Document:

Exhibit 10.3

 

PROMISSORY NOTE

 

	Borrower:	
        Applied Optoelectronics,
        Inc.

        13115 Jess Pirtle Blvd.

        Sugar Land, TX 77478
	Lender:	
        East West Bank

        Loan Servicing Department

        9300 Flair Drive, 6th Floor

        El Monte, CA 91731

 

	Principal Amount:  $22,000,000.00	Date of Note:  January 26, 2015

 

PROMISE TO PAY.
Applied Optoelectronics, Inc. ("Borrower") promises to pay to East West Bank ("Lender"), or order, in lawful
money of the United States of America, the principal amount of Twenty-two Million & 00/100 Dollars ($22,000,000.00) or so
much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall
be calculated from the date of each advance until repayment of each advance or maturity, whichever occurs first.

 

PAYMENT. Borrower
will pay this loan in accordance with the following payment schedule: 

 

DRAW
PERIOD. The loan will have a fifteen (15) month draw down period ending on April 26, 2016 (the “Draw
Down Maturity Date”) with interest payments due monthly calculated at the prevailing rate on the Note. The first interest
payment is due on February 26, 2015 and will continue on the same day of each month thereafter.

 

CONVERSION TO TERM LOAN.
On the Draw Down Maturity Date, the section entitled "Line of Credit" is hereby deleted and the outstanding principal
balance as of the Draw Down Maturity Date shall be converted to a sixty-nine (69) month term loan, with principal and interest
payments due monthly amortized over three hundred (300) months. The first principal and interest payment is due on May
26, 2016 and will continue on the same day of each month thereafter. The final principal and interest payment is due on January
26, 2022 (the “Term Loan Maturity Date”) and will include all unpaid principal and all accrued and unpaid interest.

 

Unless otherwise
agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to
any late charges; and then to any unpaid collection costs. Borrower will pay Lender at Lender's address shown above or at such
other place as Lender may designate in writing.

 

VARIABLE INTEREST
RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which
is the one (1) month Wall Street Journal London Interbank offered rate, as quoted in the "Money Rates" column of The
Wall Street Journal on the date of determination (the "Index"). The Index is not necessarily the lowest rate charged
by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index
after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will
not occur more often than each month. Borrower understands that Lender may make loans based on other rates as well. The Index
currently is 0.167% per annum. Interest prior to maturity on the unpaid principal balance of this Note will be calculated
as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 2.750 percentage points over the Index,
resulting in an initial rate of 2.917%. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum
rate allowed by applicable law. For purposes of this Note, the "maximum rate allowed by applicable law" means the greater
of (A) the maximum rate of interest permitted under federal or other law applicable to the indebtedness evidenced by this Note,
or (B) the "Weekly Ceiling" as referred to in Sections 303.002 and 303.003 of the Texas Finance Code.

 

INTEREST CALCULATION
METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year
of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is
outstanding, unless such calculation would result in a usurious rate, in which case interest shall be calculated on a per diem
basis of a year of 365 or 366 days, as the case may be. All interest payable under this Note is computed using this method.

 

PREPAYMENT. Borrower
agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject
to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the
foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Prepayment in full shall
consist of payment of the remaining unpaid principal balance together with all accrued and unpaid interest and all other amounts,
costs and expenses for which Borrower is responsible under this Note or any other agreement with Lender pertaining to this loan,
and in no event will Borrower ever be required to pay any unearned interest. Early payments will not, unless agreed to by Lender
in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments
will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without
recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights
under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning
disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in
full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount
must be mailed or delivered to: East West Bank, Loan Service Department, 9300 Flair Drive, 6th Floor El Monte, CA 91731.

 

LATE CHARGE.
If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled
payment.

 

    	1

    	 

    

 

 

POST MATURITY
RATE. The Post Maturity Rate on this Note is the lesser of (A) the maximum rate allowed by law or (B) the rate formed by increasing
the applicable interest rate on this Note by an additional 5.000 percentage point margin ("Post Maturity Rate Margin"),
with the Post Maturity Rate Margin applying to each succeeding interest rate change that would have applied had there been no
acceleration. Borrower will pay interest on all sums due after final maturity, whether by acceleration or otherwise, at that rate.

 

DEFAULT. Each
of the following shall constitute an event of default ("Event of Default") under this Note:

 

Payment
Default. Borrower fails to make any payment when due under this Note.

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this
Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's
property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under
this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of
a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or
the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event
of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which
is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes
or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

 

Change
In Control. Any transaction in which any “person” or “group” (within the meaning of Section 13(d)
and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding
of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group”
to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction.

 

Adverse
Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or
performance of this Note is impaired.

 

Cure Provisions. If any default, other than a default in payment is curable and if
Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it
may be cured if Borrower, after Lender sends written notice to Borrower demanding cure of such default: (1) cures the default
within thirty (30) days; or (2) if the cure requires more than thirty (30) days, immediately initiates steps which Lender deems
in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary
steps sufficient to produce compliance as soon as reasonably practical.

 

OTHER DEFAULTS
MODIFIED. Notwithstanding the section above entitled “Other Defaults”, Borrower fails to comply with or to perform
any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents between Lender
and Borrower; or any shareholder, member, trustor, or any owner of the Borrower also holding a controlling interest in any given
entity’s common stock, membership interest, trust interest, or any other ownership interest (“Related Entity”),
fails to comply with or to perform any other term, obligation, covenant or condition contained in any other agreement between
Lender and the Related Entity.

 

    	2

    	 

    

 

 

LENDER'S RIGHTS.
Upon default, only after Borrower has exhausted all remedies under the Cure Provisions section as set forth above, Lender
may declare the unpaid principal balance under this Note and all accrued unpaid interest, immediately due, and then Borrower will
pay that amount.

 

ATTORNEYS' FEES;
EXPENSES. Lender may hire an attorney to help collect this Note if Borrower does not pay, and Borrower will pay Lender's reasonable
attorneys' fees. Borrower also will pay Lender all other amounts Lender actually incurs as court costs, lawful fees for filing,
recording, releasing to any public office any instrument securing this Note; the reasonable cost actually expended for repossessing,
storing, preparing for sale, and selling any security; and fees for noting a lien on or transferring a certificate of title to
any motor vehicle offered as security for this Note, or premiums or identifiable charges received in connection with the sale
of authorized insurance.

 

JURY WAIVER.
Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender
or Borrower against the other.

 

GOVERNING LAW.
This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the
State of Texas without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Texas.

 

DISHONORED CHECK
CHARGE. Borrower will pay a processing fee of $25.00 if any check given by Borrower to Lender as a payment on this loan is
dishonored.

 

RIGHT OF SETOFF.
To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether
checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts
Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff
would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the indebtedness against any and all such accounts.

 

COLLATERAL.
Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed herein:

 

(A)
a Construction Deed of Trust dated January 26, 2015, to a trustee in favor of Lender on real property located in Fort Bend County,
State of Texas.

 

(B)
an Assignment of All Rents to Lender on real property located in Fort Bend County, State of Texas.

 

(C)
inventory, chattel paper, accounts, equipment, general intangibles and fixtures described in a Commercial Security Agreement dated
January 26, 2015.

 

(D)
deposit accounts described in an Assignment of Deposit Account dated January 26, 2015.

 

LINE OF CREDIT.
This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled
to further loan advances. The following person or persons are authorized to request advances and authorize payments under the
line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority:
Chih-Hsiang (Thompson) Lin, CEO of Applied Optoelectronics, Inc. Borrower agrees to be liable for all sums either: (A)
advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal
records, including daily computer print-outs.

 

CHOICE OF VENUE.
If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Harris County,
State of Texas.

 

SUCCESSOR INTERESTS.
The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

NOTIFY US OF
INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate
information about Borrower's account(s) to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies)
should be sent to Lender at the following address: East West Bank Loan Service Department 9300 Flair Drive, 6th Floor El Monte,
CA 91731.

 

    	3

    	 

    

 

 

GENERAL PROVISIONS.
If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Borrower does not agree or intend
to pay, and Lender does not agree or intend to contract for, charge, collect, take, reserve or receive (collectively referred
to herein as "charge or collect"), any amount in the nature of interest or in the nature of a fee for this loan, which
would in any way or event (including demand, prepayment, or acceleration) cause Lender to charge or collect more for this loan
than the maximum Lender would be permitted to charge or collect by federal law or the law of the State of Texas (as applicable).
Any such excess interest or unauthorized fee shall, instead of anything stated to the contrary, be applied first to reduce the
principal balance of this loan, and when the principal has been paid in full, be refunded to Borrower. The right to accelerate
maturity of sums due under this Note does not include the right to accelerate any interest which has not otherwise accrued on
the date of such acceleration, and Lender does not intend to charge or collect any unearned interest in the event of acceleration.
All sums paid or agreed to be paid to Lender for the use, forbearance or detention of sums due hereunder shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of the loan evidenced by this
Note until payment in full so that the rate or amount of interest on account of the loan evidenced hereby does not exceed the
applicable usury ceiling. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them.
Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand
for payment, notice of dishonor, notice of intent to accelerate the maturity of this Note, and notice of acceleration of the maturity
of this Note. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs
this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree
that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral;
or impair, fail to realize upon or perfect Lender's security interest in the collateral without the consent of or notice to anyone.
All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with
whom the modification is made. The obligations under this Note are joint and several.

 

PRIOR TO SIGNING
THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES
RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

 

 

APPLIED OPTOELECTRONICS,
INC.

 

By: /s/ Chih-Hsiang
(Thompson) Lin                         

Chih-Hsiang (Thompson)
Lin, CEO of Applied Optoelectronics, Inc.

 

 

 

    	4EX-4.3

 Exhibit 4.3 

TRAVER SMITH 
 DATED April 2012 

SUMMIT CORPORATION PLC 
 WARRANT
INSTRUMENT 
 CREATING WARRANTS 

TO SUBSCRIBE FOR SHARES IN 

SUMMIT CORPORATION PLC 

 CONTENTS 
  

							
	Clause	  	 	  	Page	 
			
	1.	  	 DEFINITIONS AND INTERPRETATION
	  	 	1	  
			
	2.	  	 CONSTITUTION AND FORM OF WARRANTS AND CERTIFICATES
	  	 	3	  
			
	3.	  	 EXERCISE OF WARRANTS
	  	 	4	  
			
	4.	  	 ADJUSTMENT OF SUBSCRIPTION RIGHTS
	  	 	5	  
			
	5.	  	 WINDING-UP OF THE COMPANY
	  	 	6	  
			
	6.	  	 UNDERTAKINGS
	  	 	7	  
			
	7.	  	 MODIFICATION OF RIGHTS
	  	 	8	  
			
	8.	  	 MEETINGS
	  	 	8	  
			
	9.	  	 REGISTER
	  	 	9	  
			
	10.	  	 REPLACEMENT OF CERTIFICATES
	  	 	9	  
			
	11.	  	 PURCHASE
	  	 	9	  
			
	12.	  	 NOTICES
	  	 	10	  
			
	13.	  	 AVAILABILITY OF INSTRUMENT
	  	 	11	  
			
	14.	  	 AUDITORS
	  	 	11	  
			
	15.	  	 GOVERNING LAW AND JURISDICTION
	  	 	11	  
			
	Schedule	  		  			
			
	1.	  	FORM OF CERTIFICATE	  	 	12	  
			
	2.	  	TRANSFER OF WARRANTS	  	 	14	  

  
 i 

 THIS INSTRUMENT is entered into by way of Deed on     April 2012. 

BY SUMMIT CORPORATION PLC registered in England and Wales under number 05197494 whose registered office is at 91 Milton Park, Abingdon, Oxfordshire OX14 4RY
(the “Company”). 
 WHEREAS: 
  

	(A)	The Company has entered into the Placing Agreement with Singer Capital Markets Limited (“Singer”) pursuant to which Singer has agreed to use its reasonable endeavours as agent for the Company to procure
placees to subscribe for certain Ordinary Shares. 

  

	(B)	In consideration of the services provided by Singer under the Placing Agreement, the Company has agreed, inter alia, to issue warrants to Singer to subscribe for Ordinary Shares on the terms set out in this
Instrument. 

  

	(C)	By a resolution of the Directors passed on             2012, Company resolved to create and issue the Warrants to subscrFibe in cash at par for new Ordinary
Shares on the terms set out in this Instrument. 

  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this Instrument, unless the context requires otherwise, each of the following
expressions has the following meanings: 
  

			
	 Act
	  	the Companies Act 2006.
		
	 Admission
	  	admission of the New Ordinary Shares (as defined in the Placing Agreement) to trading on AIM becoming effective in accordance with the AIM Rules.
		
	 AIM
	  	AIM, a market operated by the London Stock Exchange.
		
	 AIM Rules
	  	the rules of AIM published by the London Stock Exchange.
		
	 Articles
	  	the articles of association of the Company in force from time to time.
		
	 Auditors
	  	the auditors of the Company from time to time.
		
	 Business Day
	  	any day (other than a Saturday) on which banks in the City of London are ordinarily open for business.
		
	 Certificate
	  	in relation to a Warrant, a certificate in the form, or substantially in the form, set out in Schedule 1.

  
 1 

			
	 CREST
	  	the relevant system (as defined in the Regulations) in respect of which CRESTCo is the Operator (as defined in the Regulations).
		
	 CRESTCo
	  	CRESTCo Limited.
		
	 Directors
	  	the directors of the Company from time to time.
		
	 London Stock Exchange
	  	London Stock Exchange pic.
		
	 Long Stop Date
	  	subject to clause 3.9, the date being 4 years from the date of Admission.
		
	 Notice of Exercise
	  	in relation to a Warrant, the duly completed notice of exercise as contained in the Certificate for such Warrant.
		
	 Ordinary Shares
	  	ordinary shares of 1p each in the capital of the Company, or any other shares into which they may be reclassified, consolidated or sub-divided from time to time.
		
	 Placing Agreement
	  	the agreement dated 4 April 2012 between the Company and Singer relating to Admission and the placing of certain Ordinary Shares.
		
	 Register
	  	the register of holders of Warrants to be maintained in accordance with clause 9.
		
	 Regulations
	  	the Uncertificated Securities Regulations 2001 (SI 2001 No. 3755).
		
	 Share Register
	  	the register of members of the Company.
		
	 Singer Group
	  	Singer, any parent undertaking of Singer and any subsidiary undertaking of Singer or such parent undertaking from time to time and references to “Singer Gnmp Company” and to “any member of Singer Group” shall
be construed accordingly.
		
	 Stock account
	  	an account within a member account in CREST to which a holding of a particular share or other security in CREST is credited.
		
	 Subscription Price
	  	subject to the provisions of this Instrument, 3p per Ordinary Share.

  
 2 

			
	 Warrentholder(s)
	  	the person(s) in whose name(s) a Warrant is registered in the Register from time to time.
		
	 Warrants
	  	the warrants of the Company constituted by this Instrument.

  

	1.2	In this Instrument headings are for convenience only and shall not affect its interpretation. 

  

	1.3	References to clauses, paragraphs and Schedules are to be construed as references to the clauses of, Schedules to and paragraphs of Schedules to this Instrument. 

 

	1.4	References to any agreement or document (including, without limitation, this Instrument) shall include any amendment or supplement to, or amendment and restatement, replacement or novation of, such agreement or
document, but disregarding any amendment, supplement, amendment and restatement, replacement or novation made in breach of this Instrument. 

  

	1.5	Words denoting the singular number shall include the plural and vice versa. 

  

	1.6	References to persons shall include individuals, corporations (where incorporated), unincorporated associations (including partnerships), trusts, any form of governmental body, agency or authority and any other
organisation of any nature. 

  

	1.7	References to any statute or statutory provision shall include references to such statute or statutory provision as in force at the date of this Instrument (including, for the avoidance of doubt, any amendments made to
such statute or statutory provision as in force at the date of this Instrument) and as subsequently re-enacted, amended or consolidated. 

  

	1.8	The Schedules form part of this Instrument and shall be construed and shall have the same full force and effect as if expressly set out in the body of this Instrument. 

 

	2.	CONSTITUTION AND FORM OF WARRANTS AND CERTIFICATES 

  

	2.1	The Company hereby creates and covenants to grant, on the terms and subject to the conditions set out in this Instrument, rights to Warrantholders to subscribe in aggregate for such number of Ordinary Shares as shall,
immediately following Admission, constitute 1 percent of the Company’s total issued Ordinary Shares at a price per share equal to the Subscription Price. 

  

	2.2	Warrantholders are entitled in respect of every 1 (one) Warrant held to subscribe for 1 (one) Ordinary Share in the Company (or such other number of Ordinary Shares as may for the time being be applicable in accordance
with the provisions of this Instrument). 

  

	2.3	The Warrants shall be in registered form. Each Warrantholder will be entitled to a Warrant Certificate in the form set out in Schedule I. 

  
 3 

	2.4	The Warrants shall be freely transferable by Singer to any member of Singer Group (and by any such member to any other member of Singer Group) PROVIDED ALWAYS that in the event that a Warrantholder shall cease to be a
member of the Singer Group then the Warrants held by that Warrantholder shall not be exercisable unless they are transferred by such Warrantholder to a member of the Singer Group. The provisions of Schedule 2 shall apply in relation to transfers of
Warrants. 

  

	2.5	The Warrants are issued subject to the memorandum of association of the Company, the Articles and otherwise on the terms of this Instrument which are binding upon the Company and each Warrantholder and all persons
claiming through them. 

  

	2.6	This Instrument shall take effect from the date hereof and shall, subject to clause 3.9 below, terminate upon the earlier of (i) the exercise of the Warrants in full and (ii) the Long Stop Date.

  

	3.	EXERCISE OF WARRANTS 

  

	3.1	Subject to clause 3.9, the Warrants shall be exercisable by Warrantholders at any time between the date on which the Warrants are issued and the Long Stop Date. A Warrantholder shall be entitled to exercise all or any
part of its holding of Warrants and, if a Warrantholder exercises part only of its holding of Warrants, the Warrantholder shall be entitled to exercise the balance of its holding of Warrants on any one or more occasions and in any one or more parts
as the Warrantholder (subject to the terms of this Instrument) determines in its discretion. 

  

	3.2	In order to exercise the whole or any part of its holding of Warrants, the Warrantholder must, subject to clause 3.9, deliver to the Company before the Long Stop Date a Notice of Exercise together with the relevant
Certificate and the remittance in cleared funds of an amount equal to the Subscription Price multiplied by the number of Ordinary Shares to be allotted and issued to the Warrantholder as a result of the exercise of the Warrants which are being
exercised. 

  

	3.3	Once delivered to the Company in accordance with clause 3.2, a Notice of Exercise shall (save the consent of the Company) be irrevocable. 

 

	3.4	Ordinary Shares to be allotted and issued on the exercise of Warrants shall be allotted and issued by the Company and, if relevant, a Certificate for the outstanding balance of Warrants that have not been exercised
shall be despatched to the Warrantholder referred to in the relevant Notice of Exercise by no later than 10 Business Days after such Notice of Exercise was delivered to the Company in accordance with clause 3.2. 

 

	3.5	To the extent that Ordinary Shares to be allotted and issued on the exercise of Warrants are to be held in certificated form (as indicated in the relevant Notice of Exercise), the Company shall deliver a share
certificate for the Ordinary Shares so allotted to the relevant Warrantholder by no later than 10 Business Days after such Notice of Exercise was delivered to the Company in accordance with clause 3.2. 

  
 4 

	3.6	To the extent that Ordinary Shares to be allotted and issued on the exercise of Warrants are to be held in uncertificated form through CREST (as indicated in the relevant Notice of Exercise), the Company shall procure
that Euroclear UK & Ireland Limited is instructed to credit to the stock account of the relevant Warrantholder entitlements to such Ordinary Shares by no later than 10 Business Days after such Notice of Exercise was delivered to the Company
in accordance with clause 3.2. 

  

	3.7	Ordinary Shares allotted pursuant to the exercise of Warrants shall be entitled in full to all dividends and distributions declared or paid on any date, or by reference to any date, on or after the date on which the
relevant Notice of Exercise was delivered to the Company in accordance with clause 3.2 and shall otherwise rank pari passu in all respects from the date of allotment with the Ordinary Shares of the Company then in issue. 

 

	3.8	Warrants shall be deemed to be exercised on the day upon which the Warrantholder gives to the Company a Notice of Exercise (together with the relevant Certificate and appropriate remittance of funds as required by
clause 3.2). 

  

	3.9	If any Warrantholder is in possession of relevant inside information and is thereby precluded from exercising any Warrants or any part thereof immediately prior to the Long Stop Date, then such Warrantholder shall serve
a notice to that effect on the Company on or before the Long Stop Date and provided it has done so then, in respect of such Warrantholder, the Long Stop Date shall be extended until the date which falls 10 Business Days after the later of
(i) the day on which the Warrantholder ceases to be an insider (as defined in the Criminal Justice Act 1993) and (ii) the day on which the Warrantholder ceases to be an insider (as defined in section 118B of the Financial Services and
Markets Act 2000). 

  

	3.10	No Ordinary Shares shall be allotted to a person on exercise of the Warrants if such allotment and/or the issue of shares in uncertificated form and/or the delivery of the relevant share certificate would either be in
contravention of the laws or rules of any overseas territory or overseas regulatory authority or would require any registration to be made in any overseas territory or overseas regulatory authority. 

 

	3.11	No exercise of Warrants shall result in the issue of a fraction of an Ordinary Share. Any fractional entitlements to Ordinary Shares arising as a result of an adjustment in accordance with clause 4.1 shall be rounded
down to the nearest whole Ordinary Share. 

  

	4.	ADJUSTMENT OF SUBSCRIPTION RIGHTS 

  

	4.1	 Upon the occurrence of a reorganisation or reclassification of the share capital of the Company, a capitalisation issue (whether by way of
capitalisation of reserves or of profits) or an offer by the Company of new shares by way of rights or otherwise limited to the Company’s shareholders at the time, or a sub-division, reduction or consolidation of the capital of the Company, or
a merger or consolidation of the Company with or into another company or demerger, or the modification of rights attaching to the Ordinary Shares or a dividend in kind declared and/or made by the Company (each an “Adjustment

  
 5 

	 	
Event”) after the date on which any Warrants are granted, the number of Ordinary Shares which are the subject of the Warrants and the Subscription Price payable on the exercise of Warrants
shall be adjusted either in such manner as the Company and the Warrantholder(s) holding the majority of the outstanding Warrants from time to time agree in writing is appropriate or, failing agreement, in such manner as the Auditors shall certify is
appropriate. If the Auditors refuse to so certify, the Company and the Warrantholder(s) shall refer the matter to an independent accountant agreed by the parties or, in absence of such agreement, to the President of the Institute of Chartered
Accountants of England and Wales. For the purposes of this clause 4.1, an adjustment to the Warrants and the Subscription Price shall be “appropriate” if, as a consequence of the adjustment, Warrantholders enjoy the same economic effect on
the exercise of their Warrants as if the relevant Adjustment Event had not occurred or arisen (it being acknowledged that a change in the relative percentage of Ordinary Shares represented by the Warrants does not itself necessitate an adjustment).
The Company and the Warrantholders shall endeavour to agree any adjustment pursuant to this clause 4.1 within 10 Business Days of the Adjustment Event, failing which the adjustment shall be certified by the Auditors or, where the Auditors refuse to
so certify, an accountant agreed by the parties or, failing such agreement, the President of the Institute of Chartered Accountants of England and Wales and the Company shall give notice of the adjustment (as certified by the Auditors or an
accountant agreed by the parties or the President of the Institute of Chartered Accountants of England and Wales, as the case may be) to Warrantholders within 30 Business Days of the relevant Adjustment Event together with a new Certificate in
respect of any additional Warrants to which Warrantholders are entitled in consequence of such adjustment. Any such additional Warrants shall confer the same rights and restrictions as are attached to the Warrants which are in issue at the date of
the Adjustment Event (subject to any adjustment to the Subscription Price which is made pursuant to this clause 4.1). 

  

	4.2	The Company shall not implement an Adjustment Event if it would otherwise result in the Subscription Price payable per Ordinary Share on the exercise of the Warrants being less than the nominal value of an Ordinary
Share. 

  

	5.	WINDING-UP OF THE COMPANY 

  

	5.1	If, at any time when any Warrants are exercisable, an order is made or an effective resolution is passed for the winding-up or dissolution of the Company or if any other dissolution of the Company by operation of law is
to be effected then: 

  

	 	5.1.1	if such winding-up or dissolution is for the purpose of a reconstruction or amalgamation pursuant to a scheme of arrangement to which any Warrantholder has consented in writing, the terms of such scheme of arrangement
will be binding on such Warrantholder; or 

  

	 	5.1.2	 in any other case, the Company shall forthwith notify the Warrantholder stating that such an order has been made or resolution has been passed or
other dissolution is to be effected and the Warrantholder shall be entitled at any time within one month after the date such notice is published to elect by notice in 

  
 6 

	 	
writing to the Company to be treated as if it had, immediately before the date of the making of the order or passing of the resolution or other dissolution, exercised all of its Warrants and it
shall be entitled to receive out of the assets which would otherwise be available in the liquidation to the holders of Ordinary Shares, such a sum, if any, as it would have received had it been the holder of and paid for the Ordinary Shares to which
it would have become entitled by virtue of such exercise, after deducting from such sum an amount equal to the amount which would have been payable by it in respect of such Ordinary Shares if it had exercised all its Warrants, but nothing contained
in this clause shall have the effect of requiring the Warrantholder to make any actual payment to the Company. 

  

	5.2	Subject to compliance with clause 5.1, the Warrants shall lapse on a dissolution or winding- up of the Company. 

 

	6.	UNDERTAKINGS 

  

	6.1	The Company represents that it shall upon Admission have, and thereafter shall maintain, all necessary authorisations pursuant to the Act to enable it to lawfully and fully perform its obligations under this Instrument
to allot and issue Ordinary Shares upon the exercise of all Warrants remaining exercisable from time to time. 

  

	6.2	Unless otherwise authorised in writing by the Warrantholder(s) holding the majority of the outstanding Warrants from time to time: 

  

	 	6.2.1	the Company shall procure that at all times whilst any Warrants remain exercisable all Ordinary Shares in issue from time to time shall be admitted to trading, and continue to be traded, on AIM or a regulated market (as
defined in the Insider Dealing (Securities and Regulated Markets Order 1994) or the New York Stock Exchange or NASDAQ and that any Ordinary Shares arising upon the exercise of any Warrants shall be so admitted; 

 

	 	6.2.2	if at any time an offer is made to holders of Ordinary Shares (or all such holders other than the offeror and/or any company controlled by the offeror and/or persons acting in concert with the offeror) to acquire the
whole or any part of the Ordinary Share capital of the Company, Company will as soon as possible give notice of such offer to the Warrantholders and use its best endeavours to procure that a full and adequate opportunity is given to the
Warrantholders to exercise the Warrants and that a like offer, being one pari passu with the best terms offered to holders of Ordinary Shares, is extended in respect of any Ordinary Shares issued upon exercise of the Warrants. The publication of a
scheme of arrangement under sections 895 to 899 of the Act providing for the acquisition by any person of the whole or any part of the Ordinary Share capital of the Company shall be deemed to be the making of an offer for the purposes of this clause
6.3 and references herein to such an offer shall be read and construed accordingly; 

  
 7 

	 	6.2.3	if at any time an offer or invitation is made by the Company to the holders of Ordinary Shares for the purchase by the Company of any of the Ordinary Shares, the Company shall simultaneously give notice thereof to the
Warrantholders who shall be entitled, at any time while such offer or invitation is open for acceptance, to exercise their Warrants on the terms (subject to any adjustments pursuant to clause 4.1 above) on which the same could have been exercised
and as if the same had been exercised on the day immediately preceding the record date for such offer or invitation; and 

  

	 	6.2.4	the Company shall supply to the Warrantholders copies of all notices of meetings, annual reports and accounts and all documents required by law to be annexed thereto and all statements, circulars and other
communications to its shareholders at the same time as they are despatched to its shareholders. 

  

	7.	MODIFICATION OF RIGHTS 

  

	    	All or any of the rights for the time being attached to the Warrants may from time to time (whether or not the Company is being wound up) be altered or amended with the prior sanction of a Special Resolution or Written
Resolution (in accordance with clause 8.2) of the Warrantholders and the agreement of the Company. 

  

	8.	MEETINGS 

  

	8.1	All the provisions of the Articles for the time being of the Company relating to General Meetings shall apply mutatis mutandis as though the Warrants were a class of shares forming part of the capital of the Company
except that: 

  

	 	8.1.1	the necessary quorum shall be Warrantholders present (in person or by proxy) entitled to subscribe for 20 per cent. in nominal amount of the Ordinary Shares attributable to the outstanding Warrants, provided that
if at any meeting a quorum is not present such meeting shall be adjourned to a time and place directed by the Chairman and at such adjourned meeting those Warrantholders present (in person or by proxy and whatever the number of Warrants held or
represented by them) shall constitute a quorum. Whenever there is only one holder of Warrants, a quorum at any meeting of Warrantholders shall, for all purposes, be that Warrantholder or any proxy for that Warrantholder; 

 

	 	8.1.2	every Warrantholder present in person at any such meeting shall be entitled on a show of hands to one vote and every Warrantholder present in person or by proxy shall be entitled on a poll to one vote for every Ordinary
Share for which he is entitled to subscribe pursuant to the Warrants held by him; and 

  

	 	8.1.3	any Warrantholder present (in person or by proxy) may demand or join m demanding a poll. 

  

	8.2	 A resolution in writing signed by Warrantholders entitled to subscribe for not less than 75 per cent. in nominal amount of the Ordinary Shares
attributable to the outstanding Warrants (a “Written Resolution”) shall for all purposes be as valid and effectual as an 

  
 8 

	 	
Ordinary Resolution or a Special Resolution passed at any General Meeting as provided for under clause 8.1. Such Written Resolution may be contained in one or more documents in like form each
signed by one or more of the Warrantholders. 

  

	9.	REGISTER 

  

	9.1	The Company shall maintain a register of Warrants and the persons entitled to them. 

  

	9.2	The registered holder of a Warrant shall be treated as its absolute owner (except as ordered by a court of competent jurisdiction or required by law). The Company shall not (except as stated above) be bound to recognise
any other claim or interest in any Warrant. 

  

	9.3	There shall be entered in the Register the following: 

  

	 	9.3.1	the names and addresses and facsimile numbers of the holder for the time being of the Warrants (provided that the Company shall not be obliged to register more than four joint-holders in respect of any Warrant);

  

	 	9.3.2	the amount of the Warrants held every registered holder; and 

  

	 	9.3.3	the date at which the name of every such registered holder is entered in respect of the Warrants standing in his name. 

  

	9.4	Any change of name or address or facsimile number on the pm1 of any Warrantholder shall forthwith be notified to the Company in accordance with clause 12 and the Company shall cause the Register to be altered
accordingly. The Warrantholder, and any person authorised by any such holder, shall be at liberty at all reasonable times during normal business hours on any Business Day to inspect the Register and to take copies of or extracts from the same or any
part thereof. 

  

	10.	REPLACEMENT OF CERTIFICATES 

  

	    	If a Certificate is mutilated, defaced, lost, stolen or destroyed, it will be replaced at the registered office of the Company for the time being upon payment by the claimant of such reasonable costs as may be incurred
in connection therewith and on such terms as to evidence and indemnity as the Company may reasonably require. Mutilated or defaced Certificates must be surrendered before replacements will be issued. 

 

	11.	PURCHASE 

  

	11.1	The Company may at any time purchase Warrants either by tender (available to all Warrantholders alike) or by private treaty, in each case at any price that is accepted and/or agreed by Warrantholders. 

 

	11.2	All Warrants purchased pursuant to clause 11.1 shall be cancelled forthwith and may not be reissued or sold. 

  
 9 

	12.	NOTICES 

  

	12.1	Any notice, consent, request, demand, approval or other communication (each a “Notice”) to be given or made under this Instrument shall be in English, in writing (which, for the avoidance of doubt, may include
facsimile transmission but shall not include electronic mail) and signed by or on behalf of the person giving it. 

  

	12.2	Service of a Notice must be effected by one of the following methods: 

  

	 	12.2.1	by hand to the relevant address set out in clause 12.4 and shall be deemed served upon delivery if delivered during a Business Day, or at the start of the next Business Day if delivered at any other time; or

  

	 	12.2.2	by prepaid first-class post to the relevant address set out in clause 12.4 and shall be deemed served at the start of the second Business after the date of posting; or 

by prepaid international airmail to the relevant address set out in clause 12.4 and shall be deemed served at the start of the fourth Business
Day after the date of posting; or 
  

	 	12.2.3	by facsimile transmission to the relevant facsimile number set out in clause 12.4 and shall be deemed served on despatch if despatched during a Business Day, or at the start of the next Business Day if despatched at any
other time, provided that in each case a receipt indicating complete transmission of the Notice is obtained by the sender and that a copy of the Notice is also despatched to the recipient using a method described in clauses 12.2.1 to 12.2.3
(inclusive) no later than the end of the next Business Day. 

  

	12.3	clause 12.2 “during a Business Day” means any time between 9.30 a.m. and 5.30 p.m. on a Business Day based on the local time where the recipient of the Notice is located. References to “the start of [a]
Business Day” and “the end of [a] Business Day” shall be construed accordingly. 

  

							
	12.4	  	If to the Company:	 	Address:	  	 91 Milton Park,
 Abingdon, Oxfordshire,

OX14 4RY

				
		  		 	Fax No.:	  	+44 (0)1235 443 999
				
		  		 	For the attention of:	  	Chief Executive

  

	    	If to a Warrantholder: The address and facsimile number (if any) stated in the Register 

  

	12.5	A party may change its address for service provided that the new address is within the United Kingdom and that it gives the other parties not less than 10 days’ prior notice in accordance with this clause 12. Until
the end of such notice period, service on the address set out in clause 12.4 shall remain effective. 

  
 10 

	13.	AVAILABILITY OF INSTRUMENT 

  

	    	Every Warrantholder shall be entitled to inspect a copy of this Instrument at the registered office for the time being of the Company on any Business Day during normal business hours and shall be entitled to receive a
copy of this Instrument against payment of such reasonable copying and postage charges as the Directors may reasonably request. 

  

	14.	AUDITORS 

  

	    	Any determination made by the Auditors or by an independent accountant pursuant to the provisions of this Instrument shall be made by them as experts and not as arbitrators and any such determination or adjustment made
by them shall the absence of manifest error) be final and binding upon the Company and the Warrantholders. 

  

	15.	GOVERNING LAW AND JURISDICTION 

  

	    	The provisions of this Instrument and the Warrants shall be subject to and governed English law and each of the parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle
any dispute which may arise out of or in connection with this Agreement. 

 IN WITNESS whereof this Instrument has been duly executed as a
Deed by the Company the day and year first above written. 

  
 11 

 SCHEDULE 1 

FORM OF CERTIFICATE 
 Certificate No. 

SUMMIT CORPORATION PLC 

(Incorporated in England and Wales with registration number 05197494) 

A WARRANT TO SUBSCRIBE FOR ORDINARY SHARES 
 THIS
IS TO CERTIFY that the Warrantholder named below is the registered holder of the right to subscribe in cash for Ordinary Shares at a price of 3p per Ordinary Share subject to the memorandum and articles of association of the Company and
otherwise on the terms and conditions set out in the Instrument dated [     ] 200[®]. Words and expressions used in this Certificate and Notice of Exercise shall have
the same meanings as in the Instrument. 
  

					
	NAME(S) OF HOLDERS	 	 NUMBER OF

WARRANTS
	 	 NUMBER OF

ORDINARY SHARES

		 		 	
		 		 	
		 		 	
		 		 	
		 		 	

 The registered holder is entitled in respect of every 1 (one) Warrant held to subscribe for 1 (one) Ordinary Share in
Summit Corporation pic (or such other number of Ordinary Shares as may for the time being be applicable in accordance with the provisions of the Instrument) prior to [Insert Long Stop Date here]. 

IN WITNESS whereof this certificate is executed as a Deed on [            ,
200[    ] 
  

					
	EXECUTED as a DEED by	  	)	  	
	SUMMIT CORPORATION PLC	  	)	  	
	acting by:	  	)	  	
			
		  		  	Director
			
		  		  	Director/Secretary

  
 12 

 SCHEDULE TO THE CERTIFICATE 

NOTICE OF EXERCISE 
  

	To:	The Directors 

 Summit Corporation pic 

[Address] 
 We hereby exercise our
subscription rights conferred by [III] [insert number of Warrants which are to be exercised] Warrants held by us entitling us to subscribe for [@] [insert aggregate number of Ordinary Shares to be subscribed as a consequence of exercise of
Warrants] Ordinary Shares. On the basis that the price payable per Ordinary Share for which we are subscribing by the exercise of such Warrants is the Subscription Price (as adjusted, if at all, pursuant to the terms of the Instrument
constituting the Warrants), the aggregate price payable on the exercise of such Warrants is [                    ] [insert aggregate subscription
price payable on exercise of Warrants]. 
 We hereby direct you to allot the Ordinary Shares to be issued pursuant hereto to us
and authorise and request the entry of our name(s) in the Share Register. 
 [We hereby request that a certificate for the said Ordinary Shares be sent by
post to us at the address shown below. We agree that the said Ordinary Shares are allotted and issued subject to the articles of association of the Company.] 

[Use the above paragraph where the shares are to be held in certificated form] 

OR 
 [We hereby direct you to procure that CRESTCo is
instructed to credit to our CREST stock account, details of which are set out below, the said Ordinary Shares. We agree that the said Ordinary Shares are allotted and issued subject to the articles of association of the Company.] 

 

  PARTICIPANT ID (not more than 5 figures) 

  MEMBERSHIP ID 

[use the above paragraphs where shares are to be held in uncertificated form through CREST] 

Signed 
 Name 

Address 
 Date: 

  
 13 

 SCHEDULE 2 

TRANSFER OF WARRANTS 
 The Warrants are
transferable in accordance with the following provisions: 
  

	1.	Warrants shall be transferable by instrument in writing in the usual common form (or in such other form as the Directors may reasonably approve). A Warrantholder’s holding of Warrants may be transferred in whole or
in part in accordance with this Schedule 2. 

  

	2.	Every instrument of transfer must be duly signed by or on behalf of the transferor and the transferor shall be deemed to remain the holder of the Warrants to be transferred until the transferee’s name is entered in
the register of Warrantholders. 

  

	3.	Every instrument of transfer must be delivered to the Company at its registered office for the time being for registration by the Company accompanied by the Certificate(s) for the Warrants to be transferred. All
instruments of transfer which are registered shall be retained by the Company. No transfer shall be registered of Warrants in respect of which a Notice of Exercise has been given. 

 

	4.	No fee shall be charged for the registration of any transfer of Warrants or for making any entry in the Register. 

  

	5.	Upon delivery to the Company of an instrument of transfer in accordance with paragraph 3 above, the Company shall without delay (and in any event within 10 Business Days of receipt of such instrument of transfer)
register in the Register both the transferor and the transferee as the holder of the relevant Warrants and shall send (without charge) to (i) the transferee a Certificate in respect of the Warrants transferred to it and (ii) if the
transferor has transferred part only of his holding of Warrants, to the transferor a new Certificate in respect of the balance of its holding of Warrants which it has not transferred. 

 

	6.	The registration of a transfer shall be conclusive evidence of the approval by the Company and the Registrar of the transfer and the Company shall, on registration, issue the transferee with a Warrant Certificate in
respect of the Warrant transferred. 

  

	7.	Every Warrantholder shall register with the Company and the Registrar an address to which copies of notices can be sent. A Warrantholder whose registered address is not within the United Kingdom and who gives the
Company an address within the United Kingdom at which notice may be given to him shall be entitled to copies of notices given to him at that address, but otherwise no such member shall be entitled to receive a copy of any notice from the Company.

  

	8.	Any copy notices given pursuant to the provisions of this Schedule 2 with respect to the Warrant standing in the names of joint holders shall be given to whichever of such persons is named first in the Register and such
notice so given shall be sufficient notice to all the holders of the Warrant. 

  
 14 

					
	EXECUTED and DELIVERED as a	 	 )	 	
	DEED by SUMMIT CORPORATION PLC	 	)	 	
	acting by:	 	  )	 	
			
		 	  
	 	
		 	Director	 	
			
		 	  
	 	
		 	Director/	 	

  
 15

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