Document:

Exhibit

Exhibit 10.1
BEIGENE, LTD.
AMENDMENT NO. 2 TO SHARE PURCHASE AGREEMENT
THIS AMENDMENT NO. 2 (this “Amendment”) to the SHARE PURCHASE AGREEMENT, dated as of October 31, 2019, as amended on December 6, 2019 (the “Agreement”), is made and entered into as of March 17, 2020, by and among BeiGene, Ltd., an exempted company incorporated in the Cayman Islands (the “Company”), and Amgen Inc., a Delaware corporation (the “Investor”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.
RECITALS
WHEREAS, pursuant to the Agreement, the Investor purchased and subscribed for Two Hundred Six Million Six Hundred Thirty-Five Thousand Thirteen (206,635,013) Ordinary Shares in the form of Fifteen Million Eight Hundred Ninety-Five Thousand One (15,895,001) American Depositary Shares of the Company at a purchase price of $13.45 per share, or $174.85 per American Depositary Share, at the Closing, which represented approximately twenty point five percent (20.5%) of the Company’s outstanding share capital as of that date;
WHEREAS, in order to account for periodic dilution from the issuance of the Company’s shares under its equity incentive plans, the Company and the Investor would like to provide for the option to purchase by the Investor of such supplemental amount of Ordinary Shares in the form of American Depositary Shares on a monthly basis such that the Investor will hold approximately twenty point six percent (20.6%) of the Company’s outstanding share capital immediately following each such purchase in order to maintain the Investor’s equity method accounting treatment for its investment in the Company;
WHEREAS, pursuant to Section 8.9 of the Agreement, no provision in the Agreement may be supplemented, deleted or amended except in a writing executed by an authorized representative of each of the Investor and the Company; and
WHEREAS, the Company will seek all approvals of the Company’s shareholders required for the Company to (i) enter into this Amendment and (ii) issue the Monthly Firm Shares (as defined below), in each case in accordance with the HK Listing Rules.
NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1.    Addition of Section 2.4. The following shall be inserted as a new Section 2.4 of the Agreement:
“2.4 Monthly Sale of Additional Shares. 
(a)    Subject to the Subsequent Shareholder Approval, purchases and sales under this Section 2.4 shall commence on the first (1st) day of the month following the Subsequent Shareholder Approval (or if the Company’s American Depositary Shares are not trading on NASDAQ on such day, the next trading day) (the “Commencement Date”) and shall continue until the earliest of (i) the date on which the Investor and its Affiliates collectively own less than twenty percent (20%) of the outstanding share capital of the Company as a result of the Investor’s sale of Shares, (ii) written notice from either the Investor or the Company that such party wishes to terminate such monthly purchases and sales, which notice shall be provided at least sixty (60) days in advance of the termination of such monthly purchases and sales or such longer period as 

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reasonably required, upon advice of Investor’s counsel, to permit the Investor to commence market purchases under a trading plan in accordance with Rule 10b5-1 under the Exchange Act, and (iii) the third anniversary of the Commencement Date (the “Monthly Sale Period”). Upon mutual agreement by the parties and subject to approval by the Company’s shareholders if required by the HK Listing Rules, this Amendment shall be extended for additional three-year terms upon expiration of the then current term. 
(b)    During the Monthly Sale Period, on the first (1st) day of each month (or if the Company’s American Depositary Shares are not trading on NASDAQ on such day, the next trading day), the Company shall send or cause to be sent via e-mail to the Investor the following information (such  notice, the “Monthly Firm Shares Notice”): (i) the number of ADSs Outstanding as of the applicable Reference Date, (ii) the Amgen Percentage as of such Reference Date based on the latest information provided by the Investor (which shall be confirmed by the Investor and revised if inaccurate), (iii) the volume weighted average price of one Company American Depositary Share on NASDAQ for the ninety (90) calendar days preceding such Reference Date, as reported by Bloomberg (each, a “Monthly Firm Shares Purchase Price”) and (iv) an updated Company Disclosure Schedule as of the applicable Reference Date in accordance with Section 2.4(d), if any.  If the Amgen Percentage is less than the Trigger Percentage as of such Reference Date, then,  upon the Investor’s written request (the “Investor Request”) delivered within two (2) Business Days following Investor’s receipt of the Monthly Firm Shares Notice, the Company hereby agrees to sell to the Investor and the Investor agrees to subscribe for such additional number of Ordinary Shares in the form of American Depositary Shares (the “Monthly Firm Shares”) equal to: (x) the number of ADSs Outstanding multiplied by (y) a percentage equal to the Target Percentage minus the Amgen Percentage, based on the Monthly Firm Shares Notice, at a purchase price per Monthly Firm Share equal to the Monthly Firm Shares Purchase Price; provided, however, that in no event shall the aggregate number of Monthly Firm Shares issued during the Monthly Sale Period, exceed Seventy-Five Million (75,000,000) Ordinary Shares (subject to appropriate adjustment in the event of any share dividend, share split, combination or other similar recapitalization with respect to the Ordinary Shares). If the Amgen Percentage in any such Monthly Firm Shares Notice is equal to or greater than the Trigger Percentage, then the Company shall not issue, and the Investor shall not have the option to subscribe for, any Monthly Firm Shares for such month.  The Monthly Firm Shares shall be in the form of American Depositary Shares, unless the Investor requests in writing that the Monthly Firm Shares be delivered in the form of Ordinary Shares, in which case the number of shares and purchase price shall be adjusted accordingly based on the ADS to Ordinary Share ratio.  Any Monthly Firm Shares purchased hereunder shall be “Shares” or “Deposit Shares” as the context shall so require for purposes of Article 1, Article 3, Article 4, Article 5 and Article 8 of the Agreement.  Until such time as the Investor elects to cease equity method accounting for its investment in the Company, the Investor and Company acknowledge and agree that the Investor’s direct purchase of Ordinary Shares in the form of American Depositary Shares from the Company on a monthly basis hereunder shall be the primary means for the Investor to purchase shares in order to maintain such equity method accounting treatment.   
(c)    Subject to the terms and conditions hereof, the closing of the purchase and sale of Monthly Firm Shares, if any, shall take place each month within seven (7) Business Days following the Reference Date, or at such other time as mutually agreed by the Company and the Investor (the “Monthly Closing”). At each Monthly Closing, the Company will instruct the Transfer Agent to deliver to the Investor, via book entry to the applicable balance account registered in the name of the Investor, the Monthly Firm Shares for such month, against payment of the aggregate Monthly Firm Share Purchase Price for such Monthly Firm Shares in U.S. dollars by wire transfer of immediately available funds to the order of the Company. 

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(d)    For purposes of Article 3 and Article 4 of the Agreement, the representations and warranties contained therein shall be deemed made as of the date of the applicable Monthly Closing, as supplemented by, in the case of Article 3, (i) the Company’s most recent Form 10-K (including any information incorporated by reference therein from the Company’s definitive proxy statement on Schedule 14A) and any subsequent Form 10-Q and Form 8-K filed with or furnished to the SEC and made publicly available prior to the date of delivery of the Monthly Firm Shares Notice (other than (x) any information that is contained in the “Risk Factors” or “Note Regarding Forward-Looking Statements” or similar sections of such Company SEC Documents and (y) any forward-looking statements, or other statements that are similarly predictive or forward-looking in nature, contained in such Company SEC Documents), and (ii) any update to the Company Disclosure Schedule as of the applicable Reference Date provided by the Company to Investor in accordance with Section 2.4(b); provided that the Company shall not be required to provide any updates to (x) Section 3.2 (Subsidiaries) to list any newly formed subsidiaries since the most recent disclosures in the Form 10-K or any Form 10-Q, or (y) Section 3.3 (Capitalization) other than the updated number of outstanding shares included in the Monthly Firm Shares Notice, which shall constitute a representation and warranty of the Company under the Agreement; and provided, further, that if there are any material updates to the Company Disclosure Schedule following delivery of the Investor Request, the Investor Request may be revoked prior to the issuance of the shares in the Investor’s sole discretion. 
(e)    For purposes of this Section 2.4:
(i)    “ADSs Outstanding” means the total number of the Company’s Ordinary Shares outstanding prior to NASDAQ market opening on the Reference Date, expressed in terms of American Depositary Shares.
(ii)    “Amgen Percentage” means the percentage of the ADSs Outstanding held by the Investor as of the latest Reference Date.
(iii)    “Reference Date” means the day on which the Company’s ADSs are trading on NASDAQ immediately preceding the first (1st) day of each calendar month during the Monthly Sale Period.
(iv)    “Subsequent Shareholder Approval” means all approvals of the Company’s shareholders required for the Company to (i) enter into Amendment No. 2 to the Share Purchase Agreement and (ii) issue the Monthly Firm Shares, in each case in accordance with the HK Listing Rules.
(v)    “Target Percentage” means 20.6% of the Company’s outstanding share capital after giving effect to the issuance of the Monthly Firm Shares hereunder.” 
(vi)    “Trigger Percentage” means 20.4% of the Company’s outstanding share capital.
2.    Amendment to Section 5.16(a). The first sentence of Section 5.16(a) is deleted in its entirety and replaced with:
“If the Company proposes to offer or sell any Ordinary Shares, American Depositary Shares or Ordinary Share Equivalents after the Closing Date, other than pursuant to the Plans (“New Securities”), and at the time immediately prior to such offer or sale the Investor holds no more than twenty one percent (21.0%) of the Company’s outstanding share capital, the Company shall use reasonable best efforts to provide the Investor with an opportunity to participate in such offering or sale and purchase upon the same terms and conditions as other purchasers in the offering or sale of the New Securities, up to that portion of such New Securities 

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as is necessary to allow the Investor to hold approximately twenty point six percent (20.6%) of the Company’s share capital after the sale of New Securities, so long as the Investor’s ownership percentage prior to such sale has not decreased as a result of the Investor’s sale of Shares or the Investor’s failure to participate in future offerings or sales of New Securities in which Investor is given the opportunity to participate pursuant to this Section 5.16(a), subject to applicable Law, HK Listing Rules and any waiver therefrom granted by the HK Stock Exchange.”
3.    Addition of Section 5.21. The following shall be inserted as a new Section 5.21 of the Agreement:
“5.21 Preparation of Proxy; Shareholders Meeting; Board Recommendation.

(a)     As promptly as reasonably practicable after the execution of this Amendment, the Company shall prepare and cause to be filed with the SEC and the HK Stock Exchange a proxy circular relating to the Subsequent Shareholder Approval (such proxy circular, and any amendments or supplements thereto, the “Supplemental Proxy Statement”). The Investor shall assist and cooperate with the Company in the preparation of the Supplemental Proxy Statement and the resolution of any comments to the Supplemental Proxy Statement received from the SEC or HK Stock Exchange. The Company shall promptly correct any information in the Supplemental Proxy Statement if and to the extent such information becomes false or misleading in any material respect. The Company shall notify the Investor upon the receipt of any comments from the SEC or HK Stock Exchange, as applicable, and of any request by the SEC or HK Stock Exchange, as applicable, for amendments or supplements to the Supplemental Proxy Statement. The Company shall use its reasonable best efforts to (i) respond as promptly as reasonably practicable to any comments received from the SEC or HK Stock Exchange, as applicable, concerning the Supplemental Proxy Statement and to resolve such comments with the SEC or HK Stock Exchange, as applicable, and (ii) to cause the Supplemental Proxy Statement to be disseminated to its shareholders as promptly as reasonably practicable after the resolution of any such comments.

(b)     The Company shall take all necessary actions in accordance with applicable Law, the governing documents of the Company and the rules of NASDAQ and the HK Stock Exchange, as applicable, to duly call, give notice of, convene and hold a special shareholders meeting (the “Supplemental Meeting”) for the purpose of obtaining the Subsequent Shareholder Approval, as soon as reasonably practicable after the SEC or HK Stock Exchange, as applicable, confirms that it has no further comments on the Supplemental Proxy Statement. Notwithstanding any provision of this Agreement to the contrary, the Company may adjourn, recess or postpone the Supplemental Meeting (i) to the extent necessary to ensure that any required supplement or amendment to the Supplemental Proxy Statement is provided to the shareholders of the Company within a reasonable amount of time in advance of the Supplemental Meeting, (ii) if as of the time for which the Supplemental Meeting is originally scheduled (as set forth in the Supplemental Proxy Statement) there are insufficient shares of capital stock of the Company represented (either in person or by proxy) to constitute a quorum necessary to conduct the business of the Supplemental Meeting or (iii) as may be required by applicable Law.”

4.    General
A.    Except as expressly modified by this Amendment, the terms and provisions of the Agreement shall remain unchanged and in full force and effect in accordance with its terms.
B.    Each of the parties hereto shall bear its respective costs, including legal fees, and expenses incurred in connection with the preparation of this Amendment and the activities incurred in connection therewith.

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C.    This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.
D.    This Amendment shall be governed by and construed in accordance with the Laws of the State of New York, without regard to the conflict of laws principles thereof that would require the application of the Law of any other jurisdiction.
E.    The Agreement and this Amendment constitute the full and entire understanding and agreement between the Company and the Investor with regard to the subject matter hereof and neither the Company nor the Investor shall be liable or bound to any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein and therein.
F.    This Amendment shall become effective immediately upon execution by the Company and the Investor.
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.
THE COMPANY:
BEIGENE, LTD.
By: /s/ Scott A. Samuels    
Name:    Scott A. Samuels
Title:    Senior Vice President, General Counsel

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.
INVESTOR:
AMGEN INC.
By: /s/ Robert A. Bradway    
Name:    Robert A. Bradway
Title:    Chairman of the Board, President & CEO

7Exhibit
4.1

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Communications
Systems, Inc. (“CSI,” “we,” “our,” or “us”) has one class of securities registered
under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock.

 

DESCRIPTION
OF CAPITAL STOCK

 

The
following summary of the general terms and provisions of our capital stock does not purport to be complete and is based upon and
qualified by reference to our articles of incorporation and bylaws, which are either filed as exhibits to our Annual Report on
Form 10-K or are incorporated by reference to our Annual Report on Form 10-K. We encourage you to read our articles of incorporation,
our bylaws and the applicable provisions of the Minnesota Business Corporation Act, or MBCA, for additional information.

 

Authorized
Shares of Capital Stock

 

The
aggregate number of shares of capital stock that the Company has authority to issue is as follows

 

3,000,000
shares of preferred stock, $1.00 par value

 

30,000,000
shares of common stock, par value $.05

 

Preferred
Stock

 

We
have no preferred stock outstanding.

 

On
December 18, 2009, the Board of Directors of the Company (the “Board”) authorized and declared a dividend distribution
of one Right for each outstanding share of the Company’s Common Stock value per share outstanding at the close of business
on January 4, 2010 (the “Record Date”), each Right representing the right to purchase one one-hundredth of a share
of Series A Junior Participating Preferred Stock of the Company having the rights, powers and preferences set forth in the form
of Amended and Restated Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock and
further authorized the issuance of one Right with respect to each share of Common Stock that would become outstanding after the
close of business on the Record Date. This Shareholder Rights Plan expired in December 2019.

 

Common
Stock

 

Holders
of the Company’s common stock are entitled to one vote for each share held of record on all matters submitted to a vote
of the shareholders and do not have cumulative voting rights. Except as otherwise provided by law, our articles of incorporation
or our bylaws, matters will generally be decided by the vote of the holders of a majority of the voting power present in person
or represented by proxy. Our bylaws provide that the authorized number of directors will be fixed by the shareholders at each
annual meeting and that either the shareholders or the board of directors may increase or decreases the number of directors. Our
board of directors is not classified.

 

     

     

    

 

Holders
of our common stock are entitled to receive dividends declared by our board of directors out of funds legally available for the
payment of dividends. In the event of any liquidation, dissolution or winding-up of our affairs, holders of common stock will
be entitled to share ratably in our assets that are remaining after payment or provision for payment of all of our debts and obligations.

 

Holders
of common stock have no preemptive, conversion or subscription rights, and there are no redemption provisions applicable to the
common stock.

 

All
outstanding shares of our common stock are fully paid and nonassessable.

 

The
transfer agent and registrar for our common stock is Equiniti Trust Company, 1110 Centre Pointe Curve, Suite 101, South St. Paul,
Minnesota 55120-4100

 

Our
common stock is currently listed on The NASDAQ Stock Market LLC under the trading symbol “JCS.”

 

Anti-Takeover
Effects of Provisions of our Articles of Incorporation, our Bylaws and Minnesota Law

 

Specific
provisions of Minnesota law, our articles of incorporation and our bylaws may be deemed to have an anti-takeover effect.

 

The
Company’s Bylaws of the Company establish an advance notice procedure with regard to (i) certain business to be brought
before an annual meeting of shareholders of the Company and (ii) the nomination by shareholders of candidates for election as
directors.

 

Properly
Brought Business

 

The
Bylaws provide that at the annual meeting only such business may be conducted as is of a nature that is appropriate for consideration
at an annual meeting and has been either specified in the notice of the meeting, otherwise properly brought before the meeting
by or at the direction of the Board of Directors, or otherwise properly brought before the meeting by a shareholder who has given
timely written notice to the Secretary of the Company of the shareholder’s intention to bring the business before the meeting.
To be timely, the notice must be given by such shareholder to the Secretary of the Company not less than 45 days or more than
75 days prior to a meeting date corresponding to the previous year’s annual meeting. Notice relating to the conduct of such
business at an annual meeting must contain certain information as described in Section 2.9 of the Company’s Bylaws, which
are available for inspection by shareholders at the Company’s principal executive offices pursuant to Section 302A.441,
subd. 4 of the Minnesota Statutes. Nothing in the Bylaws precludes discussion by any shareholder of any business properly brought
before the annual meeting in accordance with the Company’s Bylaws.

 

    2 

     

    

 

Shareholder
Nominations

 

The
Bylaws provide that a notice of proposed shareholder nominations for the election of directors must be timely given in writing
to the Secretary of the Company prior to the meeting at which directors are to be elected. To be timely, the notice must be given
by the shareholder to the Secretary of the Company not less than 45 days or more than 75 days prior to a meeting date corresponding
to the previous year’s annual meeting. The notice to the Company from a shareholder who intends to nominate a person at
the meeting for election as a director must contain certain information as described in Section 3.7 of the Company’s Bylaws,
which are available for inspection by shareholders as described above. If the presiding officer of a meeting of shareholders determines
that a person was not nominated in accordance with the foregoing procedure, that person will not be eligible for election as a
director.

 

Shareholder
Meetings

 

Under
our bylaws, regular meetings of our shareholders may be called only by our board of directors, or by written consent of all the
shareholders entitled to vote at the annual meeting. If the Board fails to designate a time for a regular meeting for any consecutive
period of 15 months, the board must cause such regular meeting to be called within 90 days of receipt of the written demand of
any shareholder owning one percent or more of all voting shares of the corporation

 

Under
our bylaws, special meetings of our shareholders may be called by the Chief Executive Officer, the Chief Financial Officer, any
two or more directors, or upon request by shareholders holding ten percent or more of the voting power of the shareholders.

 

Provisions
of Minnesota Law

 

The
following provisions of the MBCA may have an effect of delaying, deterring or preventing an unsolicited takeover of the Company
or make an unsolicited takeover of the Company more difficult.

 

MBCA
Section 302A.553 [Power to acquire shares] subd 3, [limitation on share purchases] prohibits a publicly held corporation
such as CSI from purchasing shares entitled to vote for more than market value from a person that beneficially owns more than
5% of the voting power of the corporation if the shares have been beneficially owned for less than two years unless the purchase
or agreement to purchase is approved at a meeting of shareholders by the affirmative vote of the holders of a majority of the
voting power of all shares entitled to vote or the corporation makes an offer, of at least equal value per share, to all shareholders
for all other shares of that class or series and any other class or series into which they may be converted.

 

MBCA
Section 302A.671 [Control share acquisitions] provides that shares of an “issuing public corporation,” such
as Electro-Sensors, Inc. acquired by an “acquiring person” in a “control share acquisition” that exceed
the threshold of voting power of any of the three ranges identified below will not have voting rights, unless the issuing public
company’s shareholders vote to accord these shares the voting rights normally associated with these shares. A “control
share acquisition” is an acquisition, directly or indirectly, by an “acquiring person” (as defined in the MBCA)
of beneficial ownership of shares of an issuing public corporation that, but for Section 302A.671, would, when added to all other
shares of the issuing public corporation beneficially owned by the acquiring person, entitle the acquiring person, immediately
after the acquisition, to exercise or direct the exercise of a new range of voting power of the issuing public corporation with
any of the following three ranges: (i) at least 20 percent but less than 33-1/3 percent; (ii) at least 33-1/3 percent but less
than or equal to 50 percent; and (iii) over 50 percent. The issuing public company also has an option to call for redemption all,
but not less than all, shares acquired in the control share acquisition that exceed the threshold of voting power of any of the
specified ranges at a price equal to the fair market value of the shares at the time the call is given if (i) the acquiring person
fails to deliver the information statement to the issuing public company by the tenth day after the control share acquisition;
or (ii) shareholders have voted not to accord voting rights to the shares acquired in the control share acquisition.

 

    3 

     

    

 

MBCA
Section 302A.673 [Business combinations] prohibits a public Minnesota corporation, such as Electro-Sensors, Inc. from engaging
in a business combination with an interested shareholder for a period of four years after the date of the transaction in which
the person became an interested shareholder, unless either (i) the business combination or (ii) the acquisition by which the person
becomes an interested shareholder is approved in a prescribed manner before the person became an interested shareholder. The term
“business combination” includes mergers, asset sales and other transactions resulting in a financial benefit to the
interested shareholder. An “interested shareholder” is a person who is the beneficial owner, directly or indirectly,
of 10% or more of a corporation’s voting stock, or who is an affiliate or associate of the corporation, and who, at any
time within four years before the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the corporation’s
outstanding voting stock.1

 

If
a takeover offer is made for our stock, MBCA Section 302A.675 [Takeover offer; fair price] precludes the offeror from acquiring
additional shares of stock (including in acquisitions pursuant to mergers, consolidations or statutory share exchanges) within
two years following the completion of the takeover offer, unless shareholders selling their shares in the later acquisition are
given the opportunity to sell their shares on terms that are substantially the same as those contained in the earlier takeover
offer. A “takeover offer” is a tender offer that results in an offeror who owned ten percent or less of a class of
our shares acquiring more than ten percent of that class, or that results in the offeror increasing its beneficial ownership of
a class of our shares by more than ten percent of the class, if the offeror owned ten percent or more of the class before the
takeover offer. Section 302A.675 does not apply if a committee of our board of directors formed in accordance with Section 302A.675
approves the proposed acquisition before any shares are acquired pursuant to the earlier tender offer.

 

 

 

 

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