Document:

Exhibit
10.6

 

Consulting
Agreement

 

This
consulting agreement (the “Agreement”), effective 5th day of June, 2020 (“Effective Date”) by and
between Andrew Kucharchuk (“Consultant”), an individual whose address is 549 Millgate Place, Baton Rouge, LA 70808
and OncBioMune Pharmaceuticals, Inc., a Nevada corporation with its principal office located at 8000 Innovation Park Dr., Baton
Rouge, LA 70820 together with its affiliates and subsidiaries (“OncBioMune” or the “Company”).

 

RECITALS

 

WHEREAS,
OncBioMune is a commercial-stage molecular data-generating company, and

 

WHEREAS,
Consultant is a finance executive and professional with expertise and many years of experience providing strategic, financial
and accounting advisory services to the Company; and

 

WHEREAS,
Consultant is willing to provide the professional expertise and experience in those areas required or desired by OncBioMune; and

 

WHEREAS,
OncBioMune desires to contract with Consultant for the rendition and performance of such professional services, as more fully
described in this Agreement, and Consultant agrees to render and perform such services on an independent contractor basis to OncBioMune,
on the terms and conditions set forth in this Agreement; and

 

NOW,
THEREFORE, in consideration of the foregoing recitals, which are hereby incorporated into this Agreement as an integral part
hereof, and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, OncBioMune and Consultant, intending to be legally bound, hereby agree as follows:

 

1.
Term of Engagement. The Agreement shall be effective for a period of six (6) months, commencing on the Effective
Date of this Agreement (the “Initial Term”). Thereafter, the Agreement shall only renew on a month-to-month basis
by mutual agreement of the parties, subject to the right of OncBioMune and/or the Consultant to terminate this Agreement pursuant
to paragraph 6 hereof. The Initial Term plus any monthly renewals up to the time of Termination shall hereinafter be referred
to as the “Term” or the “Term of the Engagement.”

 

2.
Services. During the Term, Consultant will be responsible for providing professional strategic, financial
and accounting advisory consulting services (collectively, the “Services”), as more fully described in Exhibit A attached
hereto.

 

3.
Agreements of OncBioMune. Pursuant to this Agreement, OncBioMune agrees to the following:

 

	 	a)	Provide
    such information that may be necessary for the provision of the Services by Consultant; and 

 

	 	b)	Provide
    such other support as Consultant may reasonably request in order for Consultant to perform his duties as outlined in paragraph
    2 of the Agreement and Exhibit A attached hereto.

 

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4.
Compensation and Expenses. In consideration
for the Services rendered by Consultant to OncBioMune throughout the Term of Engagement, the Company shall compensate Consultant
in accordance with the terms set forth in Exhibit B attached hereto.

 

5.
Arm’s-length Compensation. The parties hereto agree that the compensation provided herein has been determined
in arm’s-length bargaining and is consistent with fair market value in arm’s-length transactions. Furthermore, the
compensation is not and has not been determined in a manner that takes into account the volume or value of any referrals or business
otherwise generated between the parties for which payment may be made in whole or in part under Medicare or any other federal
or state health care program or any other third party payor program.

 

6.
Termination. Consultant shall each have the right to terminate this
Agreement at any time by giving written notice to the Company at least thirty (30) days prior to the effective termination date
(“Termination Date”). After the Initial Term, the Company shall have the right to terminate the Agreement by giving
written notice to Consultant at least thirty (30) days prior to the effective Termination Date. Upon such a Termination, Consultant
agrees to cease all representation on behalf of the Company, including, but not limited to representations to the Company’s
clients that Consultant is acting on behalf of the Company in any capacity; provided, however the Consultant agrees to answer
any reasonable follow-up inquiries from clients or the Company for matters on which she has previously reported or been involved.

 

7.
Confidentiality and Non-Disclosure Agreement.

 

a)
The term “Confidential Information” as used herein shall include all testing recipes, formulas, business practices,
methods, techniques, or processes that: (i) derives independent economic value, actual or potential, from not being generally
known to or not available to the public, and not being readily ascertainable by proper means by other persons who can obtain economic
value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its
secrecy. Confidential Information also includes, but is not limited to, Marketing Information,
Marketing Strategy, Pricing Information, Product Plans, Business Plans, Financial Plans, Compliance Plans, Forms, Customer Lists,
Salary and Other Personnel Information, Training Manuals, Training Tapes, Third Party Contract Terms and other business
information of a similar nature, including information about the Company itself, which Consultant acknowledges and agrees has
been compiled by the Company’s expenditure of a great amount of time, money and effort,
and that contains detailed information that could not be created independently from public sources. Further, all data,
spreadsheets, reports, records, know-how, verbal communication, proprietary and technical information and/or other confidential
materials of similar kind transmitted by the Company to Consultant are expressly included within the definition of “Confidential
Information.” The parties further agree that the fact the Company may be seeking to complete a business transaction is “Confidential
Information” within the meaning of this Agreement, as well as all notes, analysis, work product or other material derived
from Confidential Information. The parties agree that the following information is not “Confidential Information”
as that term is used herein: (i) information that was or becomes generally available to the public, (ii) technical and scientific
information and know-how available in published literature or that can be obtained by hire or purchase from another business entity,
or (iii) information that was or becomes available to Consultant on a non-confidential basis from an independent source.

 

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b)
In the event that Consultant is requested or required (by oral questions, interrogatories, requests for information or documents,
subpoenas, civil investigative demands or similar processes) to disclose or produce any Confidential Information furnished in
the course of its dealings with the other party or its affiliates, advisors or Representatives, it is agreed that the Consultant
will (i) provide the Company with prompt notice thereof and copies, if possible, and, if not, a description, of the Confidential
Information requested or required to be disclosed or produced so that the Company may seek an appropriate protective order or
waive compliance with the provisions of this Agreement and (ii) consult with the Company as to the advisability of the Consultant
taking of legally available steps to resist or narrow such request. In the event the Company seeks an appropriate protective order,
or decides to challenge any request for Confidential Information, the Company agrees to pay for all costs associated with the
actions of the Company, including, but not limited to court costs, attorney’s fees and any other expense related thereto.
It is further agreed that, if in the absence of a protective order or the receipt of a waiver hereunder the Consultant is nonetheless,
in the written opinion of its legal counsel, compelled to disclose or produce Confidential Information concerning the Company
to any tribunal or to stand liable for contempt or suffer other censure or penalty, the Consultant may disclose or produce such
Confidential Information, at the expense of the Company, to such tribunal without liability hereunder; provided, however,
that the Consultant shall give the Company written notice of the Confidential Information to be so disclosed or produced as far
in advance of its disclosure or production as is practicable and shall use its best efforts to obtain, to the greatest extent
practicable, an order or other reliable assurance that confidential treatment will be accorded to such Confidential Information
so required to be disclosed or produced.

 

c)
Consultant acknowledge(s) that this “Confidential Information” is of value to the Company by providing it with a competitive
advantage over its competitors, is not generally known to competitors of the Company, is not information easily available to the
public, and is not intended by the Company for general dissemination. Consultant acknowledges that this “Confidential Information”
derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable
by proper means by, other persons who can obtain economic value from its disclosure or use, and is the subject of reasonable efforts
to maintain its secrecy. Therefore, the parties agree that all “Confidential Information” under this Agreement constitutes
“Trade Secrets” under the law of any state in which the Consultant provides
services to the Company or, in the absence of any such definition, as defined in the Uniform Trade Secrets Act.

 

d)
Duty of Confidentiality. All Confidential Information is considered highly sensitive and strictly confidential. Accordingly,
upon receiving any Confidential Information, Consultant agrees that he/she shall maintain and preserve such Confidential Information
and prevent its disclosure to any third party unless otherwise expressly authorized by the Company. Consultant shall not use or
disclose, directly or indirectly, as an individual or as a partner, joint venturer, employee,
agent, salesman, contractor, officer, director or otherwise, for the benefit of himself or herself or any other person, partnership,
firm, corporation, association or other legal entity, any Confidential Information, unless expressly permitted by this
Agreement.

 

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8.
Agreement Not To Solicit. Consultant agrees and acknowledges that for a period of twelve (12) months after the effective
Termination Date (see section 6 for definition of the Termination Date), he will not, directly or indirectly, in one or a series
of transactions, as an individual or as a partner, joint venturer, employee, agent, salesman,
contractor, officer, director or otherwise, for the benefit of himself or any other person, partnership, firm, corporation, association
or other legal entity: (a) recruit, solicit or otherwise induce or influence any proprietor, partner, stockholder, lender, director,
officer, employee, sales agent, joint venturer, investor, lessor, supplier, customer, agent, representative or any other person
which has a business relationship with the Company to discontinue, reduce or modify such employment, agency or business relationship
with the Company, or (b) employ or seek to employ any person or agent who is then (or was at any time within twelve (12) months
prior to the date Consultant or such entity employs or seeks to employ such person) employed or retained by the Company. Any such
solicitation shall constitute a material breach of this Agreement and will cause irreparable harm and loss to the Company for
which monetary damages will be an insufficient remedy. Therefore, the parties agree that in addition to any other remedy available,
the Company will be entitled to temporary and permanent injunctive relief, without the necessity of posting bond, restraining
Consultant from any actual or threatened unauthorized solicitation by Consultant. The spirit of this non-solicit section is to
prevent Consultant from leaving the Company and taking any Company personnel or customers of the Company for a period of two years
after the date of Termination.

 

9.
Return of Property. Upon the termination of this Agreement, regardless of
why the Agreement terminates, Consultant shall return to the Company and/or certify that it has been deleted from Consultant’s
computer all property owned by the Company and all Confidential Information indicated by the Company as well as any other Confidential
Information that Consultant is aware that he has, in whatever form it exists, including all copies thereof. The Company
agrees that so long as Consultant has made a good faith effort to return all such property and Confidential Information, Consultant
shall be deemed to have complied with these provisions. The Company may at anytime call to Consultant’s attention that it
has not yet received certain additional Confidential Information and Consultant shall promptly search for such additional Confidential
Information and return it to the Company. The Company agrees that Consultant may delete any information that is proprietary to
Consultant that may be contained within the Company’s Confidential Information prior to Consultant returning it to the Company.

 

10.
Miscellaneous.

 

	 	a)	This
    Agreement supersedes all prior agreements and understandings between the parties and may not be modified or terminated orally.
    The Consultant hereby waives any claims that it might have under any previous oral or other contract. No modification or attempted
    waiver of this Agreement will be valid unless in writing and signed by the party against whom the same is sought to be enforced.

 

	 	b)	The
    provisions of this Agreement are separate and severable, and if any of them is declared invalid and/or unenforceable by a
    court of competent jurisdiction or an arbitrator, the remaining provisions shall not be affected.

 

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	 	c)	If
    a court of competent jurisdiction determines that any of the restrictions against disclosure of Confidential Information,
    and/or solicitation contained in this Agreement are invalid in whole or in part due to over breadth, whether geographically,
    temporally, or otherwise, such court is specifically authorized and requested to reform such provision by modifying it to
    the smallest extent necessary to render it valid and enforceable, and to enforce the provision as modified.

 

	 	d)	This
    Agreement is the joint product of the Company and the Consultant and each provision hereof has been subject to the mutual
    consultation, negotiation and agreement of the Company and the Consultant and shall not be construed for or against either
    party hereto.

 

	 	e)	This
    Agreement will be governed by, and construed in accordance with the provisions of the law of the State of Colorado, without
    reference to provisions that refer a matter to the law of any other jurisdiction. Each party hereto hereby irrevocably submits
    itself to the exclusive personal jurisdiction of the federal and state courts sitting in Colorado; accordingly, any matters
    involving the Company and the Consultant with respect to this Agreement may be adjudicated only in a federal or state court
    sitting in Colorado.

 

	 	f)	All
    notices and other communications required or permitted under this Agreement shall be in writing, and shall be deemed properly
    given if delivered personally, mailed by registered or certified mail in the United States mail, postage prepaid, return receipt
    requested, sent by facsimile, or sent by Express Mail, Federal Express or nationally recognized express delivery service,
    as follows:

 

(i)
If to the Company, at the address listed at the preamble to this Agreement or its then primary executive offices to the attention
of the Chief Executive Officer; and

 

(ii)
If to the Consultant, at the address listed at the preamble to this Agreement or the Consultant’s primary legal residence
which is listed at the signature block of this agreement. Should this address change, the Consultant agrees to promptly notify
the Company of such change.

 

Notice
given by hand, certified or registered mail, or by Express Mail, Federal Express or other such express delivery service, shall
be effective upon actual receipt. Notice given by facsimile transmission shall be effective upon telephonic confirmation of receipt
by the party to whom it is addressed. All notices by facsimile transmission shall be followed up promptly after transmission by
delivering an original copy by hand, certified or registered mail, or by Express Mail, Federal Express or other such delivery
service. Any party may change any address to which notice is to be given to it by giving notice as provided above of such change
of address.

 

	 	g)	The
    parties agree that the Consultant is acting as an independent contract under current Internal Revenue Service guidelines in
    the provision of services under this Agreement and that the Consultant shall be solely responsible for paying all taxes due
    on any Compensation hereunder. The Consultant understands and acknowledges that all Compensation hereunder is taxable to the
    Consultant and the Company has an affirmative obligation to report such amounts of Compensation on Form 1099 to the Internal
    Revenue Service each year. The Consultant agrees to provide its tax identification number in the signature block below.

 

	 	h)	This
    Agreement may be signed in counterparts, and by fax or Adobe Acrobat PDF file, each of which shall be an original, with the
    same effect as if the signatures thereto and hereto were upon the same instrument.

 

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IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year first set forth above.

 

	ONCBIOMUNE
    PHARMACEUTICALS, INC.:	 	CONSULTANT:
	 	 	 	 	 
	By:	/s/
                                         Mick Ruxin                            

		By:	/s/
                                         Andrew Kucharchuk

	 	Mick
    Ruxin, M.D.	 	 	Andrew
    Kucharchuk
	 	Chief
    Executive Officer	 	 	 

 

	 	Legal
    Residence:
	 	 	 
	 	Phone:	          

 

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EXHIBIT
A

 

DESCRIPTION
OF DUTIES AND SERVICES

 

In
accordance with the terms and conditions of the Consulting Agreement between Andrew Kucharchuk (“Consultant”) and
OncBioMune Pharmaceuticals, Inc. and its affiliates (“Company”) and Section 2 therein, this Exhibit A describes the
duties and services (the “Services”) the Consultant shall perform under
the Agreement.

 

	 	1.	Provide
    professional strategic, financial and accounting advisory consulting services to the Company under the direction of the Company’s
    Chief Executive Officer (“CEO”).

 

	 	2.	Participate
    in meetings and telephone conferences, as needed, with the CEO other Company personnel to facilitate the provision of Services.

 

	 	3.	Such
    other activities as may be needed by the CEO at the expense of the Company. The spirit of this section is to try and account
    for other activities or issues that have not been addressed or identified in paragraphs (1) through (2) above.

 

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EXHIBIT
B

 

COMPENSATION
FOR SERVICES

 

In
accordance with the terms and conditions of the Consulting Agreement between Andrew Kucharchuk (“Consultant”) and
OncBioMune Pharmaceuticas, Inc. and its affiliates (“Company”) and Section 4 therein, this Exhibit B sets forth the
compensation to be by the Company to the Consultant for the provision of the Services described in Exhibit A and Section 2 of
the Agreement.

 

	 	1.	The
    Company agrees to pay Consultant $15,000 per month for the provision of Services set forth in Section 2 of the Agreement and
    Exhibit A attached hereto. Such payments will be made monthly on the 15th of each month, so long as the Consultant provides
    an invoice for the prior month’s services on the 1st of such month. Consultant agrees to prepare an invoice periodically,
    no more frequently than monthly, for all Services rendered on behalf of the Company during any given month of providing such
    Services.

 

	 	2.	In
    addition to any compensation payable hereunder, the Company shall also reimburse Consultant for all expenses reasonably incurred
    by him in connection with the Services performed on behalf of the Company under the Agreement including, but not limited to,
    airfare, hotel, rental car, food, and associated expenses, upon providing the original receipts and an expense report for
    such expenses in accordance with the Company’s standard expense reimbursement policy then in effect. Consultant agrees
    to seek prior written approval from OncBioMune before incurring expenses in excess of $500.00 in any given month. 

 

	 	3.	Except
    as may be set forth in this Exhibit B and the Agreement, each party shall be responsible for its own costs and expenses incurred
    in connection with this Agreement. Each party shall also bear and be responsible for paying any sales, use, or other federal,
    state, or local taxes it incurs as a direct or indirect result of entering into this Agreement.

 

    	 	8Exhibit 4.7

 

DESCRIPTION OF COMMON SHARES

 

The following description of our share capital and provisions of our memorandum of association and amended and restated bye-laws is a summary and is qualified entirely by reference to the applicable provisions of our memorandum of association, amended and restated bye-laws and the Bermuda Companies Act 1981, as amended, or the Companies Act. Our memorandum of association and amended and restated bye-laws are exhibits to our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that we file with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.

 

General

 

We are an exempted limited company incorporated under the laws of Bermuda. We are registered with the Registrar of Companies in Bermuda under registration number 49659. We were incorporated on October 31, 2014 under the name Roivant Neurosciences Ltd. We changed our name to Axovant Sciences Ltd. in March 2015 and to Axovant Gene Therapies Ltd. in March 2019. The objects of our business are unrestricted, and Axovant Gene Therapies Ltd. has the capacity of a natural person. We can therefore undertake activities without restriction on our capacity.

 

Since our incorporation, other than a subdivision of our authorized and issued share capital and our initial public offering of common shares in June 2015, there have been no material changes to our share capital, mergers, amalgamations or consolidations of us or any of our subsidiaries, no material changes in the mode of conducting our business, and no material changes in the types of products produced or services rendered. There have been no bankruptcy, receivership or similar proceedings with respect to us or our subsidiaries. There have been no public takeover offers by third parties for our shares nor any public takeover offers by us for the shares of another company that have occurred during the last or current financial years.

 

Share Capital

 

Our authorized share capital consists of 1,000,000,000 common shares, $0.00001 par value per common share. As of March 31, 2020, we had 39,526,299 common shares issued and outstanding, held by four shareholders of record and no preference shares issued and outstanding. The rights, preferences and privileges of the holders of our common shares are subject to and may be adversely affected by the rights of the holders of shares of any series of our preference shares that we may designate in the future. As of March 31, 2020, we have no preference shares issued and outstanding. All of our issued and outstanding common shares are fully paid.

 

Pursuant to our amended and restated bye-laws, subject to the requirements of Nasdaq, and to any resolution of the shareholders to the contrary, our board of directors is authorized to issue any of our authorized but unissued shares. There are no limitations on the right of non-Bermudians or non-residents of Bermuda to hold or vote our shares provided our common shares remain listed on an appointed stock exchange, which includes Nasdaq.

 

Common Shares

 

Holders of common shares have no pre-emptive, redemption, conversion or sinking fund rights. Holders of common shares are entitled to one vote per share on all matters submitted to a vote of holders of common shares, subject to the limitations described below. Unless a different majority is required by law or by our amended and restated bye-laws, resolutions to be approved by holders of common shares require approval by a simple majority of votes cast at a meeting at which a quorum is present.

 

Under our amended and restated bye-laws, shares shall not carry voting rights to the extent that our board of directors reasonably determines, based on the advice of counsel, that it is necessary to do so to avoid adverse tax, legal or regulatory consequences to us, any of our subsidiaries or any direct or indirect holder of our common shares or its affiliates, provided that our board of directors will use reasonable efforts to afford equal treatment to similarly situated shareholders to the extent possible under the circumstances.

 

 

In the event of our liquidation, dissolution or winding up, the holders of common shares are entitled to share equally and ratably in our assets, if any, remaining after the payment of all of our debts and liabilities, subject to any liquidation preference on any issued and outstanding preference shares.

 

Dividend Rights

 

Under Bermuda law, a company may not declare or pay dividends if there are reasonable grounds for believing that (1) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (2) that the realizable value of its assets would thereby be less than its liabilities. Under our amended and restated bye-laws, each common share is entitled to dividends if, as and when dividends are declared by our board of directors, subject to any preferred dividend right of the holders of any preference shares. We do not anticipate paying cash dividends in the foreseeable future.

 

Variation of Rights

 

If at any time we have more than one class of shares, the rights attaching to any class, unless otherwise provided for by the terms of issue of the relevant class, may be varied either: (1) with the consent in writing of the holders of 75% of the issued shares of that class; or (2) with the sanction of a resolution passed by a majority of the votes cast at a general meeting of the relevant class of shareholders at which a quorum consisting of at least two persons holding or representing one-third of the issued shares of the relevant class is present. Our amended and restated bye-laws specify that the creation or issue of shares ranking equally with existing shares will not, unless expressly provided by the terms of issue of existing shares, vary the rights attached to existing shares. In addition, the creation or issue of preference shares ranking prior to common shares will not be deemed to vary the rights attached to common shares or, subject to the terms of any other class or series of preference shares, to vary the rights attached to any other class or series of preference shares.

 

Transfer of Shares

 

Our board of directors may, in its absolute discretion and without assigning any reason, refuse to register the transfer of a share on the basis that it is not fully paid. Our board of directors may also refuse to recognize an instrument of transfer of a share unless it is accompanied by the relevant share certificate and such other evidence of the transferor’s right to make the transfer as our board of directors shall reasonably require or unless all applicable consents, authorizations and permissions of any governmental agency or body in Bermuda have been obtained or if it appears to our board of directors that certain tax, regulatory or legal consequences for us, any subsidiary of ours, holders of our common shares or their affiliates would result from the transfer. Subject to these restrictions, a holder of common shares may transfer the title to all or any of his common shares by completing a form of transfer in the form set out in our amended and restated bye-laws (or as near thereto as circumstances admit) or in such other common form as our board of directors may accept. The instrument of transfer must be signed by the transferor and transferee, although in the case of a fully paid share our board of directors may accept the instrument signed only by the transferor. Shares that are listed or admitted to trading on an appointed stock exchange (including The Nasdaq Global Select Market, or Nasdaq) may be transferred in accordance with the rules and regulations of such exchange.

 

Meetings of Shareholders

 

Under Bermuda law, a company is required to convene at least one general meeting of shareholders each calendar year, which we refer to as the annual general meeting. However, the shareholders may by resolution waive this requirement, either for a specific year or period of time, or indefinitely. When the requirement has been so waived, any shareholder may, on notice to the company, terminate the waiver, in which case an annual general meeting must be called. We have chosen not to waive the convening of an annual general meeting.

 

Bermuda law provides that a special general meeting of shareholders may be called by the board of directors of a company and must be called upon the request of shareholders holding not less than 10% of the paid-up capital of the company carrying the right to vote at general meetings. Bermuda law also requires that shareholders be given at least five days’ advance notice of a general meeting, but the accidental omission to give notice to any person does not invalidate the proceedings at a meeting. Our amended and restated bye-laws provide that our principal executive

 

 

officer or the chairperson or any two directors or any director and the secretary or board of directors may convene an annual general meeting and our principal executive officer or the chairperson or any two directors or any director and the secretary or our board of directors may convene a special general meeting. Under our amended and restated bye-laws, at least 14 days’ notice of an annual general meeting or ten days’ notice of a special general meeting must be given to each shareholder entitled to vote at such meeting. This notice requirement is subject to the ability to hold such meetings on shorter notice if such notice is agreed: (1) in the case of an annual general meeting by all of the shareholders entitled to attend and vote at such meeting; or (2) in the case of a special general meeting by a majority in number of the shareholders entitled to attend and vote at the meeting holding not less than 95% in nominal value of the shares entitled to vote at such meeting. Subject to the rules of Nasdaq, the quorum required for a general meeting of shareholders is two or more persons present in person at the start of the meeting and representing in person or by proxy in excess of 50% of all issued and outstanding common shares.

 

Access to Books and Records and Dissemination of Information

 

Members of the general public have a right to inspect the public documents of a company available at the office of the Registrar of Companies in Bermuda. These documents include a company’s amended and restated memorandum of association, including its objects and powers, and certain alterations to the amended and restated memorandum of association. The shareholders have the additional right to inspect the bye-laws of the company, minutes of general meetings and the company’s audited financial statements, which must be presented in the annual general meeting. The register of members of a company is also open to inspection by shareholders and by members of the general public without charge. The register of members is required to be open for inspection for not less than two hours in any business day (subject to the ability of a company to close the register of members for not more than thirty days in a year). A company is required to maintain its share register in Bermuda but may, subject to the provisions of the Companies Act establish a branch register outside of Bermuda. A company is required to keep at its registered office a register of directors and officers that is open for inspection for not less than two hours in any business day by members of the public without charge. Bermuda law does not, however, provide a general right for shareholders to inspect or obtain copies of any other corporate records.

 

Election and Removal of Directors

 

Our amended and restated bye-laws provide that our board of directors shall consist of a single class of directors of such number of directors, being not less than two, as the board of directors may determine. Our board of directors currently consists of eight directors. Each director will serve a one-year term expiring at our next annual meeting of shareholders, subject to his or her office being vacated sooner pursuant to our amended and restated bye-laws.

 

A shareholder holding 5% or more of the voting power of the common shares in issue for at least two years may propose for election as a director someone who is not an existing director or is not proposed by our board of directors. Where a director is to be elected at an annual general meeting, notice of any such proposal for election must be given not less than 90 days nor more than 120 days before the anniversary of the last annual general meeting prior to the giving of the notice or, in the event the annual general meeting is called for a date that is not less than 30 days before or after such anniversary the notice must be given not later than ten days following the earlier of the date on which notice of the annual general meeting was posted to shareholders or the date on which public disclosure of the date of the annual general meeting was made. Where a director is to be elected at a special general meeting, that notice of any shareholder proposal for election must be given not later than seven days following the earlier of the date on which notice of the special general meeting was posted to shareholders or the date on which public disclosure of the date of the special general meeting was made.

 

A director may be removed, only with cause, by the shareholders, provided notice of the shareholders meeting convened to remove the director is given to the director. The notice must contain a statement of the intention to remove the director and a summary of the facts justifying the removal and must be served on the director not less than 14 days before the meeting. The director is entitled to attend the meeting and be heard on the motion for his removal. The term of a director may also be ended by an annual general meeting or special general meeting called for the purpose of ending the term of that director and replacing that director and the director’s office is deemed vacated if the director is not re-elected.

 

 

Proceedings of Board of Directors

 

Our amended and restated bye-laws provide that our business is to be managed and conducted by our board of directors. Bermuda law permits individual and corporate directors and there is no requirement in our amended and restated bye-laws or Bermuda law that directors hold any of our shares. There is also no requirement in our amended and restated bye-laws or Bermuda law that our directors must retire at a certain age.

 

The compensation of our directors will be determined by the board of directors, and there is no requirement that a specified number or percentage of ‘‘independent’’ directors must approve any such determination. Our directors may also be paid all travel, hotel and other reasonable out-of-pocket expenses properly incurred by them in connection with our business or their duties as directors.

 

A director who discloses a direct or indirect interest in any contract or arrangement with us as required by Bermuda law will not be entitled to vote in respect of any such contract or arrangement in which he or she is interested unless the chairperson of the relevant meeting of the Board of Directors determines that such director is not disqualified from voting.

 

Indemnification of Directors and Officers

 

Section 98 of the Companies Act provides generally that a Bermuda company may indemnify its directors, officers and auditors against any liability which by virtue of any rule of law would otherwise be imposed on them in respect of any negligence, default, breach of duty or breach of trust, except in cases where such liability arises from fraud or dishonesty of which such director, officer or auditor may be guilty in relation to the company. Section 98 further provides that a Bermuda company may indemnify its directors, officers and auditors against any liability incurred by them in defending any proceedings, whether civil or criminal, in which judgment is awarded in their favor or in which they are acquitted or granted relief by the Supreme Court of Bermuda pursuant to Section 281 of the Companies Act.

 

Our amended and restated bye-laws provide that we shall indemnify our officers and directors in respect of their actions and omissions, except in respect of their fraud or dishonesty, and that we shall advance funds to our officers and directors for expenses incurred in their defense upon receipt of an undertaking to repay the funds if any allegation of fraud or dishonesty is proved. Our amended and restated bye-laws provide that the shareholders waive all claims or rights of action that they might have, individually or in right of the company, against any of the company’s directors or officers for any act or failure to act in the performance of such director’s or officer’s duties, except in respect of any fraud or dishonesty of such director or officer. Section 98A of the Companies Act permits us to purchase and maintain insurance for the benefit of any officer or director in respect of any loss or liability attaching to him in respect of any negligence, default, breach of duty or breach of trust, whether or not we may otherwise indemnify such officer or director. We have purchased and maintain a directors’ and officers’ liability policy for such purpose.

 

Amendment of Memorandum of Association and Bye-laws

 

Bermuda law provides that the memorandum of association of a company may be amended by a resolution passed at a general meeting of shareholders. Our amended and restated bye-laws provide that no bye-law shall be rescinded, altered or amended, and no new bye-law shall be made, unless it shall have been approved by a resolution of our board of directors and by a resolution of our shareholders.

 

Under Bermuda law, the holders of an aggregate of not less than 20% in par value of a company’s issued share capital or any class thereof have the right to apply to the Supreme Court of Bermuda for an annulment of any amendment of the memorandum of association adopted by shareholders at any general meeting, other than an amendment that alters or reduces a company’s share capital as provided in the Companies Act. Where such an application is made, the amendment becomes effective only to the extent that it is confirmed by the Supreme Court of Bermuda. An application for an annulment of an amendment of the memorandum of association must be made within 21 days after the date on which the resolution altering the company’s memorandum of association is passed and may be made on behalf of persons entitled to make the application by one or more of their number as they may appoint in writing for the purpose. No application may be made by shareholders voting in favor of the amendment.

 

 

Amalgamations and Mergers

 

The amalgamation or merger of a Bermuda company with another company or corporation (other than certain affiliated companies) requires the amalgamation or merger agreement to be approved by the company’s board of directors and by its shareholders. Unless the company’s bye-laws provide otherwise, the approval of 75% of the shareholders voting at such meeting is required to approve the amalgamation or merger agreement, and the quorum for such meeting must be two or more persons holding or representing more than one-third of the issued shares of the company. Our amended and restated bye-laws provide that the approval of a simple majority of shareholders voting at a meeting to approve the amalgamation or merger agreement shall be sufficient (except for an amalgamation or merger that is a business combination), and the quorum for such meeting shall be two or more persons present at the start of the meeting and holding or representing more than 50% of the issued voting shares.

 

Under Bermuda law, in the event of an amalgamation or merger of a Bermuda company with another company or corporation, a shareholder of the Bermuda company who did not vote in favor of the amalgamation or merger and who is not satisfied that fair value has been offered for such shareholder’s shares may, within one month of notice of the shareholders meeting, apply to the Supreme Court of Bermuda to appraise the fair value of those shares.

 

Business Combinations

 

Although the Companies Act does not contain specific provisions regarding ‘‘business combinations’’ between companies organized under the laws of Bermuda and ‘‘interested shareholders,’’ we have included these provisions in our amended and restated bye-laws. Specifically, our amended and restated bye-laws contain provisions which prohibit us from engaging in a business combination with an interested shareholder for a period of three years after the date of the transaction in which the person became an interested shareholder, unless, in addition to any other approval that may be required by applicable law:

 

·                  prior to the date of the transaction that resulted in the shareholder becoming an interested shareholder, our board of directors approved either the business combination or the transaction that resulted in the shareholder becoming an interested shareholder;

 

·                  upon consummation of the transaction that resulted in the shareholder becoming an interested shareholder, the interested shareholder owned at least 85% of our issued and voting shares outstanding at the time the transaction commenced; or

 

·                  after the date of the transaction that resulted in the shareholder becoming an interested shareholder, the business combination is approved by our board of directors and authorized at an annual or special meeting of shareholders by the affirmative vote of at least 662/3% of our issued and outstanding voting shares that are not owned by the interested shareholder.

 

For purposes of these provisions, a ‘‘business combination’’ includes recapitalizations, mergers, amalgamations, consolidations, exchanges, asset sales, leases, certain issues or transfers of shares or other securities and other transactions resulting in a financial benefit to the interested shareholder. An ‘‘interested shareholder’’ is any person or entity that beneficially owns 15% or more of our issued and outstanding voting shares and any person or entity affiliated with or controlling or controlled by that person or entity.

 

Shareholder Suits

 

Class actions and derivative actions are generally not available to shareholders under Bermuda law. The Bermuda courts, however, would ordinarily be expected to permit a shareholder to commence an action in the name of a company to remedy a wrong to the company where the act complained of is alleged to be beyond the corporate power of the company or illegal, or would result in the violation of the company’s memorandum of association or bye-laws. Furthermore, consideration would be given by a Bermuda court to acts that are alleged to constitute a fraud against the minority shareholders or, for instance, where an act requires the approval of a greater percentage of the company’s shareholders than that which actually approved it.

 

When the affairs of a company are being conducted in a manner that is oppressive or prejudicial to the interests of some part of the shareholders, one or more shareholders may apply to the Supreme Court of Bermuda, which may make such order as it sees fit, including an order regulating the conduct of the company’s affairs in the future or ordering the purchase of the shares of any shareholders by other shareholders or by the company.

 

 

Our amended and restated bye-laws contain a provision by virtue of which our shareholders waive any claim or right of action that they have, both individually and on our behalf, against any director or officer in relation to any action or failure to take action by such director or officer, except in respect of any fraud or dishonesty of such director or officer. We have been advised by the SEC that in the opinion of the SEC, the operation of this provision as a waiver of the right to sue for violations of federal securities laws would likely be unenforceable in U.S. courts.

 

Capitalization of Profits and Reserves

 

Pursuant to our amended and restated bye-laws, our board of directors may (1) capitalize any part of the amount of our share premium or other reserve accounts or any amount credited to our profit and loss account or otherwise available for distribution by applying such sum in paying up unissued shares to be allotted as fully paid bonus shares pro rata (except in connection with the conversion of shares) to the shareholders; or (2) capitalize any sum standing to the credit of a reserve account or sums otherwise available for dividend or distribution by paying up in full, partly paid or nil paid shares of those shareholders who would have been entitled to such sums if they were distributed by way of dividend or distribution.

 

Untraced Shareholders

 

Our amended and restated bye-laws provide that our board of directors may forfeit any dividend or other monies payable in respect of any shares that remain unclaimed for six years from the date when such monies became due for payment. In addition, we are entitled to cease sending dividend warrants and checks by post or otherwise to a shareholder if such instruments have been returned undelivered to, or left uncashed by, such shareholder on at least two consecutive occasions or, following one such occasion, reasonable enquires have failed to establish the shareholder’s new address. This entitlement ceases if the shareholder claims a dividend or cashes a dividend check or a warrant.

 

Certain Provisions of Bermuda Law

 

We have been designated by the Bermuda Monetary Authority as a non-resident for Bermuda exchange control purposes. This designation allows us to engage in transactions in currencies other than the Bermudan dollar, and there are no restrictions on our ability to transfer funds (other than funds denominated in Bermudan dollars) in and out of Bermuda or to pay dividends to U.S. residents who are holders of our common shares.

 

The Bermuda Monetary Authority has given its consent for the issue and free transferability of any of our shares, warrants and other securities to and between residents and non-residents of Bermuda for exchange control purposes, provided our shares remain listed on an appointed stock exchange, which includes Nasdaq. Approvals or permissions given by the Bermuda Monetary Authority do not constitute a guarantee by the Bermuda Monetary Authority as to our performance or our creditworthiness. Accordingly, in giving such consent or permissions, neither the Bermuda Monetary Authority nor the Registrar of Companies in Bermuda shall be liable for the financial soundness, performance or default of our business or for the correctness of any opinions or statements expressed in this exhibit. Certain issues and transfers of common shares involving persons deemed resident in Bermuda for exchange control purposes require the specific consent of the Bermuda Monetary Authority. We have sought and have obtained a specific permission from the Bermuda Monetary Authority for the issue and transfer of our common shares up to the amount of our authorized capital from time to time, and options, warrants, depository receipts, rights, loan notes, debt instruments and our other securities to persons resident and non-resident for exchange control purposes with the need for prior approval of such issue or transfer.

 

In accordance with Bermuda law, share certificates are only issued in the names of companies, partnerships or individuals. In the case of a shareholder acting in a special capacity (for example as a trustee), certificates may, at the request of the shareholder, record the capacity in which the shareholder is acting. Notwithstanding such recording of any special capacity, we are not bound to investigate or see to the execution of any such trust.

 

 

Transfer Agent and Registrar

 

A register of holders of the common shares will be maintained by Conyers Corporate Services (Bermuda) Limited in Bermuda, and a branch register will be maintained in the United States by American Stock Transfer & Trust Company, LLC, which also serves as transfer agent. The transfer agent’s address is 6201 15th Avenue, Brooklyn, New York 11219.

 

Listing

 

Our common shares are listed on Nasdaq under the trading symbol ‘‘AXGT.’’

 

Bermuda Taxation Impacts on U.S. Holders of our Common Shares

 

At the present time, there is no Bermuda income or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax payable by us or by our shareholders in respect of our shares. We have obtained an assurance from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act 1966 that, in the event that any legislation is enacted in Bermuda imposing any tax computed on profits or income, or computed on any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not, until March 31, 2035, be applicable to us or to any of our operations or to our shares, debentures or other obligations except insofar as such tax applies to persons ordinarily resident in Bermuda or is payable by us in respect of real property owned or leased by us in Bermuda.

 

U.K. Taxation Impacts on U.S. Holders of our Common Shares

 

The following is intended only as a general guide and is not intended to be, nor should it be considered to be, legal or tax advice to any particular prospective subscriber for, or purchaser of, our common shares. Accordingly, prospective subscribers for, or purchasers of, our common shares who are in any doubt as to their tax position regarding the acquisition, ownership and disposition of our common shares or who are subject to tax in a jurisdiction other than the United Kingdom should consult their own tax advisers.

 

Dividends

 

Withholding Tax

 

Dividends paid by the company are not subject to any withholding or deduction for or on account of U.K. tax.

 

Stamp Duty and Stamp Duty Reserve Tax

 

No UK stamp duty or UK stamp duty reserve tax, or SDRT, will be payable on the issue or transfer of, or agreement to transfer, our common shares, subject to the comments below.

 

UK stamp duty will in principle be payable on any instrument of transfer of common shares (where the amount or value of the consideration is more than £1,000) that is executed in the United Kingdom or that relates to any property situated, or to any matter or thing done or to be done, in the United Kingdom. No UK stamp duty should be payable on the transfer of the common shares, provided that any transfer documents are executed and retained outside the United Kingdom. Holders of common shares should be aware that, even where an instrument of transfer is in principle subject to UK stamp duty, UK stamp duty is not required to be paid unless it is necessary to rely on the instrument for legal purposes, for example to register a change of ownership by updating a share register held in the United Kingdom or in litigation in a UK court.

 

Provided that our common shares are not registered in any register maintained in the United Kingdom by us or on our behalf and are not paired with any shares or securities issued by a UK incorporated company, any agreement to transfer common shares will not be subject to SDRT.

 

Our common shares are not paired with any shares or securities issued by a UK incorporated company and we do not intend that any register of common shares will be maintained in the United Kingdom by us or on our behalf.

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