Document:

Exhibit
4.7

 

DESCRIPTION
OF VBI VACCINES INC. COMMON SHARES

 

The
following description of the capital stock of VBI Vaccines Inc. (the “Company,” “VBI,” “we,”
“our,” or “us”) is a summary of the rights of our common shares and certain provisions of our Articles
as currently in effect. This summary does not purport to be complete and is qualified in its entirety by the provisions of our
Articles, copies of which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein. We
encourage you to read our Articles and the applicable provisions of British Columbia Business Corporations Act (the “BCBCA”),
for additional information.

 

Description
of Common Shares

 

We
are authorized to issue an unlimited number of common shares with no par value. We are governed by the BCBCA and other relevant
laws, which may affect the rights of shareholders differently than those of a company governed by the laws of a U.S. jurisdiction,
and may, together with our charter documents, including the advance notice provisions in our Articles for the nomination of directors,
have the effect of delaying, deferring or discouraging another party from acquiring control of our Company by means of a tender
offer, a proxy contest or otherwise, or may affect the price an acquiring party would be willing to offer in such an instance.

 

Holders
of our common shares are entitled to such dividends as may be declared by our board of directors out of funds legally available
for such purpose. The BCBCA provides that we may declare or pay dividends unless there are reasonable grounds for believing that
(a) the Company is insolvent, or (b) the payment of the dividend would render the Company insolvent.

 

Each
holder of our common shares is entitled to one vote for each such share outstanding in the holder’s name. No holder of common
shares is entitled to cumulate votes in voting for directors.

 

In
the event of our liquidation, dissolution or winding up, the holders of our common shares are entitled to receive pro rata our
assets which are legally available for distribution, after payments of all debts and other liabilities.

 

Our
directors may, subject to our Articles and the BCBCA, issue, allot, sell, grant options on or otherwise dispose of the unissued
shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms
and conditions and for the issue prices that the directors, in their absolute discretion, may determine by board resolution. Shares
may be issued in consideration for past services, property or money. Shares must not be issued until they are fully paid. There
are no preemptive, redemption, purchase or conversion rights attaching to our common shares. There are no sinking fund provisions
applicable to our common shares. Our common shares are issued in fully registered form, although we are able to issue fractional
shares.

 

Since
we are authorized to issue an unlimited number of common shares with no par value, the authorized but unissued common shares are
available for future issuance without any further vote or action by our shareholders. These additional shares may be utilized
for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions, and
employee benefit plans. The existence of authorized but unissued common shares could render more difficult or discourage an attempt
to obtain control over us by means of a proxy contest, tender offer, merger or otherwise.

 

Registration
Rights

 

Pursuant
to the warrants issued to Perceptive Credit Holdings, LP (the “Lender”) in accordance with that certain Amended and
Restated Credit Agreement and Guaranty, as may be amended from time to time in accordance with its terms, at any time after the
one hundred eightieth day following the original issue date of the warrant, which was December 6, 2016, the Lender, or its assignees,
may request that we register all or any portion of the common shares underlying the warrants for sale on a registration statement
under the Securities Act of 1933, as amended (the “Securities Act”).

 

    	 	 	 

     

    

 

In
addition, if at any time we propose to register any of our common shares under the Securities Act for public sale either for our
own account or for the account of other shareholders, the holder of the warrants are entitled to notice of the registration and
may request that we include all or a portion of the common shares in the registration. These piggyback registration rights are
subject to specified conditions and limitations, including the right of the underwriters to limit the number of shares included
in any such registration under specified circumstances.

 

Anti-takeover
Effects of Provisions of VBI’s Articles and BCBCA, Alterations

 

The
BCBCA does not contain a provision comparable to Section 203 of the Delaware General Corporation Law (DGCL) with respect to business
combinations.

 

Under
the BCBCA and our Articles, certain extraordinary company alterations, such as changes to authorized share structure, continuances,
into or out of province, certain amalgamations, sales, leases or other dispositions of all or substantially all of the undertaking
of a company (other than in the ordinary course of business) liquidations, dissolutions, and certain arrangements are required
to be approved by ordinary or special resolution as applicable.

 

An
ordinary resolution is a resolution (i) passed at a shareholders’ meeting by a simple majority, or (ii) passed, after being
submitted to all of the shareholders, by being consented to in writing by shareholders who, in the aggregate, hold shares carrying
at least two-thirds of the votes entitled to be cast on the resolution. A special resolution is a resolution (i) passed by not
less than two-thirds of the votes cast by the shareholders who voted in respect of the resolution at a meeting duly called and
held for that purpose or (ii) signed by all shareholders entitled to vote on the resolution.

 

Under
the BCBCA, an action that prejudices or interferes with a right or special right attached to issued shares of a class or series
of shares must be approved by a special separate resolution of the holders of the class or series of shares being affected.

 

Under
the BCBCA, arrangements are permitted and a company may make any proposal it considers appropriate “despite any other provision”
of the BCBCA. In general, a plan of arrangement is approved by a company’s board of directors and then is submitted to a
court for approval. It is not unusual for a company in such circumstances to apply to a court initially for an interim order governing
various procedural matters prior to calling any security holder meeting to consider the proposed arrangement. Plans of arrangement
involving shareholders must be approved by a special resolution of shareholders, including holders of shares not normally entitled
to vote. The court may, in respect of an arrangement proposed with persons other than shareholders and creditors, require that
those persons approve the arrangement in the manner and to the extent required by the court. The court determines, among other
things, to whom notice shall be given and whether, and in what manner, approval of any person is to be obtained and also determines
whether any shareholders may dissent from the proposed arrangement and receive payment of the fair value of their shares. Following
compliance with the procedural steps contemplated in any such interim order (including as to obtaining security holder approval),
the court would conduct a final hearing and approve or reject the proposed arrangement.

 

The
BCBCA does not contain a provision comparable to Section 251(h) of the DGCL.

 

Election
and removal of directors

 

According
to our Articles, all directors cease to hold office immediately before the election or appointment of directors at every annual
general meeting, but are eligible for re-election or re- appointment. Under Section 14.10 of VBI’s Articles, shareholders
of VBI may remove any director before the expiration of his or her term of office by a special resolution of shareholders. This
system of electing and removing directors generally makes it more difficult for shareholders to replace a majority of our directors.

 

Shareholder
action; advance notification of stockholder nominations and proposals

 

Under
the BCBCA, the holders of not less than 5% of our common shares may requisition that the directors call a meeting of shareholders
for the purpose of transacting any business that may be transacted at a general meeting. Upon receiving a requisition that complies
with the technical requirements set out in the BCBCA, the directors must, subject to certain limited exceptions, call a meeting
of shareholders to be held not more than 4 months after receiving the requisition. If the directors do not call such a meeting
within 21 days after receiving the requisition, the requisitioning shareholders or any of them holding in aggregate not less than
2.5% of the issued shares of the Company that carry the right to vote at general meetings may call the meeting.

 

    	 	 	 

     

    

 

Under
the BCBCA, shareholder proposals may be made by registered or beneficial owners of shares entitled to vote at general meetings
of shareholders who have been the registered or beneficial owner of such shares for an uninterrupted period of at least two years
before the date of signing of the proposal, and who together in the aggregate constitute at least 1% of the issued shares that
carry on the right to vote at general meetings or have a fair market value of shares in excess of CAD$2,000. Those registered
or beneficial holders must, alongside the proposal, submit and sign a declaration providing the requisite information under the
BCBCA. To be a valid proposal, the proposal must be submitted at least three months before the anniversary of the previous year’s
annual reference date.

 

Under
the advance notice provisions contained in Section 10.9 of VBI’s Articles, subject only to the BCBCA, only persons who are
nominated in accordance with the procedures set forth therein shall be eligible for election as directors of the Company. Nominations
of persons for election to the Board may be made at any annual meeting of shareholders, or at any special meeting of shareholders
if one of the purposes for which the special meeting was called was the election of directors: (a) by or at the direction of the
Board, including pursuant to a notice of meeting; (b) by or at the direction or request of one or more shareholders pursuant to
a proposal made in accordance with the provisions of the BCBCA, or a requisition of the shareholders made in accordance with the
provisions of the BCBCA; or (c) by any person (a “Nominating Shareholder”): (A) who, at the close of business on the
date of the giving of the notice and on the record date for notice of such meeting, is entered in the securities register as a
holder of one or more shares carrying the right to vote at such meeting or who beneficially owns shares that are entitled to be
voted at such meeting; and (B) who complies with the notice procedures set forth in our Articles.

 

In
addition to any other applicable requirements, for a nomination to be made by a Nominating Shareholder, the Nominating Shareholder
must have given timely notice thereof in proper written form to the Secretary of the Company at the principal executive offices
of the Company.

 

To
be timely, a Nominating Shareholder’s notice to the Secretary of the Company must generally be made: (a) in the case of
an annual meeting of shareholders, not less than 30 nor more than 65 days prior to the date of the annual meeting of shareholders.

 

These
provisions may have the effect of deterring unsolicited offers to acquire the Company or delaying changes in control of our management.
These provisions could also have the effect of delaying until the next shareholder meeting any shareholder actions, even if they
are favored by the holders of a majority of our outstanding voting securities.

 

Amendment
to Articles 

 

Under
the BCBCA, a company may amend its articles or notice of articles by (i) the type of resolution specified in the BCBCA, (ii) if
the BCBCA does not specify a type of resolution, then by the type specified in the company’s articles, or (iii) if the company’s
articles do not specify a type of resolution, then by special resolution. The BCBCA permits many substantive changes to a company’s
articles (such as a change in the company’s authorized share structure or a change in the special rights or restrictions
that may be attached to a certain class or series of shares) to be changed by the resolution specified in that company’s
articles.

 

Our
Articles provide that, subject to the BCBCA, certain alterations to our share structure be done by way of directors’ resolution.
Any creation, variation or deletion of special rights and restrictions attached to a series or class of shares must be done by
way of special resolution.

 

Our
Articles also provide that, the shareholders may from time to time, by ordinary resolution, make any alteration to our notice
of articles and articles as permitted by the BCBCA.

 

    	 	 	 

     

    

 

Limitation
of Liability and Indemnification

 

Section
21.2 of VBI’s Articles requires VBI, subject to the BCBCA, to indemnify a director, former director or alternate director
and his or her heirs and legal representatives against all eligible penalties to which such person is or may be liable and after
the disposition of an eligible proceeding pay the expenses actually and reasonably incurred by such person in respect of that
proceeding.

 

Pursuant
to Section 21.3 of VBI’s Articles, VBI may indemnify any person subject to the restrictions of the BCBCA.

 

Pursuant
to Section 162 of the BCBCA, prior to the final disposition, VBI may pay, as they are incurred, the expenses actually and reasonably
incurred by an eligible party, or the heirs and personal or other legal representatives in respect of that proceeding, if VBI
first receives from such person a written undertaking that if the indemnification is ultimately determined to be prohibited pursuant
to the BCBCA, such person will repay the amounts advanced.

 

Indemnification
under the BCBCA is prohibited if any of the following circumstances apply: (1) if the indemnity or payment is made under an earlier
agreement and at the time the agreement to indemnify or pay expenses was made the company was prohibited from doing so under its
memorandum or articles; (2) if the indemnity or payment is made otherwise than under an earlier agreement and at the time the
indemnity or payment is made, the company is prohibited from doing so under its memorandum or articles; (3) if, in relation to
the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view to the best
interests of the company or the associated corporation; or (4) in the case of an eligible proceeding other than a civil proceeding,
if the eligible party did not have reasonable grounds for believing that the eligible party’s conduct in respect of which
the proceeding was brought was lawful.

 

If
an eligible proceeding is brought against an eligible party, or the heirs and personal or other legal representatives in respect
of that proceeding, by or on behalf of VBI or an associated corporation, VBI must not indemnify that person for any penalties
such person is or may be liable for and must not pay the expenses of that person in respect of the proceeding.

 

In
addition, on the application of VBI or an eligible party, a court may: (a) order VBI to indemnify an eligible party against any
liability incurred by the eligible party in respect of an eligible proceeding; (b) order VBI to pay some or all of the expenses
incurred by an eligible party in respect of an eligible proceeding; (c) order the enforcement of, or any payment under, an agreement
of indemnification entered into by VBI; (d) order VBI to pay some or all of the expenses actually and reasonably incurred by any
person in obtaining an order under the BCBCA; (e) make any other order the court considers appropriate.

 

Control
Block Distributions

 

Under
applicable securities laws in Canada, any person (or group of persons) who owns a sufficient number of any of the securities of
an issuer so as to affect materially the control of that issuer is considered to be a “control person”. For such purposes,
any person who has or acquires control or direction over more than 20% of the voting securities of an issuer will be deemed, in
the absence of evidence to the contrary, to be a “control person”. Any “trade” of securities by a control
person is considered to be a “distribution”, and accordingly, the disposition of such securities must be qualified
by a prospectus, absent an available exemption.

 

Certain
Takeover Bid Requirements

 

Any
offer made by a person (an “offeror”) to acquire outstanding shares of a Canadian entity that, when aggregated with
the offeror’s holdings (and those of persons or companies acting jointly with the offeror), would constitute 20% or more
of the outstanding shares, would be subject to the take-over provisions of Canadian securities laws, unless the offer constitutes
an exempt transaction.

 

In
addition to those take-over bid requirements noted above, the acquisition of shares may trigger the application of additional
statutory regimes including amongst others, the Investment Canada Act and the Competition Act (Canada).

 

Listing

 

Our
common shares are listed for trading on the NASDAQ Capital Market under the symbol “VBIV.”

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for our common shares is Computershare. Its address is 510 Burrard Street, 2nd Floor, Vancouver,
British Columbia V6C 3B9, and its telephone number is (604) 661-9442.

 

This
summary is not a comprehensive description of relevant or applicable considerations regarding such requirements and, accordingly,
is not intended to be, and should not be interpreted as, legal advice to any prospective purchaser and no representation with
respect to such requirements to any prospective purchaser is made. Prospective investors should consult their own Canadian legal
advisors with respect to any questions regarding securities law in the provinces and territories of Canada.Exhibit
10.42

 

AMENDMENT
TO CONSULTING AGREEMENT

 

This
Amendment to Consulting Agreement (the “Amendment”), effective as of January 1st, 2020 (the
“Effective Date”), is by and between Variation Biotechnologies Inc., a corporation incorporated pursuant to
the laws of Canada (the “Company”) having an address of 310 Hunt Club Road East, Ottawa, Ontario K1V 1C1 and
F. Diaz-Mitoma Professional Corporation (Ontario corporation number 002356634) having an address of 210 Barrow Crescent, Kanata,
Ontario K2L 2C7 (“Consultant”). The Consultant and Company are sometimes referred to as a “Party”
and are collectively referred to as the “Parties”.

 

WHEREAS,
the Company and Consultant are parties to a certain Consulting Agreement dated July 1, 2016, amended as of January 1, 2017, amended
January 1, 2018, and further amended as of January 1, 2019 (the “Consulting Agreement”);

 

AND
WHEREAS, the Consultant and the Company wish to amend the Consulting Agreement on the terms and conditions set out in this
Amendment;

 

NOW
THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

 

1.       Amendment
to Section 1(a). As of the Effective Date, Section 1(a) of the Consulting Agreement shall be deleted in its entirety and replaced
with the following:

 

(a)       Term.
This Agreement shall be in effect beginning on the Effective Date and, unless terminated earlier pursuant to the provisions of
this Section 1, shall continue until December 31, 2020 (the “Term”). This Agreement may be renewed any number
of times, with or without a short interruption in continuity of Services (as defined below), by written notice from the Company
which is accepted by signature of the Consultant.

 

2.       Amendment
to Section 5(a). As of the Effective Date, Section 5(a) of the Consulting Agreement shall be deleted in its entirety and replaced
with the following:

 

5.               Payment
for Consulting Services.

 

(a)
       Consideration. As consideration for the Services, the Company shall pay Consultant
a fee of $44,250.00 CAD per month (plus any HST or GST payable).

 

3.       Replacement
of Appendix C. As of the Effective Date, Appendix C of the Consulting Agreement shall be deleted in its entirety and replaced
with the version of Appendix C attached as Schedule A to this Amendment.

 

4.       Consulting
Agreement to Remain in Full Effect. Except as amended by this Amendment, the Consulting Agreement shall continue to be in
full force and effect, without amendment, and is hereby ratified and confirmed. The Consulting Agreement shall henceforth be read
and construed in conjunction with this Amendment.

 

5.       Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal
laws of Canada applicable therein.

 

6.
       Further Assurances. Each Party shall do such further acts and execute such
further documents as may be required to give effect to this Amendment and carry out the intent thereof.

 

7.
       Binding Effect. This Amendment shall be binding on and inure to the benefit of the
Parties and their respective successors and assigns.

 

8.       Execution
and Counterparts. This Amendment may be executed in counterparts, including counterpart signature pages or counterpart facsimile
or scanned signature pages (each of which shall be deemed an original), all of which together shall constitute one and the same
instrument.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly executed by their respective authorized officers as
of the Effective Date.

 

	 	VARIATION
    BIOTECHNOLOGIES INC. 
	 	 	 
	 	 	/s/
    Jeffrey Baxter
	 	Name:	Jeffrey
    Baxter
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	F.
    DIAZ-MITOMA PROFESSIONAL CORPORATION
	 	 	 
	 	 	/s/
    Francisco Diaz-Mitoma
	 	Name:	Francisco
    Diaz-Mitoma
	 	Title:	President

 

    	 

    	 

    

 

Schedule
A

 

Appendix
C – Performance Incentives

 

	1.	Bonus
                                         payable as of January 31, 2020 – CAD $127,449
	 	 
	2.	The
                                         Company shall cause VBI Vaccines Inc., a British Columbia corporation (the “Parent”)
                                         to grant to Francisco Diaz-Mitoma, as designee of Consultant, 350,000 stock options
                                         (the “Options”), each Option exercisable for one common share of Parent,
                                         to be granted effective as of January 22, 2020, which was the date on which the
                                         board of directors of Parent approved such grant, and to be subject to the provisions
                                         of the Plan. Conditions regarding the Options and their exercise, including the exercise
                                         price, the term of the Options and the timing of vesting shall be set out in an Option
                                         Agreement between the Parent and Francisco Diaz-Mitoma. The common shares issuable upon
                                         exercise of the Options shall bear the appropriate legend to indicate such shares are
                                         “control securities” as defined in General Instruction C.1(a) of Form S-8.

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