Document:

EX-4.2

   

  Exhibit 4.2

  DESCRIPTION OF CAPITAL STOCK

  Authorized Capital Stock.  Our authorized capital stock consists of 30,000,000 shares of common stock, par value $0.001 per share.

  Voting Rights. Holders of our common stock are entitled to one vote per share on all matters submitted to a vote of stockholders, including the election of directors. Holders of our common stock are not entitled to cumulative voting in the election of directors. Directors of the Company are elected by a plurality of the shares of our common stock present in person or by proxy and entitled to vote thereon. Other than for the election of directors, matters to be voted on by stockholders must generally be approved by the affirmative vote of the majority of the shares of our common stock present in person or by proxy and entitled to vote thereon.

  Dividends. Holders of our common stock are entitled to receive ratably, on a per share basis, the dividends, if any, as may be declared from time to time by our board of directors out of funds legally available therefor.

  Transfer Restrictions. The shares of common stock purchased by our directors and officers pursuant to subscription rights granted to them in connection with our conversion from mutual to stock form and related initial public offering completed in August 2019 (“IPO”) will be restricted for a period of one year from the effective date of the conversion pursuant to the plan of conversion and Section 59.1(7)(a)(iii) of the Illinois Insurance Code. The shares purchased by the standby purchaser in our IPO will be restricted securities and subject to trading limitations under applicable law and our agreement with the standby purchaser.

  Liquidation. If there is a liquidation, dissolution or winding up of Vericity, holders of our common stock would be entitled to share in our assets remaining after the payment of liabilities, ratably on a per share basis.

  Other Characteristics. Holders of our common stock have no preemptive or conversion rights or other subscription rights, and no redemption or sinking fund provisions apply to our common stock.

  Advance Notice Requirements for Stockholder Proposals and Director Nominations.  Our bylaws provide that stockholders seeking to bring business before a meeting of stockholders, or to nominate candidates for election as directors at a meeting of shareholders, must provide timely notice of their intent in writing. Our bylaws also specify certain requirements as to the form and content of a stockholder’s notice. Our bylaws also require that such stockholder provide information concerning each item of business proposed by the stockholder and individuals nominated for election as a director, as applicable. 

  These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders. These provisions could also have an anti-takeover effect and make the following transactions more difficult: acquisition of us by means of a tender offer; acquisition of us by means of a proxy contest or otherwise; or removal of our incumbent officers and directors. 

  Stockholder Action by Written Consent.  Our charter and bylaws do not prohibit action by written consent of our stockholders, and therefore any action required or permitted to be taken by our stockholders may be taken by written consent.  Our standby purchaser acquired a majority of our shares of common stock in the IPO, and as a result will be able to approve most corporate actions requiring stockholder approval by written consent without a duly-noticed and duly-held meeting of stockholders.

  Corporate Governance and Board Structure.  Our bylaws and/or our agreement with the standby purchaser contain provisions regarding our corporate governance and board structure, including that the board of directors shall consist of designees appointed by the standby purchaser (the “standby purchaser designees”) and designees appointed by Vericity (the “company designees”). The number of company designees shall not exceed six or at any time be less than two, and the number of standby purchaser designees at any given time shall be one more than the number of company designees, but in no event less than three, provided that the standby purchaser may designate the minimum additional number of designees as necessary to comply with SEC and Nasdaq Stock Market rules relating to the number of independent directors serving on the board of directors or any committee of the board.Exhibit 4.2

 

DESCRIPTION OF SECURITIES

 

As of December 31, 2021, Panacea Acquisition
Corp. II (“we,” “our,” “us” or the “company”) had Class A ordinary shares, par value $0.0001
per share, registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In addition,
this Description of Securities also references the company’s Class B ordinary shares, par value $0.0001 per share (the “Class
B ordinary shares” or “founder shares”) and the company’s Class F ordinary shares, par value $0.0001 per share
(the “Class F ordinary shares” or “alignment shares”), which are not registered pursuant to Section 12 of the
Exchange Act but are convertible into Class A ordinary shares. The descriptions of the Class B ordinary shares and Class F ordinary shares
are included to assist in the description of the Class A ordinary shares. Unless the context
otherwise requires, references to our “sponsor” are to EcoR1 Panacea Holdings II, LLC and references to our “initial
shareholders” are to our sponsor and our independent directors, as they held our founder shares or alignment shares prior to our
initial public offering (our “IPO”).

 

We are a Cayman Islands exempted company and our
affairs are governed by our amended and restated memorandum and articles of association, the Companies Act (2021 Revision) of the Cayman
Islands (as the same may be amended from time to time, the “Companies Act”) and common law of the Cayman Islands. Pursuant
to our amended and restated memorandum and articles of association, we are authorized to issue 500,000,000 Class A ordinary shares,
$0.0001 par value, 50,000,000 Class B ordinary shares, $0.0001 par value, 50,000,000 Class F ordinary shares, $0.0001 par value,
and 20,000,000 undesignated preferred shares, $0.0001 par value. Because the below is only a summary, it may not contain all the information
that is important to you.

 

Ordinary shares

 

Class A ordinary shareholders, Class B
ordinary shareholders and Class F ordinary shareholders of record are entitled to one vote for each share held on all matters to
be voted on by shareholders and vote together as a single class, except as required by applicable law or stock exchange rule; provided
that, prior to our initial business combination, holders of our Class B ordinary shares and holders of our Class F ordinary
shares, voting together as a single class, will have the right to appoint all of our directors and remove members of our board of directors
for any reason. These particular provisions of our amended and restated memorandum and articles of association may only be amended by
special resolutions passed by not less than two-thirds of the issued and outstanding ordinary shares who attend and vote at a general
meeting, which shall include the affirmative vote of a simple majority of our Class B ordinary shares and Class F ordinary shares.
On any other matter submitted to a vote of our shareholders, holders of our Class B ordinary shares, holders of our Class F
ordinary shares and holders of our Class A ordinary shares will vote together as a single class, except as required by applicable
law or stock exchange rule.

 

Unless specified in the Companies Act, our amended
and restated memorandum and articles of association, or applicable stock exchange rules, the affirmative vote of holders of a majority
of the issued and outstanding ordinary shares that are voted is required to approve any such matter voted on by our shareholders, and,
prior to our initial business combination, the affirmative vote of holders of a majority of the issued and outstanding Class B ordinary
shares and Class F ordinary shares, voting together as a single class, is required to approve the appointment or removal of directors.
Approval of certain actions will require a special resolution under Cayman Islands law and pursuant to our amended and restated memorandum
and articles of association; such actions include amending our amended and restated memorandum and articles of association and approving
a statutory merger or consolidation with another company. Our board of directors will be divided into three classes, each of which will
generally serve for a term of three years with only one class of directors being appointed in each year. There is no cumulative voting
with respect to the appointment of directors, with the result that the holders of more than 50% of the Class B ordinary shares and
Class F ordinary shares, voting together as a single class, voted for the appointment of directors can appoint all of the directors.
Our shareholders are entitled to receive ratable dividends when, as and if declared by the board of directors out of funds legally available
therefor.

 

Because our amended and restated memorandum and
articles of association authorizes the issuance of up to 500,000,000 Class A ordinary shares, if we were to enter into a business
combination, we may (depending on the terms of such a business combination) be required to increase the number of Class A ordinary
shares which we are authorized to issue at the same time as our shareholders vote on the business combination to the extent we seek shareholder
approval in connection with our initial business combination.

 

     

     

    

 

In accordance with the Nasdaq Capital Market (“Nasdaq”)
corporate governance requirements, we are not required to hold an annual meeting until one year after our first fiscal year end following
our listing on Nasdaq. There is no requirement under the Companies Act for us to hold annual or extraordinary general meetings to appoint
directors. We may not hold an annual meeting of shareholders to elect new directors prior to the consummation of our initial business
combination.

 

We will provide our public shareholders with the
opportunity to redeem all or a portion of their public shares upon the completion of our initial business combination at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the trust account, calculated as of two business days prior to the consummation
of our initial business combination, including interest (which interest shall be net of taxes payable), divided by the number of then
issued and outstanding public shares, subject to the limitations described herein. The per share amount we will distribute to investors
who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters. The redemption
rights will include the requirement that a beneficial owner must identify itself in order to validly redeem its shares. Our initial shareholders,
officers and directors have entered into a letter agreement with us, pursuant to which they have agreed to waive their redemption rights
with respect to any founder shares, alignment shares, private placement shares and public shares held by them in connection with the completion
of our initial business combination or certain amendments to our amended and restated memorandum and articles of association. Permitted
transferees of our sponsor, officers or directors will be subject to the same obligations. Unlike many blank check companies that hold
shareholder votes and conduct proxy solicitations in conjunction with their initial business combinations and provide for related redemptions
of public shares for cash upon completion of such initial business combinations even when a vote is not required by applicable law or
stock exchange listing requirements, if a shareholder vote is not required by applicable law or stock exchange listing requirements and
we do not decide to hold a shareholder vote for business or other reasons, we will, pursuant to our amended and restated memorandum and
articles of association, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents with the
SEC prior to completing our initial business combination. Our amended and restated memorandum and articles of association will require
these tender offer documents to contain substantially the same financial and other information about the initial business combination
and the redemption rights as is required under the SEC’s proxy rules. If, however, a shareholder approval of the transaction is
required by applicable law or stock exchange rules, or we decide to obtain shareholder approval for business or other reasons, we will,
like many blank check companies, offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant
to the tender offer rules. If we seek shareholder approval, we will complete our initial business combination only if a majority of the
issued and outstanding ordinary shares voted are voted in favor of the business combination. A quorum for such meeting will consist of
the holders present in person or by proxy of issued and outstanding shares of the company representing a majority of the voting power
of all issued and outstanding shares of the company entitled to vote at such meeting. However, the participation of our sponsor, officers,
directors, advisors or any of their respective affiliates in privately-negotiated transactions, if any, could result in the approval of
our initial business combination even if a majority of our public shareholders vote, or indicate their intention to vote, against such
business combination. For purposes of seeking approval of the majority of our issued and outstanding ordinary shares, non-votes will have
no effect on the approval of our initial business combination once a quorum is obtained. These quorum and voting thresholds and agreements
may make it more likely that we will consummate our initial business combination.

 

If we seek shareholder approval of our initial business
combination and we do not conduct redemptions in connection with our initial business combination pursuant to the tender offer rules,
our amended and restated memorandum and articles of association provides that a public shareholder, together with any affiliate of such
shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13
of the Exchange Act), will be restricted from redeeming its shares with respect Excess Shares (more than an aggregate of 15% of the shares
sold in our IPO), without our prior consent. However, we would not be restricting our shareholders’ ability to vote all of their
shares (including Excess Shares) for or against our initial business combination. Our public shareholders’ inability to redeem Excess
Shares will reduce their influence over our ability to complete our initial business combination and they could suffer a material loss
on their investment in us if they sell Excess Shares in open market transactions. Additionally, such shareholders will not receive redemption
distributions with respect to the Excess Shares if we complete the business combination. As a result, such shareholders will continue
to hold that number of shares exceeding 15% and, in order to dispose such shares would be required to sell their shares in open market
transactions, potentially at a loss.

 

If we seek shareholder approval in connection with
our initial business combination, our initial shareholders, officers and directors have agreed (and their permitted transferees, as applicable,
will agree) to vote any founder shares, alignment shares, private placement shares and public shares held by them in favor of our initial
business combination. Additionally, each public shareholder may elect to redeem its public shares without voting, and if they do vote,
irrespective of whether they vote for or against the proposed transaction.

 

    2

     

    

 

Pursuant to our amended and restated memorandum
and articles of association, if we have not completed our initial business combination within 24 months from the closing of our IPO (or
27 months, as applicable), we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably
possible but not more than ten business days thereafter, redeem the public shares, at a per per-share price, payable in cash, equal to
the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable, and less
up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding public shares, which redemption
will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidating distributions,
if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders
and our board of directors, dissolve and liquidate, subject in each case to our obligations under the applicable provisions of the Companies
Act to provide for claims of creditors and the requirements of other applicable law. Our initial shareholders, officers and directors
have entered into a letter agreement with us, pursuant to which they have agreed to waive their rights to liquidating distributions from
the trust account with respect to any founder shares, alignment shares and private placement shares held by them if we fail to complete
our initial business combination within 24 months from the closing of our IPO (or 27 months, as applicable) or during any extended time
that we have to consummate a business combination beyond 24 months (or 27 months, as applicable) as a result of a shareholder vote to
amend our amended and restated memorandum and articles of association (an “Extension Period”). However, if our sponsor or
any of our officers, directors or any of their respective affiliates then hold any public shares, they will be entitled to liquidating
distributions from the trust account with respect to such public shares if we fail to complete our initial business combination within
the allotted time frame to complete our initial business combination.

 

In the event of a liquidation, dissolution or winding
up of the company after a business combination, our shareholders at such time will be entitled to share ratably in all assets remaining
available for distribution to them after payment of liabilities and after provision is made for each class of shares, if any, having preference
over the ordinary shares. Our shareholders have no preemptive or other subscription rights. There are no sinking fund provisions applicable
to the ordinary shares, except that we will provide our shareholders with the opportunity to redeem their public shares for cash equal
to their pro rata share of the aggregate amount then on deposit in the trust account, including interest (which interest shall be net
of taxes payable), upon the completion of our initial business combination, subject to the limitations described herein.

 

Founder Shares and Alignment Shares

 

The founder shares and alignment shares are identical
to the Class A ordinary shares sold in our IPO, except that: (1) prior to our initial business combination, only holders of
the Class B ordinary shares and holders of our Class F ordinary shares, voting together as a single class, have the right to
appoint directors and holders of a majority of the issued and outstanding Class B ordinary shares and Class F ordinary shares
may remove members of our board of directors for any reason; (2) our initial shareholders, officers and directors have entered into
a letter agreement with us, pursuant to which they have agreed to waive: (a) their redemption rights with respect to any founder
shares, alignment shares, private placement shares and public shares held by them in connection with the completion of our initial business
combination, (b) their redemption rights with respect to any founder shares, alignment shares, private placement shares and public
shares held by them in connection with a shareholder vote to approve an amendment to our amended and restated memorandum and articles
of association (A) to modify the substance or timing of our obligation to allow redemptions in connection with our initial business
combination or to redeem 100% of our public shares if we have not consummated our initial business combination within 24 months from the
closing of our IPO (or 27 months, as applicable) or (B) with respect to any other provision relating to shareholders’ rights
or pre-initial business combination activity; and (c) their rights to liquidating distributions from the trust account with respect
to any founder shares, alignment shares and private placement shares held by them if we fail to complete our initial business combination
within 24 months from the closing of our IPO (or 27 months, as applicable) or during any Extension Period (although they will be entitled
to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our initial business
combination within the prescribed time frame); (3) the founder shares and alignment shares will automatically convert into Class A
ordinary shares as described herein; (4) the founder shares and alignment shares are subject to certain transfer restrictions, as
described in more detail below; and (5) the holders of founder shares and alignment shares are entitled to registration rights. If
we submit our initial business combination to our public shareholders for a vote, our initial shareholders, officers and directors have
agreed (and their permitted transferees, as applicable, will agree) to vote any founder shares, alignment shares, private placement shares
and public shares held by them in favor of our initial business combination.

 

    3

     

    

 

The founder shares will automatically convert into
Class A ordinary shares at the time of our initial business combination, subject to adjustment as provided herein.

 

The
alignment shares will automatically convert into Class A ordinary shares on a one hundred-to-one basis on the business day following
the fifth anniversary of our initial business combination, subject to adjustment as provided herein; provided that alignment shares will
automatically convert into Class A ordinary shares on a one-to-one basis on or prior to the fifth anniversary of our initial business
combination as described in more detail below, upon the earlier of (1) the date following our initial business combination on which:
(a) with respect to one-third of the alignment shares issued and outstanding following the consummation of our IPO (following any
forfeiture as a result of the underwriters’ over-allotment option not being exercised in full), the closing price of our Class A
ordinary shares equals or exceeds $15.00 (as adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations,
recapitalizations and other similar transactions) (the “First Price Vesting”); (b) with respect to another one-third
of the alignment shares issued and outstanding following the consummation of our IPO (following any forfeiture as a result of the underwriters’
over-allotment option not being exercised in full), the closing price of our Class A ordinary shares equals or exceeds $20.00 (as
adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations, recapitalizations and other similar
transactions) (the “Second Price Vesting”); and (c) with respect to the other one-third of the alignment shares issued
and outstanding following the consummation of our IPO (following any forfeiture as a result of the underwriters’ over-allotment
option not being exercised in full), the closing price of our Class A ordinary shares equals or exceeds $25.00 (as adjusted for share
sub-divisions, share dividends, rights issuances, consolidations, reorganizations, recapitalizations and other similar transactions);
and (2) subsequent to the completion of our initial business combination, the date on which we complete a merger, share exchange,
asset acquisition, share purchase, reorganization or other similar transaction that results in both a change of control and all of our
public shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property, in each case
subject to adjustment as provided herein.

 

For example, if fifteen months following the consummation
of our initial business combination the closing price of our Class A ordinary shares equals or exceeds $20.00 but does not exceed $25.00,
both the First Price Vesting and Second Price Vesting price performance thresholds will be met, resulting in a total of 2,000,000 alignment
shares converting into 2,000,000 Class A ordinary shares, representing 1,000,000 associated with the First Price Vesting and 1,000,000
associated with the Second Price Vesting (assuming the over-allotment option is not exercised and which number may be adjusted for share
sub-divisions, share capitalizations, reorganizations, recapitalizations and the like). If after such conversion (but prior to the fifth
anniversary of our initial business combination) the closing price of our Class A ordinary shares equals or exceeds $25.00, then the remaining
1,000,000 Class F ordinary shares will convert into 1,000,000 Class A ordinary shares. In the alternative, if after the First Price Vesting
and the Second Price Vesting the closing price of our Class A ordinary shares does not equal or exceed $25.00 prior to the fifth anniversary
of our initial business combination, the remaining 1,000,000 Class F ordinary shares will convert into 10,000 Class A ordinary shares.

 

Subsequent to the completion of our initial business
combination and prior to its fifth anniversary, even if none of the price performance thresholds are met on or prior to the fifth anniversary
of our initial business combination, the alignment shares will automatically convert into Class A ordinary shares on a one-to-one basis
upon completion of a merger, share exchange, asset acquisition, share purchase, reorganization or other similar transaction that results
in both a change of control and all of our public shareholders having the right to exchange their Class A ordinary shares for cash, securities
or other property.

 

Our initial shareholders will own 25%, unlike many
other SPAC IPOs where initial shareholders own 20%, of the ordinary shares issued and outstanding upon the consummation of our IPO (not
including the private placement shares). However, 15% of the ordinary shares issued and outstanding upon the consummation of our IPO (the
alignment shares) will convert on a one hundred-to-one basis if certain price performance thresholds are not met prior to the fifth anniversary
of our initial business combination. If this occurs, the number of alignment shares, and thereby the total number of ordinary shares,
issued and outstanding upon the consummation of our IPO will decrease, and our initial shareholders will own a total of 11.9%, not 25%,
of the ordinary shares issued and outstanding upon the consummation of our IPO. In contrast, all of the private shares owned by initial
shareholders in many other SPAC IPOs convert on a one-to-one basis at the time of the initial business combination. The initial shareholders
thereby maintain their interests at 20% of the ordinary shares issued and outstanding upon the consummation of our IPO.

 

    4

     

    

 

In the case that additional Class A ordinary
shares, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in our IPO and related to the closing
of our initial business combination (other than with respect to the founder shares, alignment shares or forward purchase shares), (1)
the ratio at which Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of
a majority of the issued and outstanding Class B ordinary shares agree to waive such anti-dilution adjustment with respect to any
such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary
shares will equal, in the aggregate, on an as-converted basis, 10% of the total number of all ordinary shares issued and outstanding upon
completion of our IPO (not including the private placement shares) plus all Class A ordinary shares and equity-linked securities
issued or deemed issued in connection with our initial business combination (net of the number of Class A ordinary shares redeemed
in connection with our initial business combination), excluding the forward purchase shares, any Class A ordinary shares issued upon
conversion of any founder shares, alignment shares or working capital loans, and any shares or equity-linked securities issued, or to
be issued, to any seller in our initial business combination and (2) the ratio at which Class F ordinary shares shall convert
into Class A ordinary shares will be adjusted (unless the holders of a majority of the issued and outstanding Class F ordinary
shares agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of Class A
ordinary shares issuable upon conversion of all Class F ordinary shares will equal, in the aggregate, on an as-converted basis, 15%
of the total number of all ordinary shares issued and outstanding upon completion of our IPO (not including the private placement shares)
plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with our initial business combination
(net of the number of Class A ordinary shares redeemed in connection with our initial business combination), excluding the forward
purchase shares, any Class A ordinary shares issued upon conversion of any founder shares, alignment shares or working capital loans,
and any shares or equity-linked securities issued, or to be issued, to any seller in our initial business combination.

 

With certain limited exceptions, (1) the founder
shares are not transferable, assignable or salable until the earlier of (A) one year after the completion of our initial business
combination, (B) subsequent to our initial business combination, (x) the date on which we complete a liquidation, merger, share
exchange, reorganization or other similar transaction that results in all of our public shareholders having the right to exchange their
ordinary shares for cash, securities or other property or (y) if the last reported sale price of our Class A ordinary shares
equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations,
recapitalizations and other similar transactions) for any 20 trading days within any 30-trading day period commencing at least 150 days
after our initial business combination and (2) the alignment shares are not transferable, assignable or salable until the earlier
of (A) their conversion into Class A ordinary shares; and (B) subsequent to the completion of our initial business combination,
the date on which we complete a merger, share exchange, asset acquisition, share purchase, reorganization or other similar transaction
that results in both a change of control and all of our public shareholders having the right to exchange their Class A ordinary shares
for cash, securities or other property.

 

Register of Members

 

Under Cayman Islands law, we must keep a register
of members and there shall be entered therein:

 

		●	the
                                            names and addresses of the members, a statement of the shares held by each member, and of
                                            the amount paid or agreed to be considered as paid, on the shares of each member and the
                                            voting rights of the shares of each member;

 

		●	whether
                                            voting rights are attached to the share in issue;

 

		●	the
                                            date on which the name of any person was entered on the register as a member; and

 

		●	the
                                            date on which any person ceased to be a member.

 

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Under Cayman Islands law, the register of members
of our company is prima facie evidence of the matters set out therein (i.e., the register of members will raise a presumption of fact
on the matters referred to above unless rebutted) and a member registered in the register of members shall be deemed as a matter of Cayman
Islands law to have legal title to the shares as set against its name in the register of members. Upon the closing of our IPO, the register
of members was updated to reflect the issue of shares by us. Once our register of members was updated, the shareholders recorded in the
register of members were deemed to have legal title to the shares set against their name. However, there are certain limited circumstances
where an application may be made to a Cayman Islands court for a determination on whether the register of members reflects the correct
legal position. Further, the Cayman Islands court has the power to order that the register of members maintained by a company should be
rectified where it considers that the register of members does not reflect the correct legal position. If an application for an order
for rectification of the register of members were made in respect of our ordinary shares, then the validity of such shares may be subject
to re-examination by a Cayman Islands court.

 

Our Transfer Agent

 

The transfer agent for our ordinary shares is Continental
Stock Transfer & Trust Company. We have agreed to indemnify Continental Stock Transfer & Trust Company in its roles
as transfer agent, its agents and each of its shareholders, directors, officers and employees against all liabilities, including judgments,
costs and reasonable counsel fees that may arise out of acts performed or omitted for its activities in that capacity, except for any
liability due to any gross negligence, willful misconduct or bad faith of the indemnified person or entity.

 

Certain Differences in Corporate Law

 

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

 

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

 

Where the merger or consolidation is between two
Cayman Islands companies, the directors of each company must approve a written plan of merger or consolidation containing certain prescribed
information. That plan of merger or consolidation must then be authorized by either (a) a special resolution (usually a majority
of 662⁄3% in value who attend and vote at a general meeting) of the shareholders of each company; or (b) such other authorization,
if any, as may be specified in such constituent company’s articles of association. No shareholder resolution is required for a merger
between a parent company (i.e., a company that owns at least 90% of the issued shares of each class in a subsidiary company) and its subsidiary
company. The consent of each holder of a fixed or floating security interest of a constituent company must be obtained, unless the court
waives such requirement. If the Cayman Islands Registrar of Companies is satisfied that the requirements of the Companies Act (which includes
certain other formalities) have been complied with, the Registrar of Companies will register the plan of merger or consolidation.

 

Where the merger or consolidation involves a foreign
company, the procedure is similar, save that with respect to the foreign company, the directors of the Cayman Islands exempted company
are required to make a declaration to the effect that, having made due enquiry, they are of the opinion that the requirements set out
below have been met: (1) that the merger or consolidation is permitted or not prohibited by the constitutional documents of the foreign
company and by the laws of the jurisdiction in which the foreign company is incorporated, and that those laws and any requirements of
those constitutional documents have been or will be complied with; (2) that no petition or other similar proceeding has been filed
and remains issued and outstanding or order made or resolution adopted to wind up or liquidate the foreign company in any jurisdictions;
(3) that no receiver, trustee, administrator or other similar person has been appointed in any jurisdiction and is acting in respect
of the foreign company, its affairs or its property or any part thereof; and (4) that no scheme, order, compromise or other
similar arrangement has been entered into or made in any jurisdiction whereby the rights of creditors of the foreign company are and continue
to be suspended or restricted.

 

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Where the surviving company is the Cayman Islands
exempted company, the directors of the Cayman Islands exempted company are further required to make a declaration to the effect that,
having made due enquiry, they are of the opinion that the requirements set out below have been met: (1) that the foreign company
is able to pay its debts as they fall due and that the merger or consolidated is bona fide and not intended to defraud unsecured creditors
of the foreign company; (2) that in respect of the transfer of any security interest granted by the foreign company to the surviving
or consolidated company (a) consent or approval to the transfer has been obtained, released or waived; (b) the transfer is permitted
by and has been approved in accordance with the constitutional documents of the foreign company; and (c) the laws of the jurisdiction
of the foreign company with respect to the transfer have been or will be complied with; (3) that the foreign company will, upon the
merger or consolidation becoming effective, cease to be incorporated, registered or exist under the laws of the relevant foreign jurisdiction;
and (4) that there is no other reason why it would be against the public interest to permit the merger or consolidation.

 

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

 

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

 

		●	we
                                            are not proposing to act illegally or beyond the scope of our corporate authority and we
                                            have complied with the statutory provisions as to majority vote;

 

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

 

		●	the
                                            arrangement is such as a business-person would reasonably approve; and

 

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

 

    7

     

    

 

If a scheme of arrangement or takeover offer (as
described below) is approved, any dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily
be available to dissenting shareholders of U.S. corporations, providing rights to receive payment in cash for the judicially determined
value of the shares.

 

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

 

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

 

Shareholders’ Suits.    Maples
and Calder, our Cayman Islands legal counsel, is not aware of any reported class action having been brought in a Cayman Islands court.
Derivative actions have been brought in the Cayman Islands courts, and the Cayman Islands courts have confirmed the availability of such
actions. In most cases, we will be the proper plaintiff in any claim based on a breach of duty owed to us, and a claim against (for example)
our directors or officers usually may not be brought by a shareholder. However, based both on Cayman Islands authorities and on English
authorities, which would in all likelihood be of persuasive authority and applied by a court in the Cayman Islands, exceptions to the
foregoing principle apply in circumstances in which:

 

		●	a
                                            company is acting, or proposing to act, illegally or beyond the scope of its authority;

 

		●	the
                                            act complained of, although not beyond the scope of the authority, could be effected if duly
                                            authorized by more than the number of votes that have actually been obtained; or

 

		●	those
                                            who control the company are perpetrating a “fraud on the minority.”

 

A shareholder may have a direct right of action
against us where the individual rights of that shareholder have been infringed or are about to be infringed.

 

Enforcement of Civil Liabilities.    The
Cayman Islands has a different body of securities laws as compared to the United States and provides less protection to investors.
Additionally, Cayman Islands companies may not have standing to sue before the federal courts of the United States.

 

We have been advised by Maples and Calder, our Cayman
Islands legal counsel, that the courts of the Cayman Islands are unlikely (1) to recognize or enforce against us judgments of courts
of the United States predicated upon the civil liability provisions of the federal securities laws of the United States or any
state and (2) in original actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability
provisions of the federal securities laws of the United States or any state, so far as the liabilities imposed by those provisions
are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in
the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent
jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment
debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be
enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in respect of taxes
or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or
obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman
Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement
proceedings if concurrent proceedings are being brought elsewhere.

 

    8

     

    

 

Special Considerations for Exempted
Companies. We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between
ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business
mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are
essentially the same as for an ordinary company except for the exemptions and privileges listed below:

 

		●	an
                                            exempted company does not have to file an annual return of its shareholders with the Registrar
                                            of Companies

 

		●	an
                                            exempted company’s register of members is not open to inspection;

 

		●	an
                                            exempted company does not have to hold an annual general meeting;

 

		●	an
                                            exempted company may issue shares with no par value;

 

		●	an
                                            exempted company may obtain an undertaking against the imposition of any future taxation
                                            (such undertakings are usually given for 20 years in the first instance);

 

		●	an
                                            exempted company may register by way of continuation in another jurisdiction and be deregistered
                                            in the Cayman Islands;

 

		●	an
                                            exempted company may register as a limited duration company; and

 

		●	an
                                            exempted company may register as a segregated portfolio company.

 

“Limited
liability” means that the liability of each shareholder is limited to the amount unpaid by the shareholder on the shares
of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal
or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

 

Our Amended and Restated Memorandum and Articles of Association

 

Our amended and restated memorandum and articles
of association contains certain requirements and restrictions relating to our IPO that will apply to us until the completion of our initial
business combination. These provisions cannot be amended without a special resolution. As a matter of Cayman Islands law, a resolution
is deemed to be a special resolution where it has been approved by either (1) holders of at least two-thirds (or any higher threshold
specified in a company’s articles of association) of a company’s ordinary shares who attend and vote at a general meeting
for which notice specifying the intention to propose the resolution as a special resolution has been given or (2) if so authorized
by a company’s articles of association, by a unanimous written resolution of all of the company’s shareholders. Other than
as described above, our amended and restated memorandum and articles of association provide that special resolutions must be approved
either by holders of at least two-thirds of our ordinary shares who attend and vote at a general meeting (i.e., the lowest threshold permissible
under Cayman Islands law) (including, in the case of amendments relating to the appointment or removal of directors prior to our initial
business combination, the approval of holders of at least a majority of the issued and outstanding Class B ordinary shares and Class F
ordinary shares), or by a unanimous written resolution of all of our shareholders.

 

Our
initial shareholders may participate in any vote to amend our amended and restated memorandum and articles of association and will
have the discretion to vote in any manner they choose. Specifically, our amended and restated memorandum and articles of association provides,
among other things, that:

 

		●	if
                                            we have not completed our initial business combination within 24 months from the closing
                                            of our IPO (or 27 months, as applicable), we will: (1) cease all operations except for
                                            the purpose of winding up; (2) as promptly as reasonably possible but not more than
                                            ten business days thereafter, redeem the public shares, at a per-share price, payable in
                                            cash, equal to the aggregate amount then on deposit in the trust account, including interest
                                            (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay
                                            dissolution expenses), divided by the number of then issued and outstanding public shares,
                                            which redemption will completely extinguish public shareholders’ rights as shareholders
                                            (including the right to receive further liquidating distributions, if any); and (3) as
                                            promptly as reasonably possible following such redemption, subject to the approval of our
                                            remaining shareholders and our board of directors, liquidate and dissolve, subject in each
                                            case to our obligations under Cayman Islands law to provide for claims of creditors and the
                                            requirements of other applicable law;

 

    9

     

    

 

		●	prior
                                            to our initial business combination, we may not issue additional securities that would entitle
                                            the holders thereof to: (1) receive funds from the trust account; or (2) vote pursuant
                                            to our amended and restated memorandum and articles of association on any initial business
                                            combination;

 

		●	in
                                            the event we seek to complete our initial business combination with a company that is affiliated
                                            with our sponsor, officers or directors and if our board of directors is not able to independently
                                            determine the fair market value of the target business, we will obtain an opinion from an
                                            independent investment banking firm or another independent entity that commonly renders valuation
                                            opinions with respect to the satisfaction of such criteria;

 

		●	if
                                            a shareholder vote on our initial business combination is not required by applicable law
                                            or stock exchange rules and we do not decide to hold a shareholder vote for business or other
                                            reasons, we will offer to redeem our public shares pursuant to Rule 13e-4 and Regulation 14E
                                            of the Exchange Act, and will file tender offer documents with the SEC prior to completing
                                            our initial business combination which contain substantially the same financial and other
                                            information about our initial business combination and the redemption rights as is required
                                            under Regulation 14A of the Exchange Act;

 

		●	our
                                            initial business combination must be with one or more operating businesses or assets with
                                            a fair market value equal to at least 80% of the net assets held in the trust account (excluding
                                            deferred underwriting commissions and taxes payable on the interest earned on the trust account);

 

		●	if
                                            our shareholders approve an amendment to our amended and restated memorandum and articles
                                            of association (A) to modify the substance or timing of our obligation to allow redemptions
                                            in connection with our initial business combination or to redeem 100% of our public shares
                                            if we do not complete our initial business combination within 24 months from the closing
                                            of our IPO (or 27 months, as applicable) or (B) with respect to any other provision
                                            relating to shareholders’ rights or pre-initial business combination activity, we will
                                            provide our public shareholders with the opportunity to redeem all or a portion of their
                                            public shares upon such approval at a per-share price, payable in cash, equal to the aggregate
                                            amount then on deposit in the trust account, including interest (which interest shall be
                                            net of taxes payable), divided by the number of then issued and outstanding public shares;
                                            and

 

		●	we
                                            will not effectuate our initial business combination solely with another blank check company
                                            or a similar company with nominal operations.

 

In
addition, our amended and restated memorandum and articles of association provides that under no circumstances will we redeem
our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 following such redemptions.

 

The Companies Act permits a company incorporated
in the Cayman Islands to amend its memorandum and articles of association with the approval of the holders of at least two-thirds of such
company’s issued and outstanding ordinary shares attending and voting at a general meeting. A company’s articles of association
may specify that the approval of a higher majority is required but, provided the approval of the required majority is obtained, any Cayman
Islands exempted company may amend its memorandum and articles of association regardless of whether its memorandum and articles of association
provide otherwise. Accordingly, although we could amend any of the provisions relating to our IPO, structure and business plan which are
contained in our amended and restated memorandum and articles of association, we view all of these provisions as binding obligations to
our shareholders and neither we, nor our directors or officers, will take any action to amend or waive any of these provisions unless
we provide dissenting public shareholders with the opportunity to redeem their public shares.

 

    10

     

    

 

Anti-Money Laundering — Cayman Islands

 

If any person in the Cayman Islands knows or suspects
or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or money laundering or is involved
with terrorism or terrorist financing and property and the information for that knowledge or suspicion came to their attention in the
course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report
such knowledge or suspicion to (1) the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act
(2020 Revision) of the Cayman Islands if the disclosure relates to criminal conduct or money laundering or (2) a police officer of
the rank of constable or higher, or the Financial Reporting Authority, pursuant to the Terrorism Act (2018 Revision) of the Cayman Islands,
if the disclosure relates to involvement with terrorism or terrorist financing and property. Such a report shall not be treated as a breach
of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

 

Data Protection — Cayman Islands

 

We have certain duties under the Data Protection
Act (As Revised) of the Cayman Islands (the “DPA”) based on internationally accepted principles of data privacy.

 

In this subsection, “we”, “us,”
“our” and the “Company” refers to Panacea Acquisition Corp. II or our affiliates and/or delegates, except where
the context requires otherwise.

 

Privacy Notice

 

Introduction

 

This privacy notice puts our shareholders on notice
that through your investment in the Company you will provide us with certain personal information which constitutes personal data within
the meaning of the DPA (“personal data”).

 

Investor Data

 

We will collect, use, disclose, retain and secure
personal data to the extent reasonably required only and within the parameters that could be reasonably expected during the normal course
of business. We will only process, disclose, transfer or retain personal data to the extent legitimately required to conduct our activities
of on an ongoing basis or to comply with legal and regulatory obligations to which we are subject. We will only transfer personal data
in accordance with the requirements of the DPA, and will apply appropriate technical and organizational information security measures
designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction or damage
to the personal data.

 

In our use of this personal data, we will be characterized
as a “data controller” for the purposes of the DPA, while our affiliates and service providers who may receive this personal
data from us in the conduct of our activities may either act as our “data processors” for the purposes of the DPA or may process
personal information for their own lawful purposes in connection with services provided to us.

 

We may also obtain personal data from other public
sources. Personal data includes, without limitation, the following information relating to a shareholder and/or any individuals connected
with a shareholder as an investor: name, residential address, email address, contact details, corporate contact information, signature,
nationality, place of birth, date of birth, tax identification, credit history, correspondence records, passport number, bank account
details, source of funds details and details relating to the shareholder’s investment activity.

 

Who this Affects

 

If you are a natural person, this will affect you
directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships)
that provides us with personal data on individuals connected to you for any reason in relation your investment in the Company, this will
be relevant for those individuals and you should transmit the content of this Privacy Notice to such individuals or otherwise advise them
of its content.

 

    11

     

    

 

How the Company May Use a Shareholder’s Personal Data

 

The Company, as the data controller, may collect,
store and use personal data for lawful purposes, including, in particular:

 

		(a)	where this is necessary for the performance of our rights and obligations under any purchase agreements;

 

		(b)	where this is necessary for compliance with a legal and regulatory obligation to which we are subject (such as compliance with anti-money
laundering and FATCA/CRS requirements); and/or

 

		(c)	where this is necessary for the purposes of our legitimate interests and such interests are not overridden by your interests, fundamental
rights or freedoms.

 

Should we wish to use personal data for other specific
purposes (including, if applicable, any purpose that requires your consent), we will contact you.

 

Why We May Transfer Your Personal Data

 

In certain circumstances we may be legally obliged
to share personal data and other information with respect to your shareholding with the relevant regulatory authorities such as the Cayman
Islands Monetary Authority or the Tax Information Authority. They, in turn, may exchange this information with foreign authorities, including
tax authorities.

 

We anticipate disclosing personal data to persons
who provide services to us and their respective affiliates (which may include certain entities located outside the US, the Cayman Islands
or the European Economic Area), who will process your personal data on our behalf.

 

The Data Protection Measures We Take

 

Any transfer of personal data by us or our duly
authorized affiliates and/or delegates outside of the Cayman Islands shall be in accordance with the requirements of the DPA.

 

We and our duly authorized affiliates and/or delegates
shall apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful
processing of personal data, and against accidental loss or destruction of, or damage to, personal data.

 

We shall notify you of any personal data breach
that is reasonably likely to result in a risk to your interests, fundamental rights or freedoms or those data subjects to whom the relevant
personal data relates.

 

Certain Anti-Takeover Provisions of Our Amended and Restated Memorandum
and Articles of Association

 

Our authorized but unissued ordinary shares and
preferred shares are available for future issuances without shareholder approval and could be utilized for a variety of corporate purposes,
including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued
and unreserved ordinary shares and preferred shares could render more difficult or discourage an attempt to obtain control of us by means
of a proxy contest, tender offer, merger or otherwise.

 

Our amended and restated memorandum and articles
of association provides that prior to our initial business combination, holders of our Class B ordinary shares and holders of our
Class F ordinary shares, voting together as a single class, will have the right to appoint all of our directors and may remove members
of our board of directors for any reason. In addition, it provides that our board of directors will be classified into three classes of
directors. As a result, in most circumstances, a person can gain control of our board only by successfully engaging in a proxy contest
at two or more annual shareholder meetings.

 

Listing of Securities

 

Our Class A ordinary shares are listed on Nasdaq
under the symbol “PANA”.

 

 

12

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