Document:

Exhibit 4.1

 

FORM OF PRE-FUNDED COMMON
STOCK PURCHASE WARRANT

 

ORTHOPEDIATRICS CORP.

 

Warrant Shares: [•]

 

Date of Issuance: [•], 2022 (such date,
the “Issue Date”)

Warrant No.: [•]

 

THIS PRE-FUNDED COMMON
STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, the registered holder
hereof or its permitted assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on
exercise and the conditions set forth herein, at any time on or after the Issue Date, to subscribe for and purchase from OrthoPediatrics
Corp., a Delaware corporation (the “Company”), up to [•] shares (subject to adjustment hereunder, the
 “Warrant Shares”) of the Company’s common stock, par value $0.00025 per share (“Common Stock”).
The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 3(a).

 

Section 1. Definitions.
For purposes of this Warrant, the following terms shall have the following meanings:

 

	 	(a)	“Affiliate”
    means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
    control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act of 1933, as amended (the
    “Securities Act”).

 

	 	(b)	“Attribution
    Parties” means any Persons and entities whose holdings would be aggregated with the Holder as the same “acquiring
    person” under the rules and regulations promulgated under the HSR Act, as defined in Section 3(d).

 

	 	(c)	“Bloomberg”
    means Bloomberg Financial Markets.

 

	 	(d)	“Business Day”
    means any day except any Saturday, any Sunday, any day that is a federal legal holiday in the United States or any day on which the
    Trading Market is authorized or required by law or other governmental action to close.

 

	 	(e)	“Registration
    Statement” means the Company’s Registration Statement on Form S-3 (File No. 333-237177), that
    became effective on March 27, 2020, and any subsequent registration statements filed pursuant to Rule 462(b) under
    the Securities Act with respect thereto.

 

	 	(f)	“Person”
    means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
    any other entity and a government or any department or agency thereof.

 

	 	(g)	“Trading Day”
    means any day on which the Common Stock is traded on the Trading Market.

 

	 	(h)	“Trading Market”
    means the principal securities exchange or securities market, including an over-the-counter market, on which the Common
    Stock is then traded in the United States.

 

	 	(i)	“Weighted Average
    Price” means, for any security as of any date, the dollar volume-weighted average price for such security on the Trading
    Market 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 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”
    published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices).
    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 mutually determined by the Company and the Holder. If the Company
    and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 6(n) with
    the term “Weighted Average Price” being substituted for the term “Exercise Price.” All such determinations
    shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period
    pursuant to Section 4.

 

     

     

    

 

Section 2. Issuance of Securities.
The Warrant is offered and sold pursuant to the Registration Statement. As of the Original Issue Date, the Warrant Shares are offered
under the Registration Statement. Accordingly, the Warrant and, assuming either (a) an issuance pursuant to the Registration Statement
or (b) an exchange meeting the requirements of Section 3(a)(9) of the Exchange Act is in effect on the Issue Date, the
Warrant Shares, are not “restricted securities” under Rule 144 promulgated under the Securities Act. The Company shall
register ownership of this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”),
in the name of the record Holder (which shall include the initial Holder or, as the case may be, any assignee to which this Warrant is
assigned pursuant to the terms hereunder) from time to time. The Company may deem and treat the registered Holder of this Warrant as
the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.

 

Section 3. Exercise.

 

	 	(a)	Exercise of Warrant.
    Subject to the terms and conditions hereof, the purchase rights represented by this Warrant may be exercised, in whole or in part,
    at any time or times on or after the Issue Date by delivery (whether via facsimile or otherwise) to the Company (or such other office
    or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
    on the Warrant Register) of a duly executed copy of the Notice of Exercise form annexed hereto (the “Notice of Exercise”)
    and by payment to the Company of an amount equal to the aggregate Exercise Price of the Warrant Shares thereby purchased by wire
    transfer (or by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined below) in
    accordance with Section 3(c) hereof). The aggregate exercise price of this Warrant, except for the nominal
    $0.00025 per share, was pre-funded to the Company on or before the Issue Date, and consequently no additional consideration
    (other than the nominal $0.00025 per share) shall be required by to be paid by the Holder to effect any exercise of this Warrant.
    The remaining unpaid exercise price per share of Common Stock under this Warrant shall be $0.00025, subject to adjustment hereunder
    (the “Exercise Price”). No ink-original Notice of Exercise shall be required, nor
    shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. The Holder
    shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise
    Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase
    the remaining number of Warrant Shares, if any. The Holder and any assignee, by acceptance of this Warrant, acknowledge and
    agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the
    number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

	 	(b)	Mechanics of Exercise.

 

	 	(i)	Delivery of Warrant
    Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted to the Holder or its designee by crediting
    the account of the Holder at the Company’s transfer agent or Holder’s or its designee’s prime broker with The Depository
    Trust Company (“DTC”) through its Deposit/Withdrawal at Custodian (“DWAC”) system
    if the Company is then a participant in such system, or if the transfer agent is not participating in the Fast Automated Securities
    Transfer Program (the “FAST Program”) by the date that is two Trading Days after the receipt by the Company
    of the Notice of Exercise (provided that payment of the Exercise Price (or notification of Cashless Exercise, if applicable) has
    then been received by the Company) (such date, the “Warrant Share Delivery Date”). This Warrant shall be
    deemed to have been exercised upon proper delivery of the Notice of Exercise and payment of the Exercise Price (or notification of
    Cashless Exercise) in accordance with the terms hereof. Upon delivery of the Notice of Exercise, the Holder shall be deemed for all
    corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
    irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (or notification
    of Cashless Exercise, if applicable) is received on the same Trading Day as the Notice of Exercise. The Company shall use its reasonable
    best efforts to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and
    exercisable.

 

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	 	(ii)	Delivery of New Warrant
    Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon
    surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing
    the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other
    respects be identical with this Warrant.

 

	 	(iii)	Compensation for Buy-In on
    Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the
    Company fails to cause its transfer agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 3(b)(i) above
    pursuant to an exercise on or before the Warrant Share Delivery Date (other than a failure caused by incorrect or incomplete information
    provided by the Holder to the Company), and if after such date the Holder is required by its broker to purchase (in an open market
    transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction
    of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
    then the Company shall either (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase
    price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained
    by multiplying (1) the number of Warrant Shares 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, or (B) at
    the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise
    was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock
    that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if
    the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted
    exercise of this Warrant 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. Nothing herein shall limit a Holder’s
    right to pursue a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
    Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.

 

	 	(iv)	No Fractional Shares
    or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.
    As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at
    its election, either pay a cash adjustment in respect of such final fractions in an amount equal to such fraction multiplied by the
    Exercise Price or round up to the nearest whole share.

 

	 	(v)	Charges, Taxes and Expenses.
    Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in
    respect of the issuance of such shares, all of which taxes and expenses shall be paid by the Company, and such shares shall be issued
    in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that
    in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered
    for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require,
    as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall
    pay all transfer agent fees required for any Notice of Exercise and all fees to the DTC (or another established clearing corporation
    performing similar functions) required for electronic delivery of the Warrant Shares.

 

	 	(vi)	Closing of Books.
    The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant pursuant
    to the terms hereof.

 

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	 	(c)	Cashless Exercise.
    Notwithstanding anything contained herein to the contrary, the Holder may exercise this Warrant, whether in whole or in part, and
    in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Exercise
    Price, by effecting a cashless exercise of this Warrant pursuant to which the Holder shall receive upon such cashless exercise the
    “Net Number” of Warrant Shares determined according to the following formula (a “Cashless Exercise”):

 

Net Number =        (A
x B) - (A x C)

B

 

For purposes of the foregoing formula:

 

	 	A	= the total
    number of shares of Common Stock with respect to which this Warrant is then being exercised.

 

	 	B	= the Weighted
    Average Price of the shares of Common Stock on the date immediately preceding the date of the Notice of Exercise.

 

	 	C	= the Exercise
    Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

If Warrant Shares 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 Shares shall take on the registered characteristics of the Warrant being exercised, and the holding period of the Warrant
being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any position contrary to
this Section 3(c).

 

	 	(d)	Holder’s Exercise
    Limitations. In the event that a purported exercise of this Warrant would result in the Holder acquiring beneficial ownership
    of Warrant Shares (together with all other equity of the Company owned by the Holder at such time) with a value of or in excess of
    the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), notification threshold
    applicable to the Holder (the “HSR Threshold”), and no exemption to filing a notice and report form under
    the HSR Act is applicable, then the Warrant will be deemed to have been exercised on the later date that is immediately following
    the date of the expiration of the HSR waiting period.  In addition, Holder covenants and agrees to exercise this Warrant
    as soon as practicable following, but in no event later than five (5) Business Days following: (i) the expiration of the
    HSR waiting period or (ii) the exercise of the Warrant otherwise becoming exempt from a notification thereunder.
	 	 	 
	 	(e)	Notwithstanding anything to the
                                    contrary contained in any section herein, the Company agrees to comply with any applicable rules of
                                    the Trading Market with respect to the issuance of the Warrant Shares to the Holder and to take any
                                    action required by such rules to issue such Warrant Shares.

 

Section 4. Certain Adjustments.

 

	 	(a)	Subdivision or Combination
    of Common Stock. During such time as this Warrant is outstanding, if the Company subdivides (by any stock split, stock
    dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares,
    the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares
    will be proportionately increased. During such time as this Warrant is outstanding, if the Company combines (by combination, reverse
    stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise
    Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be
    proportionately decreased. Any adjustment under this Section 4(a) shall become effective at the close of business
    on the date the subdivision or combination becomes effective.

 

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	 	(b)	Subsequent Rights Offerings.
    In addition to any adjustments pursuant to Section 4(a) above, if during such time as this Warrant is outstanding
    the Company grants, issues or sells any rights to purchase stock, warrants, securities or other property, in each case pro rata to
    the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
    be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have
    acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard
    to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of
    such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be
    determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to
    participate in any such Purchase Right would result in the Holder and the other Attribution Parties collectively beneficially owning
    in excess of the HSR Threshold, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial
    ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent
    shall be held in abeyance for the Holder until such time, if ever, as its right thereto would either not result in the Holder and
    the other Attribution Parties exceeding the HSR Threshold or any HSR waiting period has expired).

 

	 	(c)	Pro Rata Distributions.
    During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets
    (or rights to acquire its assets) to holders of any class of shares of Common Stock, by way of return of capital or otherwise (including,
    without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
    corporate rearrangement, scheme of arrangement or other similar transaction) (other than as a result of a stock dividend covered
    by Section 4(a) above) (a “Distribution”), then, in each such case, the Holder shall
    be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
    had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
    on exercise hereof) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken,
    the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
    (provided, however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder
    and the other Attribution Parties exceeding the HSR Threshold, then the Holder shall not be entitled to participate in such
    Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such
    extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as
    either its right thereto would not result in the Holder and the other Attribution Parties exceeding the HSR Threshold or any
    HSR waiting period has expired).

 

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	 	(d)	Fundamental Transaction.
    If, at any time while this Warrant is 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, in which the Company is not the surviving entity
    or the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least
    50% of the voting power of the surviving entity immediately after such merger or consolidation, (ii) the Company, directly or
    indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition to another Person 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 capital stock who tender shares representing
    more than 50% of the voting power of the capital stock of the Company and the Company or such other Person, as applicable, accepts
    such tender for payment, (iv) the Company, directly or indirectly, in one or more related transactions, consummates a stock
    purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or
    scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the voting power of the capital stock
    of the Company (except for any such transaction in which the stockholders of the Company immediately prior to such transaction maintain,
    in substantially the same proportions, the voting power of such Person immediately after the transaction) or (v) the Company,
    directly or indirectly, in one or more related transactions, effects any reclassification, reorganization or recapitalization of
    the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for
    other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 4(a) above)
    (in any such case, a “Fundamental Transaction”), then following such Fundamental Transaction the Holder
    shall have the right to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would
    have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental
    Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant without regard to any
    limitations on exercise contained herein (the “Alternate Consideration”). 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 share of Common Stock 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 Common Stock 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 this Warrant following such Fundamental Transaction. Any such payment of such amount of such Alternative
    Consideration shall be made in the same form of consideration (whether securities, cash or property) as is given to the holders of
    Common Stock in such Fundamental Transaction, and if multiple forms of consideration are given, the consideration shall be paid to
    the Holder in the same proportion as such consideration is paid to the holders of Common Stock. The terms of any agreement pursuant
    to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with
    the provisions of this paragraph (d) and insuring that this Warrant (or any such replacement security) will be similarly
    adjusted upon any subsequent Fundamental Transaction. The Company shall not effect any Fundamental Transaction in which the Company
    is not the surviving entity or the Alternate Consideration includes securities of another Person unless (i) the Alternate Consideration
    is solely cash and the Company provides for the simultaneous “cashless exercise” of this Warrant pursuant to Section 3(c) or
    (ii) prior to or simultaneously with the consummation thereof, any successor to the Company, surviving entity or other Person
    (including any purchaser of assets of the Company) shall assume the obligation to deliver to the Holder such Alternate Consideration
    as, in accordance with the foregoing provisions, the Holder may be entitled to receive, and the other obligations under this Warrant.
    The provisions of this paragraph (d) shall similarly apply to subsequent transactions analogous of a Fundamental Transaction
    type.

 

	 	(e)	Calculations.
    All calculations under this Section 4 shall be made to the nearest cent or the nearest whole share, as the
    case may be. For purposes of this Section 4, any calculation of the number of shares of Common Stock deemed to be
    issued and outstanding as of a given date shall not include treasury shares, if any.

 

Section 5. Transfer of Warrant.
Subject to compliance with all applicable securities laws, the Company shall, or will cause its Transfer Agent to, register the transfer
of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, and payment for all applicable transfer
taxes (if any) by the Holder. Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially the form
of this Warrant (any such new warrant, a “New Warrant”) evidencing the portion of this Warrant so transferred
shall be issued to the transferee, and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall
be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant. The Company
shall, or will cause its Transfer Agent to, prepare, issue and deliver at the Company’s own expense any New Warrant under this Section 5.
Until due presentment for registration of transfer, the Company may treat the registered Holder hereof as the owner and holder for all
purposes, and the Company shall not be affected by any notice to the contrary.

 

Section 6. Miscellaneous.

 

	 	(a)	No Rights as Stockholder
    Until Exercise. Except as expressly set forth in Section 4, this Warrant does not entitle the Holder
    to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 3.
    In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities
    (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
    or by creditors of the Company.

 

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	 	(b)	Loss, Theft, Destruction
    or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to
    them of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in
    case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender and cancellation of
    such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor
    and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

	 	(c)	Saturdays, Sundays,
    Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
    or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
    Business Day.

 

	 	(d)	Authorized Shares.
    The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common
    Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under
    this Warrant (without regard to any limitations on exercise contained herein). The Company further covenants that its issuance of
    this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute
    and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
    will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
    violation of any applicable law or regulation, or of any requirements of the Trading Market. The Company covenants that all Warrant
    Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase
    rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued,
    fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other
    than taxes in respect of any transfer occurring contemporaneously with such issue). Except and to the extent as waived or consented
    to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or
    through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
    action (including any Fundamental Transaction), in each case, avoid or seek to avoid the observance or performance of any of the
    terms of this Warrant, and will at all times in good faith assist in the carrying out of all such terms and in the taking of all
    such actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Warrant against impairment.
    Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above
    the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as
    may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares
    upon the exercise of this Warrant and (iii) use its reasonable best efforts to obtain all such authorizations, exemptions or
    consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations
    under this Warrant. Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant
    is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto,
    as may be necessary from any public regulatory body or bodies having jurisdiction thereof. The Company covenants to list the Warrant
    Shares on the Trading Market on or prior to the issuance date of this Warrant.

 

	 	(e)	Governing Law.

 

	 	(i)	This Warrant shall be governed
    by, and construed in accordance with, the law of the State of New York without giving effect to any choice or conflict of law provision
    or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction
    other than the State of New York.

 

	 	(ii)	Each of the Company and
    the Holder irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of
    the State of New York sitting in the Borough of Manhattan, New York and of the United States District Court of the Southern District
    of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Warrant and
    the transactions contemplated herein, or for recognition or enforcement of any judgment, and each of the Company and the Holder irrevocably
    and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York
    state court or, to the fullest extent permitted by applicable law, in such federal court. Each of the Company and the Holder hereto
    agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit
    on the judgment or in any other manner provided by law.

 

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	 	(iii)	Each of the Company and
    the Holder irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now
    or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Warrant and the transactions
    contemplated herein in any court referred to in Section 6(e)(ii) hereof. Each of the Company and the Holder
    hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance
    of such action or proceeding in any such court.

 

	 	(iv)	EACH OF THE COMPANY AND
    THE HOLDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
    JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY
    (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH OF THE COMPANY AND THE HOLDER (A) CERTIFIES THAT NO REPRESENTATIVE,
    AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT
    OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT EACH OF THE COMPANY AND THE HOLDER HAS BEEN INDUCED
    TO ENTER INTO THIS WARRANT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

	 	(f)	Nonwaiver and Expenses.
    No course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver
    of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this
    Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material
    damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including,
    but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting
    any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

	 	(g)	Notices.

 

	 	(i)	Notice Procedures.
    Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
    shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
    via email or facsimile at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the
    date of transmission, if such notice or communication is delivered via email or facsimile on a day that is not a Trading Day or later
    than 5:30 p.m. (New York City time) on any Trading Day, (c) the second Trading Day following the date of mailing, if sent
    by U.S. nationally recognized overnight courier service or by International Federal Express, (d) the third Trading Day following
    the date of mailing if sent by first-class registered or certified mail domestic, or (e) upon actual receipt by the party to
    whom such notice is required to be given. The addresses for such communications shall be:

 

If to the Company:

 

OrthoPediatrics
Corp.

2850 Frontier
Drive

Warsaw, Indiana
46582

United States
of America

	 	Attention:	David Bailey, Chief Executive Officer

Daniel Gerritzen,
General Counsel and Vice President of Legal

	 	Email:	dbailey@orthopediatrics.com; dgerritzen@orthopediatrics.com

 

     -8-

     

    

 

With copy
to:

 

Dentons Bingham
Greenebaum LLP

2700 Market
Tower

10 W. Market
Street

Indianapolis, Indiana
46204

United States
of America

	 	Attention:	Jeremy E. Hill, Esq.; Bradley C. Arnett, Esq.
	 	Email:	jeremy.hill@dentons.com; bradley.arnett@dentons.com

 

If
to the Holder:

 

To
the address, email address or facsimile number set forth in the Warrant Register, or as otherwise provided by the Holder to the Company
in accordance with this Section 6(g)(i).

 

	 	(ii)	Adjustment to Exercise
    Price. Whenever the Exercise Price or number of Warrant Shares is adjusted pursuant to any provision of Section 4,
    the Company shall promptly provide the Holder a notice setting forth the Company’s good faith adjustment of the Exercise Price
    and number of Warrant Shares after such adjustment and setting forth a description of the transactions giving rise to such adjustments
    and a detailed statement of the facts upon which such adjustment is based.

 

	 	(iii)	Notice to Allow Exercise
    by the Holder. After the Issue Date, if (A) the Company shall declare a dividend (or any other distribution in whatever
    form) on the Common Stock, including any Distribution, (B) the Company shall declare a special nonrecurring cash dividend on
    or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights
    or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, including any Purchase Right,
    (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common
    Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets
    of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, including
    any Fundamental Transaction, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding
    up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it
    shall appear upon the Warrant Register, at least ten calendar days prior to the applicable record or effective date hereinafter specified,
    a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights
    or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to
    such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
    consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is
    expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
    cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that
    the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action
    required to be specified in such notice. The Holder shall remain entitled to exercise this Warrant during the period commencing on
    the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth
    herein.

 

     -9-

     

    

 

	 	(h)	Limitation of Liability.
    No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares,
    and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase
    price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of
    the Company.

 

	 	(i)	Remedies.
    The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
    to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
    for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
    the defense in any action for specific performance that a remedy at law would be adequate. Without limiting any rights of a Holder
    to receive Warrant Shares on a “cashless exercise” pursuant to Section 3(c) herein or to receive
    cash payments pursuant to Section 3(b)(iii), in no event shall the Company be required to net cash settle an exercise
    of this Warrant.

 

	 	(j)	Successors and Assigns.
    Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of
    and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of the Holder. The
    provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable
    by the Holder or holder of Warrant Shares.

 

	 	(k)	Amendment.
    This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

	 	(l)	Severability.
    Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
    law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
    to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
    of this Warrant.

 

	 	(m)	Dispute Resolution.
    In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company
    shall submit the disputed determinations or arithmetic calculations in writing within two Business Days of receipt of the Notice
    of Exercise giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon
    such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination
    or arithmetic calculation being submitted to the Holder, then the Company shall, within two Business Days submit in writing (i) the
    disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by
    the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant.
    The Company shall cause, at its expense, the investment bank or the accountant, as the case may be, to perform the determinations
    or calculations and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the
    disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the
    case may be, shall be binding upon all parties absent demonstrable error. The expenses of the investment bank and accountant will
    be borne by the Company unless the investment bank or accountant determines that the determination of the Exercise Price or the arithmetic
    calculation of the Warrant Shares by the Company was correct and such determination by the Holder was incorrect, in which case the
    expenses of the investment bank and accountant will be borne by the Holder.

 

	 	(n)	Headings.
    The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this
    Warrant.

 

[remainder of page intentionally
left blank]

 

     -10-

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date
first above indicated.

 

	 	ORTHOPEDIATRICS CORP.

 

	 	By:	
	 	Name:	David R. Bailey
	 	Title:	President and Chief Executive
    Officer

 

[Signature Page to
Pre-Funded Warrant]

 

     

     

    

 

NOTICE OF EXERCISE

 

To: OrthoPediatrics Corp.

 

	(1)	The undersigned holder of Warrant No.                  hereby
    elects to purchase                  Warrant
    Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of
    the exercise price in full, together with all applicable transfer taxes, if any.

 

	(2)	Payment shall take the form of (check applicable box):

 

	 	 ̈	Cash Exercise: lawful money
    of the United States; or

 

	 	 ̈	Cashless Exercise: the
    cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 3(c),
    to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
    set forth in Section 3(c).

 

	(3)	Please issue said Warrant Shares in the name of the
    undersigned or in such other name as is specified below:

 

	 	 	 
	 	 	 	 

 

	(4)	By its delivery of this Notice of Exercise, the undersigned
    represents and warrants to the Company that in giving effect to the exercise evidenced hereby, the Holder, together with the other
    Attribution Parties, will not beneficially own in excess of the HSR Threshold or any HSR waiting period has expired, each as defined
    in the Warrant to which this notice relates.

 

The Warrant Shares shall be delivered to
the following DWAC Account Number or by delivery by book entry on the transfer accounts records to:

 

	 	 	 
	 	 	 	 

 

	 	 	 
	 	 	 	 

 

	 	 	 
	 	 	 	 

 

	
	 	Name
    of Holder

 

	 	By:	
	 	Name:	
	 	Title:	
	 	Date:	

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing
warrant, execute

this form and supply
required information.

Do not use this form
to exercise the warrant.)

 

FOR VALUE RECEIVED, [                ]
all of or [            ] shares of the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

	 	 

whose
address is:

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	Dated:	 	 

 

	Holder’s Signature:	 	 
	 	 	 
	Holder’s Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever.Exhibit 4.1
DESCRIPTION OF COMMON SHARES
The common shares of Perpetua Resources Corp. (the “Company” and such shares, the “Common Shares”) are its only class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The following description of our Common Shares is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Notice of Articles and Articles (the “Articles”) which are filed as exhibits to the Annual Report on Form 10-K. We are incorporated in the Province of British Columbia, Canada and are subject to the Business Corporations Act (British Columbia) (the “BCBCA”).
General
There are no special rights or restrictions attached to any of the Common Shares, which all rank equally as to all benefits which might accrue to the holders of Common Shares.
Authorized Share Capital
We are authorized to issue an unlimited number of Common Shares without par value.
Voting Rights
Holders of Common Shares are entitled to receive notice of and to attend any meetings of shareholders of the Company. At any general meeting, subject to the restrictions on joint registered owners of Common Shares, on a vote by show of hands every shareholder who is present in person or by proxy and entitled to vote has one vote and on a poll, every shareholder entitled to vote has one vote for each Common Share of which he, she or it is the registered owner and may exercise such vote either in person or by proxy. On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way. The majority of votes required for the Company to pass a special resolution at a general meeting of shareholders is two-thirds of the votes cast on the resolution.
Economic Rights
Dividends and Distributions.
Subject to the BCBCA, holders of Common Shares are entitled to receive dividends if, as and when declared by the board of directors of the Company (the “Board”) at its discretion from funds legally available therefor, in each case subject to the rights, privileges, restrictions and conditions attached to any other series or class of shares ranking senior in priority to or on a pro-rata basis with the holders of Common Shares with respect to dividends.
Liquidation Rights.
Subject to the BCBCA, in the event of our liquidation, dissolution, or winding-up, holders of Common Shares are entitled to receive a pro rata share of our assets available for distribution to the shareholders after payment of debts and other liabilities, in each case subject to the rights, privileges, restrictions and conditions attached to any other series or class of shares ranking senior in priority to or on a pro-rata basis with the holders of Common Shares with respect to liquidation.
Conversion.
Holders of Common Shares have no conversion rights.
Pre-emptive Rights.
Paulson & Co. Inc. (“Paulson”) is entitled to the right of first opportunity to provide any equity financing required by us pursuant to the Amended and Restated Investor Rights Agreement between Midas Gold Corp., Idaho Gold Resources Company, LLC and Paulson & Co. Inc., dated March 17, 2020 (the “Paulson Investor Rights Agreement”) so long as Paulson owns in the aggregate 10% or more of the issued and outstanding Common Shares.
​

Participation Rights.
So long as Paulson owns at least 10% or more of the issued and outstanding Common Shares, Paulson has the right to participate in any future issuances of debt or equity securities of the Company to maintain its pro rata interest in the Company.
Subscription Rights.
Holders of Common Shares have no subscription rights.
Redemption Provisions.
There are no redemption provisions applicable to our Common Shares.
Sinking Fund Provisions.
There are no sinking fund provisions applicable to our Common Shares.
Preferred Shares
We currently have no outstanding preferred shares. We are authorized to issue an unlimited number of first preferred shares without par value, and an unlimited number of second preferred shares without par value. If we were to register and issue preferred shares, such preferred shares would rank senior to the Common Shares with respect to the payment of dividends and the distribution of assets on a liquidation, dissolution or winding up of the Company.
Shareholder Approval; Vote on Extraordinary Corporate Transactions
Under the BCBCA, certain extraordinary corporate actions, such as amalgamations (other than with certain affiliated companies), continuances to another jurisdiction and sales, leases or exchanges of all, or substantially all, of the property of a company (other than in the ordinary course of business), and other extraordinary corporate actions such as liquidations, dissolutions and arrangements (if ordered by a court), are required to be approved by a “special resolution” of shareholders.
A “special resolution” is a resolution (i) passed by a majority of not less than two-thirds of the votes cast by the shareholders who voted in respect of the resolution, or (ii) signed by all shareholders entitled to vote on the resolution. In specified cases, a special resolution to approve an extraordinary corporate action is required to be approved separately by the holders of a class or series of shares, including in certain cases a class or series of shares not otherwise carrying voting rights.
Approval Rights
Under the Paulson Investor Rights Agreement, so long as Paulson owns 20% or more of the outstanding Common Shares, without the prior written approval of Paulson and subject to certain exceptions, the Company shall not, and shall not permit any subsidiary to: (a) voluntarily delist from any stock exchange where its securities are listed; (b) incur any indebtedness or guarantee any indebtedness; or (c) incur any lien, claim or security interest on assets of the Company or any subsidiary including royalty agreements, streaming agreements or long-term offtake agreements.
Amendments to the Governing Documents
Under the BCBCA, the type of resolution required to be passed in order to authorize amendments to the notice of articles and/or articles of a company is determined as follows:
		·
	the type of resolution specified by the BCBCA; or

		·
	if not specified by the BCBCA, the type of resolution specified by the company’s articles; or

		·
	if neither (i) nor (ii) apply, a special resolution.

​

If the proposed amendment would affect a particular class of shares in certain specified ways, the holders of shares of that class are entitled to vote separately as a class on the proposed amendment, whether or not the shares otherwise carry the right to vote.
A company may alter its articles to specify or change the majority of votes that is required to pass a special resolution, which majority must be at least 2/3 and not more than 3/4 of the votes cast on the resolution, if the shareholders resolve, by a special resolution, to make the alteration. A company may also alter its articles to specify or change the majority of votes that is required for shareholders holding shares of a class or series of shares to pass a special separate resolution, which majority must be at least 2/3 and not more than 3/4 of the votes cast on the resolution, if (a) the shareholders resolve, by a special resolution, to make the alteration, and (b) shareholders holding shares of that class or series of shares consent by a special separate resolution of those shareholders.
There are no restrictions in the BCBCA on when the Company’s Articles can be altered. There is a general rule at common law that an alteration to the articles must be bona fide and in the best interests of the company as a whole. Where a shareholder alleges there has been, or is proposed to be, an alteration to the articles that is unfairly prejudicial to one or more of the shareholders, including the applicant, the applicant may be able to claim unfair prejudice. If the articles are being altered by the directors, the directors have similar duties to act honestly and in good faith with a view to the best interests of the company. Where the directors propose to alter or have altered the articles in a manner that a shareholder claims to be oppressive to one or more of the shareholders, the oppression/unfair prejudice remedies in the BCBCA may apply.
Quorum of Shareholders
The BCBCA provides that the quorum for the transaction of business at a meeting of shareholders of a company is the quorum established by the articles, or, if no quorum is established by the articles, two shareholders entitled to vote at the meeting whether present personally or by proxy.
Our Articles provide that the presence, in person or by proxy, of two or more shareholders representing at least 33 1/3% of the outstanding Common Shares on the record date entitled to be voted will constitute a quorum for the transaction of business at any meeting of shareholders.
Calling Meetings
The BCBCA requires that a company must hold its first annual general meeting not more than 18 months after the date on which it was recognized and subsequent annual general meetings must be held at least once in each calendar year and not more than 15 months after the annual reference date (which generally means that date of the last preceding annual general meeting).
General meetings of shareholders held between annual general meetings to consider matters other than those specifically required by the BCBCA or the Articles to be dealt with at an annual general meeting are commonly referred to as extraordinary general meetings. An extraordinary general meeting of shareholders may be called at any time for the transaction of any business the general nature of which is specified in the notice calling the meeting.
The shareholders (as defined in the BCBCA) of not less than 5% of the issued shares of a company that carry the right to vote at a meeting sought to be held may requisition the directors to call a general meeting of shareholders for the purposes stated in the requisition. In order to have standing to requisition a general meeting, a requisitionist must be entered on the securities register of the company as the registered owner of voting shares. If a general meeting is properly requisitioned, the directors must call a general meeting to transact the business specified in the requisition, to be held within four months after the date the requisition is received by the company.
General meetings must be held in British Columbia unless (a) a location outside British Columbia is provided for in the articles; (b) the articles do not restrict the company from approving a location outside British Columbia for holding a general meeting and a location outside British Columbia is (i) approved by the resolution required by the articles for that purpose; or (ii) if no resolution is required by the articles for that purpose, approved by an ordinary resolution; or (iii) the location for the meeting is approved in writing by the registrar before the meeting is held.
​

Our Articles provide that general meetings may be held outside British Columbia if that location is approved either by a resolution of the directors or in writing by the registrar before the meeting is held.
If the general meeting is a partially electronic meeting, as contemplated by the BCBCA, these requirements apply to the location where persons attend the meeting in person. If the general meeting is a fully electronic meeting, these requirements do not apply.
Shareholder Consent in Lieu of Meeting
Under the BCBCA, consent resolutions of shareholders are deemed to be proceedings at meetings of those shareholders and to be as valid and effective as if passed at a meeting that complies with all the requirements of the BCBCA and the articles relating to meetings of shareholders. A company must keep a copy of any shareholders’ consent resolutions, and minutes of shareholders’ meetings, at the records office of the company.
A “consent resolution” of shareholders in respect of the Company means:
		·
	in the case of a resolution of shareholders that may be passed as an ordinary resolution, a resolution consented to in writing by shareholders holding shares that carry the right to vote at general meetings who, in the aggregate, hold shares carrying at least 66 2/3% of the votes entitled to be cast on the resolution; and

		·
	in the case of any other resolution of shareholders, a unanimous resolution.

Director Qualification, Election and Number
Only an individual who is properly qualified may become or act as a director of a company. Those who are not qualified to become or act as directors (or officers) include people under the age of 18 (not 19, the age of majority), people found to be incapable of managing their own affairs, undischarged bankrupts, and people who have been convicted of an offence concerning the promotion, formation, or management of a corporation or an unincorporated business or an offence involving fraud, subject to certain exceptions.
Under the BCBCA, a company must have at least one director and a public company must have at least three directors. Our Articles provide that the number of directors is set at the most recently set of:
		·
	the number of directors elected by ordinary resolution; and

		·
	if at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, those retiring directors who are not re-elected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office until further new directors are elected. If any such election/continuance of directors does not result in the number of directors set for the time being, the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.

The Board has adopted a majority voting policy (the “Majority Voting Policy”) which requires, in an election of directors, other than at a Contested Meeting (as defined below), any director who receives a greater number of shares withheld than shares voted in favor of his or her election must immediately tender his or her resignation (the “Resignation”) to the Board. The Corporate Governance and Nominating Committee of the Company will then review the matter and make a recommendation to the Board. In considering the Resignation, the Corporate Governance and Nominating Committee and the Board shall consider all factors they deem relevant. The Board shall determine whether or not to accept the Resignation within 90 days after the date of the relevant shareholders’ meeting. The Board shall accept the Resignation absent exceptional circumstances. The Resignation will be effective when accepted by the Board. The Director tendering the Resignation will not participate in any Board or Corporate Governance and Nominating Committee meeting at which the Resignation is considered. The Company shall promptly issue a news release with the Board’s decision and send a copy of the news release to the Toronto Stock Exchange (“TSX”). If the Resignation is not accepted, the news release shall fully state the reasons for that decision.
​

Under the Majority Voting Policy, a “Contested Meeting” is a meeting at which the number of directors nominated for election is greater than the number of seats available on the Board.
Under the Paulson Investor Rights Agreement, Paulson is entitled to designate nominees to the Board (each, a "Board Designee") as follows: (a) so long as Paulson owns 10% or more of the outstanding Common Shares, Paulson shall be entitled to designate one Board Designee; and (b) so long as Paulson owns 20% or more of the outstanding Common Shares, Paulson shall be entitled to designate two Board Designees. Pursuant to the Paulson Investor Rights Agreement, the Company shall, in respect of every shareholders' meeting at which the election of directors to the Board is considered, nominate for election to the Board the Board Designee(s), and shall use its commercially reasonable efforts to obtain shareholder approval for the election of the Board Designee(s). In the event that a Board Designee is not elected to the Board at such meeting or a Board Designee resigns or is unable to serve as a director for any reason, Paulson shall be entitled to designate a replacement director and the Company agrees to appoint, subject to applicable laws and TSX requirements, such person to the Board.
Vacancies on the Board of Directors
Under our Articles, any casual vacancy occurring in the Board may be filled by the directors.
Removal of Directors
Under our Articles, directors may be removed by shareholders or the Board as described below.
The shareholders may remove any director by special resolution, in which case the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to fill the vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy.
The directors may remove any director before the expiration of their term of office if the director is convicted of an indictable offense, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint a director to fill the resulting vacancy.
Fiduciary Duty of Directors
Directors of a company existing under the BCBCA have fiduciary obligations to the company. The BCBCA requires directors and officers of a British Columbia company, in exercising their powers and performing the functions of a director or officer of the company must:
		·
	act honestly and in good faith with a view to the best interests of the company;

		·
	exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances;

		·
	act in accordance with the BCBCA and the regulations; and

		·
	subject to paragraphs i to iii above, act in accordance with the articles of the company.

Dissent Rights
The BCBCA provides that shareholders of a company are entitled to exercise dissent rights and be paid by the company the fair value of their shares in connection with specified matters, including, among others:
		·
	resolution altering any restrictions on the business the company is permitted to carry on or on its powers;

		·
	a continuance under the laws of another jurisdiction;

​

		·
	the disposition (other than in the ordinary course of business) of all or substantially all of the undertaking of a company; and

		·
	an amalgamation with another company (other than with certain affiliated companies).

Oppression Remedy
The BCBCA provides an oppression remedy that enables a court to make any interim or final order it considers appropriate with a view to remedying or bringing to an end to the matters complained of by a “complainant” (including a registered shareholder, beneficial owner of Common Shares and any other person whom the court considers appropriate), may apply for an order on the ground:
		·
	that the affairs of the company are being or have been conducted, or that the powers of the directors are being or have been exercised, in a manner oppressive to one or more of the shareholders, including the applicant, or

		·
	that some act of the company has been done or is threatened, or that some resolution of the shareholders or of the shareholders holding shares of a class or series of shares has been passed or is proposed, that is unfairly prejudicial to one or more of the shareholders, including the applicant.

The oppression remedy provides the court with very broad and flexible powers to intervene in corporate affairs to protect shareholders and other complainants. Common remedies include (a) orders that remedy the specific conduct complained of, for example by ordering repayment of management fees (where the conduct complained of was the discriminatory payment of those fees) or ordering the payment of dividends (where the conduct complained of was the failure to pay them); (b) orders requiring the company or other shareholders to purchase the wronged shareholder’s shares; (c) orders appointing a receiver or receiver-manager; and (d) orders for liquidation and dissolution.
Derivative Actions
Under the BCBCA, a shareholder or director of a company may apply to the court for leave to:
		·
	prosecute a legal proceeding in the name and behalf of the company to:

		o
	enforce a right, duty or obligation owed to the company that could be enforced by the company itself;

		o
	or to obtain damages for any breach of a right, duty or obligation referred to in paragraph a above; or

		·
	defend, in the name and on behalf of a company, a legal proceeding brought against the company.

Under the BCBCA, the court may grant leave on terms it considers appropriate, if:
		·
	the complainant has made reasonable efforts to cause the directors of the company to prosecute or defend the legal proceeding;

		·
	notice of application for leave has been given to the company and to any other person the court may order;

		·
	the complainant is acting in good faith; and

		·
	it appears to the court that it is in the best interests of the company for the legal proceeding to be prosecuted or defended.

Under the BCBCA, the court in a derivative action may (a) make an order that the complainant give security for costs; (b) authorize any person to control the conduct of the legal proceeding or give any other directions; (c) order interim costs to be paid to the person controlling the conduct of the legal proceed; and (d) on final disposition of a legal proceeding, make various other orders including orders for repayment of interim costs advanced and for indemnities as to costs and expenses.
​

Examination of Corporate Records
Under the BCBCA, upon payment of a prescribed fee, a person is entitled, during usual business hours, to examine certain corporate records and to make copies of or extracts from such documents.
Advance Notice for Shareholder Proposals and Director Nominations
The BCBCA permits certain eligible shareholders and beneficial owners of shares to submit shareholder proposals to a company, which proposals may be included in the company’s management information circular and proxy statement. To be considered for inclusion in the management information circular and proxy statement for an annual meeting of shareholders of the Company, any such shareholder proposal under the BCBCA must be:
		·
	signed by the submitter and qualified shareholders who, together with the submitter, are, at the time of signing registered owners or beneficial owners of shares that, in the aggregate, constitute at least 1/100 of the issued Common Shares that carry the right of vote at general meetings or having a market value in excess of $2,000;

		·
	received by the Company at least three months before the anniversary date of the last annual meeting of shareholders; and

		·
	accompanied by declarations of those making the proposal and their supporters declaring the number of Common Shares carrying the right to vote at general meetings that are owned by the signatories and the names of the registered holders of the Common Shares, for inclusion in the management information circular and proxy statement distributed to shareholders prior to the annual meeting of shareholders of the Company.

On April 4, 2013, the Board adopted an advance notice policy (which was ratified by the Company’s shareholders at the annual general meeting held on May 14, 2013) (the “Advance Notice Policy”), which fixes the deadlines by which shareholders of the Company must submit director nominations to the Company prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in a written notice to the Company for any director nominee to be eligible for election at such annual or special meeting of shareholders.
The following is a brief summary of certain provisions of the Advance Notice Policy and is qualified in its entirety by the full text of the Advance Notice Policy:
		·
	Other than pursuant to (a) a proposal made in accordance with the BCBCA (as described above) or (b) a requisition of the shareholders made in accordance with the provisions of the BCBCA, shareholders of the Company must give advance written notice to the Company of any nominees for election to the Board.

		·
	The Advance Notice Policy fixes a deadline by which shareholders of the Company must submit, in writing, nominations for directors to the Corporate Secretary of the Company prior to any annual or special meeting of shareholders, and sets forth the specific information that such shareholders must include with their nominations in order to be effective. Only persons who are nominated in accordance with the Advance Notice Policy are eligible for election as directors of the Company.

		·
	For an annual meeting of shareholders, notice to the Company must be not less than 30 days and not more than 65 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting is to be held on a date less than 50 days after the date on which the first public announcement of the date of such annual meeting was made, notice may be given not later than the close of business on the 10th day following such public announcement.

​

		·
	For a special meeting of shareholders (that is not also an annual meeting), notice to the Company must be given not later than the close of business on the 15th day following the day on which the first public announcement of the date of such special meeting was made.

		·
	The time periods for giving notice set forth above shall in all cases be determined based on the original date of the applicable annual meeting and/or special meeting of shareholders, and in no event shall any adjournment or postponement of a meeting of shareholders, or the reconvening of any adjourned or postponed meeting of shareholders, or the announcement thereof, commence a new time period for the giving of notice as described above.

For the purposes of the Advance Notice Policy, "public announcement" means disclosure in a press release reported by a national news service in Canada, or in a document publicly filed by the Company under its profile on SEDAR at www.sedar.com or on the SEC’s Website at www.sec.gov.
Registration Rights
Paulson is entitled to certain registration rights with respect to Common Shares held by it pursuant to the Paulson Investor Rights Agreement. Pursuant to the terms of the Paulson Investor Rights Agreement, Paulson has the right to demand that we file a prospectus and take such other steps as may be necessary to facilitate a distribution in Canada of all or any portion of the registrable securities held by Paulson, subject to certain exceptions set forth in the Paulson Investor Rights Agreement. In addition, in the event that we effect a registered distribution of securities, either for our account or for the account of our other security holders, Paulson will be entitled to certain piggyback registration rights with respect to such distribution, subject to certain limitations set forth in the Paulson Investor Rights Agreement.
The Paulson Investor Rights Agreement provides that we must pay registration expenses in connection with effecting any demand registration or piggyback registration, with the exception of commissions payable to any underwriter attributable to the holders’ registrable securities, the holders’ pro rata share of the registration expenses attributable to a demand registration offering and any and all fees, disbursements and expenses of legal counsel or other advisors retained by the holders in connection with a piggyback registration. We must pay all registration expenses in connection with an abandoned offering in respect of which piggyback registration rights have been exercised.
Such registration rights are subject to the exceptions and conditions set forth in the Paulson Investor Rights Agreement, which is filed as an exhibit to our Annual Report on Form 10-K. The registration rights will expire upon the terms set forth in the Paulson Investor Rights Agreement.
Listing
Our Common Shares are listed on the TSX under the symbol “PPTA” and on the Nasdaq under the symbol “PPTA”.
Transfer Agent and Registrar
The transfer agent and registrar for our Common Shares is Computershare Investor Services. The transfer agent’s address is Proxy Department, 3rd Floor, 510 Burrard Street, Vancouver, BC V6C 3B9.

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