
employee, agent or adviser of the Company to recover any loss, damage, liability, cost, charge
or expense which it or he may suffer or incur by reason of, arising directly or indirectly out
of, or in connection with, the carrying out by or on behalf of Collins Stewart of their
obligations under this Agreement save and to the extent that such loss, damage, liability,
cost, charge or expense arises from (i) the fraud, negligence or wilful default of the
Relevant Person or (ii) the material breach by an Relevant Person of its duties or obligations
under FSMA or the regulatory

17

 

	 	 	system as defined in the rules of the FSA or the Nomad Rules (iii) the breach by an Relevant
Person of the terms of this Agreement.
	 
	11.2	 	The Company undertakes to Collins Stewart to indemnify and hold harmless each of Collins
Stewart and its Relevant Persons against all or any claims, actions, liabilities, demands,
proceedings or judgements (a “Claim”) made, brought or established against any of Collins
Stewart and its Relevant Persons in any jurisdiction:

	 	11.2.1	 	which Collins Stewart (or any Relevant Person) may suffer or incur as a person who
has issued or approved the contents of any financial promotion (as defined for the
purpose of Section 21 of the FSMA) issued by or on behalf of the Company; or
	 
	 	11.2.2	 	which may be brought against or incurred by Collins Stewart (or any Relevant Person)
in connection with or directly or indirectly arising out of:

	 	(a)	 	the proper performance by Collins Stewart or any Relevant
Person of its obligations hereunder or otherwise in connection with its
appointment hereunder or its role as the Company’s Nominated Adviser for the
purpose of the AIM Rules; or
	 
	 	(b)	 	the failure or alleged failure by the Company or any of the
Directors of the Company to comply with the AIM Rules, FSMA or any other
requirements of statute or statutory regulation; or
	 
	 	(c)	 	the entry by Collins Stewart into this Agreement and for any
action taken by or on behalf of Collins Stewart in pursuance of its engagement
hereunder

	 	 	save to the extent that any such losses, liabilities, claims, costs, charges or expenses
arise because of the fraud, negligence or wilful default of Collins Stewart or any Relevant
Person or breach by Collins Stewart of the terms of this Agreement or breach by Collins
Stewart or the Relevant Person of the rules of the FSA or the NOMAD Rules or other
applicable law, or are of such nature that liability may not be excluded pursuant to the
rules of the FSA, the NOMAD Rules or other applicable law.

18

 

	11.3	 	Subject to the saving provided at the end of Clause 11.2, the Company undertakes and
covenants to indemnify Collins Stewart (for itself and as agent and trustee for each Relevant
Person) against all losses, liabilities, claims, reasonable costs, charges and expenses which
may be brought against or incurred by Collins Stewart (or any Relevant Person) in connection
with or arising out of any breach or alleged breach of any of the undertakings set out in
Clause 6 or of any other term of this Agreement on the part of the Company.
	 
	11.4	 	Collins Stewart shall, subject to any requirement imposed by an insurer of Collins Stewart of
a Relevant Person, as soon as practicable after becoming aware of any Claim made, or
threatened, against any Relevant Person in respect of which an indemnity may be sought
pursuant to Clause 11.2, notify the Company thereof. Collins Stewart and any Relevant Person
will, to the extent reasonable and practicable in the circumstances, and subject to any
requirement imposed by an insurer of Collins Stewart or the Relevant Person, consult with the
Company and regarding the conduct of the Claim and shall give to the Company such
opportunities as they may reasonably request to make representations regarding the conduct of
the Claim subject to Collins Stewart or the Relevant Person being indemnified in a manner
satisfactory to it against all costs, charges and expenses incurred by it in complying with
any such request. Collins Stewart and any Relevant Person shall provide such information and
documentation relating to the Claim as the Company may reasonably require and shall keep the
Company informed in relation to such Claim. Collins Stewart will not, and will procure that
each other Relevant Person does not, without the prior written consent of the Company settle
or compromise or consent to the entry of any judgment in respect of any Claim except where any
failure to or delay in so compromising or consenting could, in Collins Stewart’s reasonable
opinion, materially and adversely affect the reputation of Collins Stewart or such Relevant
Person in which event Collins Stewart or that Relevant Person will consult with the Company
before so compromising or consenting.
	 
	11.5	 	The Company will not, without the prior written consent of Collins Stewart (acting reasonably
and in good faith), settle or compromise or consent to the entry of any judgment with respect
to any Claim in respect of which a Claim may be brought by an Relevant Person under Clause
11.2 where Collins Stewart is an actual or potential

19

 

	 	 	party to such Claim unless such settlement, compromise or consent includes an unconditional
release of Collins Stewart from all loss, damage, liability, cost, charge or expense arising
out of or in connection with such Claim.

	11.6	 	If any third party is engaged by the Company and a limitation on the extent to which claims
may be made against such third party in respect of any liabilities is agreed by the Company,
where any damage or loss is suffered by the Company or the Director for which Collins Stewart
and any such third party would otherwise be jointly and severally liable to the Company or the
Director the extent to which such damage or loss shall be recovered from Collins Stewart shall
be limited so as to be in proportion to Collins Stewart’s responsibility for the circumstances
that give rise to the damage or loss.

	11.7	 	The indemnities contained in Clauses 11.2 and 11.3 shall extend to include all reasonable
costs and expenses including reasonable legal fees and expenses on a full indemnity basis
suffered or incurred by any Relevant Person in connection with enforcing its rights under such
indemnity (together with any VAT thereon).
	 
	12.	 	ENTIRE AGREEMENT
	 
	12.1	 	This Agreement sets out the entire agreement of the parties hereto in relation to the
appointment of Collins Stewart as the Company’s nominated adviser and broker.
	 
	12.2	 	All other previous letters or agreements between any of the parties hereto relating to the
appointment of Collins Stewart as nominated adviser and broker to the Company shall have no
further effect including, but not limited to the engagement letter dated 9 March 2007 between
the Company and Collins Stewart.
	 
	13.	 	ASSIGNMENT
	 
	 	 	The Agreement, and the rights and obligations arising under it, shall not be assignable nor
transferable without the prior written agreement of each of the other parties hereto.

20

 

	14.	 	THIRD PARTY INVESTIGATION
	 
	 	 	Collins Stewart will make any such investigations into the status and standing of the
Company, its Directors, shareholders and other senior employees as it considers necessary in
relation to its appointment as nominated adviser including without limitation, instructing
third party investigatory agencies to undertake such investigations on Collins Stewart’s
behalf and the Company agrees to reimburse Collins Stewart for such investigations.
	 
	15.	 	VARIATION OF TERMS
	 
	 	 	No variation of any provision of this Agreement shall be effective unless made in writing
and signed on behalf of Collins Stewart and by a director on behalf of the Company if such
variation affects their respective obligations under this Agreement.
	 
	16.	 	COUNTERPARTS
	 
	 	 	This Agreement may be entered into in any number of counterparts and by the parties to it on
separate counterparts each of which when executed and delivered shall be an original, but
all the counterparts shall together constitute one and the same instrument.
	 
	17.	 	NOTICES AND SERVICE OF PROCESS
	 
	17.1	 	Any notice or other communication required or authorised to be given by any party to another
in connection with this Agreement shall be in writing.
	 
	17.2	 	Subject to Clause 17.2 below, any notice or other communication to be given hereunder shall
either by sent by facsimile transmission, by first class post or by registered airmail to the
relevant address(es) of the relevant party referred to in this Agreement or any other address
notified for this purpose and shall be conclusively deemed to have been given, if sent by
facsimile transmission, at the time of printout of a transmission report showing that the
correct number of pages has been sent without error (unless such notice would otherwise be
deemed to be given on a day which is not a business day or after 5.30pm on any business day,
in which case it shall instead be deemed to have been given at 9.00am on the next following
business day), if sent by first class post, on the second business day after the date of
posting and if sent by registered airmail, on the fifth business day from the date of posting.

21

 

	17.3	 	The Company irrevocably appoint Jordans Limited, 20-22 Bedford Row, London WC1R 4JS as its
process agent to receive on their behalf service of any process in any proceedings in England.
Such service shall be deemed completed on delivery to such agent (whether or not such process
is forwarded to and received by the Company). If for any reason either such process agent
ceases to be able or willing to act as process agent, the Company irrevocably agree to appoint
a substitute process agent acceptable to Collins Stewart and to deliver to Collins Stewart a
copy of the new process agent’s acceptance of that appointment within 30 days of such
acceptance.
	 
	17.4	 	The parties irrevocably consent to any process in a legal action or proceedings in connection
with this Agreement being served on them in accordance with the provisions of this Agreement
relating to the service of notices. Nothing contained in this Agreement shall affect the
right to serve process in any other manner permitted by law.
	 
	18.	 	THIRD PARTY RIGHTS
	 
	 	 	Subject as provided in Clause 11.2, a person who is not a party to this Agreement has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
Agreement. For the avoidance of doubt, the parties hereto may agree to terminate this
Agreement or vary any of its terms without the consent of any third party.
	 
	19.	 	GOVERNING LAW
	 
	 	 	This Agreement shall be governed by and construed in accordance with English Law and the
parties hereby irrevocably submit to the exclusive jurisdiction of the English courts in
connection with any matter arising therefrom.

AS WITNESS the hands of the parties hereto or their duly authorised representatives the day and
year first above written.

22

 

SCHEDULE 1

Compliance Checklist

Northwest Biotherapeutics, Inc. (the “Company”)

In order to facilitate Collins Stewart Europe Limited (“Collins Stewart”), the Company’s nominated
adviser, remaining in regular contact with the Company and to keep up-to-date with developments at
the Company, to enable Collins Stewart to fulfil its obligations under the AIM Rules for Nominated
Advisers and also to help ensure compliance by the Company of its obligations under the AIM Rules
for Companies.

The provisions relating to the Compliance Meetings required to be held by the directors of the
Company are set out in the Nominated Adviser and Broker Agreement (the “Agreement”) entered into
between the Company and Collins Stewart. If any Director is in any doubt as to any aspect of this
Compliance Checklist, the AIM Rules for Companies or Nominated Advisers or the terms of the
Agreement, he should in the first instance contact Collins Stewart.

The Company must hold a Compliance Meeting (as defined in the Agreement) of Directors (and Collins
Stewart as applicable) at least once a month at which the Company answers each question and
provides additional information as required. The completed Compliance Checklist must be signed on
behalf of the Board of Directors by a Director and sent to Collins Stewart immediately following
each Compliance Meeting, in the first instance by:

	•	 	telephoning Tim Mickley on +44 (0) 207 523 8313 or Adam Cowen on +44 (0)207 523 8320 or
	 
	•	 	fax to +44 (0)207 523 8134, for the attention of Tim Mickley/Adam Cowen or
	 
	•	 	email to tmickley@collins-stewart.com and acowen@collins-stewart.com and in either case
	 
	•	 	sending the original hard copy to follow in the post to Collins Stewart Europe Limited, 88 Wood Street, London, EC2V 7QR
and marked for the attention of Tim Mickley or Adam Cowen.

Where any Director (whether present at a Compliance Meeting or otherwise) disagrees with any
response or information provided to Collins Stewart in any Compliance Checklist (or

23

 

considers any response or information provided inadequate, incomplete or misleading), he or she
must inform Collins Stewart immediately by:

	•	 	telephoning Tim Mickley on +44 (0) 207 523 8313 or Adam Cowen on +44 (0)207 523 8320 or
	 
	•	 	fax to +44 (0)207 523 8134, for the attention of Tim Mickley/Adam Cowen or
	 
	•	 	email to tmickley@collins-stewart.com and acowen@collins-stewart.com.

The Company

	 	 	 
	Are there any significant developments in relation to the Company’s
business including its contracts and customers? If yes, please
provide a full update.

	 	Yes      o

No       o
	 
	 	 
	Update:
	 	 
	 
	 	 
	Are there any significant developments in the Company’s sector(s) and
market(s)? If yes, please provide a full update.

	 	Yes      o

No       o
	 
	 	 
	Update:
	 	 
	 
	 	 
	Do you feel that it is an appropriate time for Collins Stewart to
undertake a visit to the Company’s offices of operation and meet with
the directors and key managers? Are there any new key managers
Collins Stewart should meet? If yes, please provide full details.

	 	Yes      o

No       o
	 
	 	 
	Details:
	 	 
	 
	 	 
	Is there any unpublished price sensitive information in existence of
which Collins Stewart is not aware? If yes, please provide full
details.

	 	Yes      o

No       o
	 
	 	 
	Details:
	 	 

Directors and board

	 	 	 
	Do you consider that the composition of the board of directors as a
whole continues to reflect the Company’s needs, for example given its
type, size and profile? If no, please provide reasons.

	 	Yes      o

No       o

24

 

	 	 	 
	 

	 	 
	 
	 	 
	Reasons:
	 	 
	 
	 	 
	Do you consider that each of the directors continues to have the
relevant experience in relation to their role and is suitable to be a
director of a company with its shares admitted to trading on AIM? If
no, please provide reasons.

	 	Yes      o

No       o
	 
	 	 
	Reasons:
	 	 
	 
	 	 
	Are any changes to the board of directors proposed? If yes, please
provide details. (Please also provide details as to the suitability
of such individual(s) as potential board directors).

	 	Yes      o

No       o
	 
	 	 
	Details:
	 	 
	 
	 	 
	Do you consider that the composition of the board of directors as a
whole continues to reflect the Company’s needs, for example given its
type, size and profile? If no, please provide reasons.

	 	Yes      o

No       o
	 
	 	 
	Reasons:
	 	 
	 
	 	 
	Do you consider the Company’s corporate governance measures continue
to be appropriate? If no, please provide reasons.

	 	Yes      o

No       o
	 
	 	 
	Reasons:
	 	 
	 
	 	 
	AIM Rule compliance
	 	 
	 
	 	 
	Do you consider the Company’s procedures to facilitate compliance
with the AIM Rules for Companies are sufficient? If no, please
provide details.

	 	Yes      o

No       o
	 
	 	 
	Details:
	 	 
	 
	Do the directors and the Company understand their continuing
responsibilities and obligations under the AIM Rules for Companies.
If no, please provide details.

	 	Yes      o

 No       o

25

 

	 	 	 
	 
	 	 
	Details:
	 	 
	 
	 	 
	Has the Company released any notifications to the London Stock
Exchange without the prior consent of Collins Stewart? If yes,
please provide details.

	 	Yes      o

No       o
	 
	 	 
	Details:
	 	 

	 	 	 	 	 
	Signed
	 	 	 	 
	 	 	 	 	 
	 	 	Director, duly authorised for an on behalf of the board of directors of
Northwest Biotheraeputics, Inc.
	 
	 	 	 	 
	Name
	 	 	 	 
	 	 	 	 	 
	 
	Date
	 	 	 	 
	 	 	 	 	 

26

 

	 	 	 	 	 
	SIGNED by
	 	 	 	 
	 
	 	 	 	 
	duly authorised for and on behalf of

	 	 	 	 
	 
	 	 	 	 
	COLLINS STEWART EUROPE LIMITED
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	SIGNED by
	 	 	 	 
	 
	 	 	 	 
	duly authorised for and on behalf of
	 	 	 	 
	 
	 	 	 	 
	NORTHWEST BIOTHERAPEUTICS, INC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]