Document:

amrk-ex104_623.htm

Exhibit 10.4

 

A-Mark Precious Metals, Inc.

2014 Stock Award and Incentive Plan

Deferred Stock Units Agreement – Non-Employee Director

This Deferred Stock Units Agreement (the "Agreement") confirms the grant on April 29, 2021 (the "Grant Date") by A-Mark Precious Metals, Inc., a Delaware corporation (the "Company" or “A-Mark”), to ___________ ("Grantee"), of Deferred Stock Units (the "DSUs") relating to A-Mark Common Stock, par value $0.01 per share (the "Shares"), as set forth below.  The DSUs are granted under Sections 6(e) and 10(m) of the Company’s 2014 Stock Award and Incentive Plan, as amended (the “Plan”), pursuant to the agreement between A-Mark and Grantee that this grant of DSUs will be in consideration of Grantee’s service to A-Mark as a non-employee director in the fiscal year in which the DSUs are granted.

The principal terms of the DSUs granted hereby are as follows (subject to adjustment in accordance with the Plan and this Agreement):   

Number granted: _____ DSUs.

DSUs vest:  

	
 
	
(i)
	
The DSUs, if they have not previously been forfeited as provided herein, will vest as to 100% of the underlying Shares on the first anniversary of the Grant Date. The foregoing notwithstanding, the DSUs, if not previously forfeited, will vest in full on an accelerated basis upon the occurrence of certain events relating to Termination of Service, in accordance with Section 4 hereof.

	
 
	
(ii)
	
The date of vesting above is the “Vesting Date.”  The term “vesting” or “vests” means that Grantee’s substantial risk of forfeiture of the DSUs, based on Grantee’s Termination of Service, has lapsed. 

Forfeiture and Clawback of DSUs:  

	
 
	
(i)
	
The DSUs (including vested DSUs) will be forfeited, or Grantee will be required to surrender the Shares issued in settlement of the DSUs to the Company, or Grantee will be required to pay to the Company the fair market value of the Shares issued in settlement of the DSUs, in accordance with the terms of any policy relating to recoupment (or clawback) approved by the Board of Directors and in effect at or before the time of vesting of the DSUs. 

	
 
	
(ii)
	
Except as provided in Section 4 of this Agreement, upon Grantee’s Termination of Service before the Vesting Date, the DSUs will be forfeited.  

Settlement: The DSUs that become vested will be settled by delivery of one Share of the Company's Common Stock, $0.01 par value per Share, for each DSU being settled.  Such settlement will occur on the first business day of January in the year following Grantee’s Termination of Service (as defined in Section 4 below), except as otherwise specified in Section 4 (which includes specification of the date of settlement following death), provided, however, that in no event will settlement of the DSUs occur prior Termination of Service or death nor after December 31 of the year following the year of Termination of Service or death.  

 

 

* * * *

The DSUs are subject to the terms and conditions of the Plan and this Agreement, including the Terms and Conditions of Restricted Stock Units attached hereto and deemed a part hereof.  The number of DSUs, the number and kind of Shares deliverable in settlement of DSUs and the number of Shares subject to clawback are subject to adjustment in accordance with Section 5 hereof and the applicable sections of the Plan.  Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.  

Grantee acknowledges and agrees that (i) the DSUs are nontransferable as set forth in Section 7 hereof and Section 10(b) of the Plan, (ii) the DSUs are forfeitable and subject to clawback, as set forth herein, (iii) sales of Shares delivered in settlement of DSUs will be subject to compliance with applicable Federal and state securities laws, which at times may preclude such sales, and will be subject to the Company's policies regulating insider trading by directors and employees, and (iv) a copy of the Plan and related information previously have been delivered to Grantee, are being delivered to Grantee herewith, or are available as specified in Section 1 and 8(e) hereof.

IN WITNESS WHEREOF, A-Mark Precious Metals, Inc. has caused this Agreement to be executed by its officer thereunto duly authorized. 

 

	
 
	
A-MARK PRECIOUS METALS, INC.

	
 
	
 

	
 
	
 

	
Date: April 29, 2021
	
By:
	
 

	
 
	
 
	
Carol Meltzer

	
 
	
 
	
General Counsel and EVP

 

 

 

 

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TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS

The following Terms and Conditions apply to the DSUs granted to Grantee by A-MARK PRECIOUS METALS, INC. (the "Company"), as specified in the Restricted Stock Units Agreement (of which these Terms and Conditions form a part).  Certain terms of the DSUs, including the number of DSUs granted, vesting date(s) and settlement date(s), are set forth on the preceding cover page, which is an integral part of this Agreement.

1.General. The DSUs are granted to Grantee under the Company’s 2014 Stock Award and Incentive Plan (the “Plan”), a copy of which has previously been delivered to Grantee and/or is available upon request to the General Counsel of the Company.  All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein.  Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.  If there is any conflict between the provisions of this document and mandatory provisions of the Plan, the provisions of the Plan govern.  By accepting the grant of the DSUs, Grantee agrees to be bound by all of the terms and provisions of the Plan (as presently in effect or later amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations of the Company's Compensation Committee (the "Committee") or Board of Directors made from time to time, provided that, without the Grantee’s written consent, no such Plan amendment, rule or regulation or Committee decision or determination shall materially and adversely affect the rights of Grantee with respect to outstanding DSUs.

2.Account Maintained for Grantee.  The Company shall maintain a bookkeeping account for Grantee (the "Account") reflecting the number of DSUs then credited to Grantee hereunder as a result of such grant of DSUs and any rights to cash or property relating to such DSUs.

3.Non-transferability.  Until DSUs become settleable in accordance with the terms of this Agreement, Grantee may not transfer DSUs or any rights hereunder to any third party other than by will or the applicable laws of descent and distribution, except for transfers to a Beneficiary upon death of Grantee or otherwise if and to the extent permitted by the Company and in accordance with Plan Section 10(b) and Section 7 below.

4.Termination Provisions.  In the event of Grantee's Termination of Service for any reason before a given DSU has vested, such unvested DSU shall be forfeited unless otherwise determined by the Committee or otherwise provided in subsections (a) – (c) below.  All references to DSUs mean only those outstanding DSUs that have not been previously forfeited.

(a)Death or Disability. In the event of the death of Grantee or Grantee's Termination of Service due to a Disability, the DSUs (if not previously vested) will vest in full and become non-forfeitable immediately, and such DSUs will be settled not later than 30 days following the date of death or, in the case of Termination of Service due to Disability, at the date specified on the Cover Page.  

(b)Termination of Service at Subsequent Annual Meeting.  In the event of Grantee's Termination of Service at the Annual Meeting of Stockholders in the fiscal year following the fiscal year of grant, if the Grantee has served as a Director until the day of that Annual Meeting (regardless of the reason the Grantee is not elected to the Board at that Annual Meeting), the DSUs will vest in full and become non-forfeitable immediately, and such DSUs will be settled at the date specified on the Cover Page.  

 

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(c)Termination of Service Upon or Following a Change in Control.  In the event of Grantee's Termination of Service at the time of a Change in Control or at any time thereafter, the DSUs will vest in full and become non-forfeitable immediately, and such DSUs will be settled not later than 15 days following such Termination of Service.

(d)Certain Definitions. The following definitions apply for purposes of this 

Agreement:

	
 
	
(i)
	
“Change in Control” has the meaning as defined in Section 8(f) of the Plan except that an event will constitute a Change in Control only if that event (or an event closely associated with that event) also constitutes a change in the ownership of the Company, a change in effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation § 1.409A-3(i)(5).

	
 
	
(ii)
	
“Disability” means Grantee’s inability to perform the duties and responsibilities of a director due to physical or mental incapacity or impairment, which is reasonably expected to continue for a period of more than 180 consecutive days or to result in death.

	
 
	
(iii)
	
"Termination of Service” means the earliest time at which Grantee has had a retirement from the Company or for any other reason has ceased to be a director of the Company (constituting a loss of her office with or employment by the Company as defined in Section 6801(d) of the Income Tax Regulations of Canada). 

5.Dividends and Adjustments.

(a)Dividends. DSUs will be entitled to credits equivalent to dividends that would have been paid if the DSUs had been outstanding Shares at any record date that occurs before the settlement date.  The cash amount of such credits will be converted into a number of additional DSUs by dividing the aggregate cash amount by the Fair Market Value of a share of Common Stock at the dividend payment date.  If the Company declares and pays a dividend or distribution on Common Stock in the form of property other than Common Stock, then the amount of the dividend equivalents credited as of the payment date on each DSU outstanding and credited to the Grantee at the record date shall be the Fair Market Value of such property actually paid as a dividend or distribution on each outstanding Common Share at such payment date, to be converted into additional DSUs as provided in the preceding sentence, unless an alternative form of adjustment is provided for by the Company under Section 5(b).  

(b)Adjustments. The number of DSUs credited to Grantee's Account and/or the property deliverable upon settlement of DSUs shall be appropriately adjusted, in order to prevent dilution or enlargement of Grantee's rights with respect to DSUs in connection with, or to reflect any changes in the number and kind of outstanding Shares of Common Stock resulting from, any corporate transaction or event referred to in Section 10(c) of the Plan (this provision takes precedence over Section 5(a) in the case of a large and non-recurring cash dividend or any non-cash dividend, and any adjustment otherwise shall take into account any value received as dividend equivalents under Section 5(a)).

(c)Terms and Settlement of DSUs Resulting from Dividend Equivalents and Adjustments.  DSUs, cash and other property deliverable in settlement of DSUs that directly or indirectly result from dividend equivalents under Section 5(a) or adjustments to a DSU under 

 

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Section 5(b) shall be subject to the terms (including vesting terms) that apply to the granted DSU, and will become vested and be settled at the same time as the granted DSU.

6.Settlement; Deferral.

(a)Settlement. The settlement terms set forth on the Cover Page and in Section 4 of this Agreement apply to the DSUs.

(b)Tax Compliance.  It is intended that the terms of DSUs shall comply with requirements relating to Deferred Stock Units under Section 6801(d) of the Income Tax Regulations of Canada (“Section 6801(d)”).  Any rights of Grantee or retained authority of the Company with respect to the DSUs shall be automatically modified and limited to the extent necessary so that Grantee will not be deemed to be subject to taxation on income relating to the DSUs prior to settlement.  It is further intended that the terms of DSUs shall comply with requirements under Section 409A of the Internal Revenue Code, if and to the extent applicable under U.S. federal law or under California Law (“409A”).  Accordingly, DSUs will be subject to no acceleration of settlement in the discretion of the Company or Grantee, except as permitted under Section 6801(d) and, if applicable, 409A.  The six-month delay rule specified in Section 1(a)(iii)(B) of the “Compliance Rules Under Code Section 409A” (Appendix A to the Plan) applies to the DSUs if and to the extent the DSUs are deemed to be a deferral of compensation and subject to 409A.  The Company and Grantee agree that, prior to the time the DSUs are settled hereunder, the parties will not enter into an employment relationship, consulting relationship, arrangement for part-time service as a director or any other service relationship that would result in a separation from service under 409A but would not constitute a loss of office with or employment by the Company as defined in Section 6801(d).  Accordingly, in no event will a separation from service occur under Treasury Regulation § 1.409A-1(h) except in a circumstance that also constitutes Termination of Service.

7.Nontransferability.  Grantee may not transfer the DSUs or any rights hereunder to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary in the event of death or as otherwise permitted and subject to the conditions under Section 10(b) of the Plan.

8.Other Terms Relating to DSUs.  

(a)Representations and warranties.  As a condition to the settlement of the DSUs, the Company may require Grantee to make any other representation or warranty to the Company as then may be required or deemed by the Company advisable in order to ensure compliance under any applicable law or regulation.

(b)Stockholder Rights.  Grantee acknowledges and agrees that he or she shall have no voting rights or other rights of a stockholder with respect to the DSUs or the Shares issuable in settlement of the DSUs until such time as the Shares have been issued and delivered to Grantee in settlement of the DSUs.

(c)Fractional DSUs and Shares.  The number of DSUs credited to Grantee's Account shall not include fractional DSUs, unless otherwise determined by the Committee. Unless settlement is effected through a third-party broker or agent that can accommodate fractional Shares (without requiring issuance of a fractional Share by the Company), upon settlement of the DSUs Grantee shall be paid, in cash, an amount equal to the value of any fractional Share that would have been otherwise deliverable in settlement of such DSUs.

 

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(d)Tax Withholding.  If the Company is required to withhold taxes or other amounts from compensation payable to Grantee at the time of settlement of the DSUs, Grantee will make arrangements acceptable to the Company to pay such withholding amounts.

(e)Consent to Electronic Delivery. GRANTEE HEREBY CONSENTS TO ELECTRONIC DELIVERY OF THE PLAN, ANY PROSPECTUS FOR THE PLAN AND OTHER DOCUMENTS RELATED TO THE PLAN (COLLECTIVELY, THE “PLAN DOCUMENTS”), IN RESPECT OF THIS EQUITY AWARD AND ALL OTHER EQUITY AWARDS THAT MAY BE GRANTED OR HAVE BEEN GRANTED BY THE COMPANY.  THE COMPANY WILL DELIVER THE PLAN DOCUMENTS ELECTRONICALLY TO GRANTEE BY E-MAIL, BY POSTING SUCH DOCUMENTS ON ITS INTRANET WEBSITE OR BY ANOTHER MODE OF ELECTRONIC DELIVERY AS DETERMINED BY THE COMPANY IN ITS SOLE DISCRETION.  THE COMPANY WILL SEND TO GRANTEE AN E-MAIL ANNOUNCEMENT WHEN A NEW PLAN DOCUMENT IS AVAILABLE ELECTRONICALLY FOR GRANTEE’S REVIEW, DOWNLOAD OR PRINTING AND WILL PROVIDE INSTRUCTIONS ON WHERE THE PLAN DOCUMENT CAN BE FOUND.  UNLESS OTHERWISE SPECIFIED IN WRITING BY THE COMPANY, GRANTEE WILL NOT INCUR ANY COSTS FOR RECEIVING THE PLAN DOCUMENTS ELECTRONICALLY THROUGH THE COMPANY’S COMPUTER NETWORK.  GRANTEE WILL HAVE THE RIGHT TO RECEIVE PAPER COPIES OF ANY PLAN DOCUMENT BY SENDING A WRITTEN REQUEST FOR A PAPER COPY TO THE COMPANY AT THE ADDRESS SET FORTH IN SECTION 9(e) BELOW.  GRANTEE’S CONSENT TO ELECTRONIC DELIVERY OF THE PLAN DOCUMENTS WILL BE VALID AND REMAIN EFFECTIVE UNTIL THE EARLIER OF (i) THE TERMINATION OF GRANTEE’S PARTICIPATION IN THE PLAN AND (ii) THE WITHDRAWAL OF GRANTEE’S CONSENT TO ELECTRONIC DELIVERY OF THE PLAN DOCUMENTS.  THE COMPANY ACKNOWLEDGES AND AGREES THAT GRANTEE HAS THE RIGHT AT ANY TIME TO WITHDRAW HIS OR HER CONSENT TO ELECTRONIC DELIVERY OF THE PLAN DOCUMENTS BY SENDING A WRITTEN NOTICE OF WITHDRAWAL TO THE COMPANY AT THE ADDRESS SET FORTH IN SECTION 9(e) BELOW.  IF GRANTEE WITHDRAWS HIS OR HER CONSENT TO ELECTRONIC DELIVERY, THE COMPANY WILL RESUME SENDING PAPER COPIES OF THE PLAN DOCUMENTS WITHIN TEN (10) BUSINESS DAYS OF ITS RECEIPT OF THE WITHDRAWAL NOTICE.  GRANTEE ACKNOWLEDGES THAT HE OR SHE IS ABLE TO ACCESS, VIEW AND RETAIN AN E-MAIL ANNOUNCEMENT INFORMING GRANTEE THAT THE PLAN DOCUMENTS ARE AVAILABLE IN EITHER HTML, PDF OR SUCH OTHER FORMAT AS THE COMPANY DETERMINES IN ITS SOLE DISCRETION.

9.Miscellaneous.

(a)Binding Agreement; Written Amendments. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties.  This Agreement constitutes the entire agreement between the parties with respect to the DSUs, and supersedes any prior agreements or documents with respect thereto.  No amendment or alteration of this Agreement that may impose any additional obligation upon the Company shall be valid unless expressed in a written instrument duly executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement that may materially impair the rights of Grantee with respect to the DSUs shall be valid unless expressed in a written instrument executed by Grantee.

(b)No Promise of Continued Service.  The DSUs and the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that Grantee has 

 

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a right to continue as a director of the Company or any of its subsidiaries or affiliates for any period of time, or at any particular rate of compensation.  Grantee acknowledges and agrees that the Plan is discretionary in nature and limited in duration, and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time, provided, however that any outstanding DSUs shall not be materially and adversely affected without the written agreement of Grantee.  The grant of DSUs under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of restricted stock units or stock options or benefits in lieu of units or stock options in the future.  Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of any grant, the number of units and vesting provisions.

(c)Unfunded Plan. Any provision for distribution in settlement of Grantee's Account hereunder shall be by means of bookkeeping entries on the books of the Company and shall not create in Grantee any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for Grantee.  With respect to Grantee's entitlement to any distribution hereunder, Grantee shall be a general creditor of the Company.

(d)Governing Law. THE VALIDITY, CONSTRUCTION, AND EFFECT OF THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS (INCLUDING THOSE GOVERNING CONTRACTS) OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS, AND APPLICABLE U.S. FEDERAL LAW AND TAX LAW OF CANADA.  The DSUs and the granting thereof are subject to Grantee’s compliance with the applicable laws of the jurisdiction of Grantee’s service.

(e)Notices. Any notice to be given the Company under this Agreement shall be addressed to the Company at 2121 Rosecrans Avenue, Suite 6300, El Segundo, California 90245, attention: General Counsel, and any notice to Grantee shall be addressed to Grantee at Grantee’s address as then appearing in the records of the Company.

 

7Exhibit 4.8

 

DESCRIPTION OF REGISTRANT’S SECURITIES

 

The following summary of the securities of
Plastec Technologies, Ltd., a Cayman Islands exempted company (the “Company”), is based on and qualified by the Company’s
second amended and restated memorandum and articles of association (the “Charter”), the Companies Act (As Revised) of the
Cayman Islands (as the same may be supplemented or amended from time to time, the “Companies Act”) and Cayman Islands law
generally. References to the “Company” and to “we,” “us,” and “our” refer to Plastec Technologies,
Ltd.

 

General

 

As of December 31, 2020, the Company is authorized
to issue 100,000,000 ordinary shares, par value $0.001 per share, and 1,000,000 preferred shares, par value $0.001 per share.

 

Ordinary Shares

 

As of December 31, 2020, there were 12,938,128
ordinary shares outstanding. Our shareholders have no conversion, preemptive, or other subscription rights and there are no sinking fund
or redemption provisions applicable to the ordinary shares.

 

The Company has four directors with each director
serving until the Company’s next annual general meeting, if one is called for, and until his successor is elected and qualified.
There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the shares
eligible to vote for the election of directors can elect all of the directors.

 

Subject to any rights or restrictions attached
to any specific shares we may issue (our Charter does not contain any special voting right or restrictions on our ordinary shares), every
member who (being an individual) is present in person or by proxy or, if a corporation or other non-natural person is present by its duly
authorized representative or proxy has one vote for every share of which he is the holder.

 

Preferred Shares

 

As of December 31, 2020, there were no preferred
shares outstanding. Our Charter authorizes 1,000,000 preferred shares and provide that preferred shares may be issued from time to time
in one or more series. Our board of directors will be authorized to fix the voting rights, if any, designations, powers, preferences,
the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable
to the shares of each series. Our board of directors will be able to, without shareholder approval, issue preferred shares with voting
and other rights that could adversely affect the voting power and other rights of the holders of the ordinary shares and could have anti-takeover
effects. The ability of our board of directors to issue preferred shares without shareholder approval could have the effect of delaying,
deferring or preventing a change of control of us or the removal of existing management. Although we do not currently intend to issue
any preferred shares, we cannot assure you that we will not do so in the future.

 

Dividends

 

Subject to the Companies Act and our Charter,
our board of directors may declare dividends and distributions on our ordinary shares in issue and authorize payment on the dividends
or distributions out of lawfully available funds. No dividend or distribution may be paid except out of our realized or unrealized profits,
or out of the share premium account or as otherwise permitted by Cayman Islands law. Cayman Islands law provides that a Cayman Islands
company may declare and pay a dividend on its shares out of either profit or share premium account. Subscription monies received by the
Company by way of pure share capital (i.e. the par value of the shares) may not be used for the payment of dividends. A dividend may not
be paid if this would result in the Company being unable to pay its debts as they fall due in the ordinary course of business.

 

     

     

    

 

Changes in Capital

 

We may increase our authorized share capital by
ordinary resolution of our shareholders under Cayman Islands law (which requires the affirmative vote of a majority of the shareholders
who attend and vote at a general meeting of the company or a unanimous written resolution of shareholders). The new shares will be subject
to all of the provisions to which the original shares are subject as set out in our Charter. We may also by ordinary resolution: (i) consolidate
and divide all or any of our share capital into shares of a larger amount; (ii) sub-divide existing shares into shares of a smaller amount;
and (iii) cancel any shares which, at the date of the resolution, are not held or agreed to be held by any person. We may reduce our share
capital and any capital redemption reserve by special resolution of our shareholders under Cayman Islands law (which requires the affirmative
vote of at least a majority of two-thirds of the shareholders who attend and vote at a general meeting of the company or a unanimous written
resolution of shareholders).

 

Listing of Securities

 

Our ordinary shares are quoted on the OTC Bulletin
Board under the symbol PLTYF.

 

Cayman Islands Company Considerations

 

Differences in Corporate Law

 

Cayman Islands companies are governed by the Companies
Act. The Companies Act is modeled on English Law but does not follow recent English Law statutory enactments, and differs from laws applicable
to United States corporations and their shareholders. Set forth below is a summary of some significant differences between the provisions
of the Companies Act applicable to us and the laws applicable to companies incorporated in the State of Delaware of the United States
and their shareholders.

 

Mergers and Similar Arrangements

 

In certain circumstances, the Companies
Act allows for mergers or consolidations between two Cayman Islands companies, or between a Cayman Islands exempted company and a company
incorporated in another jurisdiction (provided that is facilitated by the laws of that other jurisdiction).

 

Where the merger or consolidation is
between two Cayman Islands companies, the directors of each company must approve a written plan of merger or consolidation containing
certain prescribed information. That plan or merger or consolidation must then be authorized by either (a) a special resolution (usually
a majority of 66 2⁄3% in value of the voting shares voted at a general meeting) of the shareholders of each company; or (b) such
other authorization, if any, as may be specified in such constituent company’s articles of association. No shareholder resolution
is required for a merger between a parent company (i.e., a company that owns at least 90% of the issued shares of each class in a subsidiary
company) and its subsidiary company. The consent of each holder of a fixed or floating security interest of a constituent company must
be obtained, unless the court waives such requirement. If the Cayman Islands Registrar of Companies is satisfied that the requirements
of the Companies Act (which includes certain other formalities) have been complied with, the Registrar of Companies will register the
plan of merger or consolidation.

 

     

     

    

 

Where the merger or consolidation involves
a foreign company, the procedure is similar, save that with respect to the foreign company, the directors of the Cayman Islands exempted
company are required to make a declaration to the effect that, having made due enquiry, they are of the opinion that the requirements
set out below have been met: (i) that the merger or consolidation is permitted or not prohibited by the constitutional documents of the
foreign company and by the laws of the jurisdiction in which the foreign company is incorporated, and that those laws and any requirements
of those constitutional documents have been or will be complied with; (ii) that no petition or other similar proceeding has been filed
and remains outstanding or order made or resolution adopted to wind up or liquidate the foreign company in any jurisdictions; (iii) that
no receiver, trustee, administrator or other similar person has been appointed in any jurisdiction and is acting in respect of the foreign
company, its affairs or its property or any part thereof; and (iv) that no scheme, order, compromise or other similar arrangement has
been entered into or made in any jurisdiction whereby the rights of creditors of the foreign company are and continue to be suspended
or restricted.

 

Where the surviving company is the
Cayman Islands exempted company, the directors of the Cayman Islands exempted company are further required to make a declaration to the
effect that, having made due enquiry, they are of the opinion that the requirements set out below have been met: (i) that the foreign
company is able to pay its debts as they fall due and that the merger or consolidated is bona fide and not intended to defraud unsecured
creditors of the foreign company; (ii) that in respect of the transfer of any security interest granted by the foreign company to the
surviving or consolidated company (a) consent or approval to the transfer has been obtained, released or waived; (b) the transfer is permitted
by and has been approved in accordance with the constitutional documents of the foreign company; and (c) the laws of the jurisdiction
of the foreign company with respect to the transfer have been or will be complied with; (iii) that the foreign company will, upon the
merger or consolidation becoming effective, cease to be incorporated, registered or exist under the laws of the relevant foreign jurisdiction;
and (iv) that there is no other reason why it would be against the public interest to permit the merger or consolidation.

 

Where the above procedures are adopted,
the Companies Act provides for a right of dissenting shareholders to be paid a payment of the fair value of his shares upon their dissenting
to the merger or consolidation if they follow a prescribed procedure. In essence, that procedure is as follows: (a) the shareholder must
give his written objection to the merger or consolidation to the constituent company before the vote on the merger or consolidation, including
a statement that the shareholder proposes to demand payment for his shares if the merger or consolidation is authorized by the vote; (b)
within 20 days following the date on which the merger or consolidation is approved by the shareholders, the constituent company must give
written notice to each shareholder who made a written objection; (c) a shareholder must within 20 days following receipt of such notice
from the constituent company, give the constituent company a written notice of his intention to dissent including, among other details,
a demand for payment of the fair value of his shares; (d) within seven days following the date of the expiration of the period set out
in clause (b) above or seven days following the date on which the plan of merger or consolidation is filed, whichever is later, the constituent
company, the surviving company or the consolidated company must make a written offer to each dissenting shareholder to purchase his shares
at a price that the company determines is the fair value and if the company and the shareholder agree the price within 30 days following
the date on which the offer was made, the company must pay the shareholder such amount; and (e) if the company and the shareholder fail
to agree a price within such 30 day period, within 20 days following the date on which such 30 day period expires, the company (and any
dissenting shareholder) must file a petition with the Cayman Islands Grand Court to determine the fair value and such petition must be
accompanied by a list of the names and addresses of the dissenting shareholders with whom agreements as to the fair value of their shares
have not been reached by the company. At the hearing of that petition, the court has the power to determine the fair value of the shares
together with a fair rate of interest, if any, to be paid by the company upon the amount determined to be the fair value. Any dissenting
shareholder whose name appears on the list filed by the company may participate fully in all proceedings until the determination of fair
value is reached. These rights of a dissenting shareholder are not available in certain circumstances, for example, to dissenters holding
shares of any class in respect of which an open market exists on a recognized stock exchange or recognized interdealer quotation system
at the relevant date or where the consideration for such shares to be contributed are shares of any company listed on a national securities
exchange or shares of the surviving or consolidated company.

 

     

     

    

 

Moreover, Cayman Islands law has separate
statutory provisions that facilitate the reconstruction or amalgamation of companies in certain circumstances. Schemes of arrangement
will generally be more suited for complex mergers or other transactions involving widely held companies, commonly referred to in the Cayman
Islands as a “scheme of arrangement” which may be tantamount to a merger. In the event that a merger was sought pursuant to
a scheme of arrangement (the procedures for which are more rigorous and take longer to complete than the procedures typically required
to consummate a merger in the United States), the arrangement in question must be approved by a majority in number of each class of shareholders
and creditors with whom the arrangement is to be made and who must in addition represent three-fourths in value of each such class of
shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meeting summoned
for that purpose. The convening of the meetings and subsequently the terms of the arrangement must be sanctioned by the Grand Court of
the Cayman Islands. While a dissenting shareholder would have the right to express to the court the view that the transaction should not
be approved, the court can be expected to approve the arrangement if it satisfies itself that:

 

	 	·	the parties are not proposing to act illegally or beyond the scope of their corporate authority and the statutory provisions as to majority vote have been complied with;

 

	 	·	the shareholders have been fairly represented at the meeting in question;

 

	 	·	the arrangement is such as a businessman would reasonably approve; and

 

	 	·	the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act or that would amount to a “fraud on the minority.”

 

If a scheme of arrangement or takeover
offer (as described below) is approved, dissenting shareholders would not have rights comparable to appraisal rights (providing rights
to receive payment in cash for the judicially determined value of the shares), which would otherwise ordinarily be available to dissenting
shareholders of United States corporations.

 

Takeover Offers

 

When a takeover offer is made and accepted
by holders of 90% of the shares to whom the offer relates is made within four months, the offeror may, within a two-month period, require
the holders of the remaining shares to transfer such shares on the terms of the offer. An objection can be made to the Grand Court of
the Cayman Islands but this is unlikely to succeed unless there is evidence of fraud, bad faith, collusion or inequitable treatment of
the shareholders.

 

Further, transactions similar to a
merger, reconstruction and/or an amalgamation may in some circumstances be achieved through means other than these statutory provisions,
such as a share capital exchange, asset acquisition or control, or through contractual arrangements, of an operating business.

 

Anti-Takeover Provisions 

 

Some provisions of our Charter may discourage,
delay or prevent a change in control of our company or management that shareholders may consider favorable, including provisions that
authorize our board of directors to issue preference shares in one or more series and to designate the price, rights, preferences, privileges
and restrictions of such preference shares without any further vote or action by our shareholders.

 

However, under Cayman Islands law, our directors
may only exercise the rights and powers granted to them under our Charter for what they believe in good faith to be in the best interests
of our company and for a proper purpose.

 

     

     

    

 

Shareholder Proposals

 

Neither Cayman Islands law nor our Charter allow
our shareholders to requisition shareholders' annual general meetings. As an exempted Cayman Islands company, we are not obliged by law
to call shareholders’ annual general meetings. Additionally, the directors shall convene an extraordinary general meeting upon a
members’ requisition (a requisition of members holding at the date of deposit of the requisition not less than 10% in par value
of our capital which as at that date carries the right of voting at general meetings).

 

Directors’ Fiduciary Duties

 

Under Delaware corporate law, a director of a
Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and
the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would
exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information
reasonably available regarding a significant transaction. The duty of loyalty requires that a director act in a manner he or she reasonably
believes to be in the best interests of the corporation. He or she must not use his or her corporate position for personal gain or advantage.
This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence
over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general,
actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken
was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary
duties. Should such evidence be presented concerning a transaction by a director, a director must prove the procedural fairness of the
transaction, and that the transaction was of fair value to the corporation.

 

Under Cayman Islands law, directors and officers
owe the following fiduciary duties:

 

	 	(i)	duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole;

 

	 	(ii)	duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose;

 

	 	(iii)	directors should not improperly fetter the exercise of future discretion;

 

	 	(iv)	duty to exercise powers fairly as between different sections of shareholders;

 

	 	(v)	duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests; and

 

	 	(vi)	duty to exercise independent judgment.

 

In addition to the above, directors also owe a
duty of care which is not fiduciary in nature. This duty has been defined as a requirement to act as a reasonably diligent person having
both the general knowledge, skill and experience that may reasonably be expected of a person carrying out the same functions as are carried
out by that director in relation to the company and the general knowledge skill and experience of that director.

 

As set out above, directors have a duty not to
put themselves in a position of conflict and this includes a duty not to engage in self-dealing, or to otherwise benefit as a result of
their position. However, in some instances what would otherwise be a breach of this duty can be forgiven and/or authorized in advance
by the shareholders provided that there is full disclosure by the directors. This can be done by way of permission granted in our Charter
or alternatively by shareholder approval at general meetings.

 

Accordingly, as a result of multiple business
affiliations, our officers and directors may have similar legal obligations relating to presenting business opportunities meeting the
above-listed criteria to multiple entities. In addition, conflicts of interest may arise when our board evaluates a particular business
opportunity with respect to the above-listed criteria. We cannot assure you that any of the above mentioned conflicts will be resolved
in our favor. Furthermore, each of our officers and directors has pre-existing fiduciary obligations to other businesses of which they
are officers or directors.

 

     

     

    

 

Removal of Directors

 

Under the Delaware General Corporation Law, a
director of a corporation with a classified board may be removed only for cause with the approval of a majority of the outstanding shares
entitled to vote, unless the certificate of incorporation provides otherwise.

 

Under our Charter, directors may be removed by
an ordinary resolution or by resolution of all of the other directors of the company (being not less than two in number) then in office.

 

Transactions with Interested Shareholders

 

The Delaware General Corporation Law contains
a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be
governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations
with an “interested shareholder” for three years following the date that such person becomes an interested shareholder. An
interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target’s outstanding voting
stock within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the
target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on
which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction
which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate
the terms of any acquisition transaction with the target’s board of directors.

 

Cayman Islands law has no comparable statute.
As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although
Cayman Islands law does not regulate transactions between a company and its significant shareholders, it does provide that such transactions
must be entered into bona fide in the best interests of the company and for a proper corporate purpose and not with the effect of constituting
a fraud on the minority shareholders.

 

Dissolution; Winding Up

 

Under the Delaware General Corporation Law, unless
the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting
power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the
corporation’s outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority
voting requirement in connection with dissolutions initiated by the board.

 

Under Cayman Islands law, a company may be wound
up by either an order of the courts of the Cayman Islands or by a special resolution (which requires approval by not less than two-thirds
of the votes cast by the shareholders at a meeting) of its members or, if the company is unable to pay its debts as they fall due, by
an ordinary resolution of its members. The court has authority to order winding up in a number of specified circumstances including where
it is, in the opinion of the court, just and equitable to do so.

 

Under our Charter, our company may be dissolved,
liquidated or wound up by order of the courts of the Cayman Islands upon petition by our board or by the vote of holders of two-thirds
of our shares voting at a meeting or the unanimous written resolution of all shareholders.

 

     

     

    

 

Variation of Rights of Shares

 

Under the Delaware General Corporation Law, a
corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the
certificate of incorporation provides otherwise.

 

All or any of the special rights attached to any
class of shares may, subject to the provisions of the Companies Act, be varied either with the written consent of the holders of two-thirds
of the issued shares of that class or with the sanction of a special resolution passed at a general meeting of the holders of the shares
of that class. The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, subject
to any rights or restrictions for the time being attached to the shares of that class, be deemed to be materially adversely varied by,
inter alia, the creation, allotment or issue of further shares ranking pari passu with or subsequent to them, the creation, allotment
or issuance of further shares (whether ranking in priority to, pari passu or subsequent to them) pursuant to the board of director’s
ability to issue preference shares in the manner described in “Anti-Takeover Provisions” or the redemption or purchase of
any shares of any class by the Company. The rights of the holders of shares shall not be deemed to be materially adversely varied by the
creation or issue of shares with preferred or other rights including, without limitation, the creation of shares with enhanced or weighted
voting rights.

 

Amendment of Governing Documents

 

Under the Delaware General Corporation Law, a
corporation’s governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless
the certificate of incorporation provides otherwise.

 

As permitted by Cayman Islands law, our Charter
may only be amended by special resolution (which requires approval by not less than two-thirds of the votes cast by the shareholders at
a meeting) or the unanimous written resolution of all shareholders.

 

Rights of Non-Resident or Foreign Shareholders

 

There are no limitations imposed by our Charter
on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares. In addition, there are no provisions
in our Charter governing the ownership threshold above which shareholder ownership must be disclosed.

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