Document:

Exhibit 10.1

 

INVESTOR RIGHTS AGREEMENT

 

This Investor
Rights Agreement (this “Agreement”) is made and entered into as of February 12, 2020 by and between Armata
Pharmaceuticals Inc., a Washington corporation (the “Company”), and Innoviva, Inc., a Delaware corporation (the
 “Purchaser”), in connection with that certain Securities Purchase Agreement, dated as of January 27, 2020, by
and between the Company and the Purchaser (the “Purchase Agreement”). Capitalized terms used herein have the
respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.

 

The parties hereby
agree as follows:

 

1.                 
Certain Definitions.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

“Applicable
Percentage” means, with respect to any person on any date of determination, the quotient, expressed as a percentage,
determined by dividing (i) the number of Company Common Stock owned (directly or indirectly) by such person determined on a Fully
Diluted Basis by (ii) the total number of Company Common Stock that are issued and outstanding determined on a Fully Diluted Basis.

 

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

 

“Company Common
Stock” means the shares of common stock, par value $0.01 per share, of the Company.

 

“Exchange
Shares” means Company Common Stock issued or issuable upon the exchange of the Warrants pursuant to the terms thereof.

 

“Exempted
Securities” means

 

(i)           
Company Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable
into or exercisable for Company Common Stock) issued as a dividend or distribution on the Warrants;

 

(ii)           
Company Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable
into or exercisable for Company Common Stock) issued by reason of a dividend, stock split, split-up or other distribution of Company
Common Stock;

 

(iii)           
Company Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable
into or exercisable for Company Common Stock) issued to employees or directors of, or consultants or advisors to the Company or
any of its Subsidiaries pursuant to a plan, agreement or arrangement;

 

(iv)           
Company Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable
into or exercisable for Company Common Stock) issued to banks, equipment lessors or other financial institutions, or to real property
lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction ; or

 

     

     

    

 

(v)           
Company Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable
into or exercisable for Company Common Stock) issued in connection with sponsored research, collaboration, technology license,
development, manufacturing, supply, distribution, marketing or other similar commercial agreements or strategic partnerships.

 

“Fully Diluted
Basis” means the number of shares of Company Common Stock outstanding or held (as the case may be), assuming the conversion,
exchange or exercise of all securities or other instruments or rights that are convertible into or exercisable or exchangeable
for Company Common Stock that are outstanding. For purposes of this definition, all Warrants shall be deemed converted on the date
of determination in exchange for cash.

 

“Governmental
Entity” means any federal, state, local, foreign, international or multinational entity or authority exercising executive,
legislative, judicial, regulatory, administrative or taxing functions of or pertaining to government.

 

“New Securities”
means, collectively, equity securities of the Company (including Company Common Stock), whether or not currently authorized, as
well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may
become, convertible or exchangeable into or exercisable for such equity securities. For the avoidance of doubt, New Securities
shall not include any Exempted Securities.

 

“Purchased
Shares” means the Company Common Stock acquired by the Purchaser pursuant to the Purchase Agreement.

 

2.                 
Registration. [Reserved].

 

3.                 
Participation Rights.

 

(a)        
Subject to the terms and conditions of this Section 3 and applicable securities or blue sky laws, if the Company
proposes to offer or sell any New Securities, the Company shall first offer such New Securities to the Purchaser in accordance
with the terms hereof.

 

(b)        
The Company shall give notice (the “Offer Notice”) to the Purchaser, stating (i) its bona fide intention
to offer or sell such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any,
upon which it proposes to offer such New Securities.

 

(c)        
By written notification to the Company within thirty (30) days after the Offer Notice is delivered to the Purchaser, the
Purchaser may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion
of such New Securities which equals the Purchaser’s Applicable Percentage. The failure of the Purchaser to deliver such written
notice within such time period shall be deemed an election by the Purchaser not to exercise its purchase rights with respect to
such Offer Notice. To the extent that the Company offers two (2) or more New Securities or other securities in units, the Purchaser
must purchase such units as a whole and will not be given the opportunity to purchase only one of the securities making up such
unit.

 

    	 	- 2 -	 

     

    

 

(d)        
The Company shall sell all applicable New Securities to the Purchaser if it has elected to purchase such New Securities
on a date to be mutually determined by the Company and the Purchaser, which date shall be not later than end of the ten (10) day
period commencing at the expiration of the initial thirty (30) day election period; provided, however, that such ten (10) day period
shall be extended automatically if any approvals or consents of any Governmental Entities are required to consummate the transaction
and such approvals or consents are not received within such ten (10) day period for up to an additional one hundred twenty (120)
days as long as such approvals or consents remain outstanding and the parties are continuing to exercise commercially reasonable
efforts to obtain them.

 

(e)        
Upon the expiration of the offering period described in Section 3(d), the Company will be free to sell, during the
one hundred twenty (120) day period commencing at the expiration of, as applicable, the initial thirty (30) day election period
following delivery of an Offer Notice (as may be extended in accordance with Section 3(d)), any New Securities that the
Purchaser has not elected to purchase, at a sale price not less than, and on other terms no less favorable to the Company than,
those offered to the Purchaser as set forth in the Offer Notice, provided, that such one hundred twenty (120) day period shall
be extended automatically if any approvals or consents of any Governmental Entities are required to consummate the transaction
and such approvals or consents are not received within such one hundred twenty (120) day period for up to an additional one hundred
twenty (120) days as long as such approvals or consents remain outstanding and the parties are continuing to exercise commercially
reasonable efforts to obtain them. Any New Securities offered or sold by the Company after such one hundred twenty (120) day period
(as such period may be extended in accordance with the immediately preceding sentence) must be reoffered to the Purchaser pursuant
to this Section 3.

 

(f)         
The election by the Purchaser not to exercise its subscription rights under this Section 3 in any one instance shall
not affect its right (other than in respect of a reduction in its Applicable Percentage) as to any subsequent proposed issuance
of New Securities under this Section 3. The provisions of this Section 3 shall apply equally to any issuance or sale
by the Company or any of its Subsidiaries of equity securities that would be deemed New Securities if issued by the Company which,
for the avoidance of doubt, shall not include any issuance of New Securities by a wholly-owned Subsidiary to the Company or to
another wholly-owned Subsidiary of the Company. Subject to the terms of this Section 3, any sale of New Securities by the
Company or any other entity covered by the preceding sentence without first giving the Purchaser the rights described in this Section
3 shall be null and void and of no force and effect.

 

(g)        
Notwithstanding the terms set forth in this Section 3, if the Board determines in good faith that the Company must
issue New Securities on an expedited basis without prior compliance with the terms of this Section 3 in order to avoid material
harm to the Company (an “Expedited Issuance”), then, subject to compliance with the terms of the immediately
following sentence, the Company may effect and consummate such Expedited Issuance without complying with the terms set forth in
this Section 3 and shall not be deemed to be in breach of this Section 3 as a result thereof. As promptly as practicable
following the consummation of such Expedited Issuance, the Company and the Purchaser shall comply with the terms of this Section
3 in respect of the New Securities issued in such Expedited Issuance such that the Purchaser has the opportunity to participate
in such Expedited Issuance of New Securities and be put in the same place (including in respect of the percentage ownership of
the equity securities of the Company) they would have been had such Expedited Issuance been effected in accordance with the terms
of this Section 3.

 

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(h)     
(i) The provisions of this Section 3 (i) shall not apply to the issuance of Exempted Securities and (ii) shall terminate
and be of no further force or effect as of such time that the Purchaser, together with its Affiliates, have an Applicable Percentage
of less than 10%.

 

4.                 
Board Matters.

 

(a)              
For so long as the Purchaser, together with its Affiliates and permitted assignees (collectively, the “Investors”)
have an Applicable Percentage of at least 8%, the Company shall cause the Board to consist of not more than eight (8) members without
the prior written consent of the Investors (which shall not be unreasonably withheld).

 

(b)              
For so long as the Investors have an Applicable Percentage of at least 12.5%, the Investors shall have the right to designate
two (2) directors to the Board, and for so long as the Investors, collectively, and together with their Affiliates, continue to
have an Applicable Percentage of at least8% but less than 12.5%, the Investors shall have the right to designate one (1) director
to the Board, in each case, in accordance with the terms of this Section 4. Any directors designated by the Investors in
accordance with this Section 4 shall be referred to as “Investor Designees”. It is the intention of the
Investor that the initial Investor Designees shall consist of Dr. Odysseas Kostas MD and Sarah Schlesinger MD . The right to designate
one or more Investor Designees shall terminate and be of no further force or effect as of such time that the Investors have an
Applicable Percentage of less than an applicable threshold percentage referenced in the first sentence of this Section 4(b).
At any point in which the Investors are entitled to designate an Investor Designee, the Investors may provide written notice (a
 “Designation Notice”) to the Company naming the applicable Investor Designee(s) and demanding that the applicable
Investor Designee(s) be appointed to the Board. Promptly, and in any event within five (five) Business Days, following receipt
of the Designation Notice, the Company shall (i) cause a number of existing members of the Board equal to the number of Investor
Designees so designated to resign from the Board and (ii) cause the Investor Designees to be appointed to the Board. Following
the delivery of a Designation Notice and prior to the appointment of the Investor Designees to the Board, the Company shall not
(and shall cause its Subsidiaries not to) take or approve any action outside of the ordinary course of business including (without
limitation) in respect of:

 

		(i)	strategic transactions, joint ventures and collaborations;

 

		(ii)	sale or acquisition of assets or shares of the Company or any of its Subsidiaries, whether by merger,
consolidation or otherwise;

 

		(iii)	issuance of equity or debt securities;

 

		(iv)	incurrence or prepayment of indebtedness;

 

		(v)	declaration or payment of any dividend or distribution;

 

 

    	 	- 4 -	 

     

    

 

		(vi)	amendment of any provision of this Agreement or any other governing documents of the Company or
any of its Subsidiaries in a manner that would be inconsistent with the provisions of this Agreement;

 

		(vii)	any change to the Company’s or any Subsidiary’s legal
form, domicile or tax structure, or make any material change to the Company’s accounting or tax policies or practices;
or

 

		(viii)	amend or alter the compensation of any of the Company’s or Subsidiary’s
executives.

 

(c)              
With respect to any vote of the Board, each director shall have one (1) vote and approval of all matters shall require the
affirmative vote of a majority of directors.

 

(d)              
Subject to the terms of this Section 4, from and after the date hereof, the Company shall take all action within
its power to cause the covenants set forth in Section 4(a) and Section 4(b) to be fulfilled in all respects including:
(i) causing the Investor Designees to be named in any proxy statement of the Company with respect to the election of members of
the Board, (ii) soliciting the votes of shareholders in respect of the Investor Designees in the same manner and with the same
level of effort as with the solicitation in respect of other members of the Board, (iii) seeking to amend any organizational documents
of the Company necessary to give effect to the Investors’ rights hereunder as may reasonably be requested by the Investors
and (iv) take all actions permitted by applicable law to cause the Investor Designees to be members of the Board (including the
appointment of the Investor Designees to the Board).

 

(e)              
Subject to clause (e) immediately below, in the event that an Investor Designee ceases to serve on the Board for any reason
(including the death, disability or resignation of such person), the Investors shall be entitled to appoint a new Investor Designee
in the place of such person, and the terms of this Section 4 shall apply equally to such replacement.

 

(f)               
In the event that the Applicable Percentage of the Investors (and their Affiliates) falls below a threshold set forth in
Section 4(b) such that the Investors shall lose the right to designate one or more Investor Designees, if one or more Investor
Designee has been designated, the Investors shall identify which of the Investor Designees shall no longer be an Investor Designee
(such person, a “Departing Designee”), and which Investor Designee(s) (if any) will remain as such; for the
avoidance of doubt, the terms of this Section 4 shall continue to apply to any Investor Designee who is not a Departing
Designee. In the event of a Departing Designee, the Investors shall cause the removal or resignation of such Departing Designee
prior to the next annual meeting of the Company shareholders, and the provisions of Section 4(b) and (c) shall not
apply to such Departing Designee, and in connection therewith, the Company shall not be required to name such Departing Designee
on its proxy statement or solicit votes in favor of such Departing Designee.

 

    	 	- 5 -	 

     

    

 

(g)              
For so long as the Investor holds the Applicable percentages set forth above, in the event that any member of the Board
serves on the board of directors or similar governing body of any Subsidiary of the Company (a “Subsidiary Board”)
or in the event that any shareholder of the Company has appointed or designated a person to serve on a Subsidiary Board, the Investors
shall be entitled to designate a number of Investor Designees to the Subsidiary Board equal to the greater of (x) one Investor
Designee or (y) such other number of Investor Designees such that the proportionate representation of Investor Designees on such
Subsidiary Board approximates, as closely as possible, the proportionate representation of Investor Designees on the Board.

 

Subject to applicable
law and listing requirements, the Investor Designees shall be entitled to be a member of any committee of the Board (including
an executive or similar committee).

 

(h)              
Any person designated by the Investor as an Investor Designee must possess the requisite financial and business experience
to serve as a director of the Company (it being understood that the directors and each of the executives and investment professionals
employed by the Investor or its Affiliates shall be deemed to possess such experience). If the Board and all applicable committees
of the Board reasonably determine that an Investor Designee satisfies the criteria in the foregoing sentence, the Board shall nominate
and appoint such Investor Designee to the Board.

 

(i)                
For purposes of this Section 4, whenever the action of the Investors is required, such action shall be effected by
vote of a majority of Investors.

 

5.                 
Information and Confidentiality.

 

The Company shall provide to Purchaser
all information and documentation reasonably requested by Purchaser, within the periods reasonably requested by Purchaser, as is
necessary for the Purchaser to complete and file all public filings required to be made by Purchaser under applicable Law and the
rules and regulations of the Securities Exchange Commission.

 

The
Purchaser agrees that it will keep confidential and will not disclose or divulge any confidential information obtained from the
Company pursuant to the terms of this Agreement, unless such confidential information (a) is known or becomes known to the public
in general (other than as a result of a breach of this Section 5 by the Purchaser), (b) is or has been independently developed
or conceived by the Purchaser without use of the Company’s confidential information, or (c) is or has been made known or
disclosed to the Purchaser by a third party without a breach of any obligation of confidentiality such third party may have to
the Company; provided, however, that the Purchaser may disclose confidential information (i) to its attorneys, accountants, consultants
and other professionals to the extent necessary to obtain their services in connection with matters related to the Company; (ii)
to any prospective purchaser of any Registrable Securities from the Purchaser, if such prospective purchaser agrees to be bound
by the provisions of this Section 5; (iii) to any Affiliate or its or their general or limited partners, members, stockholders,
employees, officers or directors, in the ordinary course of business, provided that the Purchaser informs such person that such
information is confidential and directs such person to maintain the confidentiality of such information; or (iv) as may otherwise
be required by law, regulation, rule, court order, arbitration order or subpoena, provided that the Purchaser promptly notifies
the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure. The Purchaser
acknowledges and agrees that the securities laws of the United States and other jurisdictions contain prohibitions on the trading
in the securities of the Company while in possession of material nonpublic information regarding the Company, and agrees
to comply with such restrictions.

 

    	 	- 6 -	 

     

    

 

6.                 
Miscellaneous.

 

(a)              
Amendments and Waivers. This Agreement may be amended only by a writing signed by the Company and the Purchaser.
The failure or delay in enforcing compliance at any time with respect to any of the provisions, terms or conditions of this Agreement
shall not be considered a waiver of such provision, term or condition itself or of any of the other provisions, terms or conditions
hereof.

 

(b)              
Notices. All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 9.1
of the Purchase Agreement.

 

(c)              
Assignments and Transfers by the Purchaser. The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns. The Purchaser may transfer or assign, in whole or
from time to time in part, to one or more persons its rights hereunder in connection with the transfer of Registrable Securities
by the Purchaser to such person, provided that the Purchaser complies with all laws applicable thereto and the provisions of the
Purchase Agreement and the Warrant and provides written notice of assignment to the Company prior to such assignment or transfer
being effected, and such transferee agrees in writing and as a condition to the receipt of Registrable Securities to be bound by
all of the provisions contained herein.

 

(d)              
Assignments and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation
of law or otherwise) without the prior written consent of the Purchaser; provided, however, that in the event that the Company
is a party to a merger, consolidation, share exchange or similar business combination transaction in which the Company Common Stock
are converted into the equity securities of another person, from and after the effective time of such transaction, such person
shall, by virtue of such transaction, be deemed to have assumed the obligations of the Company hereunder, and the term “Company”
shall be deemed to refer to such person and the term “Registrable Securities” shall be deemed to include the securities
received by the Purchaser in connection with such transaction unless such securities are otherwise freely tradable by the Purchaser
after giving effect to such transaction.

 

(e)              
Benefits of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective successors and permitted assigns of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

    	 	- 7 -	 

     

    

 

(f)               
Counterparts. This Agreement may be executed in several counterparts, and by each party on separate counterparts,
each of which and any photocopies or other electronic transmission (including by PDF) thereof shall be deemed an original, but
all of which together shall constitute one and the same agreement.

 

(g)              
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

(h)              
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders
any provisions hereof prohibited or unenforceable in any respect.

 

(i)                
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all
such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment
of the agreements herein contained.

 

(j)                
Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject
matter.

 

(k)              
Specific Performance. Without limiting remedies that may be available at law or in equity, the parties acknowledge
that any failure by any party to comply with their respective obligations under this Agreement would result in material irreparable
injury to the other party for which there is no adequate remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, the non-breaching party may specifically enforce the breaching party’s
obligations under this Agreement without the need to show actual damages and without the need to post a bond or other security.

 

(l)                
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Delaware without regard to the choice of law principles thereof. Each Party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement
(whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall
be commenced exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits
to the exclusive jurisdiction of such courts for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or other proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or other proceeding by mailing a copy thereof via registered
or certified United States 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 other manner permitted by law. The
Parties hereby waive all rights to a trial by jury.

 

[Remainder of page intentionally left blank]

 

    	 	- 8 -	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first
above written.

 

 

	 	COMPANY:
	 	 
	 	Armata Pharmaceuticals Inc. 
	 	 
	 	 
	 	By:	/s/ Todd R. Patrick
	 	Name:  Todd R. Patrick
	 	Title: Chief Executive Officer
	 	 
	 	PURCHASER:
	 	 
	 	Innoviva, Inc.
	 	 
	 	 
	 	By:	/s/ Geoffrey Hulme
	 	Name: Geoffrey Hulme
	 	Title:  Interim Principal Executive OfficerExhibit

Exhibit 4.3

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
 
The following is a brief description of the ordinary shares, $0.01 par value per share the “Ordinary Shares”), of Delphi Technologies PLC (the “Company”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

Description of Ordinary Shares

General

The following descriptions of our Ordinary Shares and of certain provisions of Jersey law do not purport to be complete and are subject to and qualified in their entirety by reference to our Memorandum and Articles of Association and the Companies (Jersey) Law 1991, as amended (the "Law"). A copy of our Memorandum and Articles of Association (“Articles of Association”) has been filed with the Securities and Exchange Commission (the “SEC”) as Exhibit 3.1 to our Annual Report on Form 10-K. All of our outstanding Ordinary Shares are validly issued, fully paid and non-assessable. Our Ordinary Shares are listed on the New York Stock Exchange under the symbol “DLPH.”

Ordinary Shares

No preemptive or similar rights.  The Ordinary Shares do not have preemptive, subscription or redemption rights. Neither our Articles of Association nor the laws of Jersey restrict in any way the ownership or voting of Ordinary Shares held by non-residents of Jersey. The rights, preferences and privileges of the holders of our Ordinary Shares are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred shares that we may designate in the future. 

Dividend and Liquidation Rights. Holders of Ordinary Shares are entitled to receive equally, share for share, any dividends that may be declared in respect of our Ordinary Shares by the board of directors out of funds legally available therefor. If, in the future, we declare cash dividends, such dividends will be payable in U.S. dollars. In the event of our liquidation, after satisfaction of liabilities to creditors, holders of Ordinary Shares are entitled to share pro rata in our net assets. Such rights may be affected by the grant of preferential dividend or distribution rights to the holders of a class or series of preferred shares that may be issuedin the future. Our board of directors has the power to declare such interim dividends as it determines. Declaration of a final dividend (which may not exceed the amounts proposed by our board of directors) requires shareholder approval by adoption of an ordinary resolution. Failure to obtain such shareholder approval does not affect previously paid interim dividends. 

Voting, Shareholder Meetings and Resolutions. Holders of Ordinary Shares have one vote for each ordinary share held on all matters submitted to a vote of holders of Ordinary Shares. These voting rights may be affected by the grant of any special voting rights to the holders of a class or series of preferred shares that may be issued in the future. Pursuant to Jersey law, an annual general meeting shall be held once every calendar year at the time (within a period of not more than 18 months after the last preceding annual general meeting) and at the place as may be determined by the board of directors. The quorum required for an ordinary meeting of shareholders consists of one or more shareholders present in person or by proxy who hold or represent shares conferring not less than a majority of the total voting rights of all of the shareholders  entitled to vote at such meeting. An ordinary resolution (such as a resolution for the declaration of a final dividend, or the election of directors where the number of persons validly proposed for election or re-election as a director is equal to the number of directors to be elected) requires approval by the holders of a majority of the voting rights represented at a meeting, in person or by proxy, and voting thereon.  Where the number of persons validly proposed for election or re-election as a director is 

1

greater than the number of directors to be elected, the persons receiving the most votes (up to the number of directors to be elected) shall be elected as directors and an absolute majority of the votes cast shall not be a pre-requisite to the election of such directors.  A special resolution (such as a resolution to amend the Articles of Association) requires approval by the holders of 2/3 or more of the voting rights represented at a meeting, in person or by proxy, and voting thereon. 

Transfer of Shares. Fully paid Ordinary Shares are issued in registered form and may be freely transferred pursuant to the Articles of Association unless the transfer is restricted by applicable securities laws or prohibited by another instrument. 

Modification of Class Rights. The rights attached to any class (unless otherwise provided by the terms of issue of that class), such as voting, dividends and the like, may be varied with the sanction of a special resolution passed at a separate general meeting of the holders of the shares of that class.  The Articles of Association provide that the issue of any preferred shares shall not constitute a variation of the rights attaching to the Ordinary Shares.

Limitations on Rights of Holders of Ordinary Shares - Preferred Shares

The rights of holders of Ordinary Shares may be materially limited or qualified by the rights of holders of preferred shares that we may issue in the future. 

The board of directors has the authority to issue the preferred shares in one or more series and to fix the rights, preferences, privileges and restrictions of such shares, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series, without further vote or action by the shareholders. 

Our board may issue authorized preferred shares without further shareholder action, unless shareholder action is required by applicable law or by the rules of a stock exchange or quotation system on which any series of our shares may be listed or quoted. 

Any preferred shares that are issued may have priority over the Ordinary Shares with respect to dividend or liquidation rights or both. 

Anti-Takeover Effects of Provisions of Our Articles of Association

Our Articles of Association could delay, defer or prevent a third party from acquiring us. For example, our Articles of Association permit the following: 

Issuance of undesignated preferred shares. Our board of directors have the authority, without further action by the shareholders, to issue up to 50,000,000 shares of undesignated preferred shares with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but unissued shares of preferred shares could enable our board of directors to render more difficult or to discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or other means.  

Advance notice requirements for shareholder proposals and director nominations. Our Articles of Association provide advance notice procedures for shareholders seeking to nominate candidates for election as directors at our annual meeting of shareholders. Our Articles of Association also specify certain requirements regarding the form and content of a shareholder’s notice. Shareholders seeking to bring business before our annual meeting of shareholders must also provide advance notice and proposals must be submitted in accordance with the SEC's rules.  These provisions might preclude our shareholders 

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from bringing matters before our annual meeting of shareholders or from making nominations for directors at our annual meeting of shareholders if the proper procedures are not followed. We expect that these provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of the Company.

Directors removed only for cause. Our Articles of Association provides that shareholders may remove directors only for cause. 

Board of directors vacancies. Our Articles of Association authorize only our board of directors to fill vacant directorships (other than the filling of vacancies at each annual general meeting), including newly created seats. In addition, the maximum and minimum number of directors constituting our board of directors is permitted to be set only by a resolution adopted by our board of directors. These provisions would prevent a shareholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change the composition of our board of directors but promotes continuity of management. 

Shareholder action; extraordinary general meeting of shareholders. Any action required or permitted to be taken by the shareholders must be effected at a duly called annual or special meeting of shareholders and may not be effected by any consent in writing in lieu of a meeting of such shareholders. As a result, a holder controlling a majority of our capital stock would not be able to amend our Articles of Association, or remove directors without holding a meeting of our shareholders called in accordance with Articles of Association. Our Articles of Association  provide that extraordinary general meetings of our shareholders may be called by our board of directors and that such meetings shall be called upon a requisition of shareholders that is made in accordance with the Law (being a requisition made by shareholders holding, at the date of the deposit of the requisition, not less than one-tenth of the total voting rights of the shareholders who have the right to vote at extraordinary general meetings).. These provisions might delay the ability of our shareholders to force consideration of a proposal or for shareholders controlling a majority of our capital stock to take any action, including the removal of directors. 

Amendments to Governing Documents. A special resolution (such as, for example, a resolution amending our Articles of Association or approving any change in authorized capitalization, or a liquidation or winding-up) requires approval of the holders of two-thirds or more of the voting rights represented at the meeting, in person or by proxy, and voting thereon. A special resolution can only be considered if shareholders receive at least fourteen days’ prior notice of the meeting at which such resolution will be considered.

No cumulative voting. The Ordinary Shares do not have cumulative voting rights in the election of directors. As a result, the holders of Ordinary Shares that represent more than 50% of the voting power have the power to elect any of our directors who are up for election.

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