Document:

Exhibit 4.3

 

WARRANT AGENT AGREEMENT

 

WARRANT AGENT AGREEMENT (this “Warrant Agreement”) dated as of               , 2016 (the “Issuance Date”) between Motif Bio plc, a company incorporated under the laws of England and Wales (the “Company”), and The Bank of New York Mellon (the “Warrant Agent”).

 

WHEREAS, pursuant to the terms of that certain Underwriting Agreement (“Underwriting Agreement”), dated                 , 2016, between the Company and H.C. Wainwright & Co., LLC (“Wainwright”), as representative of the underwriters set forth therein, the Company is engaged in a public offering (the “Offering”) of up to                     American Depositary Shares (“ADSs”), each ADS representing twenty (20) ordinary shares of one pence each in the share capital of the Company (“Ordinary Shares”), and up to                  Warrants (the “Warrants”), with each such Warrant representing the right of the holder thereof to purchase one ADS (each, a “Warrant ADS”) for US$            (1) per ADS, subject to adjustment as described herein, plus applicable fees, charges and taxes;

 

WHEREAS, the ADSs are issuable under the Deposit Agreement dated as of                         , 2016 (the “Deposit Agreement”) among the Company, The Bank of New York Mellon, as depositary (the “Depositary”), and all Owners and Holders (each as defined in the Deposit Agreement) from time to time of the ADSs issued thereunder;

 

WHEREAS, the Company has filed with the Securities and Exchange Commission (the “Commission”) a Registration Statement, No. 333-212491 on Form F-1 (as the same may be amended from time to time, the “Registration Statement”) for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of, among other securities, the Warrants and the Ordinary Shares underlying the Warrant ADSs issuable upon exercise of the Warrants (the “Warrant Shares”), and such Registration Statement was declared effective on                     , 2016;

 

WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in accordance with the terms set forth in this Warrant Agreement in connection with the issuance, registration, registration of transfer, exchange and exercise of the Warrants;

 

WHEREAS, the Company desires to provide for the provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS, all acts and things have been done and performed which are necessary to make the Warrants the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Warrant Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company with respect to the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and conditions set forth in this Warrant Agreement (and no implied terms or conditions).

 

2. Warrants.

 

2.1 Form of Warrants. The Warrants shall be registered securities and shall initially be evidenced by a global certificate (“Global Certificate”) in the form of Annex A to this Warrant Agreement, which shall be deposited on

 

(1) Each Warrant will have an exercise price of 115% of the per ADS public offering price.

 

 

behalf of the Company with a custodian for The Depository Trust Company (“DTC”) and registered in the name of Cede & Co., a nominee of DTC.  If DTC subsequently ceases to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary to have the Warrants available in, book-entry form, the Company may instruct the Warrant Agent to provide written instructions to DTC to deliver to the Warrant Agent for cancellation the Global Certificate, and the Company shall instruct the Warrant Agent to deliver to DTC separate certificates evidencing Warrants (“Definitive Certificates” and, together with the Global Certificate, “Warrant Certificates”) registered as requested through the DTC system.

 

2.2. Issuance and Registration of Warrants.

 

2.2.1. Warrant Register. The Warrant Agent shall maintain books (“Warrant Register”) for the registration of original issuance and the registration of transfer of the Warrants.

 

2.2.2. Issuance of Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue the Global Certificate and deliver the Warrants in the DTC book-entry settlement system in accordance with written instructions delivered to the Warrant Agent by the Company. Ownership of security entitlements in the Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained (i) by DTC and (ii) by institutions that have accounts with DTC (each, a “Participant”).

 

2.2.3. Beneficial Owner; Holder.  Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name that Warrant shall be registered on the Warrant Register (the “Holder”) as the absolute owner of such Warrant for purposes of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.  Notwithstanding the foregoing, nothing herein shall prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from giving effect to any written certification, proxy or other authorization furnished by DTC governing the exercise of the rights of a holder of a beneficial interest in any Warrant. The rights of beneficial owners in a Warrant evidenced by the Global Certificate shall be exercised by the Holder or a Participant through the DTC system, except to the extent set forth herein or in the Global Certificate.

 

2.2.4. Execution.  The Warrant Certificates shall be executed on behalf of the Company by any authorized officer of the Company (an “Authorized Officer”), which need not be the same authorized signatory for all of the Warrant Certificates, either manually or by facsimile signature. The Warrant Certificates shall be countersigned by an authorized signatory of the Warrant Agent, which need not be the same signatory for all of the Warrant Certificates, and no Warrant Certificate shall be valid for any purpose unless so countersigned. In case any Authorized Officer of the Company that signed any of the Warrant Certificates ceases to be an Authorized Officer of the Company before countersignature by the Warrant Agent and issuance and delivery by the Company, such Warrant Certificates, nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person who signed such Warrant Certificates had not ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be an Authorized Officer of the Company authorized to sign such Warrant Certificate, although at the date of the execution of this Warrant Agreement any such person was not such an Authorized Officer.

 

2.2.5. Registration of Transfer. At any time at or prior to the Expiration Date (as defined below), a transfer of any Warrants may be registered and any Warrant Certificate or Warrant Certificates may be split up, combined or exchanged for another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant Certificates surrendered. Any Holder desiring to register the transfer of Warrants or to split up, combine or exchange any Warrant Certificate shall make such request in writing delivered to the Warrant Agent, and shall surrender to the Warrant Agent the Warrant Certificate or Warrant Certificates evidencing the Warrants the transfer of which is to be registered or that is or are to be split up, combined or exchanged and, in the case of registration of transfer, shall provide a signature guarantee. Thereupon, the Warrant Agent shall countersign and deliver to the person entitled thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The Company and the Warrant Agent may require payment, by the Holder requesting a registration of

 

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transfer of Warrants or a split-up, combination or exchange of a Warrant Certificate (but, for purposes of clarity, not upon the exercise of the Warrants and issuance of Warrant ADS to the Holder), of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with such registration of transfer, split-up, combination or exchange, together with reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental thereto.

 

2.2.6. Loss, Theft and Mutilation of Warrant Certificates. Upon receipt by the Company and the Warrant Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Warrant Certificate, and, in case of loss, theft or destruction, of indemnity or security in customary form and amount, and reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate if mutilated, the Warrant Agent shall, on behalf of the Company, countersign and deliver a new Warrant Certificate of like tenor to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated. The Warrant Agent may charge the Holder an administrative fee for processing the replacement of lost Warrant Certificates, which shall be charged only once in instances where a single surety bond obtained covers multiple certificates. The Warrant Agent may receive compensation from the surety companies or surety agents for administrative services provided to them.

 

2.2.7. Proxies.  The Holder of a Warrant may grant proxies or otherwise authorize any person, including the Participants and beneficial holders that may own interests through the Participants, to take any action that a Holder is entitled to take under this Agreement or the Warrants; provided, however, that at all times that Warrants are evidenced by a Global Certificate, exercise of those Warrants shall be effected on their behalf by Participants through DTC in accordance the procedures administered by DTC.

 

3. Terms and Exercise of Warrants.

 

3.1. Exercise Price. Each Warrant shall entitle the Holder, subject to the provisions of the applicable Warrant Certificate and of this Warrant Agreement, to purchase from the Company the number of ADSs stated therein, at the price of US$              (2) per ADS, subject to the subsequent adjustments provided in Section 4 hereof. The term “Exercise Price” as used in this Warrant Agreement refers to the price per ADS at which ADSs may be purchased at the time a Warrant is exercised.  In addition to the Exercise Price, an exercising Holder must pay to the Warrant Agent at the time of exercise the Depositary’s fee of US$0.05 per ADS for issuance of ADSs (the “Issuance Fee”).  The Exercise Price per ADS plus the Issuance Fee per ADS is referred to as the “Deposit Amount”.

 

3.2. Duration of Warrants.  Warrants may be exercised only during the period (“Exercise Period”) commencing on the Issuance Date and terminating at 5:00 P.M., New York City time (the “close of business”) on                          , 2021 (“Expiration Date”)(3). Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date.

 

3.3. Exercise of Warrants.

 

3.3.1. Exercise and Payment. (a) Subject to the provisions of this Warrant Agreement, a Holder (or a Participant acting on behalf of a Holder in accordance with DTC procedures) may exercise Warrants by delivering to the Warrant Agent, (i) not later than 5:00 P.M., New York City time, on any business day during the Exercise Period (such date, the “Date of Exercise”), an election to purchase the Warrant ADSs underlying the Warrants to be exercised (A) in the form included in Annex B to this Warrant Agreement or (B) via an electronic warrant exercise through the DTC system (each, an “Election to Purchase”), (ii) within one Trading Day (as defined in paragraph (b) below) of the Date of Exercise, Warrants to be exercised by (A) surrender of the Warrant Certificate evidencing the Warrants to the Warrant Agent at its office designated for such purpose or (B) delivery of the Warrants to an account of the Warrant Agent at DTC designated for such purpose in writing by the Warrant Agent to DTC from time to time, and (iii) within one Trading Day of the Date of Exercise, the Deposit Amount for each Warrant to be exercised (and, if applicable, any

 

(2) Each Warrant will have an exercise price of 115% of the per ADS public offering price.

(3) The Warrants will expire 5 years from the date of issuance.

 

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taxes or charges due in connection with the exercise of such Warrants), in lawful money of the United States of America by (A) certified or official bank check payable to The Bank of New York Mellon, (B) bank wire transfer in immediately available funds to The Bank of New York Mellon, 500 Ross Street, Pittsburgh, PA 15262-00001, ABA #: 043-000-261, Account Number: 1361721, Account Name: Computershare Inc. AAF Client Corporate Actions, Ref: Motif Bio plc Warrants, Swift Code MELNUS3P or (C) payment to the Warrant Agent through the DTC system.

 

(b)  “Trading Day” means any day on which the ADSs are traded on the Trading Market, or, if the Trading Market is not the principal trading market for the ADSs, then on the principal securities exchange or securities market in the United States on which the ADSs are then traded, provided that “Trading Day” shall not include any day on which the ADSs are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the ADSs are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 P.M., New York City time).  “Trading Market” means NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange.  If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be returned to the Holder or Participant, as the case may be, as soon as practicable. In no event will interest accrue on any funds deposited with the Warrant Agent in respect of an exercise or attempted exercise of Warrants.

 

(c)  The Warrant Agent shall deposit all funds received by it in payment of the Exercise Price in the account of the Company maintained with the Warrant Agent for such purpose and shall advise the Company via telephone at the end of each day on which funds for the exercise of the Warrants are received of the amount so deposited to such account. The Warrant Agent shall promptly confirm such telephonic advice to the Company in writing.

 

(d)  If less than all the Warrants evidenced by a surrendered Warrant Certificate are exercised, the Warrant Agent shall split up the surrendered Warrant Certificate and return to the Holder a Warrant Certificate evidencing the Warrants that were not exercised.

 

3.3.2. Issuance of Warrant Shares.  (a) The Warrant Agent shall, by 11:00 a.m., New York City time, on the Trading Day following the Date of Exercise of any Warrant, advise the Company, the transfer agent and registrar for Ordinary Shares and the Depositary, in respect of (i) the number of Warrant Shares indicated on the Election to Purchase as issuable upon such exercise with respect to such exercised Warrants, (ii) the instructions of the Holder or Participant, as the case may be, provided to the Warrant Agent with respect to the delivery of the Warrant ADSs and the number of Warrants that remain outstanding after such exercise and (iii) such other information as the Company or the Depositary shall reasonably request.  If the Warrants being exercised were not surrendered to the Warrant Agent or the Deposit Amount was not paid to the Warrant Agent on the Date of Exercise, the Warrant Agent shall also notify the Company of that fact and shall further notify the Company when those conditions of valid exercise have been satisfied by the exercising Holder. For the avoidance of doubt, the Company shall have no obligation to deposit Ordinary Shares until all conditions of valid exercise of Warrants have been satisfied by the Holder.  The Warrant Agent shall pay the Depositary the Issuance Fee for the number of Warrant ADSs to be issued out of the Deposit Amount it received.

 

(b) The Company shall, by no later than 5:00 P.M., New York City time, on the third Trading Day following the Date of Exercise of any Warrant and the clearance of the funds in payment of the Exercise Price (such date and time, the “Delivery Time”), cause its registrar to deliver the Warrant Shares issuable upon that exercise to the Depositary’s custodian for deposit under the Deposit Agreement and instruct the Depositary to deliver the Warrant ADSs issuable upon that deposit of Warrant Shares as requested in the Election to Purchase.

 

3.3.3. Valid Issuance. All Warrant Shares issuable by the Company upon the proper exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid and non-assessable.

 

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3.3.4. No Fractional Exercise. No fractional Warrant ADSs will be issued upon the exercise of the Warrant, but rather the Company shall adjust the number of Warrant Shares issued up or down to the nearest integral multiple of the number of Ordinary Shares at the time represented by one ADS.

 

3.3.5 No Transfer Taxes. The Company shall not be required to pay any stamp or other tax or charge required to be paid in connection with the exercise of Warrants; and the Company shall not be required to issue or deliver any Warrant Shares until such tax or other charge shall have been paid or it has been established to the Company’s and the Warrant Agent’s satisfaction that no such tax or other charge is due.  For purposes of clarity, the Company shall pay any stamp or other tax or charge required to be paid in connection with any issuance to the Holder of the Warrant ADSs or Warrant Shares upon the exercise of Warrants.

 

3.3.6 Date of Issuance. The Company will treat an exercising Holder as a beneficial owner of the Warrant Shares as of the Date of Exercise, except that, if the Date of Exercise is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the open of business on the next succeeding date on which the stock transfer books are open. However, it is understood and agreed that Warrant ADSs will not be registered or issued until the Depositary receives notice from its custodian that the Warrant Shares have been deposited under the Deposit Agreement; provided further, however, it is acknowledged and agreed that the Company shall take all reasonable steps to ensure the Warrant ADSs are delivered to the Holder on or prior to the Delivery Time in accordance with Section 3.3.2(b) hereof and, if the Warrant ADSs are not delivered to the Holder on or prior to the Delivery Time, the provisions of Section 3.3.9 shall apply.

 

3.3.7 Restrictive Legend Events; Cashless Exercise Under Certain Circumstances.

 

(i) The Company shall use it reasonable best efforts to maintain the effectiveness of the Registration Statement and the current status of the prospectus included therein or to file and maintain the effectiveness of another registration statement and another current prospectus covering the Warrants and the Warrant Shares at any time that the Warrants are exercisable.  The Company shall provide to the Warrant Agent and each Holder prompt written notice of any time that the Company is unable to deliver the Warrant ADSs via DTC transfer or otherwise without restrictive legend because (A) the Commission has issued a stop order with respect to the Registration Statement, (B) the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, (C) the Company has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, (D) the prospectus contained in the Registration Statement is not available for the issuance of the Warrant ADSs to the Holder or (E) otherwise (each a “Restrictive Legend Event”). To the extent that the Warrants cannot be exercised as a result of a Restrictive Legend Event or a Restrictive Legend Event occurs after a Holder has exercised Warrants in accordance with the terms of the Warrants but prior to the delivery of the Warrant ADSs, the Company shall, at the election of the Holder, which shall be given within five (5) days of receipt of such notice of the Restrictive Legend Event, either (A) rescind the previously submitted Election to Purchase and the Company shall return all consideration paid by registered holder for such shares upon such rescission or (B) treat the attempted exercise as a cashless exercise as described in paragraph (ii) below and refund the cash portion of the exercise price to the Holder.

 

(ii) If a Restrictive Legend Event has occurred, the Warrant shall only be exercisable on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required to make any cash payments or net cash settlement to the Holder in lieu of delivery of the Warrant ADSs. Upon a “cashless exercise”, the Holder shall be entitled to receive the number of Warrant ADSs equal to the quotient obtained by dividing (A-B) (X) by (A), where:

 

(A)                               = the last VWAP immediately preceding the Date of Exercise giving rise to the applicable “cashless exercise”, as set forth in the applicable Election to Purchase (to clarify, the “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used in this calculation);

 

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(B)                               = the Exercise Price of the Warrant, as adjusted as set forth herein; and

 

(X)                               = the number of Warrant ADSs that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If the Warrant ADSs are issued in such a cashless exercise, the Company acknowledges and agrees that, in accordance with Section 3(a)(9) of the Securities Act, the Warrant ADSs shall take on the registered characteristics of the Warrants being exercised and the Company agrees not to take any position contrary thereto.  Upon receipt of an Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a copy of the Election to Purchase to the Company to confirm the number of Warrant ADSs issuable in connection with the cashless exercise. The Company shall calculate and transmit to the Warrant Agent in a written notice, and the Warrant Agent shall have no duty, responsibility or obligation under this section to calculate, the number of Warrant ADSs issuable in connection with any cashless exercise. The Warrant Agent shall be entitled to rely conclusively on any such written notice provided by the Company, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with such written instructions or pursuant to this Warrant Agreement.

 

A Holder that exercises Warrants in a cashless exercise, as a condition of making that exercise, will still be required to pay the Issuance Fee in respect of the actual number of Warrant ADSs that the Holder will receive.

 

3.3.8 Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant ADSs issuable in connection with any exercise, the Company shall promptly deliver to the Holder the number of Warrant ADSs that are not disputed.

 

3.3.9  Compensation for Buy-In on Failure to Timely Deliver Warrant ADSs Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause the Depositary to deliver the Warrant ADSs to the Holder pursuant to Section 3.3.2 on or before the Delivery Time, and if after such date the beneficial owner is required by its broker to purchase (in an open market transaction or otherwise) or the beneficial owner’s brokerage firm otherwise purchases, ADSs or Ordinary Shares to deliver in satisfaction of a sale by the beneficial owner of the Warrant ADSs, which the beneficial owner anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the beneficial owner’s total purchase price (including brokerage commissions, if any) for the Warrant ADSs or Warrant Shares so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant ADSs or Warrant Shares, as applicable, that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant ADSs or Warrant Shares, as applicable, for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of Warrant ADSs or Warrant Shares, as applicable, that would have been issued had the Company timely complied with its delivery obligations.  For example, if the beneficial owner purchases Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Warrant ADSs with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000 for the benefit of the beneficial owner. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing herein shall limit right of a Holder to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver Warrant ADSs upon exercise of Warrants as required pursuant to the terms of this Warrant Agreement.

 

3.3.10  Beneficial Ownership Limitation.  No Holder (other than a Holder who, prior to exercise, beneficially owned in excess of 9.99% of the Company’s Ordinary Shares) shall have the right to exercise any Warrants to the extent that after giving effect to the issuance of Warrant ADSs after exercise as set forth on the applicable Election to Purchase, such Holder or a person holding through such Holder

 

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(together with such Holder’s or person’s Affiliates (as defined in Rule 405 under the Securities Act), and any other persons acting as a group together with that Holder or person or any of that Holder’s or person’s Affiliates), would beneficially own in excess of 4.99% (“Beneficial Ownership Limitation”) of the Company’s Ordinary Shares. For purposes of the foregoing sentence, the number of Ordinary Shares beneficially owned by a person shall include the number of Ordinary Shares underlying the Warrant ADSs that would be owned by that person issuable upon exercise of the Warrants with respect to which such determination is being made, but shall exclude the number of Ordinary Shares (i) underlying the Warrant ADSs which would be issuable upon exercise of the remaining, non-exercised Warrants beneficially owned by that person or any of its Affiliates and (ii) underlying any other securities of the Company held by such Holder or its Affiliates that are exercisable or convertible into Ordinary Shares and subject to a limitation on conversion or exercise that is analogous to the limitation contained in this Section 3.3.10. Except as set forth in the preceding sentence, for purposes of this Section 3.3.10, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that neither the Warrant Agent nor the Company is representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder or beneficial owner is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 3.3.10 applies, the determination of whether a Warrant is exercisable and of the number of Warrants that are exercisable shall be in the sole discretion of the Holder, and the submission of an Election to Purchase shall be deemed to be the Holder’s determination of whether such Warrant is exercisable and of the number of Warrants that are exercisable, and neither the Warrant Agent nor the Company shall have any obligation to verify or confirm the accuracy of such determination and neither of them shall have any liability for any error made by the Holder or any other person. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 3.3.10, in determining the number of outstanding Ordinary Shares, a Holder or other person may rely on the number of outstanding Ordinary Shares as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of Ordinary Shares outstanding.  For any reason at any time, upon the written or oral request of a person that represents that it is or is acting on behalf of a Holder, the Company shall, within two (2) Trading Days, confirm orally or in writing or by e-mail to that person the number of Ordinary Shares then outstanding.  Upon delivery of a written notice to the Company, the Holder may from time to time increase or decrease the Beneficial Ownership Limitation to any other percentage not in excess of 9.99% as specified in such notice, provided that any increase in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and any such increase or decrease will apply only to the Holder and its Affiliates and not to any other holder of Warrants.  The provisions of this Section 3.3.10 shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3.3.10 to correct this subsection (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained.

 

4. Adjustments.

 

4.1 Adjustment upon Subdivisions or Combinations. If the Company at any time after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme of arrangement or otherwise) its outstanding Ordinary Shares into a greater number of Ordinary Shares or the ratio of Ordinary Shares per ADS is reduced (e.g., the ratio is changed from 20 Ordinary Shares per one ADS to 10 Ordinary Shares per one ADS), the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant ADSs will be proportionately increased. If the Company at any time after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding Ordinary Shares into a smaller number of Ordinary Shares or the ratio of Ordinary Shares per ADS is increased (e.g., the ratio is changed from 20 Ordinary Shares per one ADS to 30 Ordinary Shares per one ADS), the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant ADSs will be proportionately decreased. Any adjustment under this Section 4.1 shall become effective at the close of business on the date the subdivision or combination or ratio change becomes effective. The Company shall promptly notify the Warrant Agent in writing of any adjustment to the Warrants and give specific instructions to the Warrant Agent with respect to any adjustments to the warrant register.

 

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4.2 Adjustment for Other Distributions. In the event the Company shall fix a record date for the making of a dividend or distribution to all holders of Ordinary Shares of any evidences of indebtedness or assets or subscription rights, options or warrants (excluding those referred to in Section 4.1 or other dividends paid out of retained earnings), then in each such case the Holder will, upon the exercise of Warrants, be entitled to receive, in addition to the number of Warrant ADSs issuable thereupon, and without payment of any additional consideration therefor, the amount of such dividend or distribution, as applicable, which such Holder would have held on the date of such exercise had such Holder been the holder of record of such Warrant ADSs as of the date on which holders of ADSs became entitled to receive such dividend or distribution. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

 

4.3. Fundamental Transaction. If, at any time while the Warrants are outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person (as defined below), (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any direct or indirect purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares (including those represented by ADSs) are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Ordinary Shares (including those represented by ADSs) (but not including any Ordinary Shares (including those represented by ADSs) held by the Person making or party to, or other Persons associated or affiliated with the Person making or party to, such purchase offer, tender offer or exchange offer), (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of ADSs or Ordinary Shares or any compulsory share exchange pursuant to which the ADSs or Ordinary Shares are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding Ordinary Shares (including those represented by ADSs) (but not including any Ordinary Shares (including those represented by ADSs) held by the Person making or party to, or other Persons associated or affiliated with the Person making or party to, such share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of a Warrant, the registered Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 3.3.10 on the exercise of the Warrant), the number of shares, if any, of the successor or acquiring corporation or of the Company, if it is the surviving corporation, or depositary shares representing those shares, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of ADSs for which the Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 3.3.10 on the exercise of the Warrants). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one ADS in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of ADSs are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of a Warrant following such Fundamental Transaction.

 

Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, other than one in which a Successor Entity (as defined below) that is a publicly-traded corporation whose common equity is quoted or listed on a Trading Market assumes the Warrants such that the Warrants shall be exercisable for the publicly traded common equity of that Successor Entity, the Company or any Successor Entity shall, at the option of a registered Holder, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase any or all of the outstanding Warrants of that Holder by paying to that Holder an amount of cash equal to the Black Scholes Value on the date of the consummation of such Fundamental

 

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Transaction of the Warrants purchased from that Holder.

 

The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant Agreement in accordance with the provisions of this Section 4.3, and to deliver to each Holder in exchange for their Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Warrants that is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the ADSs acquirable and receivable upon exercise of the Warrants (without regard to any limitations on the exercise of the Warrants) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the ADSs or Ordinary Shares prior to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of the Warrants immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant Agreement and the Warrants shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant Agreement and the Warrant with the same effect as if such Successor Entity had been named as the Company herein. As used in this Section 4.3, the term “Person” means any foreign or domestic individual, corporation, trust, partnership, joint venture, limited liability company or other private, governmental or self-regulatory entity.

 

The Company shall instruct the Warrant Agent in writing to mail by first class mail, postage prepaid, to each Holder, written notice of the execution of any such amendment, supplement or agreement with the Successor Entity. Any supplemented or amended agreement entered into by the successor corporation or transferee shall provide for adjustments, which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 4.3. The Warrant Agent shall have no duty, responsibility or obligation to determine the correctness of any provisions contained in such agreement or such notice, including but not limited to any provisions relating either to the kind or amount of securities or other property receivable upon exercise of warrants or with respect to the method employed and provided therein for any adjustments, and shall be entitled to rely conclusively for all purposes upon the provisions contained in any such agreement. The provisions of this Section 4.3 shall similarly apply to successive reclassifications, changes, consolidations, mergers, sales and conveyances of the kind described above.

 

4.4 Other Events. If any event occurs of the type contemplated by the provisions of Section 4.1 or 4.2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, Adjustment Rights, phantom stock rights or other rights with equity features to all holders of ADSs for no consideration), then the Company’s Board of Directors will, at its discretion and in good faith, make an adjustment in the Exercise Price and the number of Warrant ADSs or designate such additional consideration to be deemed issuable upon exercise of a Warrant, so as to protect the rights of the registered Holder.  No adjustment to the Exercise Price will be made pursuant to more than one sub-section of this Section 4 in connection with a single issuance.

 

4.5. Notices of Changes in Warrants. Upon every adjustment of the Exercise Price or the number of Warrant ADSs issuable upon exercise of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from such adjustment and the increase or decrease, if any, in the number of Warrant ADSs purchasable at such price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1 or 4.2, then, in any such event, the Company shall give written notice to each Holder, at the last address set forth for such holder in the Warrant Register, as of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event. The Warrant Agent shall be entitled to rely conclusively on, and shall be fully protected in relying on, any certificate, notice or instructions provided by the Company with respect to any adjustment of the Exercise Price or the number of shares

 

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issuable upon exercise of a Warrant, or any related matter, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with any such certificate, notice or instructions or pursuant to this Warrant Agreement. The Warrant Agent shall not be deemed to have knowledge of any such adjustment unless and until it shall have received written notice thereof from the Company.

 

5. Restrictive Legends; Fractional Warrants.

 

In the event that a Warrant Certificate surrendered for transfer bears a restrictive legend, the Warrant Agent shall not register that transfer until the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the Warrants must also bear a restrictive legend upon that transfer. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the transfer of or delivery of a Warrant Certificate for a fraction of a Warrant.

 

6.  [RESERVED]

 

7. Other Provisions Relating to Rights of Holders of Warrants.

 

7.1. No Rights as Stockholder. Except as otherwise specifically provided herein, a Holder, solely in its capacity as a holder of Warrants, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant Agreement be construed to confer upon a Holder, solely in its capacity as the registered holder of Warrants, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of share capital, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights or rights to participate in new issues of shares, or otherwise, prior to the issuance to the Holder of the Warrant ADSs which it is then entitled to receive upon the due exercise of Warrants.

 

7.2. Reservation of Ordinary Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued Ordinary Shares that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant Agreement.

 

8. Concerning the Warrant Agent and Other Matters.

 

8.1. Any instructions given to the Warrant Agent orally, as permitted by any provision of this Warrant Agreement, shall be confirmed in writing by the Company as soon as practicable. The Warrant Agent shall not be liable or responsible and shall be fully authorized and protected for acting, or failing to act, in accordance with any oral instructions which do not conform with the written confirmation received in accordance with this Section 8.1.

 

8.2. (a) Whether or not any Warrants are exercised, for the Warrant Agent’s services as agent for the Company hereunder, the Company shall pay to the Warrant Agent its out of pocket expenses in connection with this Warrant Agreement, including, without limitation, the charges of Computershare for providing services to the Warrant Agent with respect to the Warrants and the expenses for which the Warrant Agent is obliged to reimburse Computershare, and the fees and expenses of the Warrant Agent’s counsel. While the Warrant Agent endeavors to maintain out-of-pocket charges (both internal and external) at competitive rates, these charges may not reflect actual out-of-pocket costs, and may include handling charges to cover internal processing and use of the Warrant Agent’s billing systems.

 

(b) All amounts owed by the Company to the Warrant Agent under this Warrant Agreement are due within 30 days of the invoice date. Delinquent payments are subject to a late payment charge of one and one-half percent (1.5%) per month commencing 45 days from the invoice date. The Company agrees to reimburse the Warrant Agent for any attorney’s fees and any other costs associated with collecting delinquent payments.

 

(c) No provision of this Warrant Agreement shall require Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties under this Warrant Agreement or in the exercise of its rights.

 

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8.3 As agent for the Company hereunder the Warrant Agent:

 

(a) shall have no duties or obligations other than those specifically set forth in this Warrant Agreement or as may subsequently be agreed to in writing by the Warrant Agent and the Company;

 

(b) shall have no obligation to effect any delivery of Warrant ADSs other than to instruct the Depositary with respect to that delivery;

 

(c) shall be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of the Warrants or any Warrant Shares or Warrant ADSs;

 

(d) shall not be obligated to take any legal action under this Warrant Agreement; if, however, the Warrant Agent determines to take any legal action under this Warrant Agreement, and where the taking of such action might, in its judgment, subject or expose it to any expense or liability it shall not be required to act unless it has been furnished with an indemnity reasonably satisfactory to it;

 

(e) may rely on and shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter, telegram, telex, facsimile transmission or other document or security delivered to the Warrant Agent and believed by it to be genuine and to have been signed by the proper party or parties;

 

(f) shall not be liable or responsible for any recital or statement contained in the Registration Statement or any other documents relating thereto;

 

(g) shall not be liable or responsible for any failure on the part of the Company to comply with any of its covenants and obligations relating to the Warrants, including without limitation obligations under applicable securities laws;

 

(h) may rely on and shall be fully authorized and protected in acting or failing to act upon the written, telephonic or oral instructions with respect to any matter relating to its duties as Warrant Agent covered by this Warrant Agreement (or supplementing or qualifying any such actions) of officers of the Company, and is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from the Company or counsel to the Company, and may apply to the Company, for advice or instructions in connection with the Warrant Agent’s duties hereunder, and the Warrant Agent shall not be liable for any delay in acting while waiting for those instructions; any applications by the Warrant Agent for written instructions from the Company may, at the option of the Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under this Warrant Agreement and the date on or after which such action shall be taken or such omission shall be effective; the Warrant Agent shall not be liable for any action taken by, or omission of, the Warrant Agent in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than five business days after the date such application is sent to the Company, unless the Company shall have consented in writing to any earlier date) unless prior to taking any such action, the Warrant Agent shall have received written instructions in response to such application specifying the action to be taken or omitted; “Business day” means a day other than a Saturday or Sunday on which commercial Banks in New York City are open for the general conduct of banking business;

 

(i) may consult with counsel satisfactory to the Warrant Agent, including its in-house counsel, and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance with the advice of such counsel;

 

(j) may perform any of its duties hereunder either directly or by or through nominees, correspondents, designees, subagents or subcustodians, and it shall not be liable or responsible for any misconduct or negligence on the part of any nominee, correspondent, designee, subagent or subcustodian appointed with reasonable care by it in connection with this Warrant Agreement;

 

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(k) is not authorized, and shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person and

 

(l) shall not be required hereunder to comply with the laws or regulations of any country other than the United States of America or any political subdivision thereof; and Warrant Agent may, after consulting with the Company to the extent practical, consult with foreign counsel, the fees and expenses of which shall be at the Company’s expense, to resolve any foreign law issues that may arise as a result of the Company or any other party being subject to the laws or regulations of any foreign jurisdiction.

 

8.4. (a) In the absence of gross negligence or willful misconduct on its part, the Warrant Agent shall not be liable for any action taken, suffered, or omitted by it or for any error of judgment made by it in the performance of its duties under this Warrant Agreement. Anything in this Warrant Agreement to the contrary notwithstanding, in no event shall Warrant Agent be liable for special, indirect, incidental, consequential or punitive losses or damages of any kind whatsoever (including but not limited to lost profits), even if the Warrant Agent has been advised of the possibility of such losses or damages and regardless of the form of action. Any liability of the Warrant Agent will be limited in the aggregate to the amount of fees paid by the Company hereunder. The Warrant Agent shall not be liable for any failures, delays or losses, arising directly or indirectly out of conditions beyond its reasonable control including, but not limited to, acts of government, exchange or market ruling, suspension of trading, work stoppages or labor disputes, fires, civil disobedience, riots, rebellions, storms, electrical or mechanical failure, computer hardware or software failure, communications facilities failures including telephone failure, war, terrorism, insurrection, earthquakes, floods, acts of God or similar occurrences.

 

(b) In the event any question or dispute arises with respect to the proper interpretation of the Warrants or the Warrant Agent’s duties under this Warrant Agreement or the rights of the Company or of any Holder, the Warrant Agent shall not be required to act and shall not be held liable or responsible for its refusal to act until the question or dispute has been judicially settled (and, if appropriate, it may file a suit in interpleader or for a declaratory judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on all persons interested in the matter which is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory to Warrant Agent and executed by the Company and each such Holder. In addition, the Warrant Agent may require for such purpose, but shall not be obligated to require, the execution of such written settlement by all the Holders and all other persons that may have an interest in the settlement.

 

8.5. The Company covenants to indemnify the Warrant Agent and hold it harmless from and against any loss, liability, claim or expense (“Loss”) arising out of or in connection with the Warrant Agent’s duties under this Warrant Agreement, including the costs and expenses of defending itself against any Loss, unless such Loss shall have been determined by a court of competent jurisdiction to be a result of the Warrant Agent’s gross negligence or willful misconduct.

 

8.6. Unless terminated earlier by the parties hereto, this Agreement shall terminate 90 days after the earlier of the Expiration Date and the date on which no Warrants remain outstanding (the “Termination Date”). On the business day following the Termination Date, the Agent shall deliver to the Company any entitlements, if any, held by the Warrant Agent under this Warrant Agreement. The Agent’s right to be indemnified and held harmless and to be paid its fees and reimbursed for its expenses as provided in this Section 8 shall survive the termination of this Warrant Agreement.

 

8.7. If any provision of this Warrant Agreement shall be held illegal, invalid, or unenforceable by any court, this Warrant Agreement shall be construed and enforced as if such provision had not been contained herein and shall be deemed an Agreement among the parties to it to the full extent permitted by applicable law.

 

8.8. The Company represents and warrants that (a) it is duly incorporated and validly existing under the laws of its jurisdiction of incorporation, (b) the offer and sale of the Warrants and the execution, delivery and performance of all transactions contemplated thereby (including this Warrant Agreement) have been duly authorized by all necessary corporate action and will not result in a breach of or constitute a default under the articles of association, bylaws or any similar document of the Company or any indenture, agreement or instrument to which it is a party or

 

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is bound, (c) this Warrant Agreement has been duly executed and delivered by the Company and constitutes the legal, valid, binding and enforceable obligation of the Company, (d) the Warrants will comply in all material respects with all applicable requirements of law and (e) to the best of its knowledge, there is no litigation pending or threatened as of the date hereof in connection with the offering of the Warrants.

 

8.9. In the event of inconsistency between this Warrant Agreement and the descriptions in the Registration Statement, as they may from time to time be amended, the terms of this Warrant Agreement shall control.

 

8.10. Set forth in Annex C hereto is a list of the names and specimen signatures of the persons authorized to act for the Company under this Warrant Agreement (the “Authorized Representatives”). The Company shall, from time to time, certify to you the names and signatures of any other persons authorized to act for the Company under this Warrant Agreement.

 

8.11. Except as expressly set forth elsewhere in this Warrant Agreement, all notices, instructions and communications under this Agreement shall be in writing, shall be effective upon receipt and shall be addressed, if to the Company, to its address set forth beneath its signature to this Agreement, or, if to the Warrant Agent, to The Bank of New York Mellon, Depositary Receipts, 101 Barclay Street, 22 West, New York, New York 10286, Attention:  Margaret Keyes, Relationship Manager, Motif Bio plc, Telephone: 212-815-6915, Facsimile: 212-571-3050, with a copy to Computershare Inc., 480 Washington Boulevard, Jersey City, New Jersey 07310, Attention:  Kirsten Kulmaczewski, Telephone:  201-680-2150, or to such other address of which a party hereto has notified the other party.

 

8.12. (a) This Warrant Agreement shall be governed by and construed in accordance with the laws of the State of New York. All actions and proceedings relating to or arising from, directly or indirectly, this Warrant Agreement may be litigated in courts located within the Borough of Manhattan in the City and State of New York. The Company hereby submits to the personal jurisdiction of such courts and consents that any service of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for notices hereunder. Each of the parties hereto hereby waives the right to a trial by jury in any action or proceeding arising out of or relating to this Warrant Agreement.

 

(b) This Warrant Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. This Warrant Agreement may not be assigned, or otherwise transferred, in whole or in part, by either party without the prior written consent of the other party, which the other party will not unreasonably withhold, condition or delay; except that (i) consent is not required for an assignment or delegation of duties by Warrant Agent to any affiliate of Warrant Agent and (ii) any reorganization, merger, consolidation, sale of assets or other form of business combination by Warrant Agent or the Company shall not be deemed to constitute an assignment of this Warrant Agreement.

 

(c) No provision of this Warrant Agreement may be amended, modified or waived, except in a written document signed by both parties.  The Company and the Warrant Agent may amend or supplement this Warrant Agreement without the consent of any Holder for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties determine, in good faith, shall not adversely affect the interest of the Holders.  All other amendments and supplements shall require the vote or written consent of Holders of at least 50.1% of the then outstanding Warrants, provided that adjustments may be made to the Warrant terms and rights in accordance with Section 4 without the consent of the Holders.

 

8.13 Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of Warrant Shares or Warrant ADSs upon the exercise of Warrants, but the Company may require the Holders to pay any transfer taxes in respect of the Warrants or such shares. The Warrant Agent may refrain from registering any transfer of Warrants or any delivery of any Warrant ADSs unless or until the persons requesting the registration or issuance shall have paid to the Warrant Agent for the account of the Company the amount of such tax or charge, if any, or shall have

 

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established to the reasonable satisfaction of the Company and the Warrant Agent that such tax or charge, if any, has been paid.

 

8.14 Resignation of Warrant Agent.

 

8.14.1. Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company, or such shorter period of time agreed to by the Company. The Company may terminate the services of the Warrant Agent, or any successor Warrant Agent, after giving thirty (30) days’ notice in writing to the Warrant Agent or successor Warrant Agent, or such shorter period of time as agreed.  If the office of the Warrant Agent becomes vacant by resignation, termination or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity by the Warrant Agent, then the Warrant Agent or any Holder may apply to any court of competent jurisdiction for the appointment of a successor Warrant Agent at the Company’s cost. Pending appointment of a successor to such Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. Any successor Warrant Agent (but not including the initial Warrant Agent), whether appointed by the Company or by such court, shall be a person organized and existing under the laws of any state of the United States of America, in good standing, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed, and except for executing and delivering documents as provided in the sentence that follows, the predecessor Warrant Agent shall have no further duties, obligations, responsibilities or liabilities hereunder, but shall be entitled to all rights that survive the termination of this Warrant Agreement and the resignation or removal of the Warrant Agent, including but not limited to its right to indemnity hereunder. If for any reason it becomes necessary or appropriate or at the request of the Company, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

 

8.14.2. Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer agent for the ADSs not later than the effective date of any such appointment.

 

8.14.3. Merger or Consolidation of Warrant Agent. Any person into which the Warrant Agent may be merged or converted or with which it may be consolidated or any person resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party or any person succeeding to the shareowner services business of the Warrant Agent or any successor Warrant Agent shall be the successor Warrant Agent under this Warrant Agreement, without any further act or deed. For purposes of this Warrant Agreement, “person” shall mean any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust or other entity, and shall include any successor (by merger or otherwise) thereof or thereto.

 

9. Miscellaneous Provisions.

 

9.1. Persons Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the Holders any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof.

 

9.2. Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office of the Warrant Agent designated for such purpose for inspection by any Holder. Prior to such

 

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inspection, the Warrant Agent may require any such holder to provide reasonable evidence of its interest in the Warrants.

 

9.3. Counterparts. This Warrant Agreement may be executed in any number of original, facsimile or electronic counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

9.4. Effect of Headings. The Section headings herein are for convenience only and are not part of this Warrant Agreement and shall not affect the interpretation thereof.

 

10. Certain Definitions.

 

As used herein, the following terms shall have the following meanings:

 

(i) “Adjustment Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance, sale or delivery (or deemed issuance, sale or delivery in accordance with Section 4) of ADSs or Ordinary Shares (other than rights of the type described in Section 4.2 and 4.3 hereof) that could result in a decrease in the net consideration received by the Company in connection with, or with respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or other similar rights).

 

(ii) “Black Scholes Value” means the value of the Warrant based on the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the day immediately following the first public announcement of the applicable Fundamental Transaction, or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of the Warrant as of such date of request, (ii) an expected Volatility obtained from the HVT function on Bloomberg as of the day immediately following the public announcement of the applicable Fundamental Transaction, or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, (iii) the underlying price per share used in such calculation shall be the highest Weighted Average Price during the five (5) Trading Days prior to the closing of the Fundamental Transaction, (iv) a zero cost of borrow and (v) a 360 day annualization factor.

 

(iii) “Principal Market” means The Nasdaq Global Market.

 

(iv) “Volatility” means the arithmetic mean of the historical Volatility for the 10, 30 and 50 Trading Day periods ending on the next succeeding Trading Day following the date of such first public announcement, obtained from the HVT or similar function on Bloomberg.

 

(v) “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the ADSs are then listed or quoted on a Trading Market, the daily volume Weighted Average Price of the ADSs for such date (or the nearest preceding date) on the Trading Market on which the ADSs are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) the volume Weighted Average Price of the ADSs for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the ADSs are not then listed or quoted for trading on the OTC Bulletin Board and if prices for the ADSs are then reported in the OTCQB maintained by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per ADS so reported, or (d) in all other cases, the fair market value of an ADS as determined by an independent appraiser selected in good faith by the Company, the fees and expenses of which shall be paid by the Company.

 

(vi) “Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market, or, if the Principal Market is not the principal trading market for the ADSs, then on the principal securities exchange on which the ADSs are then traded, during the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00 p.m., New York City time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of such

 

15

 

security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00 p.m., New York City time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Inc. If the Weighted Average Price cannot be calculated for such security on such date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as reasonably determined by the Company. All such determinations shall be appropriately adjusted for any share dividend, share split or other similar transaction during such period.

 

16

 

IN WITNESS WHEREOF, this Warrant Agent Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	
 
    	
MOTIF BIO PLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address for notices:
    
	
 
    	
Attention:
    
	
 
    	
Telephone:
    
	
 
    	
Facsimile:
    
	
 
    	
E-mail:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK   MELLON,
    
	
 
    	
As Warrant Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

Annex A Form of Warrant Certificates

Annex B Election to Purchase

Annex C Authorized Representatives

 

17

 

ANNEX A

 

FORM OF WARRANT CERTIFICATES

 

[TO BE INCLUDED IN THE GLOBAL CERTIFICATE]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

MOTIF BIO PLC
 WARRANT CERTIFICATE
 NOT EXERCISABLE AFTER                            

 

This certifies that the person whose name and address appears below, or registered assigns, is the registered owner of the number of Warrants set forth below. Each Warrant entitles its registered holder to purchase from Motif Bio plc, a company incorporated under the laws of England and Wales (the “Company”) at any time prior to 5:00 P.M. (New York City time) on                        at the designated office of The Bank of New York Mellon, as warrant agent (the “Warrant Agent”) set forth below, one American Depositary Share (each, an “ADS”), each ADS representing        ordinary shares of one penny each in the share capital of the Company (each, a “Share” and collectively, the “Shares”), at price of US$                  per whole ADS, subject to possible adjustments as provided in the Warrant Agreement (as defined below).  Exercising warrant holders will also be required to deposit with the Warrant Agent an amount equal to $0.05 for each ADS issued pursuant to the Warrants (the “Issuance Fee”) to pay the issuance fees of the Depositary under the Deposit Agreement dated as of                         , 2016 (the “Deposit Agreement”) among the Company, The Bank of New York Mellon, as depositary, and all Owners and Holders (each as defined in the Deposit Agreement) from time to time of the ADSs issued thereunder.

 

This Warrant Certificate, with or without other Warrant Certificates, upon surrender at the designated office of the Warrant Agent, may be exchanged for another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant Certificates surrendered. A transfer of the Warrants evidenced hereby may be registered upon surrender of this Warrant Certificate at the designated office of the Warrant Agent by the registered holder in person or by a duly authorized attorney, properly endorsed or accompanied by proper instruments of transfer, a signature guarantee, and such other and further documentation as the Warrant Agent may reasonably request and duly stamped as may be required by the laws of the State of New York and of the United States of America.

 

The terms and conditions of the Warrants and the rights and obligations of the holder of this Warrant Certificate are set forth in the Warrant Agent Agreement dated as of                     , 2016 (the “Warrant Agreement”) between the Company and the Warrant Agent. A copy of the Warrant Agreement is available for inspection during business hours at the office of the Warrant Agent.

 

This Warrant Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by an authorized signatory of the Warrant Agent.

 

18

 

WITNESS the facsimile signature of a proper officer of the Company.

 

	
 
    	
MOTIF BIO PLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

Dated:             , 2016
 Countersigned:

 

THE BANK OF NEW YORK MELLON,

as Warrant Agent

 

	
By:
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

PLEASE DETACH HERE

 

Certificate No.:                     Number of Warrants:                         

 

WARRANT CUSIP NO.:                     

 

MOTIF BIO PLC

 

	
[Name & Address of Holder]
    	
 
    	
THE BANK OF NEW YORK MELLON, Warrant Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By   mail:

 

The Bank of New York   Mellon

c/o Voluntary Corporate   Actions

PO Box 43011

Providence, RI  02940-3011

 

By   hand or overnight courier:

 

The Bank of New York   Mellon

c/o Voluntary Corporate   Actions

250 Royall St, Suite V

Canton, MA  02021
    

 

19

 

ANNEX B

 

[Form of Election to Purchase]

 

(To Be Executed Upon Exercise Of Warrants not evidenced by a Global Certificate)

 

The undersigned hereby irrevocably elects to exercise the right, represented by Warrants evidenced by this Warrant Certificate, to receive                      ADSs and herewith tenders payment for such ADSs to the order of The Bank of New York Mellon, in the amount of US$                    in accordance with the terms hereof.

 

OR

 

[In cases where cashless exercise is permitted under the Warrant Agreement] — The undersigned hereby irrevocably elects to exercise the right, represented by Warrants evidenced by this Warrant Certificate, to receive                       ADSs (before giving effect to the cashless exercise provisions) and herewith agrees to make payment therefor pursuant to the cashless exercise provisions of the Warrant Agreement, all on the terms and the conditions specified in the Warrant Agent Agreement.

 

The undersigned requests that a certificate for such ADSs be registered in the name of

 

                                                                                                                                                     , whose address is

 

                                                                                                                                                        and that such

 

certificate be delivered to                                                                                             , whose address is

 

                                                                                                                                                                             .

 

If the number of Warrants being exercised hereby is less than all the Warrants evidenced by this Warrant Certificate, the undersigned requests that a new Warrant Certificate representing the remaining unexercised Warrants be registered in the name of

 

                                                                                                                                                    , whose address is

 

                                                                                                                                                                                     ,

 

and that such Warrant Certificate be delivered to

 

                                                                                                                                                          , whose address is

 

                                                                                                                                                                                          .

 

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Signature of holder)
    
	
Place signature   guarantee stamp here:
    	
 
    	
 
    

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Warrant Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Warrant Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

20

 

ANNEX C

 

AUTHORIZED REPRESENTATIVES

 

	
Name
    	
 
    	
Title
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

21Exhibit 4.5

 

MOTIF BIO PLC

 

 

WARRANT INSTRUMENT

 

 

DATED: [·] 2016

 

	

    	
Reed Smith LLP

The Broadgate Tower
   20 Primrose Street
   London EC2A 2RS
   Phone:  +44 (0) 20 3116 3000
   Fax:  +44 (0) 20 3116 3999
   DX1066 City / DX18 London

 

reedsmith.com
    

 

 

CONTENTS

 

	
1
    	
DEFINITIONS AND   INTERPRETATION
    	
2
    
	
 
    	
 
    	
 
    
	
2
    	
SUBSCRIPTION RIGHTS
    	
5
    
	
 
    	
 
    	
 
    
	
3
    	
WARRANT CERTIFICATES
    	
6
    
	
 
    	
 
    	
 
    
	
4
    	
EXERCISE OF WARRANTS
    	
7
    
	
 
    	
 
    	
 
    
	
5
    	
BENEFICIAL OWNERSHIP   LIMITATION
    	
10
    
	
 
    	
 
    	
 
    
	
6
    	
CASHLESS EXERCISE UNDER   CERTAIN CIRCUMSTANCES
    	
10
    
	
 
    	
 
    	
 
    
	
7
    	
UNDERTAKINGS
    	
11
    
	
 
    	
 
    	
 
    
	
8
    	
ADJUSTMENT OF   SUBSCRIPTION RIGHTS
    	
11
    
	
 
    	
 
    	
 
    
	
9
    	
GENERAL OFFERS AND   LIQUIDATION
    	
12
    
	
 
    	
 
    	
 
    
	
10
    	
MERGERS AND   CONSOLIDATIONS
    	
14
    
	
 
    	
 
    	
 
    
	
11
    	
TRANSFER AND TITLE
    	
14
    
	
 
    	
 
    	
 
    
	
12
    	
MEETINGS OF WARRANTHOLDERS
    	
15
    
	
 
    	
 
    	
 
    
	
13
    	
MODIFICATIONS
    	
16
    
	
 
    	
 
    	
 
    
	
14
    	
PURCHASE AND   CANCELLATION
    	
16
    
	
 
    	
 
    	
 
    
	
15
    	
TAXES
    	
16
    
	
 
    	
 
    	
 
    
	
16
    	
AVAILABILITY OF   INSTRUMENT AND NOTICES
    	
17
    
	
 
    	
 
    	
 
    
	
17
    	
PURCHASE OF ORDINARY   SHARES BY THE COMPANY
    	
17
    
	
 
    	
 
    	
 
    
	
18
    	
ENFORCEMENT
    	
17
    
	
 
    	
 
    	
 
    
	
19
    	
GOVERNING LAW
    	
17
    

 

1

 

This warrant instrument (“Instrument”) is executed by way of deed poll on                                                      2016 by

 

MOTIF BIO PLC, a company incorporated in the England and Wales with company registration number 09320890 and whose registered office is One Tudor Street, London, EC4Y 0AH (the “Company”).

 

BACKGROUND

 

(A)                               By a resolution of the board of directors of the Company (the “Board”) passed on                                            2016, the Company authorised the issue of                             Warrants (as defined below) giving rights to subscribe for up to                           Ordinary Shares (as defined below) subject to and in accordance with the terms of this Instrument.

 

(B)                               The Company has determined to execute this Instrument to set out the rights and interests of the Warrantholders (as defined below).

 

OPERATIVE PROVISIONS

 

1                                         DEFINITIONS AND INTERPRETATION

 

1.1                               In this Instrument, unless the context otherwise requires, the following expressions shall have the following respective meanings:

 

“AIM” means AIM, a market operated by the London Stock Exchange;

 

“Articles” means the memorandum and articles of association of the Company as amended from time to time;

 

“Auditors” means the auditors at the Company from time to time or, if they are unable or unwilling to carry out any action requested of them under this Instrument, such other firm of chartered accountants as may be nominated from time to time by the Company;

 

“Beneficial Ownership Limitation” has the meaning given to the phrase in Clause 5;

 

“Business Day” means any day (excluding Saturday or Sunday) on which banks in England are open for business;

 

“Companies Act” means the UK Companies Act 2006 as amended from time to time;

 

“Court” means the High Court of England and Wales;

 

“CREST” means the computerised settlement system and transfer procedures to facilitate the transfer of title of shares in uncertificated form of which Euroclear UK & Ireland is the operator;

 

“CREST Requirements” means such rules and requirements of EUI as may be applicable to issuers from time to time as specified in the CREST Manual;

 

“CREST Manual” means the compendium of documents entitled “CREST Manual” issued by EUI from time to time and comprising the CREST Reference Manual, the CREST Central

 

2

 

Counterparty Service Manual, the CREST International Manual, the CREST Rules, the CSS Operations Manual and the CREST Glossary of Terms;

 

“EUI” means Euroclear UK & Ireland Limited (formerly known as CRESTCo Limited);

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended;

 

“Exercise Amount” means the sum payable on exercise of one Warrant being £[·] per Ordinary Share (or such adjusted price as may be determined from to time in accordance with the provisions of Clause 8 (Adjustment of Subscription Rights));

 

“Expiry Date” means [·], 2021;

 

“Extraordinary Resolution” means an extraordinary resolution of the Warrantholders passed in accordance with the provisions of Schedule 3 (Meetings of Warrantholders);

 

“Form of Nomination” means, in relation to any Warrant, the form of nomination attached to the Warrant Certificate a copy of which is set out in Schedule 1;

 

“Insolvency Act” means the UK Insolvency Act 1986 as amended from time to time;

 

“London Stock Exchange” means London Stock Exchange plc;

 

“Ordinary Shares” means ordinary shares in the Company with the rights attached thereto in accordance with the Articles (as amended from time to time);

 

“Quarter” means each three month period commencing on 1 January, 1 April, 1 July and 1 October;

 

“Register” means the register of Warrantholders required to be maintained pursuant to Clause 11.1;

 

“Registrar” means Share Registrars Limited of The Courtyard, 17 West Street, Farnham, GU9 7DR, United Kingdom, or such other person or persons appointed by the Company from time to time to maintain the Register;

 

“Registrar’s Agent” means [·] of [·] or such other person or persons appointed by the Company from time to time.

 

“Regulations” means the Uncertificated Securities Regulations 1995 (SI 1995 No. 95/3272) including any modification thereof or any regulations in substitution therefore made under Section 207 of the Companies Act 1989 and for the time being in force;

 

“SEC” means the United States Securities and Exchange Commission;

 

“Securities Act” means the United States Securities Act of 1933, as amended.

 

“Specified Number” means such number of Warrants as shall be specified on the face of the relevant Warrant Certificate, in each case subject to adjustment pursuant to Clause 7 (Adjustment of Subscription Rights) and/or Clause 8 (General Offers and Liquidation) hereof;

 

“Subscription Notice” means in relation to any Warrant, the notice of subscription attached to the Warrant Certificate a copy of which is set out in Schedule 1;

 

3

 

“Subscription Period” means, in relation to any Warrant, the period from the date of this Instrument to 5:00 p.m. London time on the Expiry Date;

 

“Successor Entity” means, in the event of a merger or consolidation of the Company where the Company is not the survivor, the entity which survives such merger or consolidation;

 

“Trading Days” means any day on which the London Stock Exchange, or the principal securities exchange or other securities market on which the Ordinary Shares are then being traded, is open for general business;

 

“Trading Market” means AIM or the Main Market of the London Stock Exchange plc;

 

“US Person” has the meaning given to it in Regulation S under the Securities Act;

 

“VWAP” means for any date, the price determined by the first of the following clauses that applies: (a) the daily volume Weighted Average Price of the Ordinary Shares traded on AIM for such date (or the nearest preceding date) as reported by Bloomberg Financial Markets (based on a Trading Day from 8:00 a.m. (London Time) to 4:30 p.m. (London Time) or an equivalent, reliable reporting service mutually acceptable to and hereafter designated by holders of a majority in interest of the Warrants and the Company; or (b) if AIM is not the principal trading market for the Ordinary Shares the volume Weighted Average Price of the Ordinary Shares for such date (or the nearest preceding date) on the principal securities exchange or trading market where the Ordinary Shares are listed or traded as reported by Bloomberg Financial Markets (based on a Trading Day from 8:00 a.m. (London time) to 4:30 p.m. (London time) or an equivalent, reliable reporting service mutually acceptable to and hereafter designated by holders of a majority in interest of the Warrants and the Company; or (c) in all other cases, the fair market value of an Ordinary Share as determined by an independent appraiser selected in good faith by the Company, the fees and expenses of which shall be paid by the Company;

 

“Warrant Certificate” means a certificate issued by the Company evidencing a holding of Warrants in certificated form, such certificate being in or substantially in the form set out in Schedule 1 (Form of Warrant Certificate);

 

“Warrantholder” means in relation to any Warrant, the person or persons who is or are for the time being registered in the Register as the registered holder or joint holders of such Warrant;

 

“Warrants” means the                          warrants issued by the Company pursuant to the resolutions referred to in the Recitals and carrying the rights created by this Instrument, each such warrant entitling the holder thereof to subscribe for one Ordinary Share on the terms set out in this Instrument and the term “Warrant” shall be construed accordingly; and

 

“Weighted Average Price” means, for the Ordinary Shares as of any date, the sterling volume-weighted average price for the Ordinary Shares on AIM, or where AIM is not the principal trading market for the Ordinary Shares the principal securities exchange or trading market where the Ordinary Shares are listed or traded, as reported by Bloomberg Financial Markets through its “Volume at Price” function. If the Weighted Average Price cannot be calculated for such security on such date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as reasonably determined by the Company. All such determinations shall be appropriately adjusted for any share dividend, share split or other similar transaction during such period;

 

“£” means pounds sterling, being the lawful currency of the United Kingdom.

 

1.2                               Wherever in this Instrument reference shall be made to a determination or certification to be made by or an opinion to be given by the Auditors, the following provisions shall apply:

 

(a)                                 the Auditors shall be deemed to act as an expert and not an arbitrator and applicable laws relating to arbitration shall not apply;

 

(b)                                 the determination of the Auditors shall be final and binding on all concerned save in the case of manifest error; and

 

(c)                                  the Auditors shall be given by the Company all such information and other assistance as they may reasonably require.

 

4

 

1.3                               The Clause headings are inserted for guidance only and shall not affect the meaning or interpretation of any part of this Instrument.

 

1.4                               Reference to Clauses, sub-clauses and Schedules in this Instrument are references to the Clauses, sub-clauses and Schedules of and to this Instrument.

 

1.5                               References to any statute or statutory provision include references to that statute or statutory provision as from time to time amended, extended or re-enacted and to any rules, orders, instruments, regulations and delegated/subordinated legislation made thereunder.

 

1.6                               Unless the context otherwise requires, words and phrases, the definitions of which are contained or referred to in the Companies Act shall be construed as having the meanings thereby attributed to them but excluding any statutory modification not in force at the date of this Instrument.

 

1.7                               Words importing the singular shall include the plural and vice versa; words importing the masculine gender shall include the feminine and neuter genders and vice versa; words importing persons shall include bodies corporate, unincorporated associations and partnerships.

 

1.8                               Any register, index, minute book or book of account required to be kept by this Instrument shall be kept, and inspection thereof shall be allowed and copies shall be supplied, in such form and manner and subject to such precautions as would from time to time be permissible or required if it were a register, index, minute book or book of account required to be kept by the Companies Act and references to such records in the Instrument shall be construed accordingly.

 

1.9                               References herein to a share or warrant (or to a holding of shares or warrants) being in uncertificated form or in certificated form are references, respectively, to that share being an uncertificated unit of a security or a certificated unit of a security.

 

2                                         SUBSCRIPTION RIGHTS

 

2.1                               The Company shall hereby issue, pursuant to the resolutions referred to in the Recitals, the Warrants. Each Warrant shall carry the right, subject to the provisions of this Instrument, to subscribe in accordance with Clause 4 (Exercise of Warrants), during the Subscription Period, subject always to the requisite shareholder authority having been granted for the issue of Ordinary Shares to the subscriber and the pre-emption rights in the Articles having been waived in respect of such issue, for one Ordinary Share (subject to adjustment pursuant to Clause 8 (Adjustment of Subscription Rights) hereof) at the Exercise Amount payable in cash in full on subscription.

 

2.2                               The Warrants may be issued to the proposed Warrantholder upon receipt by the Company of [·] pence per Warrant. Upon the issue of any Warrant the Company shall enter the person or persons to whom the Warrant is issued into the Register in respect of such Warrant. The Warrants held in certificated form will be evidenced by a Warrant Certificate issued by the Company. Warrantholders who so wish to, may hold their Warrants in uncertificated form and such uncertificated Warrants may settle directly in CREST.

 

5

 

2.3                               The Company shall, upon exercise of all or any of the Warrants in accordance with Clause 4 (Exercise of Warrants) from time to time during the Subscription Period, forthwith allot and issue the appropriate number of Ordinary Shares required to be allotted and issued in accordance with the terms of this Instrument.

 

2.4                               The Warrants shall be subject to and have the benefit of the terms and conditions set out in this Instrument and in the Warrant Certificate which shall be binding upon the Company, the Warrantholders and all persons claiming through or under them respectively.

 

2.5                               The Warrants are issued subject to the provisions of the Articles.

 

2.6                               The Company shall be entitled at any time:

 

(a)                                 to require a Warrantholder to hold their Warrants in uncertificated form;

 

(b)                                 to require the holder of any Warrants which are held in uncertificated form to exchange such Warrants in uncertifciated form for Warrants in certificated form; and/or

 

(c)                                  to require the Operator (as defined in the CREST Manual) to suspend or remove the Warrants in uncertificated form from the relevant system concerned.

 

2.7                               Any stamp duties or taxes (if any) or other fees payable on or arising from the, constitution, issue or exercise of the Warrants will be for the account of the relevant Warrantholder.

 

3                                         WARRANT CERTIFICATES

 

3.1                               Every Warrant Certificate shall be in the form or substantially in the form set out in Schedule 1 (Form of Warrant Certificate). The Subscription Notice and Form of Nomination set out in Schedule 1 shall be available from the website of the Company during the period in which the Warrants may be exercised.

 

3.2                               Every Warrantholder shall be entitled without charge to one Warrant Certificate for the Warrants held by him save that joint holders shall be entitled to one Warrant Certificate only in respect of the Warrants held by them jointly which Warrant Certificate shall be delivered to the holder whose name stands first in the Register in respect of such joint holding.  The Company shall not be bound to register more than four persons as joint holders of any Warrants.

 

3.3                               Where some but not all of the Warrants comprised in any Warrant Certificate are transferred or exercised in accordance with the terms and conditions of this Instrument, the Company shall issue, free of charge, to the relevant Warrantholder a fresh Warrant Certificate in accordance with the other provisions of this Instrument for the balance of the Warrants retained by such Warrantholder.

 

3.4                               All Warrant Certificates shall be executed by the Company.

 

6

 

3.5                               If a Warrant Certificate is mutilated, defaced, lost, stolen or destroyed, it shall, at the discretion of the Company, be replaced at the office of the Registrar on payment of such expenses as may reasonably be incurred in connection therewith and on such terms as to evidence, indemnity and/or security as the Company may reasonably require.  Mutilated or defaced Warrant Certificates must be surrendered before replacements will be issued.

 

3.6                               Warrant Certificates may, where the terms of issue require, bear a legend in such form as the Company may require, save that no Warrant shall bear any such legend for any period during which the relevant warrants are held in uncertificated form.

 

3.7                               Except as otherwise noted, nothing in this Instrument shall preclude the Warrants from being issued, held, registered, exercised, transferred or otherwise dealt in uncertificated form in accordance with the Regulations, the CREST Requirements and any other rules and requirements laid down from time to time by any other relevant system operated pursuant to the Regulations. The directors may make arrangements for the Warrants to become a participating security in the relevant system.

 

4                                         EXERCISE OF WARRANTS

 

4.1                               Subject to Clause 8 (Adjustment of Subscription Rights) and/or Clause 9 (General Offers and Liquidation), the Warrantholder of each Warrant will have the right, which may be exercised at any time during the Subscription Period, to subscribe in cash for a number of Ordinary Shares equal to all or part of the Specified Number in consideration of the payment of the Exercise Amount in full per Warrant. 

 

4.2                               In order to exercise the right to subscribe attaching to Warrants, whether in whole or in part which are held in certificated form, the Warrantholder shall deliver or cause to be delivered the relevant Warrant Certificate(s) and such other documentation as may be required by the Company to the Registrar’s Agent with the Subscription Notice duly completed and signed, together with a cheque for payment of the Exercise Amount in respect of each Warrant being exercised.  Once so delivered, a Subscription Notice shall be irrevocable save with the consent of the Board.

 

4.3                               In order to exercise the right to subscribe attaching to Warrants in uncertificated form the Warrantholder shall (not later than 5.00 p.m. on the relevant Business Day) arrange for the payment to the Registrar’s Agent as appropriate, (in the manner from time to time prescribed by the Board subject always to the CREST Requirements) of the aggregate Exercise Amount payable on subscription for the Ordinary Shares in respect of which the subscription rights are exercised and send to the Registrar’s Agent, or such person as the Company may require (including, without limitation, any sponsoring system-participant acting on behalf of the Company or the Registrars) a properly authenticated dematerialised instruction (an uncertificated notice of exercise). The properly authenticated dematerialised instruction shall be:

 

(a)                                 in the form from time to time prescribed by the Board and having the effect determined by the Board from time to time; and

 

(b)                                 addressed to the Registrar, and identify (in accordance with the form prescribed by the Board as aforesaid) the Warrants in respect of which the subscription rights are to be exercised; and

 

7

 

provided always that:

 

(c)                                  the Board may in its discretion permit the holder of Warrants in uncertificated form to exercise his subscription rights by some other means (including if the Company or any sponsoring system-participant acting on behalf of the Company is unable at any time and for any reason to receive properly authenticated dematerialised instructions) in accordance with applicable laws;

 

(d)                                 the Board may in its discretion require, in addition to the receipt of a properly authenticated dematerialised instruction as referred to above, the holder of any Warrant in uncertificated form to complete and deliver to the Company (or the Registrar’s Agent) on or prior to the Exercise Date, a notice in such form as may from time to time be prescribed by the Board; and

 

(e)                                  the Board may in its discretion determine when any such properly authenticated dematerialised instruction and/or other instruction or notification is to be treated as received by the Company or by such other person as it may require for these purposes.

 

All notices, instructions and any other steps required by this clause 4.3 shall be subject always to the CREST Requirements. For the purposes of this Instrument, a dematerialised instruction is properly authenticated if it complies with the specifications referred to in paragraph 5(b) of Schedule 1 to the Regulations.

 

4.4                               Warrants will be deemed to be exercised on the Business Day upon which the Registrar’s Agent shall have received the relevant documentation and Exercise Amount in respect of the remittance referred to in this Clause 4 (Exercise of Warrants), or the following Business Day where the relevant documentation and Exercise Amount in respect of the remittance referred to in this Clause 4 is received outside of office hours or not on a Business Day.  Subject to value having been received by the Company in respect of the relevant remittance, the Company shall allot and issue the relevant number of Ordinary Shares to be issued pursuant to the exercise of the relevant Warrants and enter the allottee of such Ordinary Shares in the Company’s register of members not later than 3 Trading Days after the date on which such Warrants are exercised or deemed to be exercised.

 

4.5                               On the exercise of a Warrant, any entitlement to a fraction of an Ordinary Share shall be adjusted up or down to the nearest whole number of ordinary shares and no cash adjustments will be made in respect of any entitlement to fractions of Ordinary Shares. The Registrar shall not be required to effect any registration of transfer or exchange which will result in the transfer of or delivery of a Warrant Certificate for a fraction of a Warrant.

 

4.6                               In the case of Ordinary Shares issued to Warrantholders who elect to hold their Ordinary Shares in certificated form as soon as practicable following the exercise of such Warrants in accordance with the terms of this Instrument and, in any event, not later than 20 Trading Days after the date on which such Warrants are exercised the Company shall issue:

 

(a)                                 a share certificate for the Ordinary Shares in the name of such Warrantholder or such other person as may be named on the Form of Nomination; and

 

8

 

(b)                                 in the event of a partial exercise by any Warrantholder of the right to subscribe attaching to any Warrants held by him, a Warrant Certificate in the name of such Warrantholder in respect of the balance of the Warrants held by him and remaining unexercised,

 

such share certificate (together with any Warrant Certificate if applicable) to be despatched at the risk of the person(s) entitled thereto to the address of such person or (in the case of a joint holding) to that one of them whose name stands first in the Register or relevant Form of Nomination and sent by ordinary postal delivery.

 

4.7                               Every Warrant in respect of which subscription rights:

 

(a)                                 have been exercised in full; or

 

(b)                                 at the end of the Subscription Period have not been exercised (whether in whole or in part),

 

shall lapse and cease to be valid for any purpose and be cancelled.

 

4.8                               Ordinary Shares allotted pursuant to the exercise of Warrants in accordance with the terms of this Instrument shall be issued fully-paid and free from any liens, charges or encumbrances and rights of pre-emption but shall not rank for any dividends or other distributions declared, made or paid on the Ordinary Shares for which the record date is prior to the relevant day on which the Warrants are exercised or deemed to be exercised in accordance with this Clause 4 but, subject thereto, shall rank in full for all dividends and other distributions declared, made or paid on the Ordinary Shares on or after the relevant day on which the Warrants are exercised or deemed to be exercised in accordance with Clause 4.4 and otherwise pari passu in all respects with the Ordinary Shares in issue at that date.

 

4.9                               At any time when the Ordinary Shares are admitted to trading on AIM or to the Official List of the London Stock Exchange, application will be made by the Company to the London Stock Exchange for the Ordinary Shares allotted pursuant to any exercise of Warrants to be admitted to trading on AIM or to the Official List of the London Stock Exchange (as the case may be).

 

4.10                        Notwithstanding any other provision of this Instrument, no Ordinary Shares shall be allotted to a person on the exercise of a Warrant if such allotment and/or the delivery of the relevant share certificate would either be in contravention of the laws or rules of any overseas territory or overseas regulatory authority or would require any registration to be made in any overseas territory or with any overseas regulatory authority.

 

4.11                        Warrantholders exercising their Warrants by submission of a Subscription Notice in accordance with the terms of this Instrument shall be required to make the representations set out in the Subscription Notice.

 

4.12                        Warrantholders exercising their Warrants which are held in uncertificated form in accordance with the terms of this Instrument shall be deemed to make the representations set out in the Subscription Notice.

 

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5                                         BENEFICIAL OWNERSHIP LIMITATION

 

5.1                               Warrantholders will not be permitted to exercise any Warrant where the allotment of Ordinary Shares pursuant to such exercise would result in the relevant Warrantholder (or a person holding through such Warrantholder (together with such Warrantholder’s or person’s Affiliates (as defined in Rule 405 under the Securities Act), and any other persons acting as a group together with that Warrantholder or person or any of that Warrantholder’s or person’s Affiliates) beneficially owning in excess of 4.99 per cent. of the Company’s Ordinary Shares (the “Beneficial Ownership Limitation”).

 

5.2                               The number of Ordinary Shares beneficially owned by a person shall be calculated to include the number of Ordinary Shares for which the exercise notice is being given, but shall exclude any Ordinary Shares: (i) which would be issuable upon exercise of the remaining, non-exercised Warrants beneficially owned by that person or any of its Affiliates; and (ii) underlying any other securities of the Company held by such Warrantholder or its Affiliates that are exercisable or convertible into Ordinary Shares and subject to a limitation on conversion or exercise that is analogous to the limitation contained in this Clause 5 (Beneficial Ownership Limitation).

 

5.3                               Except as set forth in Clause 5.2 above, for purposes of this Clause 5 (Beneficial Ownership Limitation), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Warrantholders acknowledge that the Company is not representing to the Warrantholder that such calculation is in compliance with Section 13(d) of the Exchange Act and that each Warrantholder or beneficial owner is solely responsible for any schedules required to be filed with the SEC in accordance with the Exchange Act.

 

5.4                               To the extent that the limitation contained in Clause 5.1 applies, the determination of whether a Warrant is exercisable and of the number of Warrants that are exercisable shall be at the sole discretion of the Warrantholder, and the delivery of a duly completed and signed Subscription Notice together with a cheque for payment of the Exercise Amount in respect of each Warrant being exercised or of a properly  authenticated dematerialised instruction and payment to the Registrar’s Agent of the relevant Exercise Amount shall be deemed to be the Warrantholder’s determination of whether such Warrant is exercisable and of the number of Warrants that are exercisable. The Company shall not have any obligation to verify or confirm the accuracy of such determination and shall have no liability for any error made by the Warrantholder or any other person. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.

 

5.5                               In determining the number of issued Ordinary Shares, a Warrantholder or other person may rely on the number of outstanding Ordinary Shares as reflected in: (A) the Company’s most recent periodic or annual report filed with the SEC, as the case may be; (B) a more recent public announcement by the Company; or (C) a more recent written notice by the Company setting forth the number of issued Ordinary Shares.

 

5.6                               Warrantholders may, at any time, request written or oral confirmation from the Company of the number of issued Ordinary Shares and such a request shall be satisfied within two Trading Days of the request being made.

 

5.7                               Upon delivery of a written notice to the Company, the Warrantholder may from time to time increase or decrease the Beneficial Ownership Limitation to any other percentage not in excess of 9.99 per cent. as specified in such notice, provided that any increase in the Beneficial Ownership Limitation will not be effective until the sixty-first day after such notice is delivered to the Company and any such increase or decrease will apply only to the Warrantholder and its Affiliates and not to any other holder of Warrants.

 

5.8                               The Company has the right to construe and implement this Clause 5 (Beneficial Ownership Limitation) otherwise than in strict conformity with its terms in order to correct this subsection (or any part) which may be defective or inconsistent with the intended beneficial ownership limitation.

 

5.9                               The limitation in this Clause 5 (Beneficial Ownership Limitation) above shall not apply to the exercise of Warrants held by any Warrantholder who, prior to exercise, beneficially owned in excess of 9.99 per cent. of the Company’s Ordinary Shares.

 

6                                         CASHLESS EXERCISE UNDER CERTAIN CIRCUMSTANCES

 

6.1                               The Warrants and any Ordinary Shares issued on the exercise of the Warrants have been registered under the Securities Act. In the event that the Company fails to maintain the effectiveness of the Registration Statement and the status of the Company’s prospectus included therein and does not file or maintain the effectiveness of another registration statement and prospectus covering the Warrants and Ordinary Shares, the Warrants and the Ordinary Shares issued on the exercise of the Warrants will be subject to certain restrictions on transfer in accordance with the Securities Act. Any certificates in respect of Warrants and Ordinary Shares issued subsequent to this failure will bear legends with respect to such transfer restrictions as follows:

 

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE UNITED STATES IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION AS SET FORTH BELOW, AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

In the event that a Warrant Certificate surrendered for transfer bears a restrictive legend, the Registrar shall not register that transfer until the Registrar has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the Warrants must also bear a restrictive legend upon that transfer.

 

6.2                               In the event that the Company fails to maintain the effectiveness of the Registration Statement and the status of the Company’s prospectus included therein and does not file or maintain the effectiveness of another registration statement and prospectus covering the Warrants and Ordinary Shares, the Warrant shall only be exercisable on a cashless basis whereby the number of Ordinary Shares to be received by the Warrantholder shall be calculated using the formula:

 

X = Y (A-B) / A

 

where:

 

X is the number of ordinary shares to be issued to the Warrantholder;

 

Y is the number of warrants being exercised by the Warrantholder;

 

A is the VWAP per ordinary share; and

 

B is the warrant exercise price.

 

6.3                               If the Warrant ADSs are issued in such a cashless exercise, the Warrantholder shall deliver the documentation as set out in Clauses 4.2 and 4.3 above, as relevant to the Warrants held by that Warrantholder.

 

6.4                               The Company shall calculate and transmit to the Registrar in a written notice, and the Registrar shall have no duty, responsibility or obligation under this section to calculate, the number of Warrants issuable in connection with any cashless exercise. The Registrar shall be entitled to rely conclusively on any such written notice provided by the Company, and the Registrar shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with such written instructions or pursuant to this Warrant Agreement.

 

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6.5                               In the case of a dispute as to the determination of the Exercise Amount or the arithmetic calculation of the number of Warrants issuable in connection with any exercise, the Company shall promptly deliver to the Warrantholder the number of Warrants that are not disputed.

 

7                                         UNDERTAKINGS

 

Subject to the provisions of Clause 8.1 and, unless otherwise authorised by an Extraordinary Resolution, whilst any Warrant remains unexercised within the Subscription Period:

 

(a)                                 the Company shall not, without an Extraordinary Resolution approving such modification, in any way modify the rights attached to its existing Ordinary Shares as a class in any way which operates to vary the rights of the Warrantholders in relation to the Warrants (but nothing herein shall restrict the right of the Company to increase, consolidate, sub-divide or reduce its share capital subject to any adjustments to the subscription rights as may be required by this Instrument).  For the purposes of this sub-clause, neither the issue of further Ordinary Shares, nor the creation or issue of preference shares (whether convertible, redeemable and/or cumulative) carrying rights to dividends, capital conversion or otherwise as the directors of the Company shall think fit, nor the grant of any right to subscribe for any shares in the Company, nor any other action save for any modification of the Articles which expressly modifies the rights attaching to the Ordinary Shares shall be deemed to modify the rights attaching to the Ordinary Shares;

 

(b)                                 the Company shall at all times maintain all requisite approvals from its shareholders and/or other authorities necessary to enable the issue of Ordinary Shares (free from any rights of pre-emption) pursuant to the exercise of all the Warrants outstanding from time to time; and

 

(c)                                  Warrantholders will have made available to them, at the same time and in the same manner as the same are made available to holders of Ordinary Shares, copies of the audited accounts of the Company (with the relevant directors’ and auditor’s reports) and copies of all other circulars or notices which are made available to holders of Ordinary Shares.

 

8                                         ADJUSTMENT OF SUBSCRIPTION RIGHTS

 

8.1                               While any Warrants remain unexercised within the Subscription Period:

 

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(a)                                 after any allotment of fully paid Ordinary Shares by way of capitalisation of profits or reserves to holders of the Ordinary Shares on the register of members of the Company on a date (or by reference to a record date); or

 

(b)                                 upon any sub-division or consolidation of the Ordinary Shares,

 

the number of Ordinary Shares to be subscribed on a subsequent exercise of each Warrant will be adjusted proportionately on the basis that immediately after the allotment, sub-division or consolidation, the Ordinary Shares to be issued if the subscription rights attaching to the then outstanding Warrants were exercised shall constitute the same percentage of the total number of issued Ordinary Shares as that which such Ordinary Shares would have constituted immediately before such allotment, sub-division or consolidation and the Exercise Amount of the then outstanding Warrants shall be adjusted accordingly.

 

8.2                               Where a Warrantholder holds both Warrants in certificated form and Warrants in uncertificated form such holdings shall be treated as separate holdings for the purpose of calculating the number of additional Warrants to be issued to him pursuant to this Clause 8 (Adjustment of Subscription Rights) unless the Company otherwise determines.

 

8.3                               Where an event which gives rise or may give rise to an adjustment pursuant to this Clause 8 (Adjustment of Subscription Rights ) occurs whether in such proximity in time to another similar event or otherwise in circumstances so that the directors of the Company in their absolute discretion determine that the foregoing provisions need to be operated subject to some modification in order to give the intended result, those modifications shall be made in the operation of the foregoing provisions as may be advised by the Auditors to be in their opinion appropriate in order to give the intended result.

 

8.4                               Upon the adjustment of the subscription rights associated with the Warrants, the Company shall give written notice to the Warrantholders of the adjustments made to the Warrants. Such notice shall be sent to the last address notified to the Registrar as at the record date or the effective date of the event.

 

9                                         GENERAL OFFERS AND LIQUIDATION

 

9.1                               If on a date (or by reference to a record date) while any Warrants remain unexercised during the Subscription Period any offer or invitation is made to all holders of shares of the Company (or all such holders other than the offeror and/or any company controlled by the offeror and/or any person acting in concert with the offeror), otherwise than by the Company, to acquire the whole or any part of the shares of the Company and the Company becomes aware that, as a result of such an offer, the right to cast a majority of votes which may ordinarily be cast on a poll at a general meeting of the Company has or will become vested in the offeror and/or such persons or companies as aforesaid, then the Company shall procure (so far as it is able) that at the same time the same offer or invitation is made to the then Warrantholders as if their respective Warrants had been exercised and the Warrantholders entered in the register of members of the Company accordingly on the day immediately preceding the record date of such offer or invitation on the basis then applicable. Such Warrants shall be exercisable at any time during the period in which such offer is open in order to allow acceptance by such Warrantholders of such offer.

 

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9.2                               For the purposes of this Clause 8 (General Offers and Liquidation) the convening of a meeting by the Court in connection with an arrangement or a scheme of arrangement under Sections 177 and 178 respectively of the Companies Act or the preparation of documents in connection with an amalgamation under Section 170 to 174 of the Companies Act and/or the Insolvency Act (as applicable) in either case providing for the acquisition by any person of the whole or any part of the shares of the Company shall be deemed to be the making of an offer.

 

9.3                               Where the circumstances described in Clauses 9.1 and/or 9.2 apply and:

 

(a)                                 the offeror and/or any company controlled by the offeror and/or any person acting in concert with the offeror shall have made an offer to Warrantholders or to all Warrantholders other than the offeror and/or any company controlled by the offeror and/or any person acting in concert with the offeror to acquire all of the outstanding Warrants; or

 

(b)                                 the offeror and/or any company controlled by the offeror and/or any person acting in concert with the offeror shall have proposed an arrangement, a scheme of arrangement or an amalgamation with regard to the acquisition of all the outstanding Warrants,

 

and in either case the value of the consideration (on such basis as the Auditors may determine, acting as experts, shall have confirmed in writing to the Warrantholders no less than 15 Trading Days (or, if that is not possible, such period as is possible) prior to the expiry of such offer or the date on which such arrangement, scheme of arrangement or amalgamation scheme becomes effective) receivable by a Warrantholder pursuant to such offer, arrangement, scheme of arrangement or amalgamation represents no less than that which he would have received pursuant to the offer made or arrangement, scheme of arrangement or amalgamation proposed to holders of Ordinary Shares had his subscription rights been exercised on the date upon which such offer became wholly unconditional or such arrangement, scheme of arrangement or amalgamation became effective (after deduction of

 

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the costs of subscription) then any Warrants which are not the subject of an acceptance of the offer to Warrantholders or are not effectively transferred or cancelled pursuant to such arrangement, scheme of arrangement or amalgamation shall lapse upon the expiry of that offer or in the case of an arrangement, scheme of arrangement or amalgamation, the effective date of such arrangement, scheme of arrangement or amalgamation.

 

9.4                               If, on a date while any Warrants remain outstanding, any order is made or an effective resolution is passed for winding up the Company, except for the purpose of reconstruction or amalgamation (including but not limited to pursuant to an amalgamation under Section 170 to 174 of the Companies Act or an arrangement, scheme of arrangement under Sections 177 and 178 of the Companies Act, and/or under the Insolvency Act (as applicable)) on terms sanctioned by an Extraordinary Resolution, and on such winding up (on the assumptions that all Warrants had been exercised in full and the Exercise Amount payable in connection therewith had been received in full by the Company) there would be a surplus available for distribution amongst the holders of the Ordinary Shares which would exceed, in respect of each Ordinary Share, a sum equal to the Exercise Amount each Warrantholder shall be treated as if, immediately before the date of such order or resolution, his Warrants had been exercised in full at the Exercise Amount and such Warrantholders shall accordingly be entitled to receive out of the assets available in the liquidation pari passu with the holders of the Ordinary Shares an amount equal to the sum to which he would have become entitled by virtue of such subscription after deducting a sum per Ordinary Share equal to the Exercise Amount. Subject to the foregoing all Warrants shall lapse and cease to be valid on the liquidation of the Company.

 

10                                  MERGERS AND CONSOLIDATIONS

 

10.1                        If on a date (or by reference to a record date) while any Warrants remain unexercised during the Subscription Period the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another entity (as permitted pursuant to the laws of the jurisdiction under which such merger or consolidation is to be effected), the Warrants shall survive such merger or consolidation.

 

10.2                        Upon any exercise of a Warrant following such a merger or consolidation, the Warrantholder shall have the right to receive the number of shares, if any, of the successor or acquiring entity or of the Company (if it is the surviving entity), or depositary shares representing those shares, and any additional consideration (the “Alternative Consideration”) receivable as a result of such merger or consolidation by a holder of the number of Ordinary Shares for which the Warrant is exercisable immediately prior to such merger or consolidation.

 

10.3                        For the purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Ordinary Share in such merger or consolidation, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.

 

10.4                        If holders of Ordinary Shares are given any choice as to the securities, cash or property to be received in a merger or consolidation, then the Warrantholder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of a Warrant following such merger or consolidation.

 

10.5                        Notwithstanding the terms of this Clause 10 (Mergers and Consolidations), in the event of a merger or consolidation where the Successor Entity is not a publicly-traded company whose securities are quoted or listed on a Trading Market, the Company or any Successor Entity shall, at the option of a Warrantholder (where such option is exercised within 30 days of the completion of the merger or consolidation), purchase any or all of the outstanding Warrants of that Warrantholder for consideration equivalent to that received by a holder of the number of Ordinary Shares for which the Warrant is exercisable immediately prior to such merger or consolidation.

 

11                                  TRANSFER AND TITLE

 

11.1                        Warrants shall be transferable individually and in integral multiples, in the case of Warrants held in certificated form, by an instrument of transfer in any usual or common form or such other form as may be approved by or on behalf of the Company duly completed and signed by or on behalf of the transferor and the transferee and duly stamped in accordance with any applicable law for the time being in force relating to stamp duty, and, in the case of Warrants held in uncertificated form, by a properly authenticated dematerialised instruction and/or other instruction or notification received by the Company or by such person as it may require for these purposes in such form and subject to such terms and conditions as may from time to time be prescribed by or on behalf of the Company (subject always to the CREST Requirements). The Registrar shall maintain a register in the United Kingdom containing particulars of the Warrantholders. The Warrants shall be issued in registered form and the provisions of Schedule 2 (Registration, Transfer and Transmission) relating to the transfer, transmission and registration of Warrants shall have full effect as if the same had been incorporated in this Instrument.

 

11.2                        The Company shall be entitled to appoint such person or persons as the Company thinks fit as the Registrar and to remove any such person or persons and make a new appointment in their stead.  The Company shall forthwith give a notice to Warrantholders of any change in the identity or address of the Registrar in accordance with Clause 16.2.

 

11.3                        The registered holder of a Warrant shall be treated as its absolute owner for all purposes notwithstanding any notice of ownership or notice of previous loss or theft or of trust or other

 

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interest therein (except as ordered by a court of competent jurisdiction or required by law).  The Company shall not (except as stated above) be bound to recognise any other claim to or interest in any Warrant.

 

11.4                        The Company shall not refuse to register any transfer of a Warrant made into or within CREST.

 

11.5                        The Company may at any time require a shareholder to sell some or all of the Warrants held by it within a specified period at the prevailing market price for the Warrants if necessary or desirable in order to comply with the US Securities Act or if it shall come to the attention of the Company that:

 

(a)                                 any Warrant is or may be held directly or beneficially by a US Person and such person has not provided the Company with such representation as the Company may require from such holder;

 

(b)                                 any Warrant is held by a person whose ownership or holding of any Warrants or Ordinary Shares might in the opinion of the Directors contribute to a requirement for registration of the Company as an Investment Company under the US Investment Company Act of 1940, as amended; or

 

(c)                                  any Warrant is held by a person whose ownership or holding of any Warrants or Ordinary Shares might in the opinion of the Directors contribute to a requirement for registration of the Company as an Investment Company under the US Investment Advisers Act of 1940, as amended; or

 

If a Warrantholder does not comply with such a demand within the period specified, the Company may repurchase the relevant Warrants at the prevailing market price without such Warrantholder’s consent.

 

12                                  MEETINGS OF WARRANTHOLDERS

 

12.1                        Meetings of Warrantholders may be convened in accordance with the provisions of Schedule 3 (Meetings of Warrantholders) and shall be competent to pass Extraordinary Resolutions and to exercise all the powers as referred to therein. Without prejudice to the generality of the foregoing the Warrantholders, by way of Extraordinary Resolution only, shall have power to:

 

(a)                                 sanction any compromise or arrangement proposed to be made between the Company and the Warrantholders or any of them;

 

(b)                                 sanction any proposal by the Company for modification, abrogation, variation or compromise of, or arrangement in respect of the rights of the Warrantholders against the Company whether such rights shall arise under this Instrument or otherwise;

 

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(c)                                  sanction any proposal by the Company for the exchange or substitution for the Warrants of, or the conversion of the Warrants into, shares, stock, bonds, debentures, debenture stock, warrants or other obligations or securities of the Company or any other body corporate formed or to be formed;

 

(d)                                 assent to any modification of the conditions to which the Warrants are subject and/or the provisions contained in this Instrument which shall be proposed by the Company;

 

(e)                                  authorise any person to concur in and execute and do all such documents, acts and things as may be necessary to carry out and give effect to any Extraordinary Resolution;

 

(f)                                   discharge or exonerate any person from any liability in respect of any act or omission for which such person may have become responsible under this Instrument; and

 

(g)                                  give any authority, direction or sanction which under the provisions of this Instrument is required to be given by Extraordinary Resolution.

 

13                                  MODIFICATIONS

 

13.1                        Any modification to this Instrument may be effected only by an instrument in writing, executed by the Company and expressed to be supplemental to this Instrument and, save where the Company determines in its absolute discretion that such modification is of a formal, minor or technical nature or made to correct a manifest error, only if it shall first have been sanctioned by an Extraordinary Resolution.  Any modification so sanctioned will be binding upon the Warrantholders.

 

13.2                        A memorandum of every such supplemental instrument shall be endorsed on this Instrument.

 

13.3                        Notice of every modification to this Instrument shall be given by the Company to the Warrantholders in accordance with Clause 16.2.

 

14                                  PURCHASE AND CANCELLATION

 

14.1                        The Company may at any time purchase Warrants:

 

(a)                                 by tender (available to all Warrantholders alike) at any price; or

 

(b)                                 on or through the market; or

 

(c)                                  by private treaty at any price.

 

14.2                        All Warrants purchased pursuant to Clause 14.1 shall be cancelled forthwith and may not be reissued or sold.

 

15                                  TAXES

 

15.1                        The Company shall not be required to pay any stamp duty, other tax or charge required to be paid in connection with the exercise of Warrants and the Company shall not be required to issue or deliver any Ordinary Shares pursuant to the exercise of any Warrant until such tax or

 

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other charge has been paid or it has been established to the Company’s and the Registrar’s satisfaction that no such tax or other charge is due.

 

16                                  AVAILABILITY OF INSTRUMENT AND NOTICES

 

16.1                        Every Warrantholder shall be entitled to inspect a copy of this Instrument at the registered office of the Company during normal business hours (Saturdays, Sundays and public holidays in the United Kingdom excepted), and shall be entitled to receive a copy of this Instrument against payment of such charges as the directors of the Company may impose in their absolute discretion. Copies of the Subscription Notice and Form of Nomination (as set out in Schedule 1) shall be available from the website of the Company during the period in which the Warrants may be exercised

 

16.2                        Notices to be given pursuant to the provisions of this Instrument shall be given in accordance with paragraph 4 of Schedule 2 (Registration, Transfer and Transmission).

 

17                                  PURCHASE OF ORDINARY SHARES BY THE COMPANY

 

Subject to the provisions of the Companies Act and the Articles of Association, the Company may at any time purchase Ordinary Shares, or arrange for the purchase of Ordinary Shares on its behalf or by any other member of its group, without requiring, in each case, the consent of Warrantholders for such purchase.

 

18                                  ENFORCEMENT

 

18.1                        The Company acknowledges and covenants that the benefit of the covenants, obligations and conditions on the part of or binding upon it contained in this Instrument and the Schedules hereto shall enure to the benefit of each and every Warrantholder.

 

18.2                        Each Warrantholder shall be entitled to enforce the said covenants, obligations and conditions against the Company insofar as such Warrantholder’s Warrant is concerned, without the need to join the allottee of any such Warrant or any intervening or other Warrantholder in the proceedings for such enforcement.

 

19                                  GOVERNING LAW

 

This Instrument shall be governed by and construed and interpreted in accordance with the laws of England and the Warrantholders agree to submit to the non-exclusive jurisdiction of the English Courts in relation to any claim, dispute or difference which may arise hereunder.

 

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Schedule 1
 Form of Warrant Certificate

 

	
Certificate Number:
    	
[·]
    
	
 
    	
 
    
	
Number of Warrants:
    	
[·]
    
	
 
    	
 
    
	
Date of issue:
    	
[·]
    

 

Warrants to subscribe for ordinary share(s) in

 

MOTIF BIO PLC

 

Registered Office: One Tudor Street, London, EC4Y 0AH

 

incorporated in England and Wales

 

(Registered number: 09320890)

 

This is to certify that                                                                       (“Warrantholder”) of                                                               

                                                                                                                                                                                          

                                                                                                                                                                                          

 

is/are the registered holder(s) of [·] Warrants in Motif Bio plc (“Company”) issued pursuant to and in accordance with and subject to the terms and conditions of a warrant instrument dated                                     2016 (as from time to time amended) (the “Instrument”) executed by the Company.  Words and expressions used in this Warrant Certificate, the Subscription Notice and the Form of Nomination shall have the same meanings as in the Instrument.

 

The registered Warrantholder is entitled in respect of every one Warrant held to subscribe for one Ordinary Share (or such other number of Ordinary Shares as may for the time being be applicable in accordance with the provisions of the Instrument) at the Exercise Amount (subject to adjustment as referred to in the Instrument) during the Subscription Period.

 

Transfer of any of the Warrants comprised herein will not be registered without production of this Warrant Certificate.

 

The Instrument is enforceable severally by each Warrantholder and is available for inspection at the registered office of the Company for so long as any Warrant remains unexercised until the end of the Subscription Period.  The Warrantholder shall be deemed to have notice of all the terms and conditions contained in the Instrument.

 

Executed by the company Motif Bio plc this [·] day of [·] 2016.

 

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SUBSCRIPTION NOTICE

 

In order to exercise all or any of the Warrants represented by this Warrant Certificate, this Warrant Certificate should be submitted with this Subscription Notice duly completed and signed, together with the payment referred to below, to the Registrar’s Agent.

 

To:                                                         Motif Bio plc

 

c/o Share Registrars Limited, The Courtyard, 17 West Street, Farnham, GU9 7DR, United Kingdom - FAO: Peter Ronayne

 

I/We the undersigned, being the registered holder(s) of the Warrants comprised in this Warrant Certificate (and the several Warrant Certificates (if any) enclosed with this Subscription Notice) hereby give notice of my/our wish to exercise                               Warrant(s) to subscribe for                          Ordinary Shares in accordance with the provisions of the Instrument.

 

I/We enclose a cheque for payment of                             in favour of [Share Registrars Limited] being the aggregate payment of the full subscription price for the total number of such Warrants. Or I/We are exercising our option for cashless settlement in respect of the Warrants pursuant to Clause 6 of the Warrant Instrument.(1)

 

I/We direct you to allot the Ordinary Shares issued pursuant hereto to the person(s) whose name(s) is/are set out in the Form of Nomination set out below and who has/have signed the acceptance set out therein or, if none is set out, to me/us in which event I/we agree to accept such Ordinary Shares subject to the Memorandum and Articles of Association of the Company. I/We authorise and request the entry of the name(s) of such persons in the register of members of the Company in respect thereof.

 

I/We will require*:

 

(a)                                 the despatch of share certificate(s) for                          Ordinary Shares each in respect of the Ordinary Shares to be allotted to such persons; and

 

(b)                                 where relevant, the despatch of a Warrant Certificate in my/our name(s) for any balance of my/our Warrants remaining exercisable

 

at the risk of such person(s) to such address as is set out in the Form of Nomination or, if none is set out, to my/our address set out in the Register or (in the case of joint holders) to the address of that one whose name stands first in such Form of Nomination or (if applicable) the Register in respect of the Warrants represented by this Warrant Certificate by ordinary postal service.

 

I/we hereby undertake to pay any deposition or other fees (if any) for the time being chargeable and payable, or any applicable stamp duty or other similar taxes or duties due by reason of the exercise of the Warrants referred to above, or the allotment of the Ordinary Shares to me/us or to such person(s) as is set out in the Form of Nomination.

 

I/we hereby represent, undertake and warrant to the Company and acknowledge that:

 

(a)                                  the Company’s Ordinary Shares have not been and will not be registered under the applicable securities laws of Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa or where to do so may contravene local securities laws or regulations;

 

Footnote 1: Delete as appropriate.

19

 

(b)                                  I/we invest in or purchase securities similar to the Ordinary Shares in the normal course of my/our business and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Ordinary Shares;

 

(c)                                   I/we have conducted my/our own investigation with respect to the Company and the Ordinary Shares and have had access to such financial and other information concerning the Company and the Ordinary Shares as I/we deemed necessary to evaluate the merits and risks of an investment in the Subscription Shares and the Warrants, and I/we have concluded that an investment in the Ordinary Shares is suitable for me/us or, where I am/we are not acting as principal, for any beneficial owner of the Ordinary Shares, based upon each such person’s investment objectives and financial requirements;

 

(d)                                  I/we or, where I am/we are not acting as principal, any beneficial owner of the Ordinary Shares, are/is able to bear the economic risk of an investment in the Ordinary Shares for an indefinite period and the loss of my/our entire investment in the Ordinary Shares; and

 

(e)                                   there may be adverse consequences to me/us under United States and other tax laws resulting from an investment in the Ordinary Shares and I/we have made such investigation

 

20

 

and have consulted such tax and other advisors with respect thereto as it deems necessary or appropriate.

 

I/we hereby irrevocably declare that the information and instructions set out above and contained elsewhere in this Subscription Notice and Form of Nomination are correct and authorise the Company, the Registrar and the Registrar’s Agent (where applicable) to act on the said information and instructions.

 

	
Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name(s) of Warrantholder(s)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature(s)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

GUIDANCE NOTES:

 

Exercise of the Warrants represented by this Warrant Certificate may be consolidated with the exercise of Warrants represented by other Warrant Certificates by the use of only one Subscription Notice, provided that the other Warrant Certificates are attached to the Subscription Notice.

 

In the case of joint holdings, all joint holders must sign the Subscription Notice.

 

Exercise of the Warrants shall be made in accordance with the terms and conditions set out in the Instrument and, in particular, Clause 4 of the Instrument.  Please read the terms and conditions set out in the Instrument carefully before you complete this Subscription Notice.

 

The Ordinary Shares to be issued upon exercise of the Warrants shall be issued upon the terms and subject to the conditions as set out in the Instrument and the Memorandum and Articles of Association of the Company.

 

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FORM OF NOMINATION

 

Please insert in BLOCK CAPITALS in the box below the full name(s) of the person(s) to whom you wish the Ordinary Shares arising on the exercise of the Warrants referred to above to be allotted, and, in the case of Ordinary Shares to be held in certificated form, the address to which the share certificate for such Ordinary Shares should be sent and in the case of Ordinary Shares to be held in uncertificated form the details for CREST settlement.

 

	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
I/we agree to accept all the fully paid Ordinary   Shares of the Company to be allotted to me/us subject to the Memorandum and   Articles of Association of the Company.
    
	
 
    
	
Where I am/we are a person other than the   Warrantholder, by executing this form I/we hereby make the representations   set out in the attached Notice of Exercise.
    
	
 
    
	
 
    
	
Signed
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated
    	
 
    	
 
    

 

If the above box is left blank:

 

(a)                                       in the case of Warrants held in certificated form, the Ordinary Shares will be allotted to the Warrantholder(s) named in the attached Warrant Certificate and the share certificate for such Ordinary Shares together with any Warrant Certificate for remaining unexercised Warrants will be sent to the registered address of the sole or first-named Warrantholder; and

 

(b)                                       in the case of Warrants held in uncertificated form, the Ordinary Shares will be credited to the account of the sole or first-named Warrantholder in respect of which the Warrants have been exercised.

 

22

 

Schedule 2
 Registration, Transfer and Transmission

 

1                                         Registration and Title

 

(a)                                 An accurate Register will be kept by the Registrar on behalf of the Company and there shall be entered in the Register:

 

(i)                                     the names and addresses of the Warrantholders;

 

(ii)                                  the amount of Warrants held by every registered holder; and

 

(iii)                               the date upon which the name of every such registered holder is entered in respect of the Warrants standing in his name.

 

(b)                                 Any change of name or address on the part of a Warrantholder shall forthwith be notified to the Registrar who shall cause the Register to be altered accordingly.  The Register may be closed by the Company for such period or periods and at such times as it may think fit provided that it shall not be closed for more than thirty days in any calendar year. Any transfer made while the Register is so closed shall, as between the Company and the person claiming under the transfer (but not otherwise), be considered as made immediately after the reopening of the Register. The Warrantholders or any of them, and any person duly authorised by any such Warrantholder, shall be at liberty at all reasonable times during office hours to inspect the Register and to take copies of or extracts from the same or any part thereof.

 

(c)                                  The Company and the Registrar shall be entitled to treat the registered holder of any Warrant as the absolute owner thereof for all purposes notwithstanding any notice of ownership or writing thereon or notice of previous loss or theft or of trust (whether express or implied) or other interest therein (except as ordered by a court of competent jurisdiction or required by law) and shall not (except as aforesaid) be bound to recognise any equitable or other claim to or interest in such Warrant.

 

(d)                                 Every Warrantholder will be recognised by the Company as entitled to his Warrants free from any equity, set-off or cross-claim on the part of the Company against the original or any intermediate holder of the Warrants.

 

2                                         Transfer

 

(a)                                 Every transfer of a Warrant shall be made:

 

(i)                                     in the case of Warrants held in certificated form by an instrument of transfer in the usual or common form or in any other form which may be approved by the Company.  The instrument of transfer shall be duly completed and signed by or on behalf of the transferor and the transferee and duly stamped in accordance with any applicable law for the time being in force relating to stamp duty provided that the Company or the Registrar may dispense with requiring the transferee to sign an instrument of transfer; or

 

(ii)                                  in the case of Warrants held in uncertificated form, by a properly authenticated dematerialised instruction in the CREST system; and

 

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(iii)                               in all cases in accordance with any legend on the Warrant Certificate, and the transferor agrees to notify the transferee of any resale restrictions referred to in such legend.

 

The Company shall not refuse to register any transfer of a Warrant made into or within CREST.

 

The transferor shall be deemed to remain the holder of the Warrants until the name of the transferee is entered in the Register in respect thereof.  The Company shall not be obliged to give effect to any such instrument which purports to transfer any Warrants in respect of which a Subscription Notice shall have been received.

 

(b)                                 In the case of Warrants held in certificated form the Company may decline to recognise any instrument of transfer unless such instrument is deposited at the specified office of the Registrar or the Registrar’s Agent (or such other place as the Registrar may appoint) accompanied by the Warrant Certificate(s) for the Warrants to be transferred, and such other evidence as the Registrar may reasonably require to show the right of the transferor to make the transfer and, if the instrument of transfer is executed by some other person on behalf of the transferor, the authority of that person so to do. The Registrar may waive production of any Warrant Certificate upon evidence satisfactory to the Registrar of its loss or destruction or upon execution of an appropriate indemnity. All instruments of transfer which are registered may be retained by the Company for so long as it thinks fit together with the cancelled Warrant Certificates.

 

(c)                                  No fee shall be charged by the Company in respect of the registration of any instrument of transfer or probate or letters of administration or certificate of marriage or death, or power of attorney or other document relating to or affecting the title to any Warrants or otherwise for making any entry in the Register affecting the title to any Warrants.

 

(d)                                 The registration of the person named in the instrument of transfer as the transferee in the Register as the registered holder of the Warrants transferred in place of the transferor shall be conclusive evidence of the approval by the Company and the Registrar of the transfer and the Company shall, on registration of the transfer, in the case of Warrants held in certificated form, cancel the Warrant Certificate(s) in the name of the transferor and issue the transferee with a new Warrant Certificate in respect of the Warrants transferred and, in the case of Warrants held in uncertificated form, credit the stock account of the transferee held within the relevant system.  Where the transfer relates to part only (but not all) of the Warrants represented by a Warrant Certificate, the Company shall issue a Warrant Certificate in the name of the transferor in respect of any Warrants not transferred.

 

3                                         Transmission

 

(a)                                 In the case of the death of a Warrantholder the survivors or survivor where the deceased was a joint holder, and the executors or administrators of the deceased where he was a sole or only surviving holder, shall be the only persons recognised by the Company and the Registrar as having any title to his Warrants, but nothing herein contained shall release the estate of a deceased Warrantholder (whether sole or joint) from any liability in respect of any Warrant solely or jointly held by him.

 

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(b)                                 Subject to any other provision herein contained, any person becoming entitled to a Warrant in consequence of the death or bankruptcy of a Warrantholder or otherwise than by transfer may, upon producing such evidence of title as the Company shall reasonably require, and subject as hereinafter provided, be registered himself as holder of the Warrant.

 

(c)                                  Subject to any other provision herein contained, if any person becoming entitled to a Warrant in consequence of the death or bankruptcy of a Warrantholder or otherwise than by transfer shall elect to be registered himself, he shall deliver or send to the Company and the Registrar a notice in writing signed by him stating that he so elects. All the limitations, restrictions and provisions herein contained relating to the right to transfer and the registration of transfers of Warrants shall be applicable to any such notice as aforesaid as if the death or bankruptcy of the Warrantholder had not occurred and the notice were an instrument of transfer executed by such Warrantholder.

 

(d)                                 A person becoming entitled to a Warrant in consequence of the death or bankruptcy of a Warrantholder shall be entitled to receive and may give good discharge for any monies payable in respect thereof, but shall not be entitled to receive notices of or to attend or vote at meetings of the Warrantholders or, save as aforesaid, to any of the rights or privileges of a Warrantholder until he shall have become a Warrantholder in respect of the Warrant.

 

4                                         Notices

 

(a)                                 Every Warrantholder shall register with the Company and the Registrar an address to which copies of notices can be sent. Any notice or document may be given or served by the Company on any Warrantholder either personally or by sending it by post in a prepaid letter addressed to such Warrantholder at his registered address as appearing in the Register or by facsimile transmission to any facsimile number notified by such Warrantholder to the Company.

 

(b)                                 Any copy of notices given pursuant to the provisions of this Schedule with respect to Warrants standing in the names of joint holders shall be given to whichever of such persons is named first in the Register and such notice so given shall be sufficient notice to all the other joint holders of such Warrants.

 

(c)                                  Proof that an envelope containing a notice was properly addressed, prepaid and posted shall be conclusive evidence that the notice was given.  Any notice given by facsimile transmission shall be deemed to have been served in the absence of an indication of failure of transmission when transmitted.  A notice shall be deemed to be given at the expiration of forty-eight hours after the envelope containing it was posted.

 

(d)                                 When a given number of days’ notice or notice extending over any other period is required to be given, the day of service shall, but the day upon which such notice shall expire shall not, be included in calculating such number of days or other period.

 

(e)                                  The signature to any notice to be given by the Company may be written or printed.

 

(f)                                   Every person who by operation of law, transfer or other means whatsoever becomes entitled to a Warrant shall be bound by any notice in respect of such Warrant which, before his name is entered in the Register, has been duly given to the person from whom he derives his title.

 

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(g)                                  If at any time by reason of the suspension or curtailment of postal services within the United Kingdom the Company is unable effectively to convene a meeting of the Warrantholders by notices sent through the post such a meeting may be convened by a notice advertised on the same date in at least two national daily newspapers with appropriate circulations (and, where there is a suspension or curtailment of postal services within the United Kingdom, at least one of which shall be published in London) and such notice shall be deemed to have been duly served on all Warrantholders entitled thereto at noon on the day when the advertisement appears.  In any such case the Company shall send confirmatory copies of the notice by post if at least forty-eight hours prior to the meeting the posting of notices to addresses throughout the United Kingdom again becomes practicable.

 

(h)                                 Any Warrantholder present, either personally or by proxy, at any meeting of the Warrantholders shall for all purposes be deemed to have received due notice of such meeting, and, where requisite, of the purposes for which such meeting was called.

 

(i)                                     Any notice or document delivered or sent by post to or left at the registered address of any Warrantholder in pursuance of this Instrument shall, notwithstanding that such Warrantholder is then dead, bankrupt, of unsound mind or (being a corporation) in liquidation, and whether or not the Company has notice of the death, bankruptcy, insanity or liquidation of such Warrantholder, be deemed to have been duly served in respect of any Warrant registered in the name of such Warrantholder as sole or joint holder unless his name has at the time of the service of the notice or document been removed from the Register as the holder of the Warrant, and such service shall for all purposes be deemed a sufficient service of such notice or document on all persons interested (whether jointly with or as claiming through or under him) in the Warrant.

 

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Schedule 3
 Meetings of Warrantholders

 

1                                         Convening of Meetings

 

The Company may at any time and shall on receipt of a request in writing of persons holding not less than one-tenth of the outstanding Warrants (upon receiving such indemnity (if any) as it may require against all reasonable costs, expenses and liabilities which it may incur by so doing) convene a meeting of the Warrantholders. Such meeting shall be held at such place within London or elsewhere as the Company shall determine.

 

2                                         Notice of Meetings

 

(a)                                 At least 14 days’ notice in writing of every meeting shall be given to the Warrantholders in the manner provided by paragraph 4 of Schedule 2 (Registration, Transfer and Transmission).

 

(b)                                 The notice shall specify the place, day and hour of the meeting and the general nature of the business to be transacted, but, except in the case where an Extraordinary Resolution is to be proposed, it shall not be necessary to specify in the notice the terms of the resolutions to be proposed.  The notice shall state that a Warrantholder is entitled to appoint a proxy to attend and to vote instead of him.

 

(c)                                  The accidental omission to give notice to or the non-receipt of notice by any of the Warrantholders shall not invalidate the proceedings at any meeting.

 

3                                         Quorum

 

(a)                                 At any meeting at least two persons present being Warrantholders in person or being proxies shall form a quorum for the transaction of any business.

 

(b)                                 No business (other than the election of a Chairman) shall be transacted at any meeting unless the requisite quorum is present at the commencement of business.

 

4                                         Absence of Quorum

 

(a)                                 If within half an hour from the time appointed for the meeting (or such longer interval as the Chairman of the meeting may think fit to allow) a quorum is not present, the meeting, if convened upon the requisition of Warrantholders, shall be dissolved. In any other case it shall stand adjourned to such day and time not being less than seven days nor more than 28 days thereafter and to such place as may be appointed by the Chairman and at such adjourned meeting the Warrantholders present and entitled to vote shall be a quorum for the transaction of business including the passing of Extraordinary Resolutions.

 

(b)                                 At least seven days’ notice of any adjourned meeting of Warrantholders at which an Extraordinary Resolution is to be submitted shall be given in the same manner, mutatis mutandis, as for an original meeting and such notice shall state that the Warrantholders present at the adjourned meeting whatever their number will form a quorum.

 

27

 

5                                         Chairman

 

(a)                                 The Warrantholders present may choose one of their number to preside at every meeting as Chairman and, if no such person is chosen or if at any meeting the person chosen shall not be present within 15 minutes after the time appointed for holding the meeting, a person nominated in writing by the Company shall be Chairman of such meeting.  Any director and the secretary of the Company, Auditors and solicitors of the Company and any other person authorised in that behalf by the Company may attend and speak at any meeting.

 

(b)                                 The Chairman may, with the consent of any meeting at which a quorum is present, and shall if so directed by the meeting adjourn the meeting from time to time (or sine die) and from place to place but no business shall be transacted at any adjourned meeting except business which might lawfully have been transacted at the meeting from which the adjournment took place.  Where a meeting is adjourned sine die, the time and place for the adjourned meeting shall be fixed by the directors of the Company.  When a meeting is adjourned for 30 days or more or sine die, not less than seven days’ notice (exclusive as aforesaid) of the adjourned meeting shall be given in like manner, mutatis mutandis, as in the case of the original meeting.  Save as aforesaid subject to paragraph 4(b) above it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting.

 

6                                         Resolutions

 

(a)                                 At any meeting a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman or by the Company or by one or more Warrantholders present in person or by proxy and holding or representing one-twentieth of the then outstanding Warrants.

 

(b)                                 Unless a poll is demanded a declaration by the Chairman that a resolution has been carried or carried by any particular majority or lost or not carried by any particular majority shall be conclusive evidence of that fact.

 

7                                         Poll

 

(a)                                 If a poll is duly demanded it shall be taken in such manner and at such time and place as the Chairman may direct (save that a poll demanded on the election of a Chairman or on any question of adjournment shall be taken at the meeting without adjournment) and the result of such poll shall be deemed to be the resolution of the meeting at which the poll is demanded.

 

(b)                                 The demand for a poll shall not prevent the continuance of a meeting for the transaction of any business other than the question on which the poll has been demanded.  The demand for a poll may be withdrawn.

 

(c)                                  No notice need be given of a poll not taken immediately.

 

8                                         Voting

 

(a)                                 On a show of hands every Warrantholder who is present in person or by its authorised representative or proxy shall have one vote.  On a poll every Warrantholder who is present in person or by proxy shall have one vote for every Warrant of which he is the holder.

 

28

 

(b)                                 In the case of joint holders of Warrants the vote of the senior who tenders a vote whether in person or by proxy shall be accepted to the exclusion of the vote of the other joint holders and for this purpose seniority shall be determined by the order in which the names stand in the Register.

 

(c)                                  On a poll votes may be given either personally or by proxy and a Warrantholder entitled to more than one vote need not use all his votes or cast all the votes he uses in the same way.

 

(d)                                 No objection shall be raised to the qualification of any person voting except at the meeting or adjourned meeting at which the vote objected to is tendered, and every vote not disallowed at the meeting shall be valid.  Any objection made in due time shall be referred to the Chairman whose decision shall be final and conclusive.

 

(e)                                  In the case of an equality of votes whether on a show of hands or on a poll the Chairman of the meeting at which the show of hands takes place or at which the poll is demanded shall be entitled to a casting vote in addition to the votes (if any) to which he may be entitled as a Warrantholder.

 

9                                         Proxies

 

(a)                                 The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing or, if the appointor is a corporation, either duly executed under the common seal or under the hand of some duly authorised officer or attorney of the corporation.

 

(b)                                 A person appointed to act as a proxy need not be a Warrantholder.  The Chairman of the meeting may be designated as a proxy in an instrument of proxy without being named.

 

(c)                                  The instrument appointing a proxy and the letter or power of attorney or other authority (if any) under which it is signed or a notarially certified copy of such power or authority shall be deposited at such place (if any) specified for that purpose in or by way of note to or in any document accompanying the notice convening the meeting (or, if no place is so specified, at the registered office of the Company) not less than 48 hours before the time appointed for holding the meeting or adjourned meeting (or, in the case of a poll otherwise than at or on the same day as the meeting or adjourned meeting, before the time appointed for the taking of the poll) at which the person named in the instrument proposes to vote and in default the instrument of proxy shall not be treated as valid.

 

(d)                                 No instrument appointing a proxy shall be valid after the expiration of 12 months from the date named in it as the date of its execution.

 

(e)                                  An instrument of proxy may be in any usual or common form or in any other form which the directors of the Company may approve.  An instrument of proxy shall be deemed to confer the right to demand or join in demanding a poll.  An instrument of proxy shall, unless the contrary is stated therein, be valid as well for any adjournment of the meeting as for the meeting to which it relates and need not be witnessed.

 

(f)                                   A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death or insanity of the principal or revocation of the proxy or of

 

29

 

the authority under which the proxy was executed provided that no notification in writing of such death, insanity or revocation shall have been received by the Company at its registered office or at such other place as may have been specified in or by way of note to or in any document accompanying the notice convening the meeting at least one hour before the commencement of the meeting or adjourned meeting at which the proxy is used or, in the case of a poll otherwise than at or on the same day as the meeting or adjourned meeting, before the time appointed for the taking of the poll at which the vote is cast.

 

10                                  Representatives

 

Any company or other body corporate which is a registered holder of any of the Warrants may by resolution of its directors or other governing body authorise any person to act as its representative at any meeting of the Warrantholders and such representative shall be entitled to exercise the same powers on behalf of the company or corporation which he represents as if he were the registered holder of the Warrants and such company or body corporate shall, for the purpose of these provisions, be deemed to be present in person at any such meeting if a person so authorised is present thereat.

 

11                                  Resolutions

 

(a)                                 The expression “Extraordinary Resolution” means a resolution passed at a meeting of the Warrantholders duly convened and held in accordance with the provisions herein contained and carried by a majority consisting of not less than three-fourths of the persons voting thereat upon a show of hands or, if a poll is duly demanded, by a majority consisting of not less than three-fourths of the votes given on such poll.

 

(b)                                 A resolution in writing signed by Warrantholders entitled to subscribe for not less than 75 per cent. of the Ordinary Shares which are the subject of outstanding Warrants pursuant to this Instrument in accordance with the provisions herein contained in this Instrument shall for all purposes be valid and effectual as an Extraordinary Resolution passed at a meeting duly convened and held in accordance with the provisions herein contained.  Such resolution in writing may be contained in one document or in several documents in like form each signed by one or more of the Warrantholders. In the case of a body corporate the resolution may be signed on its behalf by a director or the secretary thereof or by its duly authorised representative or duly appointed attorney.

 

(c)                                  An Extraordinary Resolution passed at a meeting of the Warrantholders duly convened and held in accordance with this Instrument shall be binding upon all Warrantholders whether or not present at the meeting and each of the Warrantholders shall be bound to give effect thereto accordingly.

 

12                                  Minutes

 

(a)                                 Minutes of all resolutions and proceedings at every meeting shall be made and duly entered in books to be from time to time provided for that purpose by the Company.

 

(b)                                 Any minutes of resolutions and proceedings of meetings of Warrantholders as aforesaid, if purporting to be signed by the Chairman of the meeting, shall be conclusive evidence of the matters therein stated and, until the contrary is proved, every such meeting in respect of the

 

30

 

proceedings of which minutes have been made and signed as aforesaid shall be deemed to have been duly held and convened and all resolutions passed or proceedings transacted thereat to have been duly passed or transacted.

 

31

 

EXECUTED AS A DEED by

 

	
MOTIF BIO PLC acting   by
    	
 
    	
)
    	
 
    
	
 
    	
 
    	
)
    	
 
    
	
 
    	
 
    	
)
    	
 
    
	
 
    	
 
    	
)
    	
Director
    
	
 
    	
 
    	
)
    	
 
    
	
and
    	
 
    	
 
    	
)
    	
 
    
	
 
    	
 
    	
)
    	
Director
    
					

 

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