Document:

mist_Ex4_3

		
			Exhibit 4.3
		

		
			DESCRIPTION OF THE REGISTRANT'S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE
		

		
			SECURITIES EXCHANGE ACT OF 1934
		

		
			The following description sets forth certain material terms and provisions of the securities of Milestone Pharmaceuticals Inc. (the “Company”) that are registered under Section 12 of the Securities Exchange Act of 1934, as amended. The following description of our securities is intended as a summary only and is qualified in its entirety by reference to our articles of incorporation and amendments thereto and our bylaws, each of which are filed as exhibits to the Annual Report on Form 10-K of which this description is a part, and to the applicable provisions of the Business Corporations Act (Québec) (BCA).
		

		
			General
		

		
			Based upon shares outstanding as of December 31, 2019, our share capital consists of an unlimited number of common shares, no par value per share, of which 24,505,748 shares are issued and outstanding, and an unlimited number of preferred shares, no par value per share, none of which are issued and outstanding.
		

		
			Common Shares
		

		
			Outstanding Shares
		

		
			As of December 31, 2019, we had 24,505,748 common shares outstanding, which were held by approximately 30 shareholders of record.
		

		
			Voting Rights
		

		
			Under our articles of incorporation, the holders of common shares are entitled to one vote for each share held at any meeting of the shareholders.
		

		
			Dividends
		

		
			Subject to the prior rights of holders of our preferred shares, if applicable, the holders of common shares are entitled to receive dividends as and when declared by our board of directors. We have never declared or paid cash dividends on our share capital, and we do not currently intend to pay any cash dividends on our share capital in the foreseeable future. We currently intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business. Any future determination related to dividend policy will be made at the discretion of our board of directors, subject to applicable laws, and will depend upon, among other factors, our results of operations, financial condition, contractual restrictions and capital requirements. In addition, our ability to pay cash dividends on our share capital in the future may be limited by the terms of any future debt or preferred securities we issue or any credit facilities we enter into.
		

		
			Liquidation
		

		
			Subject to the prior payment to holders of our preferred shares, if any, in the event of our liquidation, dissolution or winding-up or other distribution of our assets among our shareholders, the holders of common shares are entitled to share pro rata in the distribution of the balance of our assets.
		

		
			Rights and Preferences
		

		
			The holders of common shares have no preemptive, conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to our common shares. There is no provision in
		

		
			
		

		
			

		 

		

		
			 
		

		
			our articles of incorporation requiring the holders of common shares to contribute additional capital or permitting or restricting the issuance of additional securities or any other material restrictions. The rights, preferences and privileges of the holders of common shares may be subject to, and adversely affected by, the rights of the holders of any series of preferred shares that we may designate in the future.
		

		
			Preferred Shares
		

		
			We do not have any preferred shares outstanding. Under our articles of incorporation, we are authorized to issue, without shareholder approval, an unlimited number of preferred shares, issuable in one or more series, and, subject to the provisions of the BCA, having such designations, rights, privileges, restrictions and conditions, including dividend and voting rights, as our board of directors may determine, and such rights and privileges, including dividend and voting rights, may be superior to those of the common shares. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our company and might adversely affect the market price of our common shares and the voting and other rights of the holders of common shares. We have no current plans to issue any preferred shares.
		

		
			Options
		

		
			As of December 31, 2019,  2,584,666 common shares were issuable upon the exercise of outstanding share options, at a weighted-average exercise price of $3.755 per share. For additional information regarding terms of our equity incentive plans, see the section titled “— Equity Incentive Plans” elsewhere in this Annual Report on Form 10-K.
		

		
			Registration Rights
		

		
			Holders of certain of the common shares issued upon the conversion of our preferred shares in connection with our initial public offering on May 13, 2019 are entitled to certain rights with respect to registration of any securities held by such investors, as well as any under the Securities Act. These shares are referred to as registrable securities. The holders of these registrable securities possess registration rights pursuant to the terms of our third amended and restated registration rights agreement and are described below. The registration of common shares pursuant to the exercise of the registration rights described below would enable the holders to trade these shares without restriction under the Securities Act when the applicable registration statement is declared effective. We will pay the registration expenses, other than underwriting discounts, selling commissions and share transfer taxes for the shares registered pursuant to the demand, piggyback and Form S-3 registrations described below. Expenses relating to underwriting discounts, selling commissions and share transfer taxes for the shares registered will be borne by us and the participating holders in proportion to the number of common shares sold by each, or, as between the participating holders, as such participating holders may otherwise agree.
		

		
			Generally, in an underwritten offering, the managing underwriter, if any, has the right, subject to specified conditions, to limit the number of shares the holders may include. The demand, piggyback and Form S-3 registration rights described below will expire upon the earliest of (i) the occurrence of certain mergers or consolidations of the company, (ii) the date on which the shares that are the subject to the agreement are publicly sold, or if they may be publicly sold: (x) pursuant to Rule 144 of the Securities Act and (y) Section 2.5 of Regulation 45-102 respecting Resale of Securities, as adopted by the Canadian Securities Administrators, and (iii) five years after the completion of our initial public offering.
		

		
			Demand Registration Rights
		

		
			Beginning on May 13, 2020, the one year anniversary of the closing of our initial public offering, certain holders of the common shares issued upon conversion of our preferred shares will be entitled to certain demand registration rights. These demand rights permit holders of at least 25% of the registrable
		

		
			
		

		
			

		 

		

		
			 
		

		
			securities then outstanding, on not more than two occasions, to request that we register all or a portion of their shares, subject to certain specified exceptions, pursuant to either the Securities Act, Regulation 41-101 respecting General Prospectus Requirements, as adopted by Canadian Securities Administrators or both.
		

		
			Piggyback Registration Rights
		

		
			Holders of certain of the common shares issued upon conversion of our preferred shares are entitled to include their shares of registrable securities in any registration statement we file in the event that we propose to register any of our securities under the Securities Act in an offering, either for our own account or for the account of other security holders, subject to specified conditions and limitations.
		

		
			S-3 Registration Rights
		

		
			Holders of certain of the common shares issued upon conversion of our preferred shares are entitled to certain Form S-3 registration rights. The holders of at least 25% of the registrable securities then outstanding may, on not more than two occasions within any 12-month period, request that we register all or a portion of their shares on Form S-3 or a form under the Canada-United States Multijurisdictional Disclosure System, or the MJDS, if we are qualified to file a registration statement on Form S-3 or the MJDS, as applicable, subject to specified exceptions. Such request for registration on Form S-3 must cover securities with an aggregate offering price which equals or exceeds$10.0 million. The right to have such shares registered on Form S-3 is further subject to other specified conditions and limitations.
		

		
			Indemnification
		

		
			The third amended and restated registration rights agreement contains customary cross-indemnification provisions, pursuant to which we are obligated to indemnify the selling shareholders in the event of material misstatements or omissions in the registration statement attributable to us, and they are obligated to indemnify us for material misstatements or omissions in the registration statement attributable to them.
		

		
			Transfer Agent and Registrar
		

		
			Our transfer agent and registrar for our common shares is Computershare Investor Services Inc., with an address of 1500 Robert-Bourassa Boulevard, 7th Floor, Montréal, Quebec H3A 3S8.
		

		
			Nasdaq Global Market Listing
		

		
			Our common shares are listed on The Nasdaq Global Market under the trading symbol "MIST."
		

		
			Advance Notice Procedures and Shareholder Proposals
		

		
			Under the BCA, shareholders may make proposals for matters to be considered at the annual general meeting of shareholders. Such proposals must be sent to us in advance of any proposed meeting by delivering a timely written notice in proper form to our registered office in accordance with the requirements of the BCA. The notice must include information on the business the shareholder intends to bring before the meeting.
		

		
			In addition, our bylaws require that shareholders provide us with advance notice of their intention to nominate any persons, other than those nominated by management, for election to our board of directors at a meeting of shareholders.
		

		
			These provisions could have the effect of delaying the nomination of certain persons for director that are favored by the holders of a majority of our outstanding voting securities.EX-10.1

 Exhibit 10.1 

DONNELLEY FINANCIAL SOLUTIONS, INC. 

PERFORMANCE CASH AWARD (2016 PIP)(adopted on March 2, 2020) 

This Performance Cash Award (“Award”) is granted as of XXXX (the “Grant Date”), by Donnelley Financial Solutions,
Inc. (the “Company”) to XXXX (“Grantee”). 
 1.    Grant of Award. This Award is
granted as an incentive for Grantee to remain an employee of the Company and share in the future success of the Company. The Company hereby awards a performance cash award to Grantee with a target value of $XXXX (the “Performance
Cash”) (which shall represent target achievement of the Performance Condition (as defined below)), subject to the restrictions and on the terms and conditions set forth herein. This Award is made pursuant to the provisions of the Donnelley
Financial Solutions 2016 Amended and Restated Performance Incentive Plan, as amended (“2016 PIP”). Capitalized terms not defined herein shall have the meanings specified in the 2016 PIP. Grantee shall indicate acceptance of this Award by
signing and returning a copy hereof. 
 2.    Determination of Achievement; Distribution of Award. 

(a)    The amount of Performance Cash payable in respect of the Performance Cash Award will be determined according to the
attainment of the performance condition or conditions as established by the Committee and set forth on Exhibit A hereto (each, a “Performance Condition”) for the applicable performance period (the “Performance Period”) as
established by the Committee and set forth on Exhibit A. The Committee shall determine and certify the attainment of each Performance Condition after the applicable Performance Period. 

(b)    Any payment with respect to this Award shall be made to Grantee as soon as practicable following the determination
of the achievement of the Performance Condition as described in (a) above, but no later than 60 days thereafter. Distribution of this Award will be made in cash. 

3.    Treatment upon Separation or Termination. 

(a)    Notwithstanding any other agreement with Grantee to the contrary, if Grantee’s employment terminates by reason
of death or Disability (as defined in the applicable Company long-term disability policy as in effect at the time of Grantee’s disability), a pro rata portion of any unvested Performance Cash shall vest and become payable, based the on
attainment of each Performance Condition at target performance level with respect to each open Performance Period. 

(b)    Subject to paragraph 4 below and the terms and conditions of any employment agreement between Grantee and the
Company, if Grantee’s employment terminates for any reason other than as set forth above, any unvested Performance Cash shall be forfeited. 

  
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 4.    Treatment upon Change in Control. Notwithstanding any other
agreement with Grantee to the contrary, upon the date of a Change in Control, each Performance Condition shall be deemed met at the target performance level with respect to each open Performance Period. Such Performance Cash will continue to remain
subject to time-based vesting until the end of the Performance Period; provided, however, that if on or within three months prior to or two years after the date of such Change in Control, Grantee’s employment is terminated by the
Company or any successor entity thereto without Cause (as defined below), or Grantee resigns his or her employment with Good Reason (as defined below), all of the Performance Cash earned pursuant to this paragraph 5 shall immediately vest and become
payable as of the date of such termination of employment. Unless otherwise defined in Grantee’s employment agreement or other arrangement with the Company, “Cause” and “Good Reason” shall have the meanings ascribed to them
below. 
 “Cause” means (i) Grantee’s willful and continued failure to perform substantially his or her duties with the
Company (other than any such failure resulting from Grantee’s incapacity due to physical or mental illness or any such failure subsequent to Grantee’s being delivered a notice of termination without Cause) after a written demand for
substantial performance is delivered to Grantee by the Group President, the Chief Executive Officer, or the Board that identifies the manner in which Grantee has not performed his or her duties, (ii) Grantee’s willful engaging in conduct
which is demonstrably and materially injurious (monetarily or otherwise) to the business, reputation, character or community standing of the Company, (iii) conviction of or the pleading of nolo contendere with regard to a felony or any crime
involving fraud, dishonesty or moral turpitude, or (iv) a refusal or failure to attempt in good faith to follow the written direction of the Group President, the Chief Executive Officer, or the Board (provided that such written direction is
consistent with Grantee’s duty and station) promptly upon receipt of such written direction. For the purposes of this definition, no act or failure to act by Grantee shall be considered “willful” unless done or omitted to be done by
Grantee in bad faith and without reasonable belief that Grantee’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based
upon the advice of the Company’s principal outside counsel shall be conclusively presumed to be done, or omitted to be done, by Grantee in good faith and in the best interests of the Company. Notwithstanding the foregoing, the Company shall
provide Grantee with a reasonable amount of time, after a notice and demand for substantial performance is delivered to Grantee, to cure any such failure to perform, and if such failure is so cured within a reasonable time (which shall be no less
than thirty (30) days) thereafter, such failure shall not be deemed to have occurred. 
 “Good Reason” means, without
Grantee’s express written consent, the occurrence of any of the following events: (i) a change in Grantee’s duties or responsibilities (including reporting responsibilities) that taken as a whole represents a material and adverse
diminution of Grantee’s duties, responsibilities or status with the Company (other than a temporary change that results from or relates to Grantee’s 

  
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incapacitation due to physical or mental illness), (ii) a reduction by the Company in Grantee’s rate of annual base salary or annual target bonus opportunity (including any material and
adverse change in the formula for such annual bonus target) as the same may be increased from time to time, (iii) any requirement of the Company that Grantee’s office be more than seventy-five (75) miles from Grantee’s
then-primary work location, or (iv) any material breach by the Company of any employment agreement between Grantee and the Company. Notwithstanding the foregoing, a Good Reason event shall not be deemed to have occurred if the Company cures
such action, failure or breach within thirty (30) days after receipt of notice thereof given by Grantee. Grantee’s right to terminate employment for Good Reason shall not be affected by Grantee’s incapacities due to mental or physical
illness and Grantee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason; provided, however, that Grantee must provide notice of termination of employment
within ninety (90) days following Grantee’s knowledge of an event constituting Good Reason or such event shall not constitute Good Reason under this Agreement. 

5.    Withholding Taxes. As a condition precedent to the payment of the Performance Cash pursuant to this Award,
the Company may, in its discretion, deduct from any amount then or thereafter payable by the Company to Grantee such amount of cash as the Company may be required, under all applicable federal, state, local or other laws or regulations, to withhold
and pay over as income or other withholding taxes with respect to the Award. 
 6.    Miscellaneous  

(a)    Nothing in this Award shall confer upon Grantee any right to continue in the employ of the Company or any other
company that is controlled, directly or indirectly, by the Company or to interfere in any way with the right of the Company to terminate Grantee’s employment at any time. 

(b)    No interest shall accrue at any time on this Award or the Performance Cash. 

(c)    This Award shall be governed in accordance with the laws of the state of Delaware. 

(d)    This Award shall be binding upon and inure to the benefit of any successor or successors to the Company. 

(e)    Neither this Award nor the Performance Cash nor any rights hereunder or thereunder may be transferred or assigned by
Grantee other than by will or the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or other procedures approved by the Company. Any other transfer or attempted assignment, pledge or
hypothecation, whether or not by operation of law, shall be void. 

  
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 (f)    The Committee, as from time to time constituted, shall have the
right to determine any questions that arise in connection with this Agreement or the Performance Cash. This Agreement and the Performance Cash are subject to the provisions of the 2016 PIP and shall be interpreted in accordance therewith. 

(g)    If there is any inconsistency between the terms and conditions of this Award and the terms and conditions of the
Grantee’s Employment Agreement, the terms and conditions of the Grantee’s Employment Agreement shall control. 
 IN WITNESS
WHEREOF, the Company has caused this Award to be duly executed by its duly authorized officer. 
  

			
	DONNELLEY FINANCIAL SOLUTIONS, INC.
		
	By:	 	
		
	Name:	 	Kirk Williams
	Title:	 	Chief Human Resources Officer

 All of the terms of this Award are accepted as of this          day of
            , 20XX. 
  

	
	
                          
                                      

	Grantee:

  
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