Document:

Exhibit 4.2

 

EXECUTION VERSION

 

 

5.000%
Senior Unsecured Notes due 2018

 

CIT GROUP INC.,

as Issuer,

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Trustee,

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Paying Agent, Security Registrar and Authenticating Agent

 

 

 

SIXTH SUPPLEMENTAL INDENTURE

 

 

 

Dated as of December 23, 2016

 

    	 

    		 

    

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1
	 
	DEFINITIONS
	 
	Section 1.1	Relation to Base Indenture	2
	Section 1.2	Definition of Terms	2
	 	 	 
	ARTICLE 2
	 
	GENERAL TERMS AND CONDITIONS OF THE NOTES
	 
	Section 2.1	Designation and Principal Amount	7
	Section 2.2	Maturity	8
	Section 2.3	Form, Payment and Appointment	8
	Section 2.4	Global Notes	8
	Section 2.5	Interest	9
	 	 	 
	ARTICLE 3
	 
	REDEMPTION AND REPURCHASE OF THE NOTES
	 
	Section 3.1	No Sinking Fund or Repayment at Option of the Holder	10
	Section 3.2	Optional Redemption	11
	Section 3.3	Offer to Repurchase Upon Change of Control Triggering Event	11
	Section 3.4	Effect of Redemption	13
	Section 3.5	Redemption Procedures	13
	Section 3.6	No Other Redemption	13
	 	 	 
	ARTICLE 4
	 
	FORM OF NOTE
	 
	Section 4.1	Form of Note	14
	 	 	 
	ARTICLE 5
	 
	COVENANTS
	 
	Section 5.1	Reports	14

    	 

    	

    

	 	 	Page
	 	 	 
	ARTICLE 6
	 
	ADDITIONAL PROVISIONS
	 
	Section 6.1	Additional Events of Default	16
	Section 6.2	Additional Covenant Defeasance	16
	Section 6.3	Additional Amendments and Waivers	16
	 	 	 
	ARTICLE 7
	 
	MISCELLANEOUS
	 
	Section 7.1	Ratification of Indenture	17
	Section 7.2	No Personal Liability of Directors, Officers, Employees and Stockholders	17
	Section 7.3	Trustee and Agent Not Responsible for Recitals	17
	Section 7.4	New York Law To Govern	17
	Section 7.5	Separability	17
	Section 7.6	Counterparts	18

    	 

    	

    

THIS SIXTH SUPPLEMENTAL INDENTURE, dated
as of December 23, 2016 (the “Supplemental Indenture”), among CIT Group Inc., a corporation duly organized and
existing under the laws of the State of Delaware (the “Company”), Wilmington Trust, National Association, as
trustee (the “Trustee”), and Deutsche Bank Trust Company Americas, as paying agent, security registrar and authenticating
agent (the “Agent”), amending and supplementing the Indenture, dated as of March 15, 2012 among the Company,
the Trustee and the Agent, governing the issuance of debt securities (the “Base Indenture”). The Base Indenture,
as amended and supplemented by the Supplemental Indenture, shall be referred to herein as the “Indenture.”

 

RECITALS

 

WHEREAS, the Company has offered, upon the
terms and subject to the conditions set forth in the offering memorandum and the accompanying letter of transmittal, each dated
December 8, 2016, to exchange (the “Exchange Offer”) any and all of its outstanding 5.000% Senior Unsecured
Notes due 2017 (“Old Notes”) for a new series of Securities to be known as its 5.000% Senior Unsecured Notes
due 2018 (the “Notes”);

 

WHEREAS, pursuant to the Exchange Offer,
the Company will issue Notes in exchange for Old Notes accepted in the Exchange Offer on the Early Settlement Date, if such Old
Notes were validly tendered prior to the Early Deadline, and on the Final Settlement Date, if such Old Notes were validly tendered
after the Early Deadline but prior to the Expiration Time;

 

WHEREAS, the Company has executed and delivered
the Base Indenture to the Trustee and the Agent to provide for the future issuance of the Company’s debt securities or other
evidence of Indebtedness, to be issued from time to time in one or more series as might be determined by the Company under the
Base Indenture;

 

WHEREAS, Section 9.3(8) of the Base Indenture
provides for the Company and the Trustee to enter into an indenture supplemental to the Base Indenture to establish the forms or
terms of Securities of any series as permitted by Section 2.1 and Section 3.1 of the Base Indenture;

 

WHEREAS, pursuant to Section 3.1 of the Base
Indenture, the Company wishes to provide for the issuance of the Notes and the form, terms, provisions and conditions thereof to
be set forth as provided in this Supplemental Indenture; and

 

WHEREAS, the Company has requested that the
Trustee and the Agent execute and deliver this Supplemental Indenture, and all requirements necessary to make this Supplemental
Indenture a valid, binding and enforceable instrument in accordance with its terms, and to make the Notes, when executed by the
Company and authenticated and delivered by the Trustee and the Agent, and the payment by the purchaser thereof of the agreed upon
consideration therefor, the valid, binding and enforceable Obligations of the Company, have been done and performed, and the execution
and delivery of this Supplemental Indenture have been duly authorized in all respects.

 

NOW, THEREFORE, in consideration of the covenants
and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

    	 

    		 

    

ARTICLE 1

DEFINITIONS

 

Section 1.1Relation to Base Indenture.

 

This Supplemental Indenture constitutes an
integral part of the Base Indenture, and supplements and amends the Base Indenture solely with respect to the Notes.

 

Section 1.2Definition of Terms.

 

For all purposes of this Supplemental Indenture:

 

(a)a term not defined herein
that is defined in the Base Indenture has the same meaning when used in this Supplemental Indenture;

 

(b)the definition of any term
in this Supplemental Indenture that is also defined in the Base Indenture shall supersede the definition of such term in the Base
Indenture;

 

(c)a term defined anywhere in
this Supplemental Indenture has the same meaning throughout;

 

(d)the singular includes the
plural and vice versa and use of any gender includes each other gender;

 

(e)headings are for convenience
of reference only and do not affect interpretation; and

 

(f)the following terms have
the meanings given to them in this Section 1.2:

 

“Additional Notes” means
additional Notes (other than the Initial Notes), including any Notes issued on the Final Settlement Date, issued under this Indenture
in accordance with Section 3.12 of the Base Indenture, as part of the same series as the Initial Notes.

 

“Alternate Offer” has
the meaning assigned to that term set forth in Section 3.3.

 

“Beneficial Owner” has
the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person”
shall be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion
or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.
The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning.

    	-2-

    		 

    

“Change of Control” means
the occurrence of any of the following:

 

(1)any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the Beneficial Owner
of more than 50% of the total outstanding Voting Stock (measured by voting power rather than the number of shares) of the Company,
other than in any such transaction where:

 

(A)the Voting Stock (as defined
herein) of the Company outstanding immediately prior to such transaction is changed into or exchanged for Voting Stock of another
Person (the “Permitted Parent”) constituting a majority of the outstanding Voting Stock (measured by
voting power rather than the number of shares) of the Permitted Parent (immediately after giving effect to such issuance); and

 

(B)immediately after such transaction,
no “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) is the
Beneficial Owner of more than 50% of the total outstanding Voting Stock (measured by voting power rather than the number of shares)
of the Permitted Parent; or

 

(2)the Company sells, assigns,
conveys, transfers, leases or otherwise disposes of all or substantially all of its assets to any Person, other than any such transaction
where:

 

(A)the Voting Stock of the Company
outstanding immediately prior to such transaction is changed into or exchanged for Voting Stock of the transferee Person (the “Transferee”)
constituting a majority of the outstanding shares of the outstanding Voting Stock (measured by voting power rather than
the number of shares) of the Transferee (immediately after giving effect to such issuance); and

 

(B)immediately after such transaction,
no “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), is the
Beneficial Owner of more than 50% of the total outstanding Voting Stock (measured by voting power rather than the number of shares)
of the Transferee.

 

Following any transaction described in clause (1)(A), the Permitted
Parent shall be substituted for the Company in this definition and the definition of “Trigger Period,” and following
any transaction described in clause (2)(A), the Transferee shall be substituted for the Company in this definition and the definition
of “Trigger Period.”

 

“Change of Control Offer”
has the meaning assigned to that term in Section 3.3 hereof.

 

“Change of Control Payment”
has the meaning assigned to that term in Section 3.3 hereof.

 

“Change of Control Payment Date”
has the meaning assigned to that term in Section 3.3 hereof. 

    	-3-

    		 

    

“Change of Control Triggering Event”
means the occurrence of both (i) a Change of Control and (ii) a Ratings Downgrade Event.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the
remaining term of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes; provided,
however, that if no maturity is within three months before or after the maturity date for such Notes, yields for the two
published maturities most closely corresponding to such United States Treasury security will be determined and the treasury rate
will be interpolated or extrapolated from those yields on a straight line basis rounding to the nearest month.

 

“Comparable Treasury Price”
means, with respect to any redemption date, (a) the average of the Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Independent Investment Banker obtains
fewer than four Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Coupon Rate” has the
meaning set forth in Section 2.5(a) hereof.

 

“Custodian” means, with
respect to any Global Note, the Security Registrar, as custodian for DTC with respect to such Global Note.

 

“DTC” has the meaning
set forth in Section 2.3(d) hereof.

 

“Early Deadline” means
5:00 p.m., New York City time, on December 21, 2016.

 

“Early Settlement Date”
means the date promptly after the Early Deadline on which Notes will be issued in exchange for Old Notes validly tendered prior
to the Early Deadline and accepted in the Exchange Offer.

 

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

 

“Exchange Offer” has the
meaning in the recitals hereof.

 

“Expiration Time” means
11:59 p.m., New York City time, on January 6, 2017, as may be extended by the Company.

 

“Final Settlement Date”
means date promptly after the Expiration Time on which Notes will be issued in exchange for Old Notes validly tendered after the
Early Deadline and prior to the Expiration Time and accepted in the Exchange Offer.

 

“Global Notes” has the
meaning set forth in Section 2.4 hereof.

 

“Guarantee” means, with
respect to any Person, any Obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing
any Indebtedness or other Obligation of any other Person in any manner, whether directly or indirectly, and including

    	-4-

    		 

    

any Obligation of the guarantor, direct or
indirect, that is (1) an Obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee
that the Obligation of the obligor thereof shall be paid or discharged, or any agreement relating thereto shall be complied with,
or the holders thereof shall be protected (in whole or in part) against loss in respect thereof; or (2) a liability of such Person
for an Obligation of another through any agreement (contingent or otherwise) (a) to purchase, repurchase or otherwise acquire such
Obligation or any security therefor, or to provide funds for the payment or discharge of such Obligation (whether in the form of
loans, advances, stock purchases, capital contributions or otherwise) or (b) to maintain the solvency or any balance sheet item,
level of income or financial condition of another if, in the case of any agreement described under subclauses (a) or (b) of this
clause (2), the primary purpose or intent thereof is as described in clause (1) above. The verb “Guarantee” shall have
a correlative meaning.

 

“Independent Investment Banker”
means Merrill Lynch, Pierce, Fenner & Smith Incorporated (and its respective successors) or, if any such firm is not willing
and able to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing
appointed by the Company and reasonably acceptable to the Trustee.

 

“Initial Notes” means
$955,901,000 aggregate principal amount of the Notes issued on the Issue Date.

 

“Interest Payment Date”
has the meaning set forth in Section 2.5(a) hereof.

 

“Investment Grade Rating”
means a rating from Moody’s of Baa3 or higher (or its equivalent under any successor rating category of Moody’s) and
a rating from S&P of BBB- or higher (or its equivalent under any successor rating category of S&P), in each case with a
stable outlook, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected
by the Company under the circumstances permitting the Company to select a replacement agency and in the manner for selecting a
replacement agency, in each case as set forth in the definition of “Rating Agency.”

 

“Issue Date” means the
date of this Supplemental Indenture.

 

“Maturity Date” means
May 15, 2018.

 

“Moody’s” means
Moody’s Investors Service, Inc.

 

“Notes” means the Initial
Notes and any Additional Notes.

 

“Obligations” means any
principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to an obligor, would
have accrued on any obligation, whether or not a claim is allowed against such obligor for such interest in the related proceeding),
penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

 

“Old Notes” has the meaning
in the recitals hereof.

 

“Parent” has the meaning
set forth in Section 5.1(c) hereof.

    	-5-

    		 

    

“Rating Agency” means
each of Moody’s and S&P; provided, that if Moody’s or S&P ceases to rate the Notes or fails to make
a rating of the Notes available, the Company shall use commercially reasonable efforts to appoint another “nationally recognized
statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act as a replacement for such Rating
Agency and following such appointment such replacement rating agency shall be substituted in this definition for the rating agency
that ceased to rate the Notes or failed to make a rating of the Notes available; provided that the Company shall give notice
of such appointment to the Trustee.

 

“Ratings Downgrade Event”
means, on any date during the Trigger Period (as defined herein), the Notes being downgraded by at least one modifier (a modifier
being plus, neutral or minus for S&P, 1, 2 or 3 for Moody’s and similar modifier by any other Rating Agency) by one of
the Rating Agencies from the rating on the Notes by such Rating Agency on the date prior to the first day of the Trigger Period;
provided that no Ratings Downgrade Event shall be deemed to occur if either (i) the rating on the Notes by each Rating Agency
that downgraded its rating is an Investment Grade Rating after such downgrade or (ii) in respect of a particular Change of Control,
if the Rating Agency or Agencies (as applicable) that downgraded the Notes announce or confirm or inform the Trustee in writing
that the reduction was not the result, in whole or in part, of any event or circumstance comprised of or arising as a result of,
or in respect of, the applicable Change of Control.

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any redemption date for the Notes, an average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Notes to be redeemed (expressed in each
case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury
Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date.

 

“Reference Treasury Dealers”
means Merrill Lynch, Pierce, Fenner & Smith Incorporated and up to three other primary U.S. government
securities dealers selected by the Company and, in each case, its successors; provided, however, that if any
of the foregoing shall resign as a Reference Treasury Dealer or cease to be a primary U.S. government
securities dealer, the Company will substitute therefor another primary U.S. government securities dealer.

 

“Regular Record Date”
means, with respect to a May 15 Interest Payment Date, the immediately preceding May 1, and with respect to a November 15 Interest
Payment Date, the immediately preceding November 1.

 

“Regulation S Permanent Global Note”
has the meaning in Section 2.6(b) hereto.

 

“Regulation S Temporary Global Note”
has the meaning in Section 2.6(a) hereto.

 

“Restricted Period” means
with respect to any Notes, the 40 consecutive day compliance period defined in Regulation S.

 

“Rule 144A” has the meaning
in Section 2.4 hereto.

 

“Rule 144A Global Notes”
has the meaning in Section 2.4 hereto.

    	-6-

    		 

    

“S&P” means Standard
& Poor’s Ratings Group, a division of The McGraw Hill Corporation.

 

“Treasury Yield” means,
with respect to any redemption date, (a) the yield, under the heading which represents the average for the immediately preceding
week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication
which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded
United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for
the maturity corresponding to the Comparable Treasury Issue; or (b) if the release (or any successor release) is not published
during the week preceding the calculation date or does not contain these yields, the rate per annum equal to the semi−annual
equivalent yield to maturity (computed as of the third business day immediately preceding such redemption date) of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the applicable Comparable Treasury Price for such redemption date.

 

“Trigger Period” means
the period commencing 1 day prior to the first public announcement by the Company of an arrangement that could result in a Change
of Control and ending 60 days following consummation of the Change of Control (which period will be extended following consummation
of a Change of Control for so long as the rating of the Notes is under announced consideration for possible downgrade by any of
the Rating Agencies as the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or
in respect of, the applicable Change of Control).

 

“U.S.” means the United
States of America (including the states thereof and the District of Columbia), its territories and possessions and other areas
subject to its jurisdiction.

 

“Voting Stock” of any
specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of
the Board of Directors of such Person.

 

The terms “Company,” “Trustee,”
“Indenture” and “Base Indenture” shall have the respective meanings set forth in the paragraph
preceding the recitals to this Supplemental Indenture.

 

ARTICLE 2

GENERAL TERMS AND CONDITIONS OF THE NOTES

 

Section 2.1Designation and Principal
Amount.

 

There is hereby authorized a series of Securities
designated the “5.000% Senior Unsecured Notes due 2018” initially offered in the aggregate principal amount
of $955,901,000, which amount shall be as set forth in a Company Order for the authentication and delivery of Notes pursuant to
Section 3.3 of the Base Indenture.

    	-7-

    		 

    

Section 2.2Maturity.

 

Unless earlier redeemed pursuant to Section
3.2 hereof, the date upon which the Notes shall become due and payable at final maturity, together with any accrued and unpaid
interest, is the Maturity Date.

 

Section 2.3Form, Payment and Appointment.

 

(a)Principal of, premium, if any, and
interest on the Notes shall be payable, the transfer of such Notes shall be registrable, and such Notes shall be exchangeable for
Notes of a like aggregate principal amount bearing identical terms and provisions, at the office or agency of the Company maintained
for such purpose in the Borough of Manhattan, The City of New York, which shall initially be the office of the Security Registrar;
provided, however, that (i) if a Holder (including a Depository) has given wire transfer instructions to the Company
on or before the Regular Record Date, then payment of principal, premium, if any, and interest on that Holder’s Notes shall
be paid in accordance with those instructions and (ii) if no such instructions have been given, then, at the option of the Company,
payments of principal, premium, if any, and interest may be made by check mailed to the Holder at such address as shall appear
in the Security Register. Principal, premium, if any, and interest shall be payable in Dollars.

 

(b)No service charge shall be made for
any registration of transfer or exchange of the Notes, but the Company may require payment from the Holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection therewith.

 

(c)The Paying Agent, Authenticating Agent
and Security Registrar for the Notes shall initially be Deutsche Bank Trust Company Americas.

 

(d)The Company initially appoints The
Depository Trust Company (“DTC”) to act as Depository with respect to the Global Notes. Deutsche Bank Trust
Company Americas shall act as Custodian with respect to the Global Notes.

 

(e)The Notes shall be issuable in the
denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

Section 2.4Global Notes.

 

The Notes initially shall be issued in permanent
global form as one or more Global Notes (collectively, the “Global Notes”). The Notes are being originally issued
in a transaction exempt from registration under Section 5 of the Securities Act. Notes issued to “qualified institutional
buyers” as defined in Rule 144A under the Securities Act (“Rule 144A”)) shall be represented by one or
more Global Notes in fully registered, global form without interest coupons (collectively, the “Rule 144A Global Notes”),
which shall be registered in the name of the Depositary or the nominee for the Depositary. Notes issued to persons outside the
United States, that are not “U.S. persons” in compliance with Regulation S under the Securities Act shall be represented
by Global Notes as provided in Section 2.6. Except as otherwise provided in the Indenture or this Section 2.4, Notes represented
by the Global Notes shall not be exchangeable for, and shall not otherwise be issuable as, Notes in certificated form. Unless and
until such Global Note is exchanged for Notes in certificated form, Global Notes may be transferred, in whole but not in part,

    	-8-

    		 

    

and any payments on the Notes shall be made,
only to the Depositary or a nominee of the Depositary, or to a successor Depositary selected or approved by the Company or to a
nominee of such successor Depositary.

 

Section 2.5Interest.

 

(a)The unpaid principal amount of the
Notes (including, for the avoidance of doubt, any Notes issued on the Final Settlement Date) shall bear interest at the rate of
5.000% per year (the “Coupon Rate”) from and including the Issue Date or from the most recent Interest Payment
Date to which interest has been paid or duly provided for to, but excluding, the Maturity Date. Interest will be payable semiannually
in arrears on May 15 and November 15, commencing on May 15, 2017. Each such date on which interest is payable is an “Interest
Payment Date.”

 

(b)Interest shall be computed on the
basis of a 360-day year consisting of twelve 30-day months. In the event that any scheduled Interest Payment Date falls on a day
that is not a Business Day, then payment of interest payable on such Interest Payment Date shall be made on the next succeeding
day that is a Business Day (and without any interest or other payment in respect of any such delay).

 

(c)Interest shall be calculated by the
Paying Agent. The Paying Agent will provide to the Company the calculation of interest payable on an Interest Payment Date at least
5 Business Days prior to such Interest Payment Date.

 

(d)The Company shall deposit the funds
for any payment of interest with the Trustee or Paying Agent one Business Day prior to any Interest Payment Date.

 

Section 2.6Temporary Offshore Note.

 

(a)Notes sold pursuant to Regulation
S under the Securities Act initially shall be represented by one or more Global Notes in fully registered, global form without
interest coupons (collectively, the “Regulation S Temporary Global Note”), which shall be registered in the
name of the Depositary or the nominee for the Depositary for the accounts of designated agents holding on behalf of Euroclear or
Clearstream.

 

(b)Following the termination of the Restricted
Period, beneficial interests in the Regulation S Temporary Global Note shall be exchanged for beneficial interests in a permanent
Global Note (the “Regulation S Permanent Global Note”) pursuant to the applicable procedures of the Depositary.
Simultaneously with the authentication of the Regulation S Permanent Global Note, the Trustee shall cancel the Regulation S Temporary
Global Note. The aggregate principal amount of the Regulation S Temporary Global Note and the Regulation S Permanent Global Note
may from time to time be increased or decreased by adjustments made on the records of the Security Registrar and the Depositary
or its nominee, as the case may be, in connection with transfers of interest as provided herein.

    	-9-

    		 

    

Section 2.7Transfer and Exchange of
Global Notes.

 

(a)Subject to Section 2.7(b) and Section
2.7(c), a transferor of a beneficial interest in a Global Note to another Global Note shall deliver to the Trustee or the Security
Registrar, as applicable, a duly completed Assignment Form in the form attached to the Global Note, any applicable certifications
or opinions required by the Assignment Form. The Security Registrar shall, in accordance with such instructions, instruct the Depositary
to credit to the account of the person specified in such instructions a beneficial interest in the Global Note and to debit the
account of the person making the transfer of the beneficial interest in the Global Note being transferred. If the proposed transfer
is a transfer of a beneficial interest in one Global Note to a beneficial interest in another Global Note, the Security Registrar
shall reflect on its books and records the date and an increase in the principal amount of the Global Note to which such interest
is being transferred in an amount equal to the principal amount of the interest to be so transferred, and the Security Registrar
shall reflect on its books and records the date and a corresponding decrease in the principal amount of the Global Note from which
such interest is being transferred. Any beneficial interest in one of the Global Notes that is transferred to a person who takes
delivery in the form of an interest in the other Global Note will, upon transfer, cease to be an interest in such Global Note and
will become an interest in the other Global Note and, accordingly, will thereafter be subject to all transfer restrictions and
other procedures applicable to beneficial interests in such other Global Note for so long as it remains such an interest.

 

(b)Prior to the expiration of the Restricted
Period, beneficial interests in the Regulation S Temporary Global Note may be exchanged for beneficial interests in the Rule 144A
Global Note only if (1) such exchange occurs in connection with a transfer of the Notes pursuant to Rule 144A and (2) the transferor
first delivers to the Trustee or the Security Registrar, as applicable, a duly completed Assignment Form in the form attached to
the Global Note and any applicable certifications or opinions required by the Assignment Form.

 

(c)Beneficial interests in a Rule 144A
Global Note may be transferred to a person who takes delivery in the form of a Regulation S Temporary Global Note or Regulation
S Permanent Global Note, only if the transferor first delivers to the Trustee or the Security Registrar, as applicable, a duly
completed Assignment Form in the form attached to the Global Note and any applicable certifications or opinions required by the
Assignment Form to the effect that such transfer is being made in accordance with Rule 904 of Regulation S or Rule 144 of the Securities
Act, and if such transfer occurs prior to the expiration of the Restricted Period, the interest transferred will be held immediately
thereafter through Euroclear Bank S.A./N.V. or Clearstream Banking, société anonyme.

 

ARTICLE 3

REDEMPTION AND REPURCHASE OF THE NOTES

 

Section 3.1No Sinking Fund or Repayment
at Option of the Holder.

 

The Notes are not entitled to the benefit
of any sinking fund and are not subject to redemption at the option of the Holders. Articles 12 and 13 of the Base Indenture shall
not apply to the Notes.

    	-10-

    		 

    

Section 3.2Optional Redemption.

 

(a)At any time prior to May 15, 2017,
the Company may on any one or more occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’
notice to each holder of Notes, at a redemption price equal to the greater of:

 

(1)100.50% of the aggregate
principal amount of the Notes redeemed, and

 

(2)the sum of the present values
of (a) the redemption price of 100.50% of the aggregate principal amount of the Notes that would be payable if the Notes were redeemed
on May 15, 2017 and (b) all required interest payments due on such Notes through May 15, 2017 (exclusive of interest accrued to
the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the applicable Treasury Yield plus 50 basis points;

 

plus, in either case, accrued and unpaid interest,
to the date of redemption, subject to the rights of Holders of such Notes on a relevant record date to receive interest due on
a relevant Interest Payment Date.

 

(b)At any time on or after May 15, 2017,
the Company may on any one or more occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’
notice to each holder of Notes, at a redemption price equal to 100.50% of the aggregate principal amount of Notes redeemed, plus
accrued and unpaid interest, to the date of redemption, subject to the rights of Holders of such Notes on a relevant record date
to receive interest due on a relevant Interest Payment Date.

 

(c)If less than all of the Notes are
to be redeemed at any time, the Notes shall be redeemed on a pro rata basis in accordance with Section 11.3 of the Base
Indenture.

 

(d)Any redemption of Notes pursuant to
this Section 3.2 that is in part processed through DTC shall be treated in accordance with the rules and procedures of DTC as a
“Pro Rata Pass-Through Distribution of Principal” (as defined under such rules and procedures). Except to the extent
modified by this Supplemental Indenture, the provisions of Article 11 of the Base Indenture shall apply to redemptions of Notes
pursuant to this Section 3.2.

 

(e)In addition to the Company’s
right to redeem Notes as set forth above in this Section 3.2, the Company may at any time and from time to time purchase Notes
in open market transactions, tender offers or otherwise.

 

Section 3.3Offer to Repurchase Upon
Change of Control Triggering Event.

 

(a)Upon the occurrence of a Change of
Control Triggering Event, the Company will be obligated to make an offer to purchase (a “Change of Control Offer”)
and each Holder of Notes will have the right to require the Company to purchase all or any part (equal to $2,000 in principal amount
or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth in this Indenture. In
the Change of Control Offer, the Company will offer a Change of Control payment in cash equal to 101% of the aggregate principal
amount of Notes purchased plus accrued and unpaid interest on the Notes purchased to the date of purchase, sub-

    	-11-

    		 

    

ject to the rights of Holders of Notes on
the relevant record date to receive interest due on the relevant Interest Payment Date (the “Change of Control Payment”).

 

Within 30 days following the date upon which
the Change of Control Triggering Event occurred, or at the Company’s option, prior to any Change of Control but after the
public announcement of the pending Change of Control and conditional upon a Change of Control Triggering Event occurring, the Company
will mail, by first class mail, a notice to each Holder of Notes, with a copy to the Trustee, describing the transaction or transactions
that constitute the Change of Control and offering to repurchase Notes on the Change of Control payment date specified in the notice
(the “Change of Control Payment Date”), which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed, other than as required by law, pursuant to the procedures required by this Indenture and described
in such notice. The notice, if mailed prior to the date of consummation of the Change of Control, will state that the Change of
Control Offer is conditioned on the consummation of the Change of Control on or prior to the Change of Control Payment Date.

 

(b)On the Change of Control Payment Date,
the Company shall, to the extent lawful:

 

(i)accept for payment all
Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer;

 

(ii)deposit with the Paying
Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered and not withdrawn
pursuant to the Change of Control Offer; and

 

(iii)deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal
amount of Notes or portions of Notes being purchased by the Company.

 

(c)The Paying Agent shall promptly mail
to each Holder of Notes properly tendered pursuant to the Change of Control Offer the Change of Control Payment for such Notes,
and the Authenticating Agent shall promptly authenticate and mail, or cause to be transferred by book entry, to each such Holder
a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that the new
Note shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. The Company shall publicly announce
the results of the Change of Control Offer on or as soon as reasonably practicable after the Change of Control Payment Date.

 

(d)The Change of Control provisions described
in this Section 3.3 shall be applicable whether or not any other provisions of this Indenture are applicable, except in any case
in which the provisions of Section 4.2 of the Base Indenture are applicable. The Company shall comply with the requirements of
Section 14e-1 of the Exchange Act and any other securities laws or regulations to the extent those laws and regulations are applicable
to the purchase of Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities
laws or regulations conflict with the Change of Control provisions of this Section 3.3, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its obligations under this Section 3.3 by virtue of such
compliance.

    	-12-

    		 

    

(e)The Company shall not be required
to make a Change of Control Offer upon a Change of Control Triggering Event if (1) a third party makes the Change of Control Offer
in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change
of Control Offer made by the Company and purchases all Notes validly and properly tendered and not withdrawn pursuant to the Change
of Control Offer, (2) the Company has given notice to redeem all Notes in accordance with the redemption provisions of Section
3.2 hereof unless and until there is a default in payment of the applicable Redemption Price or (3) in connection with or in contemplation
of any Change of Control for which a definitive agreement is in place, the Company or a third party has made an offer to purchase
(an “Alternate Offer”) any and all Notes validly and properly tendered at a cash price equal to or higher than
the Change of Control Payment and has purchased all Notes validly and properly tendered and not withdrawn in accordance with the
terms of such Alternate Offer.

 

Section 3.4Effect of Redemption.

 

Unless the Company defaults in the payment
of the Redemption Price, on and after the Redemption Date, (a) interest shall cease to accrue on the Notes immediately prior to
the close of business on the Redemption Date, (b) the Notes shall become due and payable at the Redemption Price and (c) the Notes
shall be void and all rights of the Holders in respect of the Notes shall terminate and lapse (other than the right to receive
the Redemption Price upon surrender of such Notes but without interest on such Redemption Price). Following the notice of a redemption,
neither the Company nor the Security Registrar shall be required to register the transfer of or exchange the Notes to be redeemed.
The redemption provisions of Sections 11.5 and 11.6 of the Base Indenture shall not apply to the Notes.

 

Section 3.5Redemption Procedures.

 

One Business Day prior to the Redemption
Date, the Company shall deposit with the Paying Agent immediately available funds in an amount sufficient to pay, on the Redemption
Date, the aggregate Redemption Price for Notes being redeemed. If the Company gives an irrevocable notice of redemption with respect
to the Notes pursuant to Section 3.2 hereof in connection with an optional redemption, and the Company has paid to the Paying Agent
the Redemption Price of the Notes to be redeemed, then, on the Redemption Date, the Paying Agent shall irrevocably deposit such
funds with the Depository. The Company shall also give the Depository irrevocable instructions and authority to pay the Redemption
Price in immediately available funds to the Holders of beneficial interests in the Global Notes. If any Redemption Date is not
a Business Day, then the Redemption Price shall be payable on the next Business Day (and without any interest or other payment
in respect of any such delay). Interest to be paid on or before the Redemption Date for any Notes called for redemption shall be
payable to the Holders on the Regular Record Date for the related Interest Payment Dates. If any Notes called for redemption are
not so paid upon surrender thereof for redemption, the Redemption Price shall, until paid, bear interest from the Redemption Date
at the Coupon Rate. In exchange for the unredeemed portion of such surrendered Notes, new Notes in an aggregate principal amount
equal to the unredeemed portion of such surrendered Notes shall be issued.

 

A notice of redemption may set forth one
or more conditions precedent to redemption. Any such notice of redemption shall state that, in the Company’s discretion,
the Redemption

    	-13-

    		 

    

Date may be delayed until such time as any
or all such conditions precedent to redemption shall be satisfied, or such redemption may not occur, and, in the event that any
or all such conditions shall not have been satisfied by the Redemption Date, or the Redemption Date as so delayed, such notice
of redemption may be rescinded by the Company.

 

Section 3.6No Other Redemption.

 

Except as set forth in this ARTICLE 3, the
Notes shall not be redeemable by the Company prior to the Maturity Date.

 

ARTICLE 4

FORM OF NOTE

 

Section 4.1Form of Note.

 

The Notes and the Authenticating Agent’s
Certificate of Authentication to be endorsed thereon are to be substantially in the forms attached as Exhibit A hereto, with such
changes therein as the officers of the Company executing the Notes (by manual or facsimile signature) may approve, such approval
to be conclusively evidenced by their execution thereof.

 

Section 4.2Restrictive Legends.

 

Each Global Note shall bear the “Global
Securities Legend” set forth in Exhibit A hereto. Each Regulation S Temporary Global Note shall bear the “Legend for
Regulation S Temporary Global Note” set forth in Exhibit A hereto. Unless and until the Trustee receives an Opinion of Counsel,
subject to customary assumptions and exclusions, reasonably satisfactory to the Company and the Trustee to the effect that neither
such legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities
Act, each Global Note shall bear the “Restricted Securities Legend” set forth in Exhibit A hereto and each Regulation
S Temporary Global Note and Regulation S Permanent Global Note shall bear the “Additional Restricted Securities Legend for
Securities Offered in Reliance on Regulation S” set forth in Exhibit A hereto. Certificated securities shall bear the “Definitive
Securities Legend” set forth in Exhibit A hereto.

 

ARTICLE 5

COVENANTS

 

In addition to the covenants set forth in
Article 10 of the Base Indenture, the following covenants shall apply to any Outstanding Notes:

 

Section 5.1Reports.

 

(a)Whether or not required by the rules
and regulations of the Commission and in lieu of Section 7.4 of the Base Indenture, so long as any Notes are Outstanding, the Company
shall furnish to the Holders or cause the Trustee to furnish to the Holders, within 30 days after the Company is required to file
the same with the Commission:

    	-14-

    		 

    

(i)all quarterly and annual
reports that the Company is required to file, or would be required to file with the Commission, on Forms 10-Q and 10-K if the Company
were required to file such reports; and

 

(ii)all current reports that
the Company is required to file, or would be required to file with the Commission, on Form 8-K if the Company were required to
file such reports;

 

provided that any such above information or reports filed
with the EDGAR system of the Commission (or any successor system) and available publicly on the Internet shall be deemed to be
furnished to the Holders of Notes.

 

(b)All such reports shall be prepared
in all material respects in accordance with all of the rules and regulations applicable to such reports. Each annual report on
Form 10-K shall include a report on the Company’s consolidated financial statements by the Company’s independent registered
public accounting firm. In addition, whether or not required by the Commission, the Company shall file a copy of all of the reports
referred to in Section 5.1(a)(i) and (ii) with the Commission for public availability within the time periods specified in the
Commission’s rules and regulations applicable to such reports for the status of the filer that the Company would otherwise
be if it were required to file reports with the Commission, subject to extension as set forth in Rule 12b-25(b)(ii) under the Exchange
Act (or any successor provision) (unless the Commission shall not accept such a filing) and make such information available to
securities analysts and prospective investors upon request. The Company agrees that it shall not take any action that would cause
the Commission not to accept such filings. If, notwithstanding the foregoing, the Commission will not accept such filings for any
reason, the Company will post the reports specified in Section 5.1(a) hereof on its publicly accessible website within the time
periods that would apply if the Company were required to file those reports with the Commission.

 

(c)If, and so long as, all of the Capital
Stock of the Company is beneficially owned, directly or indirectly, by a Person (the “Parent”) (i) whose corporate
family and corporate credit ratings are Investment Grade Ratings and (ii) that files reports with the Commission under Section
13(a) or 15(d) of the Exchange Act, the requirements in Section 5.1(a) shall be deemed satisfied by the filing by such Parent of
the reports specified in Section 5.1(a) hereof within the time periods specified therein.

 

(d)If at any time the Company is not
subject to Section 13 or Section 15(d) of the Exchange Act, and to the extent not satisfied by Section 5.1(a), the Company shall
furnish to the Holders, securities analysts and prospective investors, upon their request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act.

    	-15-

    		 

    

ARTICLE 6

ADDITIONAL PROVISIONS

 

Section 6.1Additional Events of Default.

 

In addition to the Events of Default set
forth in Article 5 of the Base Indenture, each of the following shall be deemed an Event of Default under Section 5.1 of the Base
Indenture in respect of any Outstanding Notes:

 

(a)failure for 3 business days
by the Company to comply with Section 3.3 hereof; and

 

(b)failure by the Company for
60 days after written notice to the Company by the Trustee or the Holders of at least 25% of aggregate principal amount of the
Notes then Outstanding to comply with Section 5.1 hereof.

 

Section 6.2Additional Covenant Defeasance.

 

Article 4 of the Base Indenture shall apply
in respect of any Outstanding Notes; provided that subject to the conditions set forth under Section 4.2(3) of the Base
Indenture, the Company may, at its option and at any time, elect to have the Obligations of the Company released with respect to
Section 3.3 and Section 5.1 hereof in connection with the Covenant Defeasance as provided under Section 4.2(2) of the Base Indenture.
In the event such Covenant Defeasance occurs, the events set forth under Section 6.1 hereof shall no longer constitute an Event
of Default with respect to the Notes.

 

Section 6.3Additional Amendments
and Waivers.

 

(a)Article 9 of the Base Indenture shall
apply in respect of any Outstanding Notes; provided that, notwithstanding anything to the contrary in the Base Indenture
and the Supplemental Indenture, any amendment or waiver of Section 3.3 hereof shall not be deemed an amendment or waiver of the
redemption provisions applicable to the Notes.

 

(b)As applied to the Notes, Section 9.3(6)
of the Base Indenture shall be amended and restated in its entirety as follows:

 

“(6) to conform the text of
this Indenture, any supplemental indenture, if applicable, or the Securities to any provision set forth under the heading “Description
of New Notes” in an offering memorandum applicable to the Securities.”

 

(c)As applied to the Notes, the second
paragraph of Section 3.12 of the Base Indenture shall be amended and restated in its entirety as follows:

 

“With respect to any Additional
Securities, the Company shall set forth in an Officer’s Certificate or Company Order, a copy of each which shall be delivered
to the Trustee or established in one or more indentures supplemental thereto, the following information:

    	-16-

    		 

    

(1)the aggregate principal amount
of such Additional Securities to be authenticated and delivered pursuant to this Indenture; and

 

(2)the issue price, the issue
date and the CUSIP number of such Additional Securities.

 

ARTICLE 7

MISCELLANEOUS

 

Section 7.1Ratification of Indenture.

 

The Base Indenture, as supplemented by this
Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of this
Indenture in the manner and to the extent herein and therein provided.

 

Section 7.2No Personal Liability
of Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator
or stockholder of the Company, as such, will have any liability for any Obligation of the Company under the Notes or this Indenture
or for any claim based on, in respect of, or by reason of, such Obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

 

Section 7.3Trustee and Agent Not
Responsible for Recitals.

 

The recitals herein contained are made by
the Company and not by the Trustee or Agent, and the Trustee and Agent assume no responsibility for the correctness thereof. The
Trustee and Agent make no representation as to the validity or sufficiency of this Supplemental Indenture.

 

Section 7.4New York Law To Govern.

 

THIS SUPPLEMENTAL INDENTURE AND EACH NOTE
SHALL BE DEEMED TO BE CONTRACTS MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

 

Section 7.5Separability.

 

In case any one or more of the provisions
contained in this Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in
any respect, then, to the extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provisions
of this Supplemental Indenture or of the Notes, but this Supplemental Indenture and the Notes shall be construed as if such invalid
or illegal or unenforceable provision had never been contained herein or therein.

    	-17-

    		 

    

Section 7.6Counterparts.

 

This Supplemental Indenture may be executed
in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the
same instrument. Delivery of an executed counterpart of this Supplemental Indenture by telefacsimile or by any electronic imaging,
electronic mail or other similar means shall be effective as delivery of a manually executed counterpart of this Supplemental Indenture.

 

[Signature pages follow]

    	-18-

    	

    

IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed, as of the day and year first written above.

 

 

	 	Wilmington Trust, National Association,
 as Trustee
	 	 	 	 
	 	By: 	/s/ Shawn Goffinet
	 	 	Name:  	Shawn Goffinet
	 	 	Title:	Assistant Vice President

    	 

    	

    

	 	Deutsche Bank Trust Company Americas,
	 	as Paying Agent, Security Registrar and
	 	Authenticating Agent
	 	 
	 	By: 	Deutsche Bank National Trust Company
	 	 	 
	 	By:	/s/ Chris Niesz
	 		Name:  	Chris Niesz
	 	 	Title:	Assistant Vice President
	 	 	 	 
	 	By:	/s/ Kathryn Fischer
	 		Name:  	Kathryn Fischer
	 	 	Title:	Assistant Vice President

 

[Sixth Supplemental Indenture]

    	 

    	

    

	 	CIT Group Inc.
	 	 
	 	By: 	/s/ Kenneth A. Brause
	 		Name: 	Kenneth A. Brause
	 	 	Title:  	Executive Vice President and Treasurer

 

[Sixth Supplemental Indenture]

    	 

    	

    

EXHIBIT A

 

[FORM OF FACE OF SECURITY]

 

[Global Securities Legend]

 

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

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS
OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.

 

[Restricted Securities
Legend]

 

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED
HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY
NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS
A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (b) OUTSIDE
THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM

    	Exhibit A-1

    	

    

REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER
(IF APPLICABLE) OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED
UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR
ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE
SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY
OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.

 

[Additional Restricted Securities Legend
for Securities Offered in Reliance on Regulation S]

 

THIS SECURITY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT, AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES
ACT.

 

[Legend for Regulation S Temporary Global
Note]

 

THIS NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR
TO THE EXPIRATION OF THE RESTRICTED PERIOD APPLICABLE HERETO, BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY PERSON OTHER THAN
(1) A NON-U.S. PERSON OR (2) A U.S. PERSON THAT PURCHASED SUCH INTEREST IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). BENEFICIAL INTERESTS HEREIN ARE NOT EXCHANGEABLE
FOR PHYSICAL NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE WITH THE TERMS OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED
AS USED IN REGULATION S UNDER THE SECURITIES ACT.

 

NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL
NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF PRINCIPAL OR INTEREST HEREON UNTIL SUCH BENEFICIAL INTEREST IS EXCHANGED OR TRANSFERRED
FOR AN INTEREST IN ANOTHER NOTE.

 

[Definitive Securities
Legend]

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER
WILL DELIVER TO THE SECURITY REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

    	Exhibit A-2

    	

    

CUSIP No. [         ]

ISIN No. [             ]

 

	No. ________	$__________

 

5.000% Senior Unsecured Notes due 2018 (the
“Notes”)

 

CIT GROUP INC., a Delaware corporation, promises
to pay to Cede & Co., or registered assigns, the principal sum of $[                   ] Dollars on May 15, 2018.

 

Interest Payment Dates: May 15 and November
15.

 

Record Dates: May 1 and November 1.

    	Exhibit A-3

    	

    

Additional provisions of this Note are set
forth on the other side of this Note.

 

Dated:

 

	 	CIT GROUP INC.
	 	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:

 

	Attest: 	 	 
	 	Name:
	 	Title:

    	Exhibit A-4

    	

    

CERTIFICATE OF AUTHENTICATION

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Authenticating Agent

 

By: Deutsche Bank National
Trust Company

 

	by	 	 
	 	Authorized Signatory	 

    	Exhibit A-5

    	

    

[FORM OF REVERSE SIDE OF SECURITY]

 

		1.	Interest

 

CIT GROUP INC., a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”),
promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company shall pay interest
semiannually on May 15 and November 15 of each year, commencing May 15, 2017. Interest on the Notes shall accrue from the most
recent date to which interest has been paid or, if no interest has been paid, from the Issue Date. Interest shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

		2.	Method of Payment

 

The Company shall pay interest on the Notes
(except defaulted interest) to the Persons who are registered holders of Notes at the close of business on the May 1 and November
1 next preceding the interest payment date even if Notes are canceled after the record date and on or before the interest payment
date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company shall pay principal and interest
in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Notes represented by a Global Note (including principal, premium, if any, and interest) shall be made by wire transfer
of immediately available funds to the accounts specified by The Depository Trust Company. The Company shall make all payments in
respect of a certificated Note (including principal, premium, if any, and interest) by mailing a check to the registered address
of each Holder thereof; provided, however , that payments on a certificated Note shall be made by wire transfer to
a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Paying Agent to such effect designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as Deutsche Bank Trust Company Americas (the “Agent”) may
accept in its discretion).

 

		3.	Paving Agent and Security Registrar

 

Initially, the Agent shall act as Paying
Agent and Security Registrar. The Company may appoint and change any Paying Agent, Security Registrar or co-registrar without notice.
The Company or any wholly owned Subsidiary may act as Paying Agent, Security Registrar or co-registrar.

 

		4.	Indenture

 

The Company issued the Notes under an Indenture
(the “Base Indenture”) dated as of March 15, 2012 and a Sixth Supplemental Indenture (the “Supplemental
Indenture” and together with the Base Indenture, the “Indenture”) dated as of December 23, 2016, among
the Company, the Trustee and the Agent. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the
Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto
in the Indenture. The

    	Exhibit A-6

    	

    

Notes are subject to all such terms, and Holders
are referred to the Indenture and the Act for a statement of those terms.

 

The Notes are unsecured obligations of the
Company. The Company shall be entitled to issue Additional Securities pursuant to Section 3.12 of the Base Indenture. The Notes
issued on the Issue Date and any Additional Securities shall be treated as a single class for all purposes under the Indenture.

 

		5.	Optional Redemption

 

(a)At any time prior to May 15, 2017,
the Company may redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’ notice to each holder of
Notes, at a redemption price equal to the greater of:

 

(1)100.50% of the aggregate
principal amount of the Notes redeemed, and

 

(2)the sum of the present values
of (a) the redemption price of 100.50% of the aggregate principal amount of the Notes that would be payable if the Notes were redeemed
on May 15, 2017 and (b) all required interest payments due on such Notes through May 15, 2017 (exclusive of interest accrued to
the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the applicable Treasury Yield plus 50 basis points;

 

plus, in either case, accrued and unpaid interest to the date
of redemption, subject to the rights of Holders of such Notes on a relevant record date to receive interest due on a relevant Interest
Payment Date.

 

(b)At any time on or after May 15, 2017,
the Company may on any one or more occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’
notice to each holder of Notes, at a redemption price equal to 100.50% of the aggregate principal amount of Notes redeemed, plus
accrued and unpaid interest, to the date of redemption, subject to the rights of Holders of such Notes on a relevant record date
to receive interest due on a relevant Interest Payment Date.

 

(c)In addition to the Company’s
right to redeem Notes as set forth in Section 3.2 of the Supplemental Indenture, the Company may at any time and from time to time
purchase Notes in open market transactions, tender offers or otherwise.

 

		6.	Notice of Redemption

 

If less than all of the Notes are to be redeemed
at any time, the Notes shall be redeemed on a pro rata basis in accordance with Section 11.3 of the Base Indenture.

 

Any redemption of Notes pursuant to Section
3.2 of the Supplemental Indenture that is in part processed through DTC shall be treated in accordance with the rules and procedures
of DTC as a “Pro Rata Pass-Through Distribution of Principal” (as defined under such rules and procedures). Except
to the extent modified by the Supplemental Indenture, the provisions of Article

    	Exhibit A-7

    	

    

11 of the Base Indenture shall apply to redemptions
of Notes pursuant to Section 3.2 of the Supplemental Indenture.

 

A notice of redemption may set forth one
or more conditions precedent to redemption. Any such notice of redemption shall state that, in the Company’s discretion,
the Redemption Date may be delayed until such time as any or all such conditions precedent to redemption shall be satisfied, or
such redemption may not occur, and, in the event that any or all such conditions shall not have been satisfied by the Redemption
Date, or the Redemption Date as so delayed, such notice of redemption may be rescinded by the Company.

 

		7.	Change of Control

 

Upon the occurrence of a Change of Control
Triggering Event, the Company will be obligated to make an offer to purchase and each Holder of Notes will have the right to require
the Company to purchase all or any part (equal to $2,000 in principal amount or an integral multiple of $1,000 in principal amount
in excess thereof) of that Holder’s Notes on the terms set forth herein. In the Change of Control Offer, the Company will
offer a Change of Control Payment in cash equal to 101% of the aggregate principal amount of Notes purchased plus accrued and unpaid
interest on the Notes purchased to the date of purchase, subject to the rights of Holders of Notes on the relevant record date
to receive interest due on the relevant Interest Payment Date.

 

		8.	Denominations; Transfer; Exchange

 

The Notes are in registered form without
coupons in denominations of $2,000 principal amount and integral multiples of $1,000 in excess thereof. A Holder may transfer or
exchange Notes in accordance with the Indenture. The Security Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Security Registrar
need not register the transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in
part, the portion of the Note not to be redeemed) or any Notes for a period of 15 days before a selection of Notes to be redeemed
or 15 days before an interest payment date.

 

		9.	Persons Deemed Owners

 

The registered Holder of this Note may be
treated as the owner of it for all purposes.

 

		10.	Discharge and Defeasance

 

Subject to certain conditions, the Company
at any time shall be entitled to terminate some or all of its obligations under the Notes and the Indenture if the Company deposits
with the Paying Agent Cash in U.S. dollars, non-callable Government Obligations, or a combination of Cash in U.S. dollars and non-callable
Government Obligations, in amounts as shall be sufficient, without consideration of any reinvestment of interest, to pay and discharge
the entire Indebtedness on the Notes not delivered to the Paying Agent for cancellation for principal, premium, if any, and accrued
interest to the date of maturity or redemption.

    	Exhibit A-8

    	

    

		11.	Defaults and Remedies

 

The Events of Default relating to the Notes
are defined in Section 5.1 of the Base Indenture and Section 6.1 of the Supplemental Indenture. Upon the occurrence of an Event
of Default, the rights and obligations of the Company and the Holders shall be as set forth in the Indenture.

 

		12.	No Recourse Against Others

 

No director, officer, employee, incorporator
or stockholder of the Company, as such, will have any liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

 

		13.	Authentication

 

This Note shall not be valid until an authorized
signatory of the Authenticating Agent manually signs the certificate of authentication on the other side of this Note.

 

		14.	Abbreviations

 

Customary abbreviations may be used in the
name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants
with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

 

		15.	CUSIP Numbers

 

The Company has caused CUSIP numbers to be
printed on the Notes and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption
and reliance may be placed only on the other identification numbers placed thereon.

 

		16.	Governing Law

 

THIS NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

    	Exhibit A-9

    	

    

ASSIGNMENT FORM

 

	To assign this Note, fill in the form below:

	 
	I or we assign and transfer this Note to

(Print or type assignee’s name, address and
zip code)

 

(Insert assignee’s sec. sec. or tax
I.D. No.)

 

and irrevocably appoint ____________________________________
agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.

 

	Date:	 	 	Your Signature:	 
	 	 	 	 	Sign
exactly as your name appears on the other side of this Security.

    	Exhibit A-10

    	

    

CERTIFICATE TO BE DELIVERED UPON EXCHANGE
OR REGISTRATION OF TRANSFER RESTRICTED SECURITIES

 

This certificate relates to $_________
principal amount of Notes held in definitive form by the undersigned.

 

The undersigned has requested the Trustee
by written order to exchange or register the transfer of a Note or Notes.

 

In connection with any transfer of any
of the Notes evidenced by this certificate occurring prior to the expiration of the period referred to in Rule 144 under the Securities
Act or the Restricted Period, as applicable, the undersigned confirms that such Notes are being transferred in accordance with
its terms:

 

CHECK ONE BOX BELOW

 

	 	o	(1)	to the Company;
                                         or
	 	 	 	 
		o	(2)	to
                                         the Security Registrar for registration in the name of the Holder, without transfer;
                                         or
	 	 	 	 
		o	(3)	pursuant to an
                                         effective registration statement under the Securities Act of 1933; or
	 	 	 	 
		o	(4)	inside the United
                                         States to a “qualified institutional buyer” (as defined in Rule 144A under
                                         the Securities Act of 1933) that purchases for its own account or for the account of
                                         a qualified institutional buyer to whom notice is given that such transfer is being made
                                         in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under
                                         the Securities Act of 1933; or
	 	 	 	 
		o	(5)	outside
                                         the United States in an offshore transaction within the meaning of Regulation S under
                                         the Securities Act in compliance with Rule 904 under the Securities Act of 1933; or
	 	 	 	 
		o	(6)	to an institutional
                                         “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under
                                         the Securities Act of 1933) that has furnished to the Trustee a signed letter containing
                                         certain representations and agreements; or
	 	 	 	 
		o	(7)	pursuant
                                         to another available exemption from registration provided by Rule 144 under the Securities
                                         Act of 1933.

    	Exhibit A-11

    	

    

Unless one of the boxes
is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any Person other
than the registered holder thereof; provided, however, that if box (5), (6) or (7) is checked, the Trustee may require,
prior to registering any such transfer of the Notes, such legal opinions, certifications and other information as the Company has
reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act of 1933.

 

 

			Your Signature

 

Signature Guarantee:

 

	Date:	         	 	 
	Signature must be guaranteed	 	Signature of Signature Guarantee
	by a participant in a recognized	  	 
	signature guaranty medallion	 	 
	program or other signature	 	 
	guarantor acceptable to the	 	 
	Trustee	 	 

 

 

TO BE COMPLETED BY PURCHASER IF (4) ABOVE
IS CHECKED.

 

The undersigned represents
and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations
in order to claim the exemption from registration provided by Rule 144A.

 

	Date:	 	 	 
	 	 	NOTICE: To be executed by an executive officer

    	Exhibit A-12

    	

    

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

 

The following increases or decreases in this Global Note have
been made:

 

	Date of
 Exchange  	 	Amount of decrease 

in Principal amount of this Global
 Security  	 	Amount of increase 

in Principal amount 

of this Global
 Security  	 	Principal amount of

 this Global Note 

following such
 decrease or
 increase  	 	Signature of
 authorized officer of
 Trustee or Securities
 Custodian  
	 	 	 	 	 	 	 	 	 

    	Exhibit A-13

    	

    

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security
purchased by the Company pursuant to Section 3.3 of the Supplemental Indenture, check the box:  o

 

If you want to elect to have only part of
this Security purchased by the Company pursuant to Section 3.3 of the Supplemental Indenture, state the amount in principal amount:
$________

 

	Date:	 	 	Your Signature:	 
	 	 	 	 	Sign exactly as your name appears on the other side of this Security.

 

	Signature Guarantee:	 	 
	 	(Signature must be guaranteed)	 

 

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

    	Exhibit A-14Exhibit 10.1

 

EXECUTION VERSION

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of December 22, 2016 by and among Strongbridge Biopharma plc, an Irish public limited company (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A.            The Company and each Purchaser is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506(b) of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act.

 

B.            Each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) that aggregate number of ordinary shares, par value $0.01 per share (the “Ordinary Shares”), of the Company, set forth below such Purchaser’s name on the signature page of this Agreement (which aggregate amount for all Purchasers together shall be 14,000,000 Ordinary Shares and shall be collectively referred to herein as the “Shares”) and (ii) warrants, in substantially the form attached hereto as Exhibit G (the “Warrants” and together with the Shares, the “Units”), to acquire up to that number of additional Ordinary Shares equal to fifty percent (50%) of the number of Shares purchased by such Purchaser (rounded up to the nearest whole share) (the Ordinary Shares issuable upon exercise of or otherwise pursuant to the Warrants collectively are referred to herein as the “Warrant Shares”).  The Shares, the Warrants and the Warrant Shares collectively are referred to herein as the “Securities”.

 

C.           The Company has engaged Stifel Nicolaus & Company, Incorporated as lead placement agent (the “Placement Agent”) for the offering of the Shares and Warrants on a “best efforts” basis.

 

D.            Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement, substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”), pursuant to which, among other things, the Company will agree to provide certain registration rights with respect to the Shares and Warrant Shares under the Securities Act and the rules and regulations promulgated thereunder and applicable state securities laws.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers hereby agree as follows:

 

ARTICLE I.
 DEFINITIONS

 

1.1        Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1:

 

“Action” means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or, to the Company’s Knowledge, threatened in writing against the Company, any Subsidiary or any of their respective properties or any officer, director or employee of the Company or any Subsidiary acting in his or her capacity as an officer, director or employee before or by any federal, state, county, local or foreign court, arbitrator, governmental or administrative agency, regulatory authority, stock market, stock exchange or trading facility.

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act.  With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser.

 

 

“Agreement” has the meaning set forth in the Preamble.

 

“Agreements and Instruments” has the meaning set forth in Section 3.1(d).

 

“Asset Purchase Agreement” means the Asset Purchase Agreement, dated December 12, 2016, by and between Taro Pharmaceuticals North America, Inc. and the Company.

 

“Board of Directors” means the board of directors of the Company.

 

“Business Day” means any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing” means the closing of the purchase and sale of the Securities pursuant to this Agreement.

 

“Closing Date” means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all of the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 hereof are satisfied or waived, as the case may be, or such other date as the parties may agree, which need not be the date hereof.

 

“Commission” has the meaning set forth in the Recitals.

 

“Company” has the meaning set forth in the Preamble.

 

“Company Counsel” means Reed Smith LLP, with offices located at 599 Lexington Avenue, 22nd Floor, New York, New York 10022.

 

“Company Deliverables” has the meaning set forth in Section 2.2(a).

 

“Company’s Knowledge” means with respect to any statement made to the Company’s Knowledge, that the statement is based upon the actual or constructive knowledge of the executive officers of the Company having responsibility for the matter or matters that are the subject of the statement, after a reasonable inquiry.

 

“Control” (including the terms “controlling”, “controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Disclosure Materials” has the meaning set forth in Section 3.1(h).

 

“Disclosure Schedules” means the Disclosure Schedules delivered by the Company concurrently with the execution and delivery of this Agreement.

 

“DTC” has the meaning set forth in Section 4.1(c).

 

“Effective Date” means the date on which the initial Registration Statement required by Section 2(a) of the Registration Rights Agreement is first declared effective by the Commission.

 

“Effectiveness Deadline” means the date on which the initial Registration Statement is required to be declared effective by the Commission under the terms of the Registration Rights Agreement.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

2

 

“Exempt Issuance” means the issuance of (a) Ordinary Shares or options to employees, consultants, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose and in existence on the date of this Agreement as such plan is constituted on the date of this Agreement, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose, unless otherwise agreed to by the non-employee members of the Board of Directors, (b) securities upon the exercise or exchange of or conversion of any securities convertible or exercisable into Ordinary Shares issued and outstanding on the date of this Agreement, provided that such securities have not been amended on or after the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities, and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

“GAAP” means U.S. generally accepted accounting principles, applied on a consistent basis during the periods involved.

 

“Intellectual Property” has the meaning set forth in Section 3.1(o).

 

“Irish Counsel” means Arthur Cox, with offices located at the Arthur Cox Building, Earlsfort Terrace, Dublin 2, Ireland.

 

“Irrevocable Transfer Agent Instructions” means, with respect to the Company, the Irrevocable Transfer Agent Instructions, in substantially the form of Exhibit C, executed by the Company and delivered to and acknowledged in writing by the Transfer Agent.

 

“Lien” means any lien, charge, claim, encumbrance, security interest, right of first refusal, preemptive right or other restrictions of any kind.

 

“Loan and Security Agreement” means the Loan and Security Agreement to be entered into by and among Oxford Finance LLC (“Oxford”), as collateral agent, the lenders listed therein or otherwise a party thereto from time to time including Oxford in its capacity as a lender and Horizon Technology Finance Corporation, the Company, Cortendo Cayman Ltd., Cortendo AB, and Strongbridge U.S. Inc.

 

“Material Adverse Effect” means a material adverse effect on the results of operations, assets, prospects, business or financial condition of the Company and the Subsidiaries, taken as a whole, except that effects caused by changes or circumstances affecting general market conditions in the U.S. economy or which are generally applicable to the industry in which the Company operates, provided that such effects are not borne disproportionately by the Company, shall not be deemed a Material Adverse Effect.

 

“Material Contract” means any contract of the Company that has been filed or was required to have been filed as an exhibit to the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“OFAC” has the meaning set forth in Section 3.1(ee).

 

“Ordinary Shares” has the meaning set forth in the Recitals, and also includes any other class of securities into which the Ordinary Shares may hereafter be reclassified or changed into.

 

“Ordinary Share Equivalents” means any securities of the Company or any Subsidiary which would entitle the holder thereof to acquire at any time Ordinary Shares, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares or other securities that entitle the holder to receive, directly or indirectly, Ordinary Shares.

 

“Outside Date” means the thirtieth day following the date of this Agreement.

 

3

 

“Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.

 

“Placement Agent” has the meaning set forth in the Recitals.

 

“Press Release” has the meaning set forth in Section 4.5.

 

“Principal Trading Market” means the Trading Market on which the Ordinary Shares are primarily listed on and quoted for trading, which, as of the date of this Agreement and the Closing Date, shall be the NASDAQ Global Select Market.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Purchase Price” means $2.50 per Unit.

 

“Purchaser” or “Purchasers” has the meaning set forth in the Recitals.

 

“Purchaser Deliverables” has the meaning set forth in Section 2.2(b).

 

“Purchaser Party” has the meaning set forth in Section 4.6.

 

“Registration Rights Agreement” has the meaning set forth in the Recitals.

 

“Registration Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Purchasers of the Registrable Securities (as defined in the Registration Rights Agreement).

 

“Regulation D” has the meaning set forth in the Recitals.

 

“Repayment Event” means any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its Subsidiaries.

 

“Required Approvals” means (i) the filing with the Commission of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings required by applicable federal, state, local or foreign securities laws, (iii) the filing of a Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act, (iv) the filing of any requisite notices and/or application(s) to the Principal Trading Market for the issuance and sale of the Securities and the listing of the Securities for trading or quotation, as the case may be, thereon in the time and manner required thereby, (v) the filings required in accordance with Section 4.5 of this Agreement and (vi) those that have been made or obtained prior to the date of this Agreement.

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC Reports” has the meaning set forth in Section 3.1(h).

 

“Secretary’s Certificate” has the meaning set forth in Section 2.2(a)(vii).

 

“Securities” has the meaning set forth in the Recitals.

 

“Securities Act” has the meaning set forth in the Recitals.

 

4

 

“Shares” has the meaning set forth in the Recitals.

 

“Short Sales” include, without limitation, (i) all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and (ii) sales and other transactions through non-U.S. broker dealers or foreign regulated brokers (but shall not be deemed to include the location and/or reservation of borrowable shares of Ordinary Shares).

 

“Stock Certificates” has the meaning set forth in Section 2.2(a)(ii).

 

“Subscription Amount” means, with respect to each Purchaser, the aggregate amount to be paid for the Shares and related Warrants purchased hereunder as indicated on such Purchaser’s signature page to this Agreement next to the heading “Aggregate Purchase Price (Subscription Amount)” in United States dollars and in immediately available funds.

 

“Subsidiary” means any subsidiary of the Company as set forth on Schedule 3.1(a) of the Disclosure Schedules, and shall, where applicable, include any subsidiary of the Company formed or acquired after the date hereof.

 

“Trading Affiliate” has the meaning set forth in Section 3.2(h).

 

“Trading Day” means (i) a day on which the Ordinary Shares are listed or quoted and traded on its Principal Trading Market (other than the OTC Bulletin Board), or (ii) if the Ordinary Shares are not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Ordinary Shares are traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Ordinary Shares are not quoted on any Trading Market, a day on which the Ordinary Shares are quoted in the over-the-counter market as reported in the “pink sheets” by OTC Markets LLC (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Ordinary Shares are not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market” means whichever of the New York Stock Exchange, the NYSE Alternext and the NYSE MKT (formerly the American Stock Exchange), the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTC Bulletin Board on which the Ordinary Shares are listed or quoted for trading on the date in question.

 

“Transaction Documents” means this Agreement, the schedules and exhibits attached hereto, the Warrants, the Registration Rights Agreement, the Irrevocable Transfer Agent Instructions and any other documents or agreements explicitly contemplated hereunder.

 

“Transfer Agent” means Computershare, Inc., or any successor transfer agent for the Company.

 

“VWAP” shall mean, for any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares are then listed or quoted on a Trading Market, the daily volume weighted average price of the Ordinary Shares for such date (or the nearest preceding date) on the Trading Market on which the Ordinary Shares are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) or (b) in all other cases, the fair market value of a share of Ordinary Shares as determined by an independent appraiser selected in good faith and mutually agreed upon between the Company and the Investor, the fees and expenses of which shall be paid by the Company.

 

“Warrants” has the meaning set forth in the Recitals.

 

5

 

ARTICLE II.
 PURCHASE AND SALE

 

2.1        Closing.

 

(a)           Amount.  Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company, such number of Ordinary Shares equal to the quotient resulting from dividing (i) the Subscription Amount for such Purchaser by (ii) the Purchase Price, rounded down to the nearest whole Share.  In addition, each Purchaser shall receive a Warrant to purchase a number of Warrant Shares equal to fifty percent (50%) of the number of Shares purchased by such Purchaser, as indicated below such Purchaser’s name on the signature page to this Agreement. The Warrants shall have an exercise price equal to $2.50 per Warrant Share.

 

(b)           Closing.  The Closing of the purchase and sale of the Securities shall take place at the offices of Reed Smith LLP, 599 Lexington Avenue, 22nd Floor, New York, New York on the Closing Date or at such other locations or remotely by facsimile transmission or other electronic means as the parties may mutually agree.

 

(c)           Form of Payment.  Except as may otherwise be agreed to among the Company and one or more of the Purchasers, on or prior to the Business Day immediately prior to the Closing Date, each Purchaser shall wire its Subscription Amount, in United States dollars and in immediately available funds, to the account of the Company, in accordance with instructions delivered to the Purchasers on or prior to the Closing Date.  On the Closing Date, (a) the Company shall deliver, in immediately available funds: to the Placement Agent, the fees and reimbursable expenses payable to the Placement Agent (which fees and expenses shall be set forth in instructions from the Placement Agent to the Company), (b) the Company shall irrevocably instruct the Transfer Agent to deliver to each Purchaser one or more stock certificates, free and clear of all restrictive and other legends (except as expressly provided in Section 4.1(b) hereof), evidencing the number of Shares such Purchaser is purchasing as is set forth on such Purchaser’s signature page to this Agreement next to the heading “Number of Shares to be Acquired”, within three (3) Trading Days after the Closing and (c) the Company shall deliver to each Purchaser one or more Warrants, free and clear of all restrictive and other legends (except as expressly provided in Section 4.1(b) hereof), evidencing the number of Warrants such Purchaser is purchasing as is set forth on such Purchaser’s signature page to this Agreement next to the heading “Underlying Shares Subject to Warrant”, within three (3) Trading Days after the Closing.

 

2.2        Closing Deliveries.    (a)        On or prior to the Closing, the Company shall issue, deliver or cause to be delivered to each Purchaser the following (the “Company Deliverables”):

 

(i)            this Agreement, duly executed by the Company;

 

(ii)           facsimile copies of one or more stock certificates, free and clear of all restrictive and other legends (except as provided in Section 4.1(b) hereof), evidencing the Shares subscribed for by such Purchaser hereunder, registered in the name of such Purchaser (the “Stock Certificate”), with the original Stock Certificates delivered within three (3) Trading Days of Closing;

 

(iii)          Warrants, executed by the Company and registered in the name of such Purchaser pursuant to which such Purchaser shall have the right to acquire such number of Warrant Shares equal to fifty percent (50%) of the number of Shares issuable to such Purchaser pursuant to Section 2.2(a)(ii), rounded up to the nearest whole share, on the terms set forth therein, facsimile copies of which shall be provided to each Purchaser prior to Closing, with the original Warrants delivered within three (3) Trading Days of Closing;

 

(iv)          a legal opinion from each of Company Counsel and Irish Counsel, dated as of the Closing Date and in substantially the forms attached hereto as Exhibit B, executed by such counsel and addressed to the Purchasers and the Placement Agent;

 

(v)           the Registration Rights Agreement, duly executed by the Company;

 

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(vi)          duly executed Irrevocable Transfer Agent Instructions acknowledged in writing by the Transfer Agent instructing the Transfer Agent to deliver, on an expedited basis, the Stock Certificate;

 

(vii)         a certificate of the Secretary of the Company (the “Secretary’s Certificate”), dated as of the Closing Date, (a) certifying the resolutions adopted by the Board of Directors of the Company or a duly authorized committee thereof approving the transactions contemplated by this Agreement and the other Transaction Documents and the issuance of the Securities, (b) certifying the current versions of the certificate or articles of incorporation, as amended, and by-laws of the Company, (c) certifying as to the signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company and (d) certifying the good standing of the Company in Ireland, in substantially the form attached hereto as Exhibit E;

 

(viii)        the Compliance Certificate referred to in Section 5.1(i);

 

(ix)          a legal opinion of Irish Counsel, dated as of the Closing Date and addressed to the Principal Trading Market, opining that the Company’s home-country laws do not require shareholder approval for the issuance of the Securities; and

 

(x)           such other information, certificates and documents as the Purchasers may reasonably request.

 

(b)           On or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following (the “Purchaser Deliverables”):

 

(i)            this Agreement, duly executed by such Purchaser;

 

(ii)           its Subscription Amount, in United States dollars and in immediately available funds, in the amount set forth as the “Purchase Price” indicated below such Purchaser’s name on the applicable signature page hereto under the heading “Aggregate Purchase Price (Subscription Amount)” by wire transfer to the Company;

 

(iii)          the Registration Rights Agreement, duly executed by such Purchaser; and

 

(iv)          a fully completed and duly executed Accredited Investor Questionnaire, satisfactory to the Company, in the form attached hereto as Exhibit D.

 

ARTICLE III.
 REPRESENTATIONS AND WARRANTIES

 

3.1        Representations and Warranties of the Company.  Except as set forth in the correspondingly numbered Section of the Disclosure Schedules, the Company hereby represents and warrants as of the date hereof and the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date), to each of the Purchasers and to the Placement Agent:

 

(a)           Good Standing of Subsidiaries.  Each Subsidiary has been duly organized and is validly existing as a corporation, partnership or limited company, as applicable, in good standing under the laws of the jurisdiction of its incorporation or organization (or such equivalent concept, as applicable under the laws of such jurisdiction), has corporate or similar power and authority to own, lease and operate its properties and to conduct its business as described in the Disclosure Materials and is duly qualified to transact business and is in good standing in each jurisdiction in which such qualification is required (or such equivalent concept, as applicable under the laws of such jurisdiction), whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing (or such equivalent concept) would not result in a Material Adverse Effect.  Except as disclosed in the Disclosure Materials, all of the issued and outstanding share capital or capital stock, as the case may be, of each Subsidiary has been duly authorized and validly issued, is fully paid and are not subject to calls for any additional payments (non-assessable) and is owned by the Company, directly or through its Subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity.  None of the outstanding share capital or capital stock, as the case may be, of any Subsidiary was issued in

 

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violation of the preemptive or similar rights of any securityholder of such Subsidiary.  The only Subsidiaries of the Company are the Subsidiaries listed on Schedule 3.1(a) of the Disclosure Schedules.

 

(b)           Due Incorporation and Foreign Qualification of the Company.  The Company has been duly incorporated and is validly existing as a public company limited by shares under the laws of Ireland and has corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Disclosure Materials and to enter into and perform its obligations under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required (or such equivalent concept, as applicable under the laws of such jurisdiction), whether by reason of the ownership or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result in a Material Adverse Effect.

 

(c)           Authorization; Enforcement; Validity.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder.  The Company’s execution and delivery of each of the Transaction Documents to which it is a party and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery of the Shares and the Warrants and the reservation for issuance and the subsequent issuance of the Warrant Shares upon exercise of the Warrants) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the Company, its Board of Directors or its stockholders in connection therewith other than in connection with the Required Approvals.  Each of the Transaction Documents to which it is a party has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)           Absence of Violations, Defaults and Conflicts.  Neither the Company nor any of its Subsidiaries is (A) in violation of its memorandum and articles of association, charter, bylaws or similar organizational document, (B) other than as set forth in Schedule 3.1(d) of the Disclosure Schedules, in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which it or any of them may be bound or to which any of the properties or assets of the Company or any Subsidiary is subject (collectively, “Agreements and Instruments”), or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the Company or any of its Subsidiaries or any of their respective properties, assets or operations, except for such violations that would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein and compliance by the Company with its obligations hereunder have been duly authorized by all necessary corporate action and do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default or Repayment Event under, or result in the creation or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or any Subsidiary pursuant to, the Agreements and Instruments (except for such conflicts, breaches, defaults or Repayment Events or liens, charges or encumbrances that would not, singly or in the aggregate, result in a Material Adverse Effect), nor will such action result in any violation of (i) the provisions of the memorandum and articles of association, charter, bylaws or similar organizational document of the Company or any of its Subsidiaries or (ii) any law, statute, rule, regulation, judgment, order, writ or decree of any governmental entity.

 

(e)           Absence of Further Requirements.  No filing with, or authorization, approval, consent, waiver, license, order, registration, qualification or decree of, any Governmental Entity, court or other person or entity is necessary or required for the performance by the Company of its obligations hereunder, in connection with the execution, delivery and performance by the Company of the Transaction Documents, including the offering, issuance or sale of the Securities hereunder other than the Required Approvals.

 

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(f)            Authorization, Issuance and Description of Securities.  The Shares have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, fully paid and nonassessable and free and clear of all Liens, and shall not be subject to preemptive or similar rights of shareholders.  The Warrants have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, free and clear of all Liens, and shall not be subject to preemptive or similar rights of shareholders. The Warrant Shares issuable upon exercise of the Warrants have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens, and shall not be subject to preemptive or similar rights of shareholders.  Assuming the accuracy of the representations and warranties of the Purchasers in this Agreement, the Securities will be issued in compliance with all applicable federal, state and local securities laws.  As of the Closing Date, the Company shall have reserved from its duly authorized capital stock the number of Ordinary Shares issuable upon exercise of the Warrants (without taking into account any limitations on the exercise of the Warrants set forth in the Warrants).  The Company shall, so long as any of the Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued capital stock, solely for the purpose of effecting the exercise of the Warrants, the number of Ordinary Shares issuable upon exercise of the Warrants (without taking into account any limitations on the exercise of the Warrants set forth in the Warrants).  The Ordinary Shares conform to all statements relating thereto contained in the Disclosure Materials and such description conforms to the rights set forth in the instruments defining the same.  No holder of Securities will be subject to personal liability by reason of being such a holder.

 

(g)           Capitalization.  The authorized, issued and outstanding share capital of the Company is as set forth on Schedule 3.1(g) of the Disclosure Schedules, which Schedule 3.1(g) shall also include the number of Ordinary Shares owned beneficially, and of record, by Affiliates of the Company as of the date hereof.  The outstanding share capital of the Company has been duly authorized and validly issued and is fully paid, not subject to calls for any additional payments (non-assessable) and were issued in compliance with all federal, state and local securities laws.  None of the outstanding share capital of the Company was issued in violation of the preemptive or other similar rights of any securityholder of the Company.  No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  Except as a result of the purchase and sale of the Securities or as set forth in the Disclosure Materials or Schedule 3.1(g) of the Disclosure Schedules, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any Ordinary Shares, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional Ordinary Shares.  The issuance and sale of the Securities will not obligate the Company to issue Ordinary Shares or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.  No further approval or authorization of any shareholder, the Company’s Board of Directors or other person or entity is required for the issuance and sale of the Securities.  No approval of the shareholders of the Company under the rules or regulations of the Commission, the rules of the Principal Trading Market or any other applicable law is required for the Company to issue and deliver the Securities to the Purchasers. Except as set forth in the Disclosure Materials, there are no stockholders agreements, voting agreements or other agreements with respect to the Company’s capital stock to which the Company is a party or, to the Company’s Knowledge, between or among any of the Company’s stockholders.

 

(h)           SEC Reports; Disclosure Materials.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it under the Securities Act and Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”, and the SEC Reports, together with the Form 6-K required to be filed pursuant to Section 4.5, being collectively referred to as the “Disclosure Materials”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective filing dates, or to the extent corrected by a subsequent restatement, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact

 

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or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act.  Each of the Material Contracts to which the Company or any Subsidiary is a party or to which the property or assets of the Company or any of its Subsidiaries are subject has been filed as an exhibit to the SEC Reports.  The Company does not have pending before the Commission any request for confidential treatment of information.

 

(i)            Financial Statements.  The financial statements included in the Disclosure Materials, together with the related schedules and notes, present fairly, in all material respects, (A) the financial position of the Company, its consolidated Subsidiaries and its acquired businesses at the dates indicated and (B) the statement of operations, shareholders’ equity and cash flows of the Company, its consolidated Subsidiaries and its acquired businesses for the periods specified; said financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved, except in the case of unaudited, interim financial statements, subject to normal year-end audit adjustments and the exclusion of certain footnotes as permitted by the applicable rules of the Commission.  The supporting schedules, if any, present fairly in accordance with GAAP the information required to be stated therein.

 

(j)            No Material Adverse Change in Business.  Except as set forth on Schedule 3.1(j) of the Disclosure Schedules, since the respective dates as of which information is given in the Disclosure Materials, (A) there have been no events, occurrence or developments that have had or would be reasonably to have a Material Adverse Effect, (B) there have been no transactions entered into by the Company or any of its Subsidiaries, which are material with respect to the Company and its Subsidiaries considered as one enterprise and (C) there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its share capital.

 

(k)           Absence of Proceedings.  Except as disclosed in the Disclosure Materials, there is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity or any other person or entity now pending or, to the Company’s Knowledge, threatened, against or affecting the Company or any of its Subsidiaries, directors or officers which would reasonably be expected to result in a Material Adverse Effect, or which would reasonably be expected to materially and adversely affect their respective properties or assets or the consummation of the transactions contemplated in the Transaction Documents or the performance by the Company of its obligations hereunder or thereunder.

 

(l)            Compliance.  Neither the Company nor any of its Subsidiaries (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any of its Subsidiaries under), nor has the Company or any of its Subsidiaries received written notice of a claim that it is in default under, or that it is in violation of, any Material Contract (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is in violation of, or in receipt of written notice that it is in violation of, any statute, rule or regulation of any governmental authority, except in each case as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

(m)          Possession of Licenses and Permits.  The Company and its Subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal, state, local or foreign regulatory authorities (collectively, “Governmental Entities”) necessary to conduct the current business of the Company or as proposed to be conducted or operated by it, each as set forth in the Disclosure Materials, except where the failure so to possess would not, singly or in the aggregate, result in a Material Adverse Effect.  The Company and its Subsidiaries are in compliance with the terms and conditions of all Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect.  All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any of its Subsidiaries has received any notice of proceedings relating to the revocation or modification of any Governmental License.

 

(n)           Title to Property.  The Company and its Subsidiaries have good and marketable title to all real and personal property owned by them, in each case, free and clear of all mortgages, pledges, liens, security

 

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interests, claims, restrictions or encumbrances of any kind except such as (A) are described in the Disclosure Materials or (B) do not, singly or in the aggregate, materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or any of its Subsidiaries; and all of the leases and subleases relating to the business of the Company and its Subsidiaries, and under which the Company or any of its Subsidiaries holds properties described in the Disclosure Materials, are in full force and effect, and neither the Company nor any such Subsidiary has any notice of any claim of any sort that has been asserted by anyone adverse to the rights of the Company or any Subsidiary under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or such Subsidiary to the continued possession of the leased or subleased premises under any such lease or sublease, except to the extent that any claim or adverse effect on the Company’s rights thereto would not reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor its Subsidiaries own any real property.

 

(o)           Possession of Intellectual Property.  The Company and each of its Subsidiaries owns, possesses or has licenses to all patents, patent applications, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names or other intellectual property (collectively, “Intellectual Property”) necessary to carry on the business now operated by them and as currently proposed to be conducted (the “Company Intellectual Property”), each as disclosed in the Disclosure Materials, and neither the Company nor any of its Subsidiaries has received any notice or is otherwise aware of any infringement of or conflict with asserted rights of others with respect to any Company Intellectual Property or of any facts or circumstances which would render invalid any Company Intellectual Property, and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity, singly or in the aggregate, would result in a Material Adverse Effect.  To the Company’s Knowledge:  (i) except as disclosed in the Disclosure Materials, there are no third parties who have any ownership or license rights to any Company Intellectual Property, except for customary reversionary rights of third-party licensors with respect to the Intellectual Property that is disclosed in the Disclosure Materials as exclusively licensed to the Company or its Subsidiaries; and (ii) there is no infringement by third parties of any Company Intellectual Property.  There is no pending or, to the Company’s Knowledge, threatened action, suit, proceeding or claim by others: (A) challenging the Company’s rights in or to any Company Intellectual Property; (B) challenging the validity, enforceability or scope of any Company Intellectual Property; or (C) asserting that the Company or any of its Subsidiaries infringes, misappropriates or otherwise violates, or would, upon the commercialization of any product or service under development by the Company, infringe, misappropriate or otherwise violate, any Intellectual Property rights of others.  The Company and its Subsidiaries have complied in all material respects with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or its Subsidiaries, and, to the Company’s knowledge, all such agreements are in full force and effect.  To the Company’s Knowledge, there are no material defects in any of the patents or patent applications included in the Company Intellectual Property. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of Company Intellectual Property, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)           Insurance.  The Company and its Subsidiaries carry or are entitled to the benefits of insurance, with financially sound and reputable insurers, in such amounts and covering such risks as is generally maintained by companies of established repute engaged in the same or similar business, and all such insurance is in full force and effect.  The Company has no reason to believe that it or any of its Subsidiaries will not be able (A) to renew its existing insurance coverage as and when such policies expire or (B) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Effect.  Neither of the Company nor any of its Subsidiaries has been denied any insurance coverage which it has sought or for which it has applied.

 

(q)           Transactions With Affiliates and Employees.  Except as set forth in the Disclosure Materials, none of the officers, directors or Affiliates of the Company and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the Securities Act for any reporting period.

 

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(r)            Foreign Private Issuer. The Company is a “foreign private issuer” within the meaning of Rule 405 under the Securities Act.  No shareholder approval is required under the laws of the Company’s country of domicile for the issuance of the Securities or any other transactions contemplated by the Transaction Documents.

 

(s)            Internal Accounting Controls.  The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any differences.

 

(t)            Certain Fees.   No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company or a Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company, other than the Placement Agent with respect to the offer and sale of the Shares and Warrants (which placement agent fees are being paid by the Company). The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this paragraph (t) that may be due in connection with the transactions contemplated by the Transaction Documents.  The Company shall indemnify, pay, and hold each Purchaser harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out-of-pocket expenses) arising in connection with any such right, interest or claim.

 

(u)           Investment Company.   The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares and Warrants, will not be, or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended.

 

(v)           Disclosure.  The Company confirms that neither it nor any of its officers or directors, nor any Person acting on its behalf has provided, and it has not authorized the Placement Agent to provide, any Purchaser or its respective agents or counsel with any information that it believes constitutes material, non-public information except insofar as the existence, provisions and terms of the Transaction Documents and the proposed transactions hereunder may constitute such information, all of which will be disclosed by the Company in the Press Release as contemplated by Section 4.5 hereof. The Company understands and confirms that the Purchasers will rely on the foregoing representations in effecting transactions in securities of the Company.  All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2.

 

(w)          Payment of Taxes.  All United States federal, Irish and other material non-U.S. income tax returns of the Company and its Subsidiaries required by law to be filed have been filed and all material taxes whether or not shown on such returns, which are due and payable, have been paid, except assessments against which appeals have been or will be promptly taken and as to which adequate reserves have been provided. Except as described in the Disclosure Materials, no tax return filed by the Company is currently subject to an audit or other administrative or judicial proceeding, and no such audit or other proceeding is pending or, to the Company’s Knowledge, threatened. The Company and its Subsidiaries have filed all other material tax returns that are required to have been filed by them pursuant to applicable foreign, state, local or other law, and has paid all taxes due pursuant to such returns or pursuant to any assessment received by the Company and its Subsidiaries, except for such taxes, if any, as are being contested in good faith and as to which adequate reserves have been established by the Company. To the Company’s Knowledge, the charges, accruals and reserves on the books of the Company in respect of any income, corporation or other tax liability for any years not finally determined are adequate to meet any assessments or re-assessments for additional tax for any years not finally determined.

 

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(x)           Transfer Taxes.  There are no transfer taxes or other similar fees or charges under Irish or federal law or the laws of any state, or any political subdivision thereof, or any other foreign jurisdiction required to be paid by the Company or the Placement Agent in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated herein (including the issue and sale of the Shares and Warrants).

 

(y)           Validity of Choice of Law.  The choice of the law of the State of New York as the governing law of this Agreement is a valid choice of law under the laws of Ireland and, except as disclosed in the Disclosure Materials, will be honored by courts in Ireland. The Company has the power to submit, and pursuant to this Agreement, has legally, validly, effectively and irrevocably submitted, to the personal jurisdiction of each United States federal court and New York state court located in the Borough of Manhattan, in the city of New York, New York, United States, and the Company has legally, validly, effectively and irrevocably designated, appointed and authorized an agent for service of process in any action arising out of or relating to this Agreement or the Securities in any New York federal or state court.

 

(z)           No General Solicitation. Neither the Company nor, to the Company’s Knowledge, any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.

 

(aa)         Foreign Corrupt Practices.  None of the Company, nor any of its Subsidiaries, officers or directors or, to the Company’s Knowledge, any agent, employee, Affiliate or other person acting on behalf of the Company or any of its Subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA and the Company and, to the Company’s Knowledge, its Affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

 

(bb)         Money Laundering Laws.  The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money Laundering Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the Company’s Knowledge, threatened.

 

(cc)         Acknowledgment Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby.  The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(dd)         Absence of Manipulation.  Neither the Company nor any Affiliate of the Company has taken, nor will the Company or any Affiliate take, directly or indirectly any action which is designed, or would reasonably be expected, to cause or result in, or which constitutes, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities or to result in a violation of Regulation M under the Exchange Act.

 

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(ee)         OFAC.  None of the Company, any of its Subsidiaries or, to the Company’s Knowledge, any director, officer, agent, employee, Affiliate or representative of the Company or any of its Subsidiaries is an individual or entity currently the subject or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available such proceeds to any Subsidiaries, joint venture partners or other Person, to fund any activities of or business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

 

(ff)          Regulatory Matters.  Except as described in the Disclosure Materials, and except as would not, individually or in the aggregate, result in a Material Adverse Effect:  (i) neither the Company nor any of its Subsidiaries has received any written notice of adverse filing, warning letter, untitled letter or other correspondence or notice from the U.S. Food and Drug Administration or other relevant regulatory authorities, or any other court or arbitrator or federal, state, local or foreign governmental or regulatory authority, alleging or asserting material noncompliance with the Federal Food, Drug and Cosmetic Act (21 U.S.C. § 301 et seq.) (the “FFDCA”), or similar state, federal or foreign law or regulation; (ii) the Company and any Subsidiary, and to the Company’s Knowledge, their respective directors, officers, employees or agents, are and since January 1, 2012 have been in compliance with applicable health care laws, including without limitation, the FFDCA and the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Civil Monetary Penalties Law (42 U.S.C. § 1320a-7a), the U.S. Civil False Claims Act (31 U.S.C. §3729 et seq.), 18 U.S.C. §§286 and 287, and the health care fraud criminal provisions under the U.S. Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) (42 U.S.C. Section 1320d et seq.), the exclusion laws (42 U.S.C. §1320a-7), HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C. §17921 et seq.), the U.S. Controlled Substances Act (21 U.S.C. Section 801 et seq.), each as amended, and the regulations promulgated thereunder; and all other comparable local, state, federal, national, supranational and foreign laws, and the regulations promulgated thereunder, (collectively, “Health Care Laws”); (iii) neither the Company nor any Subsidiary has received written notice of any ongoing claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Governmental Entity or third party alleging that any product operation or activity is in violation of any Health Care Laws or has any knowledge that any such Governmental Entity or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding; (iv) neither the Company nor any Subsidiary has received written notice that any Governmental Entity has taken, is taking or intends to take action to limit, suspend, modify or revoke any applicable Permit or has any knowledge that any such Governmental Entity is considering such action; (v) the Company and each Subsidiary has filed, obtained, maintained or submitted all reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Health Care Laws and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete, correct and not misleading on the date filed (or were corrected or supplemented by a subsequent submission); (vi) neither the Company nor any Subsidiary has, either voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert, post-sale warning, “dear doctor” letter, or other notice or action relating to the alleged lack of safety or efficacy of any product or any alleged product defect or violation and, to the Company’s Knowledge, no third party has initiated or conducted any such notice or action; and (vii) neither the Company nor any Subsidiary or any of their respective directors, officers, employees or agents is or has been debarred, suspended or excluded, or has been convicted of any crime or engaged in any conduct that would result in a debarment, suspension or exclusion from any federal or state government health care program.

 

(gg)         Clinical Matters. The preclinical and clinical studies and tests described in the Disclosure Materials conducted by or, to the Company’s Knowledge, on behalf of the Company, have been and, if still pending, are being conducted in all material respects in accordance with experimental protocols, procedures and controls pursuant to all Health Care Laws and applicable Governmental Licenses; the descriptions of the results of such preclinical and clinical studies and tests contained in the Disclosure Materials are accurate and complete in all material respects and fairly present the data derived from such preclinical and clinical studies and tests; except to the

 

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extent disclosed in the Disclosure Materials, the Company is not aware of any preclinical or clinical studies or tests, the results of which the Company believes reasonably call into question the preclinical or clinical study or test results described or referred to in the Disclosure Materials when viewed in the context in which such results are described; and neither the Company nor any of the Subsidiaries has received any written notices or correspondence from any Governmental Entity requiring the termination, suspension or material modification of any preclinical or clinical study or test conducted by or on behalf of the Company.

 

(hh)         Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.  The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Principal Trading Market.

 

(ii)           Application of Takeover Protections.  The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s certificate or articles of incorporation or the laws of Ireland that is or could become applicable to the Company or Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under this Agreement, including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

 

(jj)           Compliance with Rule 506.  None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale is disqualified from relying on Rule 506 of Regulation D under the Securities Act (“Rule 506”) for any of the reasons stated in Rule 506(d) in connection with the issuance and sale of the Securities to the Purchasers pursuant to this Agreement.  The Company has exercised reasonable care, including without limitation, conducting a factual inquiry that is appropriate in light of the circumstances, into whether any such disqualification under Rule 506(d) exists, but has assumed the accuracy of the Purchaser’s representations and warranties.  The Company has furnished to each Purchaser, a reasonable time prior to the date hereof, a description in writing of any matters that would have triggered disqualification under Rule 506(d), in compliance with the disclosure requirements of Rule 506(e).  The Company has exercised reasonable care, including without limitation, conducting a factual inquiry that is appropriate in light of the circumstances, into whether any such disqualification under Rule 506(d) would have existed and whether any disclosure is required to be made to the Purchasers under Rule 506(e).  Any outstanding securities of the Company (of any kind or nature) that were issued in reliance on Rule 506 have been issued in compliance with Rule 506(d) and (e) and no party has any reasonable basis for challenging any such reliance on Rule 506 in connection therewith.

 

(kk)         Bank Holding Company Act.  The Company is not subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) or to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).  The Company does not own or control, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.  The Company does not exercise a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA or to regulation by the Federal Reserve.

 

(ll)           No Disagreements with Accountants and Lawyers.  There are no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed or engaged by the Company which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.

 

(mm)      Listing and Maintenance Requirements.  The Ordinary Shares were registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to the Company’s Knowledge, is likely to have the effect of, terminating the registration of the Ordinary Shares under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.  The Company has not received notice from the Trading Market to the effect that the Company is

 

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not in compliance with the listing or maintenance requirements of the Trading Market.  The Company is, and has no reason to believe that it will not upon issuance of the Securities and for the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.  The issuance of the Securities hereunder does not contravene the rules of the Trading Market.

 

(nn)         Sarbanes-Oxley.  The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof.  The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and has taken advantage of relief from certain reporting requirements and other burdens that are otherwise applicable generally to public companies. The Company has taken the exemption from auditor attestation on the effectiveness of its internal controls over financial reporting as permitted under the JOBS Act.

 

(oo)         U.S. Real Property Holdings Corporation.  The Company is not and has never been a U.S. real property holding corporation, within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended (the “Code”), and the Company shall so certify upon Purchaser’s request.

 

(pp)         Books and Records.  The minute books of the Company contain records that are in all material respects accurate of all meetings and other actions of its directors and shareholders from the time of incorporation of the Company to the Closing Date.  The other books and records of the Company have in all material respects been maintained in accordance with prudent business practices and are accurate in all material respects.

 

(qq)         No Additional Agreements.  The Company does not have any agreement or understanding with any Purchaser with respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents.

 

(rr)           Use of Form F-3. The Company meets the registration and transaction requirements for use of Form F-3 for the registration of the Shares and the Warrant Shares for resale by the Purchasers.

 

(ss)          No Integrated Offering. Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering to be integrated with prior offerings  by the Company for purposes of (i) the Securities Act which would require registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(tt)           No Registration Rights. Other than (i) each of the Purchasers, (ii) each Person set forth in Schedule 3.1(tt) of the Disclosure Schedules, pursuant to that certain Cortendo AB Investors’ Rights Agreement, dated February 10, 2015 (the “Prior Registration Rights Agreement”), and except as otherwise described on Schedule 3.1(tt), no person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company or any Subsidiary. The Company’s entry into the Transaction Documents, and the taking of any action to effect any of the transactions contemplated by the Transaction Documents, do not and will not violate or conflict with, or create any further rights of other holders under, the Prior Registration Rights Agreements. All required consents under the Prior Registration Rights Agreement necessary to effect any of the actions contemplated by the Transaction Documents, if any, have been obtained by the Company.

 

3.2          Representations and Warranties of the Purchasers.  Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date to the Company and the Placement Agent as follows:

 

(a)           Organization; Authority.  Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by such Purchaser and performance by such Purchaser of the transactions contemplated by this

 

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Agreement have been duly authorized by all necessary corporate or, if such Purchaser is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Purchaser.  Each Transaction document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(b)           Conflicts.  The execution, delivery and performance by such Purchaser of this Agreement and the Registration Rights Agreement and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment  or decree (including federal and state securities laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

 

(c)           Investment Intent.  Such Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Shares and Warrants as principal for its own account and not with a view to, or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities laws, provided, however, that by making the representations herein, such Purchaser does not agree to hold any of the Securities for any minimum period of time and reserves the right, subject to the provisions of this Agreement and the Registration Rights Agreement, at all times to sell or otherwise dispose of all or any part of such Securities pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities laws.  Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser does not presently have any agreement, plan or understanding, directly or indirectly, with any Person to distribute or effect any distribution of any of the Securities (or any securities which are derivatives thereof) to or through any person or entity; such Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act or an entity engaged in a business that would require it to be so registered as a broker-dealer.

 

(d)           Purchaser Status.  At the time such Purchaser was offered the Shares and Warrants, it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act. Purchaser hereby represents that neither it nor any of its Rule 506(d) Related Parties is a “bad actor” within the meaning of Rule 506(d) promulgated under the Securities Act. For purposes of this Agreement, “Rule 506(d) Related Party” shall mean a person or entity covered by the “Bad Actor disqualification” provision of Rule 506(d) of the Securities Act.

 

(e)           General Solicitation.  Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general advertisement.

 

(f)            Experience of Such Purchaser.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(g)           Access to Information.  Such Purchaser acknowledges that it has had the opportunity to review the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about

 

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the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction Documents.  Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed decision with respect to its acquisition of the Securities.

 

(h)           Certain Trading Activities.  Other than with respect to the transactions contemplated herein, since the time that such Purchaser was first contacted by the Company, the Placement Agent or any other Person regarding the transactions contemplated hereby, neither the Purchaser nor any Affiliate of such Purchaser which (x) had knowledge of the transactions contemplated hereby, (y) has or shares discretion relating to such Purchaser’s investments or trading or information concerning such Purchaser’s investments, including in respect of the Securities, and (z) is subject to such Purchaser’s review or input concerning such Affiliate’s investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser or Trading Affiliate, effected or agreed to effect any purchases or sales of the securities of the Company (including, without limitation, any Short Sales involving the Company’s securities). Notwithstanding the foregoing, in the case of a Purchaser and/or Trading Affiliate that is, individually or collectively, a multi-managed investment bank or vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s or Trading Affiliate’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s or Trading Affiliate’s assets, the representation set forth above shall apply only with respect to the portion of assets managed by the portfolio manager that have knowledge about the financing transaction contemplated by this Agreement.  Other than to other Persons party to this Agreement and Purchaser’s advisors, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect short sales or similar transactions in the future.

 

(i)            Brokers and Finders.  With the exception of the Placement Agent, no Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Purchaser.

 

(j)            Independent Investment Decision.  Such Purchaser has independently evaluated the merits of its decision to purchase Securities pursuant to the Transaction Documents, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s business and/or legal counsel in making such decision.  Such Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Securities constitutes legal, tax or investment advice.  Such Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securities.  Such Purchaser understands that the Placement Agent has acted solely as the agent of the Company in this placement of the Securities and such Purchaser has not relied on the business or legal advice of the Placement Agent or any of its agents, counsel or Affiliates in making its investment decision hereunder, and confirms that none of such persons has made any representations or warranties to such Purchaser in connection with the transactions contemplated by the Transaction Documents.

 

(k)           Reliance on Exemptions.  Such Purchaser understands that the Securities being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Securities.

 

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(l)            No Governmental Review.   Such Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(l)            Regulation M.  Such Purchaser is aware that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of Ordinary Shares and other activities with respect to the Ordinary Shares by the Purchasers.

 

(m)          Beneficial Ownership.    The purchase by such Purchaser of the Shares and Warrants issuable to it at the Closing will not result in such Purchaser (individually or together with any other Person with whom such Purchaser has identified, or will have identified, itself as part of a “group” in a public filing made with the Commission involving the Company’s securities) acquiring, or obtaining the right to acquire, in excess of 29.999% of the outstanding shares of Ordinary Shares or the voting power of the Company on a post transaction basis that assumes that such Closing shall have occurred.  Such Purchaser does not presently intend to, alone or together with others, make a public filing with the Commission to disclose that it has (or that it together with such other Persons have) acquired, or obtained the right to acquire, as a result of such Closing (when added to any other securities of the Company that it or they then own or have the right to acquire), in excess of 29.999% of the outstanding shares of Ordinary Shares or the voting power of the Company on a post transaction basis that assumes that each Closing shall have occurred.

 

(n)           Residency.  Such Purchaser’s residence (if an individual) or offices in which its investment decision with respect to the Securities was made (if an entity) are located at the address immediately below such Purchaser’s name on its signature page hereto.

 

The Company and each of the Purchasers acknowledge and agree that no party to this Agreement has made or makes any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Article III and the Transaction Documents.

 

ARTICLE IV.
 OTHER AGREEMENTS OF THE PARTIES

 

4.1          Transfer Restrictions.

 

(a)           Compliance with Laws.  Except as specifically provided for elsewhere in this Article IV, each Purchaser covenants that the Securities may be disposed of only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any applicable state and federal securities laws.  In connection with any transfer of the Securities other than (i) pursuant to an effective registration statement, (ii) to the Company, (iii) pursuant to Rule 144 (provided that the Purchaser provides the Company with reasonable assurances (in the form of seller and, if applicable, broker representation letters) that the securities may be sold pursuant to such rule) or (iv) in connection with a bona fide pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

 

(b)           Legends.  Certificates evidencing the Securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form, until such time as they are not required under Section 4.1(c):

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION

 

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STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

The Company acknowledges and agrees that a Purchaser may from time to time pledge, and/or grant a security interest in, some or all of the legended Securities in connection with applicable securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide margin loan.  Such a pledge would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion shall be required in connection with a subsequent transfer or foreclosure following default by the Purchaser transferee of the pledge.  No notice shall be required of such pledge, but Purchaser’s transferee shall promptly notify the Company of any such subsequent transfer or foreclosure.  Each Purchaser acknowledges that the Company shall not be responsible for any pledges relating to, or the grant of any security interest in, any of the Securities or for any agreement, understanding or arrangement between any Purchaser and its pledgee or secured party.  At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder.  Each Purchaser acknowledges and agrees that, except as otherwise provided in Section 4.1(c), any Securities subject to a pledge or security interest as contemplated by this Section 4.1(b) shall continue to bear the legend set forth in this Section 4.1(b) and be subject to the restrictions on transfer set forth in Section 4.1(a).

 

(c)           Removal of Legends.

 

(i)            The legend set forth in Section 4.1(b) above shall be removed and the Company shall issue a certificate without such legend or any other legend to the holder of the applicable Securities upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at the Depository Trust Company (“DTC”), if (i) such Securities are registered for resale under the Securities Act (provided that, if the Purchaser is selling pursuant to the effective registration statement registering the Securities for resale, the Purchaser agrees to only sell such Securities during such time that such registration statement is effective and not withdrawn or suspended, and only as permitted by such registration statement), (ii) such Securities are sold or transferred pursuant to Rule 144, or (iii) such Securities are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such securities and without volume or manner-of-sale restrictions.  Following the earlier of (i) the Effective Date or (ii) Rule 144 becoming available for the resale of Securities, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such securities and without volume or manner-of-sale restrictions, the Company shall cause Company Counsel to issue to the Transfer Agent the legal opinion referred to in the Irrevocable Transfer Agent Instructions.  Any fees (with respect to the Transfer Agent, Company Counsel or otherwise) associated with the issuance of such opinion or the removal of such legend shall be borne by the Company.  Following the Effective Date, or at such earlier time as a legend is no longer required for certain Securities, the Company will no later than three (3) Trading Days following the delivery by a Purchaser to the Company (with notice to the Company) of  a (i) legended certificate representing Shares or Warrant Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer) or (ii) an Exercise Notice in the manner provided in the Warrants to effect the exercise of such Warrant in accordance with its terms, and an opinion of counsel to the extent required by Section 4.1(a), deliver or cause to be delivered to such Purchaser a certificate representing such Securities that is free from all restrictive and other legends.  The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1(c).  Certificates for Shares subject

 

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to legend removal hereunder may be transmitted by the Transfer Agent to the Purchasers by crediting the account of the Purchaser’s prime broker with DTC as directed by such Purchaser.

 

(ii)           The Company agrees that following such time as the legend is no longer, it will, no later than three (3) Trading Days following the delivery by a Purchaser to the Transfer Agent of a (i) certificate representing Shares or Warrant Shares issued with a restrictive legend if such Shares or Warrant Shares are certificated, or (ii) written notice requesting the removal of any restrictive legend from the entry in the applicable balance account evidencing such Shares or Warrant Shares, as the case may be, (such third Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser such Shares or Warrant Shares, free from all restrictive and other legends, by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.  The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Article IV.  In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Shares or Warrant Shares (based on the VWAP of the Ordinary Shares on the date such Shares or Warrant Shares are submitted to the Transfer Agent) delivered for removal of the restrictive legend, $5 per Trading Day for each Trading Day after the Legend Removal Date until such Shares or Warrant Shares are delivered without a legend.  The payments to which a Purchaser shall be entitled pursuant to this Section 4.1(c)(ii) are referred to herein as “Legend Removal Failure Payments.”  Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s failure to deliver any Shares or Warrant Shares as required by this Section 4.1, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

(iii)          If a Purchaser shall make a sale or transfer of any Shares or Warrant Shares either pursuant to (x) Rule 144 or (y) a registration statement, and in each case shall have delivered to the Company or the Company’s transfer agent the certificate representing the applicable Shares or Warrant Shares containing a restrictive legend which are the subject of such sale or transfer and a representation letter in customary form (the date of such sale or transfer and delivery being the “Share Delivery Date”) and (1) the Company shall fail to deliver or cause to be delivered to such Purchaser a certificate representing such Shares or Warrant Shares that is free from all restrictive or other legends by 6:00 p.m. (New York City time) on the third Trading Day on which the Ordinary Shares are listed or quoted for trading following the Share Delivery Date and (2) following such third Trading Day after the Share Delivery Date and prior to the time such Shares or Warrant Shares are received free from restrictive legends, the Purchaser, or any third party on behalf of such Purchaser, purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale by the Purchaser of such Shares or Warrant Shares (a “Buy-In”), then, in addition to any other rights available to the Purchaser under the Transaction Documents and applicable law, the Company shall pay in cash to the Purchaser (for costs incurred either directly by such Purchaser or on behalf of a third party) the amount by which the total purchase price paid for the Ordinary Shares as a result of the Buy-In (including brokerage commissions, if any) exceed the proceeds received by such Purchaser as a result of the sale to which such Buy-In relates. The Purchaser shall provide the Company written notice indicating the amounts payable to the Purchaser in respect of the Buy-In. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth herein.

 

(d)           Irrevocable Transfer Agent Instructions.     The Company shall issue irrevocable instructions to its transfer agent, and any subsequent transfer agent, in substantially the form of Exhibit C attached hereto (the “Irrevocable Transfer Agent Instructions”). The Company represents and warrants that  no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 4.1(d) (or instructions that are consistent therewith) will be given by the Company to its transfer agent in connection with this Agreement, and that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the other Transaction Documents and applicable law. The Company acknowledges that a breach by it of its obligations under this Section 4.1(d) will cause irreparable harm to a Purchaser.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 4.1(d) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 4.1(d), that a Purchaser shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required.

 

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(e)           Acknowledgement.  Each Purchaser hereunder acknowledges its primary responsibilities under the Securities Act and accordingly will not sell or otherwise transfer the Securities or any interest therein without complying with the requirements of the Securities Act.  While the Registration Statement remains effective, each Purchaser hereunder may sell the Shares and Warrant Shares in accordance with the plan of distribution contained in the Registration Statement and if it does so it will comply therewith and with the related prospectus delivery requirements unless an exemption therefrom is available.  Each Purchaser, severally and not jointly with the other Purchasers, agrees that if it is notified by the Company in writing at any time that the Registration Statement registering the resale of the Shares and Warrant Shares is not effective or that the prospectus included in such Registration Statement no longer complies with the requirements of Section 10 of the Securities Act, the Purchaser will refrain from selling such Shares or Warrant Shares until such time as the Purchaser is notified by the Company that such Registration Statement is effective or such prospectus is compliant with Section 10 of the Securities Act, unless such Purchaser is able to, and does, sell such Shares or Warrant Shares pursuant to an available exemption from the registration requirements of Section 5 of the Securities Act.  Both the Company and its Transfer Agent, and their respective directors, officers, employees and agents, may rely on this Section 4.1(e) and each Purchaser hereunder will indemnify and hold harmless each of such persons from any breaches or violations of this Section 4.1(e).

 

(f)            Transfer to Affiliates.  Notwithstanding any other provision of this Article IV to the contrary, no registration statement or opinion of counsel shall be required for a transfer of the Securities by a Purchaser to an Affiliate of such Purchaser so long as the transferee of such Securities is an “accredited investor” and agrees to be subject to the terms hereof to the same extent as transferor in its capacity as a Purchaser herein.

 

4.2          Furnishing of Information.  In order to enable the Purchasers to sell the Securities under Rule 144, until such time as no Purchaser holds Securities, the Company shall use its commercially reasonable efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. During such twelve (12) month period, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144.

 

4.3          Acknowledgment of Dilution.  The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding Ordinary Shares of the Company, which dilution may be substantial under certain market conditions.  The Company further acknowledges that its obligations under this Agreement, including, without limitation, its obligation to issue the Securities pursuant to this Agreement, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

 

4.4          Integration.  The Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchasers, or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

4.5          Securities Laws Disclosure; Publicity.  By 9:00 A.M., New York City time, on the Trading Day immediately following the date hereof, the Company shall issue a press release (the “Press Release”) reasonably acceptable to the Placement Agent disclosing all material terms of the transactions contemplated hereby.  On or before 9:00 A.M., New York City time, on the second (2nd) Trading Day immediately following the execution of this Agreement, the Company will file a Current Report on Form 6-K with the Commission describing the terms of the Transaction Documents, the Asset Purchase Agreement and Loan and Security Agreement (and including as exhibits to such Current Report on Form 6-K, this Agreement, the form of Warrant, the Registration Rights Agreement).  Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser or an Affiliate of any Purchaser, or include the name of any Purchaser or an Affiliate of any Purchaser in any press release or filing with the Commission (other than the Registration Statement) or any regulatory agency or Trading

 

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Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection with (A) any registration statement contemplated by the Registration Rights Agreement and (B) the filing of final Transaction Documents (including signature pages thereto) with the Commission and (ii) to the extent such disclosure is required by law, request of the Staff of the Commission or Trading Market regulations, in which case the Company shall provide the Purchasers with two (2) days prior written notice of such disclosure permitted under this subclause (ii).  From and after the issuance of the Press Release, no Purchaser shall be in possession of any material, non-public information received from the Company, any Subsidiary or any of their respective officers, directors, employees or agents, that is not disclosed in the Press Release unless a Purchaser shall have executed a written agreement regarding the confidentiality and use of such information.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are required to be publicly disclosed by the Company as described in this Section 4.5, such Purchaser will maintain the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

4.6          Indemnification of Purchasers.  Subject to the provisions of this Section 4.6, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). Promptly after receipt by any Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity may be sought pursuant to this Section 4.6, such Indemnified Person shall promptly notify the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the payment of all reasonable fees and expenses;  provided, however, that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually and materially prejudiced by such failure to notify. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the reasonable and documented fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel; (ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Indemnified Person in such proceeding; or (iii) in the reasonable judgment of counsel to such Indemnified Person, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. The Company shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned, the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding.

 

4.7          Principal Trading Market Listing.  In the time and manner required by the Principal Trading Market, the Company shall prepare and file with such Principal Trading Market an additional shares listing application covering all of the Shares and Warrant Shares and shall use its commercially reasonable efforts to take all steps necessary to cause all of the Shares and Warrant Shares to be approved for listing on the Principal

 

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Trading Market as promptly as possible thereafter.  In addition, if required by the rules of the Principal Trading Market, including, without limitation, as a result of the Company’s ineligibility to qualify as a Foreign Private Issuer under Rule 405 of the Securities Act, at any such time as the Warrants remain outstanding, the Company shall hold a special meeting of shareholders (which may also be the annual meeting of shareholders) at the earliest practical date after the date that the number of Ordinary Shares issuable pursuant to this Agreement on a fully exercised basis (ignoring for such purposes any exercise limitation therein) exceeds 20% of the issued and outstanding Ordinary Shares on the Closing Date, for the purpose of obtaining shareholder approval for the issuance of the Securities described herein, with the recommendation of the Company’s Board of Directors that such proposal be approved, and the Company shall solicit proxies from its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of such proposal. If the Company does not obtain shareholder approval at the first meeting, the Company shall call a meeting every four months thereafter to seek shareholder approval until the earlier of the date shareholder approval is obtained or the Warrants are no longer outstanding.

 

4.8          Form D; Blue Sky.  The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon the written request of any Purchaser.  The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities for sale to the Purchasers under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification) and shall provide evidence of such actions promptly upon the written request of any Purchaser.

 

4.9          Delivery of Shares and Warrants After Closing. The Company shall deliver, or cause to be delivered, the respective Shares and Warrants purchased by each Purchaser to such Purchaser within three (3) Trading Days of the Closing Date.

 

4.10       Short Sales and Confidentiality After The Date Hereof.  Such Purchaser shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly, in any transactions in the Company’s securities (including, without limitation, any Short Sales involving the Company’s securities) during the period from the date hereof until the earlier of such time as (i) the transactions contemplated by this Agreement are first publicly announced as required by and described in Section 4.5 or (ii) this Agreement is terminated in full pursuant to Section 6.18.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company as described in Section 4.5, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents and Disclosure Schedules.  Notwithstanding the foregoing, no Purchaser makes any representation, warranty or covenant hereby that it will not engage in Short Sales in the securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced as described in Section 4.5.

 

4.11        Non-Public Information.  Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, the Loan and Security Agreement and the Asset Purchase Agreement, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser, or such Purchaser’s agents or counsel, with any information that the Company believes constitutes material non-public information.  The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

4.12        Equal Treatment of Purchasers.  No consideration (including any modification of this Agreement) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration is also offered to all of the parties to this Agreement.  For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Shares or otherwise.

 

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4.13        Participation in Future Financing.

 

(a)           Subject to compliance with applicable securities laws, from the date hereof until the date that is the twelve (12) month anniversary of the Closing Date, upon (i) any issuance by the Company of un-registered Ordinary Shares or securities convertible or exercisable into Ordinary Shares (a “Private Offering”) or (ii) any issuance by the Company of registered Ordinary Shares or securities convertible or exercisable into Ordinary Shares (a “Public Offering” and together with the Private Offering, a “Subsequent Financing”), in each case for cash consideration, indebtedness or a combination thereof, then for a Private Offering each Purchaser shall have the right to participate, and with respect to a Public Offering the Company shall use commercially reasonable efforts (which must include multiple attempts, on multiple dates, with multiple representatives of the underwriter, including the most senior underwriter personnel devoting time to the Public Offering, orally and in writing) to cause the managing underwriter(s) of the Public Offering, or the placement agent(s) of the Private Offering, to provide the Purchaser the opportunity to participate, in an amount of the Subsequent Financing up to such Purchaser’s Pro-Rata Share (as defined below) on the same terms, conditions and price provided for in the Subsequent Financing.  For purposes of this Agreement, each Purchaser’s “Pro-Rata Share” shall be equal to the number of Ordinary Shares deemed to be beneficially owned by such Purchaser immediately prior to the closing of the Subsequent Financing (based upon documentation or written representation reasonably satisfactory to the Company), divided by the total number of Ordinary Shares outstanding immediately prior to the closing of the Subsequent Financing.

 

(b)           Notwithstanding anything to the contrary in this Section 4.13 and unless otherwise agreed to by all Purchasers, the Company shall either confirm in writing to each Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly disclose its intention to effect the Subsequent Financing, in either case, in such a manner such that a Purchaser will not be in possession of any material, non-public information, by the fifth (5th) Trading Day following the Purchaser’s notification by the Company of such Subsequent Financing. If by such fifth (5th) Trading Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction has been received by a Purchaser, such transaction shall be deemed to have been abandoned and the Purchaser shall not be in possession of any material, non-public information with respect to the Company.  Notwithstanding the foregoing, such notice period may be extended by mutual agreement in accordance with the requirements to amend this Agreement pursuant to Section 6.4 hereof.

 

(c)           Notwithstanding the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance.

 

4.14        Tax Matters.

 

(a)           PFIC Reporting.  The Company hereby agrees to reasonably cooperate with the Purchasers in order to permit the Purchasers to determine whether the Company is at any time a “passive foreign investment company” (as defined in Section 1297(a) of the Code (a “PFIC”).  In furtherance of the foregoing, the Company shall, within ninety (90) days after the end of each taxable year, notify the Investor of its good faith belief as to whether the Company or any current or future direct or indirect Subsidiary of the Company was a PFIC for such taxable year.  If the Company or any Subsidiary thereof is determined to be a PFIC, the Company (i) shall promptly after the determination thereof notify the Purchasers, (ii) shall timely provide such information to the Purchasers as the Purchasers may reasonably request to enable each Purchaser to complete its U.S. Internal Revenue Service Form 8621 with respect to such entity and (iii) shall use reasonable best efforts, to provide such statements, information and documentation as a Purchaser reasonably believes is necessary for it to make an election to treat such subsidiary as a “qualified electing fund” under Section 1295 of the Code.  The Company shall not be liable to the Purchasers if its statement of belief, or any information provided pursuant to this Section 4.14(a), is found to be incorrect, unless such statement of belief or information was not reached or provided in good faith by the Company or was the result of the Company’s gross negligence.

 

(b)           Controlled Foreign Corporation. If a Purchaser is an “United States shareholder” within the meaning of Section §951(b) of the Code (a “10% U.S. Shareholder”) of the Company at any point during a taxable year, then the Company hereby agrees to reasonably cooperate with such Purchaser in order to permit such Purchaser to determine whether the Company is a “controlled foreign corporation” within the meaning of Section 957 of the Code (“CFC”).  In furtherance of the foregoing, the Company shall, within ninety (90) days after the end

 

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of such taxable year, notify the Purchasers of its good faith belief, based on the information available to the Company, as to whether the Company is or is likely to have become a CFC for such taxable year.  In making the annual determination described above, the Company agrees to inquire of any of its shareholders that hold 10% or more of its voting stock and is not a 10% U.S. Shareholder whether such shareholder has any direct or indirect owners that could be a 10% U.S. Shareholder of the Company, but shall not be responsible for whether any such shareholder replies, or replies accurately, to such inquiry.  If the Company is or is likely to have become a CFC, then the Company shall use reasonable best efforts, to provide a Purchaser all information reasonably requested by a Purchaser so that such Purchaser may timely comply with its filing obligations under the Code, including but not limited to Internal Revenue Service Form 5471.  The Company shall not be liable to the Purchasers if its statement of belief, or any information provided pursuant to this Section 4.14(b), is found to be incorrect, unless such statement of belief or information was not reached or provided in good faith by the Company or was the result of gross negligence.

 

4.15        Reservation of Ordinary Shares.  The Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance from and after the Closing Date, the number of Ordinary Shares issuable upon exercise of the Warrants issued at the Closing (without taking into account any limitations on exercise of the Warrants set forth in the Warrants).

 

4.16        Subsequent Equity Sales.  From the date hereof until the earlier of (i) one hundred eighty (180) days following the Closing Date or (ii) thirty (30) days after the Effective Date, neither the Company nor any Subsidiary shall issue Ordinary Shares or Ordinary Share Equivalents (other than the Securities); provided, however, the thirty (30) day period set forth in this Section 4.16 shall be extended for the number of Trading Days during such period in which (i) trading in the Ordinary Shares is suspended by any Trading Market, or (ii) following the Effective Date, the Registration Statement is not effective or the prospectus included in the Registration Statement may not be used by the Purchasers for the resale of the Shares and Warrant Shares.  The foregoing sentence shall not apply to any Exempt Issuance.  If, on any date, the number of authorized but unissued (and otherwise unreserved) Ordinary Shares is less than 130% of (i) the maximum aggregate number of Ordinary Shares then issued or potentially issuable in the future pursuant to the Transaction Documents, including the Warrant Shares (ignoring any conversion or exercise limits set forth therein) (the “Required Minimum”) minus (ii) the number of Ordinary Shares previously issued pursuant to the Transaction Documents, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s Articles of Association to increase the number of authorized but unissued Ordinary Shares to at least the Required Minimum at such time (minus the number of Ordinary Shares previously issued pursuant to the Transaction Documents), as soon as possible and in any event not later than the 75th day after such date; provided that the Company will not be required at any time to authorize a number of Ordinary Shares greater than the maximum remaining number of Ordinary Shares that could possibly be issued after such time pursuant to the Transaction Documents.

 

ARTICLE V.

CONDITIONS PRECEDENT TO CLOSING

 

5.1          Conditions Precedent to the Obligations of the Purchasers to Purchase Securities.  The obligation of each Purchaser to acquire Shares and Warrants at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by such Purchaser (as to itself only):

 

(a)           Representations and Warranties.  The representations and warranties of the Company contained herein shall be true and correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which case such representations and warranties shall be true and correct in all respects) as of the date when made and as of the Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date.

 

(b)           Performance.  The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

 

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(c)           No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

 

(d)           Consents.  The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers necessary for consummation of the purchase and sale of the Securities (including all Required Approvals), all of which shall be and remain so long as necessary in full force and effect.

 

(e)           Adverse Changes.  Since the date of execution of this Agreement, no event or series of events shall have occurred that has had or would reasonably be expected to have a Material Adverse Effect.

 

(f)            Listing.  The NASDAQ Global Select Market shall have approved the listing of additional shares application for the Shares and Warrant Shares.

 

(g)           No Suspensions of Trading in Ordinary Shares.  The Ordinary Shares shall not have been suspended, as of the Closing Date, by the Commission or the Principal Trading Market from trading on the Principal Trading Market nor shall suspension by the Commission or the Principal Trading Market have been threatened, as of the Closing Date, either (A) in writing by the Commission or the Principal Trading Market or (B) by falling below the minimum listing maintenance requirements of the Principal Trading Market.

 

(h)           Company Deliverables.  The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).

 

(i)            Compliance Certificate.  The Company shall have delivered to each Purchaser a certificate, dated as of the Closing Date and signed by its Chief Executive Officer or its Chief Financial Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in Sections 5.1(a) and (b) in substantially the form attached hereto as Exhibit F.

 

(j)            Debt Financing.  All of the pre-closing conditions required to be satisfied pursuant to the Loan and Security Agreement shall have been satisfied other than the closing of the purchase and sale of the Securities pursuant to this Agreement.

 

(k)           Drug Acquisition.  The Asset Purchase Agreement shall have been signed by the parties thereto and the transactions contemplated thereby shall have been consummated.

 

(l)            Minimum Investment Amount.   The aggregate Purchase Price for the Shares and Warrants at the Closing shall be at least $25,000,000.

 

(m)          Termination.  This Agreement shall not have been terminated as to such Purchaser in accordance with Section 6.18 herein.

 

5.2          Conditions Precedent to the Obligations of the Company to sell Securities.  The Company’s obligation to sell and issue the Shares and Warrants at the Closing to the Purchasers is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

 

(a)           Representations and Warranties.  The representations and warranties made by the Purchasers in Section 3.2 hereof shall be true and correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which case such representations and warranties shall be true and correct in all respects) as of the date when made, and as of the Closing Date as though made on and as of such date, except for representations and warranties that speak as of a specific date.

 

(b)           Performance.  Such Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior to the Closing Date.

 

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(c)           No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

 

(d)           Consents.  The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers necessary for consummation of the purchase and sale of the Securities, all of which shall be and remain so long as necessary in full force and effect.

 

(e)           Purchasers Deliverables.  Such Purchaser shall have delivered its Purchaser Deliverables in accordance with Section 2.2(b).

 

(f)            Listing.  The NASDAQ Global Select Market shall have approved the listing of additional shares application for the Securities.

 

(g)           Termination.  This Agreement shall not have been terminated as to such Purchaser in accordance with Section 6.18 herein.

 

ARTICLE VI.
 MISCELLANEOUS

 

6.1          Fees and Expenses.  The Company and the Purchasers shall each pay the fees and expenses of their respective advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party in connection with the negotiation, preparation, execution, delivery and performance of this Agreement; provided, however, that the Company shall reimburse (i) CAM Capital or its affiliates for its expenses for counsel in an amount not to exceed $15,000, (ii) Vivo Capital or its affiliates for its expenses for counsel in an amount not to exceed $15,000, and (iii) HealthCap VI, L.P. or its affiliates for its expenses for counsel in an amount not to exceed $5,000.  The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the sale and issuance of the Securities to the Purchasers.

 

6.2          Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.  At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.

 

6.3          Notices.  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 electronic mail or facsimile (provided the sender receives a machine-generated confirmation of successful transmission) at the e-mail address or facsimile number specified in this Section 6.3 prior to 5:00 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 electronic mail or facsimile at the email address or facsimile number specified in this Section 6.3 on a day that is not a Trading Day or later than 5:00 P.M., New York City time, on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as follows:

 

	
If to the Company:
    	
 
    	
Strongbridge Biopharma   plc
    
	
 
    	
 
    	
900 Northbrook Drive
    
	
 
    	
 
    	
Trevose, PA 19053
    
	
 
    	
 
    	
Telephone No.: (610)   254-9200
    
	
 
    	
 
    	
Attention: A. Brian   Davis
    
	
 
    	
 
    	
E-mail:   b.davis@strongbridgebio.com
    
	
 
    	
 
    	
Strongbridge Biopharma   plc
    

 

28

 

	
With a copy to:
    	
 
    	
Reed Smith LLP
    
	
 
    	
 
    	
599 Lexington Avenue
    
	
 
    	
 
    	
22nd Floor
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Telephone No.: (212)   521-5400
    
	
 
    	
 
    	
Facsimile No.: (212)   521-5450
    
	
 
    	
 
    	
Attention: Aron Izower
    
	
 
    	
 
    	
E-mail:   aizower@reedsmith.com
    
	
 
    	
 
    	
 
    
	
If to a Purchaser:
    	
 
    	
To the address set   forth under such Purchaser’s name on the signature page hereof; or such   other address as may be designated in writing hereafter, in the same manner,   by such Person.
    

 

6.4          Amendments; Waivers; No Additional Consideration.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers of at least a majority in interest of the Shares and Warrant Shares underlying Warrants (disregarding for this purpose any and all limitations of any kind on exercise of any Warrants) still held by Purchasers or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought; provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser, the consent of such disproportionately impacted Purchaser shall also be required.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.  No consideration shall be offered or paid to any Purchaser to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered to all Purchasers who then hold Securities.

 

6.5          Construction.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.  This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

 

6.6          Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns.  This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of each Purchaser.  Any Purchaser may assign its rights hereunder in whole or in part to any Person to whom such Purchaser assigns or transfers any Securities in compliance with the Transaction Documents and applicable law, provided such transferee shall agree in writing to be bound, with respect to the transferred Securities, by the terms and conditions of this Agreement that apply to the “Purchasers”.

 

6.7          No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except (i) the Placement Agent are intended third party beneficiaries of Article III hereof and (ii) each Purchaser Party is an intended third party beneficiary of Section 4.9.

 

6.8          Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts.  Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including

 

29

 

with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

6.9    Survival.  Subject to applicable statute of limitations, the representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery of the Securities.

 

6.10  Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

 

6.11  Severability.  If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

6.12  Rescission and Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

 

6.13  Replacement of Securities.  If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer Agent of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith or, if required by the Transfer Agent, a bond in such form and amount as is required by the Transfer Agent.  The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities.  If a replacement certificate or instrument evidencing any Securities is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

 

6.14  Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

 

6.15  Payment Set Aside.  To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such

 

30

 

payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

6.16        Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Ordinary Shares (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Ordinary Shares), combination or other similar recapitalization or event occurring after the date hereof and prior to the Closing, each reference in any Transaction Document to a number of shares or a price per share shall be deemed to be amended to appropriately account for such event.

 

6.17        Independent Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document.  The decision of each Purchaser to purchase Securities pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or any Subsidiary which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser and any of its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information, materials, statement or opinions.  Nothing contained herein or in any Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.  Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents.  Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.  Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.

 

6.18        Termination. This Agreement may be terminated and the sale and purchase of the Shares and Warrants abandoned at any time prior to the Closing by either the Company or any Purchaser (with respect to itself only) upon written notice to the other, if the Closing has not been consummated on or prior to 5:00 P.M., New York City time, on the Outside Date; provided, however, that the right to terminate this Agreement under this Section 6.18 shall not be available to any Person whose failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time.  Nothing in this Section 6.18 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.  In the event of a termination pursuant to this Section 6.18, the Company shall promptly notify all non-terminating Purchasers.  Upon a termination in accordance with this Section 6.18, the Company and the terminating Purchaser(s) shall not have any further obligation or liability (including arising from such termination) to the other, and no Purchaser will have any liability to any other Purchaser under the Transaction Documents as a result therefrom.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

31

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
 
    	
Strongbridge Biopharma   plc
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ A. Brian Davis
    
	
 
    	
 
    	
Name:
    	
A. Brian Davis
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
PIMA A/S
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Esten Løkkebakken
    
	
 
    	
Name:
    	
Esten Løkkebakken
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired: 
    
	
 
    	
 
    
	
 
    	
Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
				

 

	
Delivery   Instructions:
    
	
(if   different than above)
    
	
 
    	
 
    	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Eugene C. Burger
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eugene Burger
    
	
 
    	
Name:
    	
Eugene Burger
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired: 
    
	
 
    	
 
    
	
 
    	
Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    	
 
    
	
 
    	
Tax ID No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
						

 

	
Delivery Instructions:
    
	
(if different than   above)
    
	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone
   No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Yuriy Shteinbuk
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Yuriy Sheinbuk
    
	
 
    	
Name:
    	
Yuriy Sheinbuk
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired: 
    
	
 
    	
 
    
	
 
    	
Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
					

 

	
Delivery   Instructions:
    	
 
    
	
(if   different than above)
    	
 
    
	
 
    	
 
    	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Scott D. Morenstein
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott D. Morenstein
    
	
 
    	
Name:
    	
Scott D. Morenstein
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:
    
	
 
    	
 
    
	
 
    	
 Number of Warrant Shares underlying the   Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
					

 

	
Delivery   Instructions:
    	
 
    
	
(if   different than above)
    	
 
    
	
 
    	
 
    	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Kenneth Glennon
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kenneth Glennon
    
	
 
    	
Name:
    	
Kenneth Glennon
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase Price   (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired: 
    
	
 
    	
 
    
	
 
    	
Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
					

 

	
Delivery   Instructions:
    	
 
    
	
(if   different than above)
    	
 
    
	
 
    	
 
    	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Karen Cross
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Cross
    
	
 
    	
Name:
    	
Karen Cross
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired: 
    
	
 
    	
 
    
	
 
    	
Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
						

 

 

	
Delivery Instructions:
    
	
(if different than   above)
    
	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone
   No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Heath N. Weisburg
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Heath N. Weisburg
    
	
 
    	
Name:
    	
Heath N. Weisburg
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail
   Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
					

 

	
Delivery Instructions:
    
	
(if different than   above)
    
	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone
   No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Daniel P. Klein
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel P. Klein
    
	
 
    	
Name:
    	
Daniel P. Klein
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Telephone No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Facsimile No.:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail
   Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
 
    
					

 

	
Delivery Instructions:
    
	
(if different than   above)
    
	
 
    
	
c/o
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Street:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
City/State/Zip:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone
   No.:
    	
 
    	
 
    

 

 

	
 
    	
NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
David Ben-Ur
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Ben-Ur
    
	
 
    	
Name:
    	
David Ben-Ur
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

Number of Warrant   Shares underlying the Warrants to be Acquired:
    
	
 
    	
 
    
	
 
    	
Tax ID No.:
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
CDK Associates, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Cross
    
	
 
    	
Name:
    	
Karen Cross
    
	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
H5 Vekst AS
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eivind Haugan
    
	
 
    	
Name:
    	
Eivind Haugan
    
	
 
    	
Title:
    	
CIO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Vivo Capital Fund VIII,   L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
Vivo Capital Fund VIII,   LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Albert Cha
    
	
 
    	
Name:
    	
Albert Cha
    
	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Vivo Capital Surplus   Fund VIII, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Vivo Capital VIII, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Albert Cha
    
	
 
    	
Name:
    	
Albert Cha
    
	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Abraxas AS
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eivind Haugan
    
	
 
    	
Name:
    	
Eivind Haugan
    
	
 
    	
Title:
    	
Owner / CIO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
AS Mascot Holding
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Alexander   Munch-Thore
    
	
 
    	
Name:
    	
Alexander Munch-Thore
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Zinober Invest A/S
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tore Eiklid
    
	
 
    	
Name: Tore Eiklid
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Fougner Invest
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Reidar Fougner
    
	
 
    	
Name: Reidar Fougner
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase Price   (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Eigil Spetalen
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eigil Spetalen
    
	
 
    	
Name: Eigil Spetalen
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Boxer Capital, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aaron Davis
    
	
 
    	
Name: Aaron Davis
    
	
 
    	
Title: C.E.O.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Broadfin Healthcare   Master Fund, Ltd
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kevin Kotler
    
	
 
    	
Name: Kevin Kotler
    
	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Growth Equity   Opportunities Fund III, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Louis Citron
    
	
 
    	
Name: Louis Citron
    
	
 
    	
Title: Chief Legal   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
Opaleye L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Silverman
    
	
 
    	
Name: James Silverman
    
	
 
    	
Title: Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase   Price (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

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NAME OF
    	
 
    
	
 
    	
PURCHASER:
    	
HealthCap VI, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
HealthCap VI GP S.A.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dag Richter
    
	
 
    	
Name: Dag Richter
    
	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aggregate Purchase Price   (Subscription Amount): $
    
	
 
    	
 
    
	
 
    	
Number of Shares to be   Acquired:

 

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EXHIBITS:

 

A:            Form of Registration Rights Agreement

B:            Form of Opinion of Company Counsel

C:            Form of Irrevocable Transfer Agent Instructions

D:            Accredited Investor Questionnaire

E:            Form of Secretary’s Certificate

F:            Form of Officer’s Certificate

G:            Form of Warrant

 

 

EXHIBIT A

 

FORM OF REGISTRATION RIGHTS AGREEMENT

 

 

EXHIBIT B

 

FORM OF OPINION OF COMPANY COUNSEL

 

To be given by Irish Company Counsel:

 

1.              The Company is a public limited company, is duly incorporated and validly existing under the laws of Ireland with the requisite corporate power and authority to own, lease and operate properties and assets, and to conduct its business as described in the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 24, 2016, to execute and deliver the Transaction Documents and to perform its obligations thereunder, including, without limitation, to issue, sell and deliver the Shares and Warrants under the Agreement and to issue the Warrant Shares issuable upon exercise of the Warrants.

 

2.              The Securities will, on: (i) the allotment and issuance of the Securities (by the entry of the name of the registered owner thereof in the register of members of the Company confirming that such Securities have been issued credited as fully paid), and (ii) the subscription and payment therefor, by the relevant subscribers in accordance with the constitution of the Company and in the manner provided for by the Purchase Agreement, be validly issued, fully paid and non-assessable (which term, when used herein, means that the holders of such Securities are not liable, solely by virtue of holding such Securities, for additional assessments or calls on such Securities by the Company or its creditors); and

 

3.              All corporate action on the part of the Company necessary for the authorization, execution and delivery of the Agreement, the Registration Rights Agreement and the Warrants by the Company, the authorization, sale, issuance and delivery of the Securities and the performance by the Company of its obligations under the Agreement, the Registration Rights Agreement and the Warrants has been taken by the Company. The Agreement, the Registration Rights Agreement and the Warrants have been duly and validly executed and delivered by the Company and each of them constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with their respective terms.

 

4.              No approval of the shareholders of the Company is required for the execution and delivery of the Purchase Agreement and the Registration Rights Agreement, and the offer, sale or issuance of the Securities, or the consummation by the Company of any other transaction contemplated by the Agreement.

 

To be given by U.S. Company Counsel:

 

5.              The execution and delivery of the Transaction Documents and the issuance and sale by the Company of the Securities to the Purchasers pursuant to the Purchase Agreement do not and will not (A) contravene or violate any provision of New York or federal law, or any rule or regulation thereunder, in each case that, in our experience, is typically applicable to transactions of the nature contemplated by the Purchase Agreement and is applicable to the Company, (B) to our knowledge, result in any breach of, violation of or constitute a default under any currently effective decree, judgment or order currently applicable to the Company, or (C) result in any breach of or constitute a default under any of the Material Contracts.

 

6.              No consent, approval, authorization or order of, or registration, declaration or filing with, any federal, New York court, other governmental or regulatory authority or agency is required for the execution and delivery of the Purchase Agreement and the Registration Rights Agreement, and the offer, sale or issuance of the Securities, or the consummation by the Company of any other transaction contemplated by the Agreement, except for the Form D with respect to the Securities as required under Regulation D, and such consents, approvals, authorizations, orders and registrations or filings as may be required under applicable state securities laws, as to which we express no opinion, from FINRA (as to which we express no opinion).

 

 

7.              Subject to the accuracy of the Purchasers’ representations in Section 3.2 of the Agreement, the offer, sale and issuance of the Securities in conformity with the terms of the Agreement constitute transactions exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended.

 

8.              The Company is not, and, immediately after giving effect to the offering and sale of the Shares and Warrants, will not be an “investment company” or an entity controlled by an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended.

 

9.              Except as otherwise disclosed in the Disclosure Materials or Disclosure Schedules, to such counsel’s knowledge, there are no written contracts, agreements or understandings between the Company and any person granting such person the right (other than rights which have been waived in writing or otherwise satisfied) to require the Company to include any securities of the Company in any registration statement contemplated by Section 2 of the Registration Rights Agreement

 

 

EXHIBIT C

 

FORM OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

 

 

[STRONGBRIDGE LETTERHEAD]

 

December   , 2016

 

Computershare

Transfer Agent and Registrar

ATTN: Paul Amante

480 Washington Blvd

Jersey City, NJ 07310

 

Ladies and Gentlemen:

 

You are hereby authorized and requested, as Registrar and Transfer Agent of the ordinary shares of Strongbridge Biopharma plc (the “Corporation”), to issue share certificates representing an aggregate of 14,000,000 ordinary shares (the “Shares”) in such names and amounts set forth on Schedule A hereto.

 

Please issue and countersign share certificates in the names of the individuals and entities set forth on Schedule A, and deliver such certificates by certified overnight delivery to the addresses corresponding to such individuals and entitles, set forth in Schedule A hereto.  Please also update the records on Computershare’s system for the Shares at the time of sale of the Shares on December    , 2016.

 

The Shares should bear a restrictive legend acknowledging that, among other things, the Shares are restricted under U.S. securities laws.  The required legend that should appear on the Shares is set forth in the attached Schedule B.

 

[Signature Page Follows]

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
STRONGBRIDGE BIOPHARMA   PLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
Received and   Acknowledged:
    	
 
    
	
 
    	
 
    
	
COMPUTERSHARE TRUST   COMPANY, N.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
				

 

 

SCHEDULE A

 

Ordinary Share Recipients

 

	
Purchaser Exact
   Name
    	
 
    	
Address for Notice
    	
 
    	
Address for Delivery
    	
 
    	
Tax ID
    	
 
    	
Share Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE B

 

Share Certificate Legend

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

EXHIBIT D

 

ACCREDITED INVESTOR QUESTIONNAIRE

 

 

STRONGBRIDGE BIOPHARMA PLC

ACCREDITED INVESTOR QUESTIONNAIRE

 

Ladies and Gentlemen:

 

The undersigned hereby represents that the undersigned has read the definition of “Accredited Investor” from Rule 501 of Regulation D attached hereto as Exhibit A and certifies that either (check one):

 

o            The undersigned is an “Accredited Investor” (please check the appropriate box on Exhibit A to indicate which of the categories listed describes the investing entity or individual); or

 

o            The undersigned is not an “Accredited Investor.”

 

The foregoing representation is true and accurate as of the date first written below. The undersigned acknowledges and agrees that Strongbridge Biopharma plc will be entitled to rely on the truth and accuracy of the foregoing.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
[NAME OF INVESTOR]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated: December      , 2016
    	
By:
    	
 
    
	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    	
Print   Title (if applicable)
    
	
 
    	
 
    	
 
    

 

	
 
    	
Address (at the State of Domicile):
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Daytime Telephone Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Email:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Daytime Fax Number:
    	
 
    	
 
    

 

 

EXHIBIT A

 

Rule 501.    Definitions and Terms Used in Regulation D.

 

As used in Regulation D, the following terms have the meaning indicated:

 

(a)           Accredited Investor.  “Accredited investor” shall mean any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the following categories, at the time of the sale of the securities to that person:

 

o                                    Any natural person whose individual net worth(1), or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000 (excluding the value of such person’s primary residence);

 

 

o                                    Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

 

o                                    Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

 

o                                    Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

 

o                                    Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 

(1)  In calculating net worth, an individual may include equity in his or her personal property and real estate (other than his or her primary residence), cash, short-term investments, stock and securities.  Inclusion of equity in personal property and real estate (other than an individual’s primary residence) should be based on the fair market value of such property less debt secured by such property.  An individual may not include the value of his or her primary residence in calculating net worth and may exclude the amount of any indebtedness secured by his or her primary residence up to the fair market value of the residence. The amount of any indebtedness secured by an individual’s primary residence in excess of fair market value of the residence must be included as a liability in calculating net worth.  An individual must also include as a liability any increase in the amount of debt secured by his or her primary residence incurred within 60 days prior to the date of his or her subscription for the Securities unless such debt is incurred in connection with the acquisition of the primary residence.

 

 

o                                    Any director, executive officer or general partner of the issuer of the securities being offered or sold, or any director, executive officer or general partner of a general partner of that issuer;

 

o                                    Any trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii);

 

o                                    Any entity in which all of the equity owners are Accredited Investors.

 

 

EXHIBIT E

 

FORM OF SECRETARY’S CERTIFICATE

 

 

STRONGBRIDGE BIOPHARMA PLC

 

SECRETARY’S CERTIFICATE

 

I, Stephen Long, the duly elected, qualified and acting Chief Legal Officer and Secretary of Strongbridge Biopharma plc, an Irish public limited company (registered no. 562659) (the “Company”), do hereby certify that:

 

(a)                                 A true and complete copy of resolutions relating to the issuance of         ordinary shares of the Company to those persons identified in the Securities Purchase Agreement, dated as of December   , 2016, by and among the Company and the purchasers named therein, as adopted by the Board of Directors of the Company by unanimous written consent dated as of December   , 2016, is attached hereto as Exhibit A; and such resolutions have not been amended or revoked and are in full force and effect on the date hereof;

 

(b)                                 Attached hereto as Exhibit B are true and complete copies of the Company’s (i) Certificate of Incorporation and (ii) Memorandum and Articles of Association.  Such Certificate of Incorporation and Memorandum and Articles of Association have not been amended or modified in any way and each remains in full force and effect on and as of the date hereof; and

 

(c)                                  The persons listed below have been duly elected to, and presently hold, the office or offices in the Company set opposite his or her name and each signature set opposite each name is a true and correct copy of such officer’s signature.

 

	
Name
    	
 
    	
Office
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Matthew Pauls
    	
 
    	
Chief Executive Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
A. Brian Davis
    	
 
    	
Chief Financial Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Stephen J. Long
    	
 
    	
Chief Legal Counsel and Secretary
    	
 
    	
 
    

 

(d)                                 Attached hereto is a letter of status from the Irish companies registration office dated as of December    , 2016, confirming the Company’s subsistence as of such date.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the undersigned has signed this Certificate this     day of December 2016.

 

	
 
    	
 
    
	
 
    	
Stephen   Long
    
	
 
    	
Chief   Legal Counsel and Secretary
    

 

The undersigned, the Chief Executive Officer of the Company, does hereby certify that Stephen Long is, and at all times since March 2015 has been, the duly elected, qualified and acting Secretary of the Company and that the signature appearing above is his genuine signature.

 

	
 
    	
 
    
	
 
    	
Matthew   Pauls
    
	
 
    	
Chief   Executive Officer
    

 

 

EXHIBIT F

 

FORM OF OFFICER’S CERTIFICATE

 

 

STRONGBRIDGE BIOPHARMA PLC

 

OFFICER’S CERTIFICATE

 

December   , 2016

 

Reference is made to that certain Securities Purchase Agreement, dated as of December   , 2016, by and among Strongbridge Biopharma plc, an Irish public limited company (the “Company”), and each purchaser identified on the signature pages thereto (the “Securities Purchase Agreement”).  Capital Terms used herein and not defined have the meanings ascribed to them in the Securities Purchase Agreement.

 

I, A. Brian Davis, in my capacity as the Chief Financial Officer of the Company, hereby certify as follows:

 

1)             The representations and warranties of the Company contained in the Securities Purchase Agreement are true and correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which case such representations and warranties are true and correct in all respects) as of the date made and as of the date hereof, as though made on and as of the date hereof, except that such representations and warranties that relate to an earlier date were true and correct on and as of such earlier date.

 

2)             The Company has performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the date hereof.

 

3)             The execution and delivery of the Securities Purchase Agreement, and the issuance and sale by the Company of the Shares and Warrants to the Purchasers pursuant to the Securities Purchase Agreement, and the issuance of the Warrant Shares upon exercise of the Warrants pursuant to the terms of the Warrants, do not and will not result in any breach of, violation of, or constitute a default under, any currently effective decree, judgment or order currently applicable to the Company.

 

4)             The undersigned is a duly elected or appointed, qualified and acting officer of the Company, holding the office of Chief Financial Officer; said officer has been authorized to execute and deliver on behalf of the Company any instruments, consents or agreements required under the Securities Purchase Agreement to which the Company is a party that he has executed and delivered.

 

[Signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned has signed this Officers’ Certificate as of the date first set forth above.

 

 

	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
A. Brian Davis
    
	
 
    	
Title:
    	
Chief Financial Officer

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