Document:

exhibit_10-14.htm

Exhibit 10.14

 

NEITHER THIS WARRANT CERTIFICATE NOR THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT CERTIFICATE HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER SECURITIES ACT, AND THIS WARRANT CERTIFICATE AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT CERTIFICATE MAY NOT BE SOLD, OFFERED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS AND THE RESTRICTIONS, TERMS AND CONDITIONS SET FORTH HEREIN.

 

CHECK-CAP LTD.

 

ORDINARY SHARES WARRANT CERTIFICATE

 

To purchase

_________ Ordinary Shares (subject to adjustment) of

Check-Cap Ltd.  (the "Company")

at a per share price and subject to the terms detailed below

VOID AFTER 17:00 p.m. Israel Standard Time

on the last day of the Warrant Period (as defined below)

THIS IS TO CERTIFY THAT, ________________ (the "Holder"), is entitled to purchase from the Company, an aggregate of up to ________ (as may be adjusted hereunder) Ordinary Shares ("Shares") of the Company, nominal value NIS 0.01 per share (the "Warrant Shares"), at an aggregate purchase price of NIS________, reflecting an exercise price per share of NIS 0.01 (the "Exercise Price"), during the Warrant Period.

 

This Warrant Certificate (this "Warrant") is issued to the Holder in connection with that certain Credit Line Agreement, dated August 20, 2014 among the Company and the Lenders listed on Exhibit A thereto (the "Credit Line Agreement").

 

  

  

  

 

	
1.

	
EXERCISE OF WARRANT

 

1.1.      Warrant Period. This Warrant may be exercised, subject to the terms and conditions hereof, in whole or in part, at one time or from time to time during the period commencing on October 14, 2014 (the "Initial Date"), until the earlier of: (i) ten (10) years thereafter (i.e. October 14, 2024) (the "Last Date"); and (ii) the closing of an Exit Event (as defined in Section ‎5 below); provided that such Exit Event is consummated within 180 days from the Exit Event Notice (each of (i) or (ii), the "Expiry Date"). The period between the Initial Date and the Expiry Date shall be referred to hereinafter as the "Warrant Period."

 

	
  

	
1.2.

	
Exercise for Cash. This Warrant may be exercised by presentation and surrender thereof to the Company at its principal office or at such other office or agency as it may designate from time to time, accompanied by:

 

	
  

	
(a)

	
A duly executed notice of exercise, in the form attached hereto as Schedule ‎1.2 (the "Exercise Notice"); and

 

	
  

	
(b)

	
Payment to the Company, for the account of the Company, of the Exercise Price for the number of Warrant Shares purchased payable in immediately available funds by wire transfer to the Company's bank account. The Exercise Price will be paid in United States Dollars or the equivalent sum in NIS according to the Bank of Israel exchange rate as published upon the date immediately prior to the exercise date.

 

	
  

	
1.3.

	
Exercise on Net Issuance Basis. In lieu of payment to the Company as set forth in Section ‎1.2 above, the Holder may elect to exercise this Warrant into the number of Warrant Shares calculated pursuant to the formula below, by presentation and surrender thereof to the Company at its principal office or at such other office or agency it may designate from time to time, accompanied by a duly executed notice of exercise, in the form attached hereto as Schedule 1.3 (the "Net Issuance Notice"):

 

                   Y*(A - B)

X         =     -----------------

            A

 

Where:

 

	
  

	
X =

	
the number of Warrant Shares to be issued to the Holder;

 

	
  

	

Y =

	

the number of Warrant Shares in respect of which the net issuance election is being made;

 

	
  

	
A =

	
the Fair Market Value (as defined below) of one Warrant Share; and

 

	
  

	
B =

	
the Exercise Price of one Warrant Share.

 

  

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For purposes of this Section ‎1.3, the "Fair Market Value" of one Warrant Share as of a particular date (the "Determination Date") shall be:

 

	
  

	
(a)

	
If the net issuance right is exercised in connection with and contingent upon an initial public offering of the Company’s shares, then the initial “price to public” (i.e., before deduction of discounts, commissions or expenses) specified in the final prospectus or registration statement with respect to such offering.

 

	
  

	
(b)

	
If the net issuance right is exercised in connection with and contingent upon an Exit Event the price per Share in such Exit Event.

 

	
  

	
(c)

	
If the net issuance right is not exercised in connection with and contingent upon an initial public offering or an Exit Event, then as follows:

 

	 	
(i)

	
If the Shares are traded on a securities exchange, the Fair Market Value shall be deemed to be the average of the closing prices of the Shares on such exchange over the fifteen (15) trading days immediately prior to (but not including) the Determination Date;

 

	 	
(ii)

	
If the Shares are quoted for trading on an over-the-counter system, the Fair Market Value shall be deemed to be the average of the closing bid prices of the Shares over the fifteen (15) trading days immediately prior to (but not including) the Determination Date; and

 

	 	
(iii)

	
If there is no public market for the Shares, the Fair Market Value of the shares shall be determined in good faith by the Board of Directors of the Company.

 

	
  

	
1.4.

	
In the event that, upon the Last Date, the Fair Market Value of one Warrant Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Exercise Price in effect on such date, then, unless otherwise directed in writing by the Holder, this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.3 above with respect to all Warrant Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall promptly deliver a certificate representing such number of Warrant Shares (or such other securities) issued upon such exercise to Holder.

 

  

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1.5.

	
Issuance of Warrant Shares. Upon presentation and surrender of this Warrant, accompanied by (a) the duly executed Exercise Notice and the payment of the applicable Exercise Price for the Warrant Shares being purchased pursuant to Section ‎1.2 above; or (b) the duly executed Net Issuance Notice pursuant to Section ‎1.3 above, as the case may be, the Company shall promptly (i) issue to the Holder the Warrant Shares to which the Holder is entitled; and (ii) deliver to the Holder the share certificate evidencing such Warrant Shares.

 

Upon receipt by the Company of this Warrant and the applicable duly executed notice of exercise (and the Exercise Price for the Warrant Shares being purchased, if applicable), together with any other documents and/or approvals that may be required by law, the Holder shall be deemed to be the holder of record of the Warrant Shares issuable upon such exercise, notwithstanding that the share transfer books of the Company shall then be closed or that certificates representing such shares shall not then be actually delivered to the Holder.

 

	
  

	
1.6.

	
Fractional Shares. No fractions of shares shall be issued in connection with the exercise of this Warrant, and the number of shares issued shall be rounded up to the nearest whole number.

 

	
  

	
1.7.

	
Partial Exercise. If this Warrant is exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the Holder to purchase the balance of the Warrant Shares purchasable hereunder.

 

	
  

	
1.8.

	
Additional Documents. The Holder will sign and deliver any and all documents or approvals required by law, to facilitate the issuance of the Warrant Shares upon exercise of this Warrant.

 

	
  

	
1.9.

	
Loss or Destruction of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonable reimbursement of expenses and satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and deliver a new Warrant of like tenor and date.

 

  

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2.

	
TAXES

 

	
  

	
2.1.

	
The Holder acknowledges that the grant of the Warrant, the issuance of the Warrant Shares and the execution and/or performance of this Warrant may have tax consequences to the Holder and that the Company is not able to ensure or represent to the Holder the nature and extent of such tax consequences.

 

	
  

	
2.2.

	
The Company shall pay all of the applicable taxes and other charges payable by the Company in connection with the issuance of the Warrant Shares and the preparation and delivery of share certificates in the name of the Holder (such as transfer taxes in respect of the issuance or delivery of Warrant Shares upon exercise of this Warrant), if any, but shall not pay any taxes payable by the Holder by virtue of the holding, issuance, exercise or sale of this Warrant or the Warrant Shares by the Holder.

 

	
3.

	
RESERVATION OF SHARES; PRESERVATION OF RIGHTS OF HOLDER

 

	
  

	
3.1.

	
Reservation of Shares. The Company hereby agrees that, at all times prior to the expiration or exercise of this Warrant, it will maintain and reserve, free from pre-emptive or similar rights, such number of authorized but unissued shares so that this Warrant may be exercised without additional authorization of shares.

 

	
  

	
3.2.

	
Preservation of Rights. The Company will not, by amendment of its organizational documents or through reorganization, recapitalization, consolidation, merger, dissolution, transfer of assets, issue or sale of securities or any other voluntary act, avoid or seek to avoid the observance or performance of any of the covenants, stipulations, conditions or terms to be observed or performed hereunder, but will at all times in good faith assist in the carrying out of all the provisions hereof and in taking of all such actions and making all such adjustments as may be necessary or appropriate in order to fulfill the provisions hereof.

 

  

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4.

	
ADJUSTMENT

 

	
  

	
4.1.

	
The number of Warrant Shares purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time or upon exercise, as follows:

 

	
  

	
(a)

	
If the Company at any time or from time to time after the date hereof effects a subdivision of the outstanding Shares or consolidates the outstanding Shares, then the Exercise Price shall be adjusted to that price determined by multiplying the Exercise Price immediately prior to such event by a fraction:

 

	
  

	
(i)

	
the numerator of which shall be the total number of outstanding Shares immediately prior to such event; and

 

	
  

	
(ii)

	
the denominator of which shall be the total number of outstanding Shares immediately after such event.

 

Upon each adjustment of the Exercise Price as provided in this paragraph (a), the Holder shall thereafter be entitled to acquire, at the Exercise Price resulting from such adjustment, the number of Shares (calculated to the nearest Share) obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Shares which may be acquired hereunder immediately prior to such adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment.

 

	
  

	
(b)

	
If the Company at any time or from time to time after the date hereof makes, or fixes a record date for the determination of holders of Shares entitled to receive a dividend or other distribution payable in additional Shares, then in each such event the Exercise Price that is then in effect shall be adjusted as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Exercise Price then in effect by a fraction:

 

	
  

	
(i)

	
the numerator of which is the total number of Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date; and

 

	
  

	
(ii)

	
the denominator of which is the total number of Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of Shares issuable in payment of such dividend or distribution;

 

  

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provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Exercise Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Exercise Price shall be adjusted pursuant to this section to reflect the actual payment of such dividend or distribution.  Upon each adjustment of the Exercise Price as provided in this paragraph (b), the Holder shall thereafter be entitled to acquire, at the Exercise Price resulting from such adjustment, the number of Shares (calculated to the nearest Share) obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Shares which may be acquired hereunder immediately prior to such adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment.

 

	
  

	
(c)

	
If the Company at any time or from time to time after the date hereof makes, or fixes a record date for the determination of holders of Shares entitled to receive, a dividend or other distribution payable in securities of the Company other than Shares, then in each such event provision shall be made so that the Holder shall receive upon exercise of this Warrant, in addition to the number of Shares receivable thereupon, the amount of other securities of the Company which it would have received had this Warrant been exercised for such number of Shares immediately prior to the date of such event (or record date of such event) and had the Holder thereafter, during the period from the date of such event to and including the exercise date, retained such securities receivable by it as aforesaid during such period, subject to all other adjustments called for during such period under this section and the Company's Articles of Association as shall be in effect from time to time, with respect to the rights of the Holder.

 

	
  

	
(d)

	
In case the Shares issuable upon exercise of this Warrant are changed into the same or different number of shares of any class or classes of shares, whether by recapitalization, reclassification or otherwise (other than a subdivision or consolidation of shares, share dividend or other reorganization, provided for elsewhere in this Section), then in each such event this Warrant shall be exercised into the kind and amount of shares or other securities and property receivable on such recapitalization, reclassification or other change that the Holder would have been entitled to receive thereupon had the Holder been the registered holder of the number of Shares into which this Warrant might have been exercised immediately prior thereto.

 

  

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4.2.

	
Whenever an adjustment is effected hereunder, the Company shall, at its expense, promptly compute such adjustment and deliver to the Holder a certificate setting forth the number of Warrant Shares (or any other securities) for which this Warrant is exercisable and the Exercise Price as a result of such adjustment, a brief statement of the facts requiring such adjustment and the computation thereof and when such adjustment has or will become effective.

 

	
  

	
4.3.

	
Except as otherwise provided herein, Sections 4.1(a) to 4.1(d) hereof are intended to operate independently of one another. If an event occurs that requires the application of more than one subsection, all applicable subsections shall be given independent effect, but there shall be no duplicate adjustments if two separate subsections provide the same protection.

 

	
  

	
4.4.

	
Notices of Certain Transactions.  In case:

 

	
  

	
(a)

	
the Company shall take a record of the holders of its Shares (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or

 

	
  

	
(b)

	
of the voluntary or involuntary dissolution, liquidation or winding-up of the Company

 

then, and in each such case, the Company will mail or cause to be mailed to the Holder a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend or distribution, and stating the amount and character of such dividend or distribution, or (ii) the effective date on which such voluntary dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Shares (or such other shares or securities at the time deliverable upon such voluntary dissolution, liquidation or winding-up) are to be determined.  Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice.

 

  

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4.5.

	
In addition, in the event that the Company consummates a Deferred Closing (as defined in the Credit Line Agreement), the number of Warrant Shares issuable upon exercise of this Warrant shall be increased, such that following the adjustment, the number of the Warrant Shares underlying this Warrant shall be equal to the amount obtained by multiplying (i) such number of Ordinary Shares constituting 2% of the Company's share capital on a Fully Diluted Basis (as defined in the Credit Line Agreement) as of each such Deferred Closing by (ii) a fraction, the numerator of which is [___________] [such Lender’s portion of the Credit Line Amount in U.S. Dollars to be inserted] and the denominator of which is US$1,000,000.

 

	
5.

	
EXERCISE OF THE WARRANT UPON AN EXIT EVENT

 

Notwithstanding anything to the contrary in this Warrant, if at any time during the Warrant Period, the Company consummates an Exit Event, or at the discretion of the Board of Directors of the Company, in the event that the Company believes that an Exit Event is likely to be consummated during such period, the Company shall provide written notice of such Exit Event (or, if applicable, an anticipated Exit Event) to the Holder (the "Exit Event Notice"). Within fourteen (14) days after Holder’s receipt of the Exit Event Notice, Holder must notify the Company if it intends to exercise this Warrant pursuant to Section ‎1.2 or ‎1.3 of this Warrant, in which case such exercise shall be effective contingent upon and immediately prior to the consummation of the Exit Event. Thereafter, so long as the Company consummates such Exit Event within one hundred and eighty (180) days after Holder’s receipt of the Exit Event Notice (to the extent the Exit Event shall not have occurred prior to the Exit Event Notice), Holder shall have no further rights hereunder and this Warrant shall be automatically terminated if not so exercised. If the Company fails to consummate such Exit Event within such time, then this Warrant shall remain in effect subject to the provisions contained herein

 

For the purposes hereof, an "Exit Event" shall mean the closing of (i) a merger of the Company with or into another corporation, (ii) an acquisition of all or substantially all of the shares of the Company, (iii) the sale or license of all or substantially all of the assets of the Company, in all cases, other than a merger or transaction in which the persons that beneficially owned, directly or indirectly, a majority of the share capital of the Company immediately prior to such merger or transaction, beneficially own, directly or indirectly, a majority of the total shares of capital stock of the surviving or transferee entity. For greater certainty an initial public offering of the securities of the Company shall not be considered an "Exit Event".

 

  

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6.

	
RIGHTS OF THE HOLDER

 

	
  

	
6.1.

	
This Warrant shall not entitle the Holder, by virtue hereof, to any voting rights or other rights as a shareholder of the Company, except for the rights expressly set forth herein.

 

	
  

	
6.2.

	
The Holder acknowledges that the Warrant Shares shall be subject to such rights, privileges, restrictions and limitations as set forth in this Warrant and the organizational documents of the Company (or any other agreement with respect thereto), as may be amended from time to time, and that, as a result, inter alia, of such limitations, it may be difficult or impossible for the Holder to realize his investment and/or to sell or otherwise transfer the Warrant Shares. The Holder further acknowledges that the Company's shares are not publicly traded.

 

	
7.

	
TERMINATION

 

Notwithstanding anything to the contrary, this Warrant and all the rights conferred hereby shall terminate and expire at the aforementioned time on the Expiry Date.

 

	
8.

	
MISCELLANEOUS

 

	
  

	
8.1.

	
Entire Agreement; Amendment. This Warrant sets forth the entire understanding of the parties with respect to the subject matter hereof and supersedes all existing agreements among them concerning such subject matter. All article and section headings herein are inserted for convenience only and shall not modify or affect the construction or interpretation of any provision of this Warrant. Subject to Section ‎8.9 below, no modification or amendment of this Warrant will be valid unless executed in writing by the Company and the Holder.

 

	
  

	
8.2.

	
Waiver. No failure or delay on the part of any of the parties in exercising any right, power or privilege hereunder and/or under any applicable law or the exercise of such right or power in a manner inconsistent with the provisions of this Warrant or applicable law shall operate as a waiver thereof. Any waiver must be evidenced in writing signed by the party against whom the waiver is sought to be enforced.

 

  

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8.3.

	
Successors and Assigns Transfer of this Warrant. Except as otherwise expressly limited herein, this Warrant shall inure to the benefit of, be binding upon, and be enforceable by the Holder and its respective successors, and administrators. This Warrant may be transferred by the Holder to its Permitted Transferees (as such term is defined in the Company's Articles of Association as shall be in effect from time to time) and any other transfer shall be subject to the same restrictions on transfer set forth in the Amended Shareholders' Agreement (as defined in the Credit Line Agreement) as may be amended from time to time and the Company's Articles of Association as shall be in effect from time to time, mutatis mutandis. The transfer shall be recorded on the books of the Company upon the surrender of this Warrant, properly endorsed, to the Company at its principal offices, and the payment to the Company of all transfer taxes and other governmental charges imposed on such transfer. In the event of a partial transfer, the Company shall issue to the holders one or more appropriate new warrants.

 

	
  

	
8.4.

	
Governing Law. This Warrant shall be exclusively governed and construed in accordance with the laws of the State of Israel, without regard to conflicts of laws provisions thereof.

 

	
  

	
8.5.

	
Arbitration. Any dispute, controversy or claim arising in relation to this Warrant, including with regard to its validity, invalidity, breach, enforcement or termination, will be referred to a single arbitrator, who shall be appointed by the Head of the Israeli Bar Association.  Arbitration proceedings shall take place in Tel Aviv, Israel, and shall be conducted in English and according to the rules of substantive law (per Section ‎8.4 above). The arbitrator will not be bound by rules of evidence or procedure and will give the reasons for his judgment. The arbitrator's decision shall be final and enforceable in any court. This paragraph shall constitute an arbitration agreement between the parties.

 

  

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8.6.

	
Notices. Any notice required or permitted to be given to a party pursuant to the provisions of this Warrant will be in writing and will be effective and deemed delivered to such party on the earliest of the following: (a) all notices and other communications delivered in person or by courier service shall be deemed to have been delivered as of actual delivery thereof; (b) those given by facsimile transmission shall be deemed delivered on the following business day after transmission, with confirmed transmission thereof; and/or (c) all notices and other communications sent by registered mail (or air mail if the posting is international) shall be deemed given three (3) days after posting.

 

	
  

	
8.7.

	
Severability.  If any provision of this Warrant is held to be unenforceable, this Warrant shall be considered divisible and such provision shall be deemed inoperative to the extent it is deemed unenforceable, and in all other respects this Warrant shall remain in full force and effect; provided, however, that if any such provision may be made enforceable by limitation thereof, then such provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by applicable law.

 

	
  

	
8.8.

	
Counterparts. This Warrant may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  Facsimile or electronic signatures of a party shall be binding as evidence of such party's agreement hereto and acceptance hereof.

 

	
  

	
8.9.

	
Amendments. To the extent that any amendment(s) to the Credit Line Agreement or the transactions contemplated thereby result in a required amendment to the terms of this Warrant, this Warrant shall be deemed amended to the extent that the amendment(s) to the Credit Line Agreement are completed in accordance with the terms thereof.

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

	
Dated:  October 14, 2014

 

	
Check-Cap Ltd.

Signature: __________________

Name:  Guy Neev

Title:    CEO

 

  

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Schedule 1.2

 

Exercise Notice

 

Date: ____________

 

To: Check-Cap Ltd.

 

The undersigned, pursuant to the provisions set forth in the Warrant to which this Exercise Notice is attached (the "Warrant"), hereby elects to purchase _________ Warrant Shares (as such term is defined in the Warrant) pursuant to Section ‎1.2 of the Warrant, and herewith makes payment of _____________, representing the full Exercise Price for such shares as provided for in such Warrant.

 

The undersigned hereby irrevocably directs that the said shares (or such other securities into which the Warrant is exercisable) be issued and registered in the name of the undersigned and/or in the name of its Permitted Transferee(s) (as such term is defined in the Company's Articles of Association), as set forth below.

 

	
Names

	
Address

	
No. of Shares

	
________________________

	
_____________________________

	
____________________

	
________________________

	
_____________________________

	
____________________

 

Signature:  ______________________

 

Address: _________________________

 

  

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Schedule 1.3

 

Net Issuance Notice

 

Date: ____________

 

To:         Check-Cap Ltd.                                                                        

 

The undersigned, pursuant to the provisions set forth in the Warrant to which this Exercise Notice is attached (the "Warrant"), hereby elects to exercise the Warrant for the purchase of Warrant Shares (as such term is defined in the Warrant), pursuant to the provisions of Section 1.3 of the Warrant.

 

The undersigned hereby irrevocably directs that the said shares (or such other securities into which the Warrant is exercisable) be issued and registered in the name of the undersigned and/or in the name of its Permitted Transferees(s) (as such term is defined in the Company's Articles of Association), as set forth below.

 

	
Names

	
Address

	
No. of Shares

	
________________________

	
_____________________________

	
____________________

	
________________________

	
_____________________________

	
____________________

 

Signature: ______________________

 

Address: _________________________

 

15Exhibit 4.3

 

Form of Shareholders Agreement

 

BETWEEN:

 

OMISSIS ..... (the shareholder
list has been eliminated in this copy )

 

hereinafter together referred to as the
“Shareholders” or “Parties”.

 

WHEREAS:

 

A.         The
Parties are all shareholders of Advanced Accelerator Applications S.A, a company incorporated under the laws of France,
having its registered office at 20, rue Diesel, 01630 St.Genis-Pouilly, France (hereinafter referred to as the “Company”
or “AAA”), represented by the President Director General, with an issued and paid up share capital of
€  3,660,000,
divided into 36,600,000 shares.,

 

B.         The Shareholders have agreed to enter
into this agreement in order to set out the terms governing (i) their relationship in relation to their mutual rights and obligations
in case of transfer of shares and other interests in the Company, (ii) certain aspects of the management of the Company and (iii)
certain non compete obligations of those Shareholders who are directors of the Company.

 

IT IS HEREBY AGREED AS FOLLOWS:

 

TITLE I - PURPOSE – DEFINITIONS
–

 

Article 1 - Definitions

 

“Other Shareholders”
means the Shareholders other that a Shareholder who intends to transfer his Shares.

 

“Shareholder”
means any person, party to the present Agreement, owning Shares of the Company.

 

“Shares” means
any share or other securities issued by the Company including, without limitation, option rights, convertible bonds or any other
instrument which may be converted into, or incorporate the right to acquire any shares of the Company.

 

    	1 of 7

    	 

    

 

“Subsidiary”
means, with respect to any Shareholder, a company, partnership, firm association or other entity of which such Shareholder owns
more then 50% of the share capital plus one shares.

 

“Third Party”
means any person who is not a party to this Shareholders’ Agreement.

 

“Transfer” means,
with respect to Shares, any disposal or transfer in any manner whatsoever effected whether for consideration or without consideration
(including but not limited to any sale, contribution in kind, statutory merger, donation, exchange or other transfer whatsoever
and whether in whole or in part).

 

Article 2 – Purpose of this
Agreement

 

The purpose of this Agreement is to set
forth the rights and obligations of the Company’s Shareholders in the event of a proposed Transfer. The present Agreement
is however expressly subject to the condition precedent set forth hereinafter in Article 9.

 

TITLE
II – rights and OBLIGATIONS on transfers – terms and conditions

 

In addition to the pre-emption right (the
“Pre-emption Right”) under paragraph 10.3 of the Company’s by-laws (“Paragraph 10.3”), a Share Transfer
by a Shareholder must comply with the rights and obligations as described in the present Title.

 

Article 3 – Free Transfers

 

Subject to paragraphs 10.3 of the Company’s
by-laws, only the Transfers hereinafter set forth may be freely made (the "Free Transfers"), as long as
the transferee, if a Third Party, becomes a party to this Agreement:

 

-    transfers
to heirs of a Shareholder who is an individual, in the event of death, including succession, of the interests in the equity of
the Company;

 

-    donation
to heirs of a Shareholder who is an individual, of the interests in the equity of the Company.

 

Any such Free Transfers shall be notified
to the Other Shareholders within 15 days following completion thereof, together with a copy of the Transferee’s agreement,
if a Third Party, to become a party to this Agreement, by signing the deed of adherence as provided in article 5 below.

 

    	Advanced Accelerator Applications	2 of 7

    	 

    

 

Article 4 - Tag along

 

After receipt of a notice by the Company
of a Share Transfer by a Shareholder (the “Selling Shareholder”) under Paragraph 10.3, each of the offeree Shareholders
may require (save that it wishes to exercise its Pre-emption Right and subject to the exercise of the Pre-emption right by the
other shareholders), that the potential purchaser (the “Potential Purchaser”) acquire its Shares (in whole but not
in part), upon the same terms and conditions offered to the Selling Shareholder (the “Tag Along Request”).
The Tag Along Request shall be made in writing to the Company within the exercise period under Paragraph 10.3, by registered letter
return receipt requested.

 

In case a Tag Along Request is made by
one or more Shareholders, the Selling Shareholder shall cause the Potential Purchaser to acquire all the Shares of such Shareholders,
provided that, should the Potential Purchaser refuse to purchase such Shares, then the Selling Shareholder shall have the option
to either (i) waive to proceed to the sale of its Shares to the Potential Purchaser or (ii) acquire himself or make the other shareholders
acquire all of the Shares of the Shareholders which have made a Tag Along Request.

 

If no Tag Along Request is received by
the Company within the exercise period under Paragraph 10.3 (and subject to the other shareholders’ Pre-emption right), then
the Selling Shareholder shall be free to sell its Shares to the Potential Purchaser upon the terms and conditions set forth in
the notice, provided that such sale occurs within 90 days after the end of the exercise period.

 

The Selling Shareholder agrees to obtain
from the Potential Purchaser (or to undertake himself, as the case may be) the firm and irrevocable commitment in writing to acquire,
in the event of completion of the contemplated Transfer, the Shares with respect to which the Other Shareholders wish to exercise
their tag along right, on the same terms and conditions and details, at the same time as such completion. Consequently, the Shareholders
agree to forego any proposed Transfer, if the Shares of the Other Shareholders exercising their right deriving from the tag along
clause have not been acquired as set forth hereinabove.

 

Article 5 - Adherence of the transferee
to this agreement

 

In any case, the Selling Shareholder shall
cause the Potential Purchaser which becomes transferee of the Shares to adhere to this Agreement so that, upon Transfer of the
Shares, it assumes the same rights and obligations of the other Shareholders according to this deed. The transferee shall adhere
to this agreement and become part hereof by signing the attached deed of adherence and notifying it to the Company and all other
shareholders which are parties to this shareholders agreement.

 

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Article 6 - Infra Group Transfer

 

The provisions of paragraph 4 above shall
not apply to any Transfer to or from any Subsidiary of any of the Shareholders, provided that (i) the transferor Shareholder delivers
to the other Shareholders, in advance of the Transfer, full documentary evidence that the transferee is a Subsidiary, (ii) any
such transferee continues to be a Subsidiary of such Shareholder, it being understood that if the transferee ceases to be a Subsidiary
of the transferor Shareholder, the latter shall purchase back all the Shares from the transferee before the transaction resulting
in the transferee ceasing to be a Subsidiary occurs or is agreed, and (iii) the transferor Shareholder remains severally and jointly
liable hereunder with any such transferee.

 

Article 7 - Drag Along

 

In case Stefano Buono or a group of Shareholders
holding more than 66 % of the Shares (the “Main Shareholders”) receive from a Third Party an offer to
purchase all of the Shares, subject to the application of the provisions of Paragraph 10.3, the Other Shareholders undertake to
sell their Shares upon the same terms and conditions offered to the Main Shareholders, if so required by the Main Shareholders
in the notice under Paragraph 10.3, provided that the terms and conditions of the sale be accepted by a number of Shareholders
holding at least 66% plus one Shares of the stated share capital.

 

TITLE III – PROVISIONS REGARDING
MANAGEMENT

 

Article 8– Company’s
Board of directors

 

8.1. Appointment of the board
and managing director. The Company’s board of directors shall consist of a maximum of 9 members, among them Stefano Buono.
Stefano Buono shall be granted the management powers and related authority to represent the Company as Director General with all
the powers foreseen in the company by-laws.

 

8.2. Managers’ non compete obligations.
The Shareholders which are members of the board of directors from time to time (the “Shareholders Directors”),
during the whole period in which they shall be members of the board of directors undertake not to:

 

(a)         carry out activities, individually
or in association with third parties, on his own account or as employee of third parties, directly or indirectly, in any form whatsoever,
in the field of radiopharmaceuticals production and, in any case, in competition with AAA’s activity.

 

(b)         hold participations of more than
2% of the share capital in companies that carry out activities in competition with AAA.

 

Exemptions from this article require explicit
approval of the board by a majority vote.

 

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TITLE IV – APPLICATION OF THIS
AGREEMENT

 

Article 9 - Condition precedent

 

The obligations
of the Parties hereunder are expressly subject to the condition that the Agreement be signed by Shareholders holding, at least,
sixty six (66) per cent of the share capital of the Company.

 

If the
above condition is not fulfilled by 31 December 2008, this Agreement shall be deemed as not reached and never signed by any of
the Parties.

 

Article 10 – Reporting requirements

 

The Company shall provide the Shareholders with the following
data:

 

		(a)	quarterly financial report, within 45 days of the end of each calendar quarter;

 

		(b)	6 months balance sheet, income statement and cash flow statement for the Company, its Subsidiaries
and on a consolidated basis, within 60 days after the end of each semester;

 

		(c)	annual report of the Company, within 120 days of the year end;

 

		(d)	budget for the year including income statement balance sheet and cash flow statements and capital
expenditure plans of the Company, its subsidiaries and on a consolidated basis, on or before 31st of January of the
same year;

 

		(e)	if requested by a specific shareholder, a signed copy of the minutes of the Company’s shareholders
meetings;

 

		(f)	if requested in writing by a Shareholder (in which case this information shall be provided only
to the requesting Shareholder), a copy of the general and special auditor reports according to articles L225-237 of the French
Code de Commerce;

 

		(g)	if requested in writing by a Shareholder (in which case this information shall be provided only
to the requesting Shareholder), a copy of any question of the statutory auditors addressed in writing to the chairman of the board
of directors, and relevant answers, as well as the minutes and and resolutions taken according to article L234-1 of the French
Code de Commerce;

 

		(h)	if requested in writing by a Shareholder (in which case this information shall be provided only
to the requesting Shareholder), a copy of his or her shareholdings in AAA (as inscribed in the individual shaeholder register)
as of December 31 of each year.

 

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Article 11 - Termination of previous
shareholders agreement, duration and listing

 

Subject
to the condition precedent under article 9 above, this Agreement shall enter into force the earlier of (i) March 1, 2009 and (ii)
the date on which it shall been signed by all Parties hereto – superseding any previous shareholders agreement in force at
that time - and shall terminate on February 28, 2019 except that, in case of listing of the Company on any stock exchange, it shall
automatically terminate on the date of the listing.

 

Article 12 - Notices

 

All notices, advises, statements, requests,
demands and other communications under this Agreement will be made in the English or French language and will be given or made
(unless provided otherwise in this Agreement) in writing by registered mail posted or by facsimile transmission.

 

The Parties hereby agree to notify the
Company immediately any change of address. Failing this, any notices sent to their former address will be considered valid for
the purpose of the Agreement.

 

Article 12 - Law and Jurisdiction

 

The Agreement is governed by French law.

 

The Parties agree to endeavor to settle
amicably all disputes, which may arise, concerning the Agreement, its application, and the acts entered into for the application
of the Agreement.

 

Should no amicable settlement be reached,
the disputing Parties agree to submit any dispute, which may arise regarding the existence, validity, construction or performance
of the Agreement, to the Commercial Court of Bourg-en-Bresse (01).

 

Article 13 – No waiver

 

Failure by any Shareholder to exercise,
or claim, any right of any kind, or waiver thereof, under this Agreement shall in no event be deemed to be a waiver of such right
for the future, such waiver to be effective only with respect to the event involved.

 

Article 14 - Heirs, Successors,
and Assigns – Liquidation of community property

 

This Agreement shall be binding upon, and
inure to the benefit of, all heirs, successors, and assigns, as a matter of right, of the parties hereto. They shall then, as a
matter of right be bound thereby, without, as the case may be, the need for any notice to be given

 

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as contemplated by Article 877 of the Civil
Code, which each party hereby expressly waives on their behalf.

 

In addition, each manager agrees that,
in the event of the dissolution of his/her community property rights, he/she shall use his/her best efforts to keep personal ownership
of the Shares he/she owns.

 

Article 15 - Validity

 

The invalidity of the provisions of this
Agreement shall not cause the whole agreement to be invalid, and the parties agree to meet to replace, in the same spirit, any
provision that proves to be invalid. The Exhibits hereto shall be deemed to be an integral part of this Agreement.

 

Article 16 - Signing procedure for
the Agreement

 

Given the distance between the Shareholders
themselves and the Company, the Agreement cannot be signed by all Shareholders simultaneously. Each Shareholder therefore agrees
to (i) sign one copy of the Agreement which will subsequently be countersigned by Mr Stefano Buono and (ii) provide Mr Stefano
Buono with a power of attorney empowering him to sign a copy of the Agreement in their name and for their account.

 

However, in the case that several Parties
can meet for the signing of the Agreement, they will collectively sign the same copy of the Agreement. The other Parties unable
to do so will sign their own individual copy of the Agreement.

 

All Parties hereby acknowledge the validity
of this procedure and shall not, in anyway, challenge it on these grounds.

 

OMISSIS ..... (the shareholder
signature list has been eliminated in this copy )

 

	New

    shareholder’s

    name	 	Location and

    date	 	Signature of shareholder
    or 

representative
	 	 	 	 	 

 

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