UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 26, 2014 (November 25, 2014)
QUOTIENT LIMITED
(Exact
Name of Registrant as Specified in Charter)
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Jersey, Channel Islands |
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001-36415 |
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Not Applicable |
(State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
Pentlands Science Park
Bush Loan, Penicuik, Midlothian
EH2 OPZ United Kingdom
(Address of Principal Executive Offices)
011-44-0131-445-6159
(Registrants telephone number, including area code)
N/A
(Former name or
former address, if changed since last report)
Check the
appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 |
Entry into a Material Definitive Agreement. |
On November 25, 2014, Quotient Limited
(the Company) entered into Subscription Agreements (the Subscription Agreements) with the subscribers identified on the signature pages thereto (the Subscribers) for the private placement (the Private
Placement) of 2,000,000 newly issued ordinary shares of the Company (the Shares) at a price of $9.50 per share and 850,000 newly issued pre-funded warrants of the Company (the Pre-Funded Warrants) at a price of $9.49
per warrant. Affiliates of Galen Partners LLP (Galen), the Companys largest shareholder, are purchasing 157,895 Shares in the Private Placement.
The Subscription Agreements contain representations, warranties and covenants that are customary for transactions of this type. The Shares and
the Pre-Funded Warrants sold in the Private Placement are expected to be delivered to the Subscribers on or about November 28, 2014, subject to the satisfaction of customary closing conditions.
Each Pre-Funded Warrant will be exercisable for one ordinary share of the Company (the Warrant Shares). Each Pre-Funded Warrant
will have an initial exercise price of $0.01 per Warrant Share, will be exercisable on December 1, 2014, and will expire on December 1, 2017. Subject to limited exceptions, a holder of the Pre-Funded Warrants will not have the right to
exercise any portion of such securities if the holder, together with its affiliates, would beneficially own in excess of 9.99% of the number of the Companys ordinary shares outstanding immediately after the exercise. The exercise price of the
Pre-Funded Warrants, and in some cases the number of Warrant Shares issuable upon exercise of the Pre-Funded Warrants, will be subject to adjustment in the event of share splits, share dividends, combinations, rights offerings and similar events
affecting the Companys ordinary shares. In addition, in the event the Company consummates a merger or consolidation with or into another person or other reorganization event in which the Companys ordinary shares are converted or
exchanged for securities, cash or other property, or the Company sells, leases, licenses or otherwise disposes of all or substantially all of its assets or the Company or another person acquire 50% or more of the outstanding ordinary shares, then
following such event, the holders of the Pre-Funded Warrants will be entitled to receive upon exercise of such Pre-Funded Warrants the same kind and amount of securities, cash or property which the holders would have received had they exercised the
Pre-Funded Warrants immediately prior to such fundamental transaction. Any successor to the Company or surviving entity shall assume the obligations under the Pre-Funded Warrants.
The holders must surrender payment in cash of the aggregate exercise price of the Warrant Shares being acquired upon exercise of the
Pre-Funded Warrants. No fractional shares will be issued in connection with the exercise of the Pre-Funded Warrants. In lieu of fractional shares, the Company will pay the holder an amount in cash equal to the fractional amount multiplied by the
exercise price.
In connection with the Private Placement, the Company also entered into Registration Rights Agreements, dated
November 25, 2014, with the Subscribers (the Registration Rights Agreements) pursuant to which it has agreed to file, within 30 days of the closing of the Private Placement, a registration statement with the Securities and Exchange
Commission (the SEC) to register the Shares and the Warrant Shares for resale, which registration statement is required to become effective within 90 days following the closing. The Company will be required to pay certain cash amounts as
liquidated damages of one percent (1%) of the aggregate purchase price of the Shares and the Warrant Shares that are registrable securities per month (up to a cap of 10%) if it does not meet certain of its obligations under the Registration
Rights Agreements with respect to the registration of the Shares and the Warrant Shares.
On November 25, 2014, the Company issued a
press release announcing the signing of the Subscription Agreements and Registration Rights Agreements. A copy of the press release is attached to this report as Exhibit 99.1, and is incorporated herein by reference. The Registration Rights
Agreements, the form of Pre-Funded Warrant and the Subscription Agreements are attached hereto as Exhibits 4.1, 4.2, 4.3, 10.1 and 10.2, respectively, and are incorporated herein by reference.
The foregoing description of the Registration Rights Agreements, the Subscription Agreements and
the Pre-Funded Warrants does not purport to be complete and is qualified in its entirety by reference to the full text of the Registration Rights Agreements, the Subscription Agreements and the form of Pre-Funded Warrant attached hereto.
Item 3.02 |
Unregistered Sales of Equity Securities. |
The information set forth in Item 1.01 of
this Current Report on Form 8-K that relates to the unregistered sale of equity securities is incorporated by reference into this Item 3.02.
The aggregate offering price of the Shares and the Pre-Funded Warrants to be sold in the Private Placement is approximately $27 million, of
which an aggregate of approximately $2.0 million will be paid to the placement agent, Jefferies LLC, for its services in connection with the Private Placement.
The sale of the Shares and the Pre-Funded Warrants has not been, and the sale of the Warrant Shares issuable upon exercise of the Pre-Funded
Warrants will not be, registered under the Securities Act of 1933, as amended (the Securities Act). The Shares and the Pre-Funded Warrants, and the Warrant Shares issuable upon exercise of the Pre-Funded Warrants, will be sold to
accredited investors in reliance upon exemptions from registration under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder. The Shares, the Pre-Funded Warrants and the Warrant Shares may not be offered or
sold in the United States absent registration under or exemption from the Securities Act and any applicable state securities laws. Each of the Subscribers in the Private Placement represented that it was an accredited investor as defined in
Regulation D and that it was acquiring the Shares and/or the Pre-Funded Warrants for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof, and appropriate legends were affixed to the
Shares and the Pre-Funded Warrants. Upon exercise, each holder of Pre-Funded Warrants will represent that it is an accredited investor as defined in Regulation D and that it is acquiring the Warrant Shares for investment only and not with a view
towards, or for resale in connection with, the public sale or distribution thereof, and appropriate legends will be affixed to the Warrant Shares.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits
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Exhibit Number |
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Description |
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4.1 |
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Registration Rights Agreement, dated November 25, 2014, by and among Quotient Limited and Visium Balanced Master Fund, Ltd. |
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4.2
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Registration Rights Agreement, dated November 25, 2014, by and among Quotient Limited and the Subscribers named therein. |
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4.3 |
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Form of Pre-Funded Warrant. |
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10.1
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Subscription Agreement, dated November 25, 2014, by and among Quotient Limited and Visium Balanced Master Fund, Ltd. |
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10.2 |
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Subscription Agreement, dated November 25, 2014, by and among Quotient Limited and the Subscribers named therein. |
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99.1 |
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Press Release, dated November 25, 2014. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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QUOTIENT LIMITED |
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Date: November 26, 2014 |
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By: |
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/S/ Stephen
Unger |
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Stephen Unger |
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Chief Financial Officer |
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Exhibit 4.1
REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT (this Agreement), dated as of November 25, 2014, by and among Quotient Limited, a
company organized under the laws of Jersey (the Company), and Visium Balanced Master Fund, Ltd., an exempted company organized under the laws of the Cayman Islands (Visium or, the Subscriber).
WHEREAS:
A. In
connection with the Subscription Agreement by and among the parties hereto of even date herewith (the Visium Subscription Agreement), the Company has agreed, upon the terms and subject to the conditions of the Visium Subscription
Agreement, to issue on the date hereof to the Subscriber (i) new ordinary shares, with no par value in the capital of the Company (the Ordinary Shares and, the shares issued to Subscriber, the Visium
Shares), and (ii) warrants (the Warrants), which will be exercisable to purchase Ordinary Shares (as exercised collectively, the Warrant Shares).
B. To induce Visium to execute and deliver the Visium Subscription Agreement, the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the 1933 Act), and applicable state securities laws.
C. On or about the date hereof, the Company has entered into a Subscription Agreement (the New Ordinary Shares Subscription
Agreement) with certain other subscribers (each a New Ordinary Shares Subscriber and together the New Ordinary Shares Subscribers), whereby the Company has agreed, upon the terms and subject to the
conditions of the New Ordinary Shares Subscription Agreement, to issue on the date thereof to each New Ordinary Shares Subscriber new Ordinary Shares (the shares issued to New Ordinary Shares Subscribers, the New Ordinary Shares).
D. To induce the New Ordinary Shares Subscribers to execute and deliver the New Ordinary Shares Subscription Agreement, the Company has
agreed to provide certain registration rights under the 1933 Act and applicable state securities laws (the New Ordinary Shares RRA).
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and Visium hereby agree as follows:
Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings set forth in the Visium Subscription Agreement. As used in this Agreement, the following terms shall have the following meanings:
a. Business Day means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New
York, in the State of New York, United States of America, are authorized or required by law to remain closed.
b. Closing Date shall have the meaning set forth in the Visium Subscription
Agreement.
c. Effective Date means the date the Registration Statement has been declared effective by the SEC.
d. Effectiveness Deadline means the date that is 90 days after the Closing Date.
e. Filing Deadline means the date that is 30 days after the Closing Date.
f. Investor or Investors means the Subscriber or any transferee or transferees, assignee or assignees
thereof to whom Subscriber assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9.
g.
Person means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.
h. register, registered and registration refer to a registration effected by
preparing and filing one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415 and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.
i. Registrable Securities means (i) the Visium Shares, (ii) the Warrant Shares issued or issuable upon exercise
of the Warrants, without regard to any limitation on exercise of the Warrants, and (iii) any shares in the capital of the Company issued or issuable with respect to the Visium Shares, the Warrant Shares or the Warrants as a result of any share
split, share dividend, recapitalization, exchange or similar event or otherwise, without regard, in the case of the Warrants, to any limitation on exercise of the Warrants.
j. Registration Statement means a registration statement or registration statements of the Company filed under the 1933
Act covering the Registrable Securities.
k. Required Holders means the holders of at least a majority of the
Registrable Securities, determined as if all of the Warrants then outstanding have been exercised for Registrable Securities without regard to any limitations on the exercise of the Warrants.
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l. Required Registration Amount for the Registration Statement means 100% of
the sum of (i) the number of Visium Shares issued pursuant to the Visium Subscription Agreement and (ii) the number of Warrant Shares issued and issuable pursuant to the Warrants as of the applicable date of determination (without regard
to any limitations on exercise of the Warrants), all subject to adjustment as provided in Section 2(f).
m. Rule 415
means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities on a continuous or delayed basis.
n. SEC means the United States Securities and Exchange Commission.
a. Mandatory Registration. The Company shall prepare, and, as
soon as reasonably practicable but in no event later than the Filing Deadline, file with the SEC the Registration Statement covering the resale of at least the number of Ordinary Shares equal to the Required Registration Amount determined as of date
the Registration Statement is initially filed with the SEC. In the event that Form S-3 is unavailable for a registration, the Company shall use such other form as is available for such a registration and reasonably acceptable to the Required
Holders, subject to the provisions of Section 2(e). The Registration Statement shall contain (except if otherwise directed by the Required Holders) the Selling Shareholders and Plan of Distribution sections
in substantially the form attached hereto as Exhibit B. The Company shall use its commercially reasonable efforts to have the Registration Statement declared effective by the SEC as soon as reasonably practicable, but in no event later than
the Effectiveness Deadline. By 5:30 p.m. on the second Business Day following the Effective Date, the Company shall file with the SEC, in accordance with Rule 424 under the 1933 Act, the final prospectus to be used in connection with sales pursuant
to such Registration Statement.
b. Combined Registration. Notwithstanding Section 2(c), the Company shall include in
any Registration Statement filed hereunder the New Ordinary Shares required to be registered under the New Ordinary Shares RRA. For so long as such New Ordinary Shares are included in any Registration Statement, the holders of such New Ordinary
Shares shall be deemed to be holders of Registrable Securities for purposes of the definition of Required Holders as such term is used in Sections 2 and 3.
c. Allocation of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any
increase in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number
of Registrable Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any of such Investors Registrable Securities, each transferee that is assigned rights under this
Agreement pursuant to Section 9 shall be allocated a pro rata portion of the number of Registrable Securities then included in such Registration Statement for such Investor. Any Ordinary Shares included in a Registration Statement that remain
allocated to any Person who does not hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining Investors,
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pro rata based on the number of Registrable Securities then held by such Investors that are covered by such Registration Statement. In no event shall the Company include any securities other than
Registrable Securities on any Registration Statement without the prior written consent of the Required Holders.
d. Legal Counsel.
Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee any registration pursuant to this Section 2 (Legal Counsel), which shall be counsel designated by
the Required Holders. The Company and Legal Counsel shall reasonably cooperate with each other in performing the Companys obligations under this Agreement.
e. Ineligibility for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable
Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable to the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3
as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared
effective by the SEC.
f. Sufficient Number of Shares Registered. In the event the number of shares available under a Registration
Statement filed pursuant to Section 2(a) is insufficient to cover all of the Registrable Securities pursuant to Section 2(c), the Company shall amend the applicable Registration Statement, or file a new Registration Statement (on the short
form available therefor, if applicable), or both, to register at least the Required Registration Amount of Registrable Securities, determined as of the trading day immediately preceding the date of the filing of such amendment or new Registration
Statement. The filing of the amendment or new Registration Statement, as applicable, should occur as soon as reasonably practicable, but in any event not later than fifteen (15) days after the necessity therefor arises. The Company shall use
its commercially reasonable efforts to cause such amendment and/or new Registration Statement to become effective as soon as reasonably practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available
under a Registration Statement shall be deemed insufficient to cover all of the Registrable Securities if at any time the number of Ordinary Shares available for resale under the Registration Statement is less than the Required
Registration Amount. The calculation set forth in the foregoing sentence shall be made without regard to any limitations on the exercise of the Warrants, and such calculation shall assume that the Warrants are then exercisable for shares of Ordinary
Shares at the then prevailing Exercise Price (as defined in the Warrants).
g. Effect of Failure to File and Obtain and Maintain
Effectiveness of Registration Statement. If (i) a Registration Statement covering all of the Registrable Securities required to be covered thereby and required to be filed by the Company pursuant to this Agreement is (A) not filed with
the SEC on or before the Filing Deadline (a Filing Failure) or (B) not declared effective by the SEC on or before the Effectiveness Deadline (an Effectiveness Failure); or (ii) on any day after the
Effective Date sales of all of the Registrable Securities required to be included on such Registration Statement cannot be made (other than during (I) the period (the Post Effective Period) beginning on the first day on which
a post-effective
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amendment is required to be filed by the Company pursuant to the undertakings referred to in Rule 415(a)(3) of the 1933 Act and ending on the earlier of (x) the thirtieth (30th) day after such date and (y) the date on which such post-effective amendment is declared effective by the SEC or (II) a Grace Period (as defined in Section 3(s)) pursuant to such
Registration Statement (including, without limitation, because of a failure to keep such Registration Statement effective, failure to disclose such information as is necessary for sales to be made pursuant to such Registration Statement or failure
to register a sufficient number of Ordinary Shares) (a Maintenance Failure) then, as partial relief for the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying Ordinary Shares,
the Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one percent (1.0%) of the aggregate Subscription Price) (as such term is defined in the Visium Subscription
Agreement) of such Investors Registrable Securities included in such Registration Statement on each of the following dates: (i) within five (5) Business Days of a Filing Failure and on every thirtieth day (pro rated for periods
shorter than thirty (30) days) thereafter until such Filing Failure is cured; (ii) within five (5) Business Days of an Effectiveness Failure and on every thirtieth day (pro rated for periods shorter than thirty (30) days)
thereafter until such Effectiveness Failure is cured; and (iii) and on every thirtieth day (pro rated for periods shorter than thirty (30) days) following a Maintenance Failure until such Maintenance Failure is cured (which payments shall
be exclusive remedies available under this Agreement or under applicable law). The payments to which a holder shall be entitled pursuant to this Section 2(g) are referred to herein as Registration Delay Payments. Registration
Delay Payments shall be paid on the earlier of (I) the last day of the calendar month during which such Registration Delay Payments are incurred and (II) the third Business Day after the event or failure giving rise to the Registration Delay
Payments is cured. In the event the Company fails to make Registration Delay Payments within five (5) Business Days after the date payable, such Registration Delay Payments shall bear interest at the rate of one percent (1.0%) per month
(pro rated for shorter periods) until paid in full. Notwithstanding anything to the contrary herein or in the Visium Subscription Agreement, in no event shall the aggregate amount of Registration Delay Payments (other than Registration Delay
Payments payable pursuant to events that are within the Companys control) exceed, in the aggregate, 10% of the aggregate Subscription Price of the Visium Shares.
At such time as the Company is obligated to file a Registration
Statement with the SEC pursuant to Section 2(a), 2(e) or 2(f), the Company will use its commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof, and,
pursuant thereto, the Company shall have the following obligations:
a. The Company shall submit to the SEC, within two (2) Business
Days after the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that the staff has no further comments on a particular Registration Statement, as the case may be, a request for acceleration
of effectiveness of such Registration Statement to a time and date not later than 48 hours after the submission of such request. Other than during any Post Effective Period, the Company shall keep each Registration Statement effective pursuant to
Rule 415 at all times until the earlier of (i) the date as of which
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the Investors may sell all of the Registrable Securities covered by such Registration Statement pursuant to Rule 144 (or any successor thereto) promulgated under the 1933 Act without the
requirement for the Company to be in compliance with the current public information required thereunder and without volume or manner-of sale restrictions, or (ii) the date on which the Investors shall have sold all of the Registrable Securities
covered by such Registration Statement (the Registration Period). The Company shall ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.
b. The Company shall (i) prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the
Registration Statement and the Rule 424 prospectus used in connection with such Registration Statement as may be necessary to keep such Registration Statement effective at all times during the Registration Period, and (ii) during such period,
comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement that are required to be filed pursuant to this Agreement, including,
pursuant to this Section 3(b), by reason of the Company filing a report on Form 10-Q, Form 10-K, or any analogous report under the Securities Exchange Act of 1934, as amended (the 1934 Act), the Company shall either
incorporate such report by reference into such Registration Statement, if applicable, or file such amendments or supplements with the SEC on the same day on which the 1934 Act report is filed that created the requirement for the Company to amend or
supplement such Registration Statement.
c. The Company shall permit Legal Counsel to review and comment upon (i) a Registration
Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports on Form 10-K, Current Reports on Form 8-K, and Quarterly Reports
on Form 10-Q and any similar or successor reports) within a reasonable number of days prior to their filing with the SEC. The Company shall furnish to Legal Counsel, without charge, (i) copies of any correspondence from the SEC or the staff of
the SEC to the Company or its representatives relating to any Registration Statement, (ii) if requested by Legal Counsel, promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, and all exhibits (in each case except for Annual Reports on Form 10-K, Current Reports on Form 8-K, and Quarterly Reports on Form 10-Q and any
similar or successor reports), and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements thereto. The Company shall reasonably cooperate
with Legal Counsel in performing the Companys obligations pursuant to this Section 3.
d. The Company shall furnish to each
Investor whose Registrable Securities are included in any Registration Statement, without charge, (i) if requested by an Investor, promptly after the same is prepared and filed with the SEC, an electronic copy of such
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Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference (in each case except for Annual Reports on Form
10-K, Current Reports on Form 8-K, and Quarterly Reports on Form 10-Q and any similar or successor reports), all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, such number of copies of the
prospectus included in such Registration Statement and all amendments and supplements thereto as such Investor may reasonably request, and (iii) such other documents, including copies of any preliminary or final prospectus, as such Investor may
reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor.
e. The
Company shall use its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under
such other securities or Blue Sky laws of all applicable jurisdictions in the United States (Blue Sky Laws), (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto (x) to qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general
taxation in any such jurisdiction, or (z) to file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or Blue Sky Laws or its receipt of notice of the initiation or threatening of any proceeding
for such purpose.
f. The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as
reasonably practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to Section 3(s), as promptly as
reasonably practicable prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and, if requested by Legal Counsel or an Investor, deliver such number of copies of such supplement or amendment to
Legal Counsel and each Investor as Legal Counsel or such Investor may reasonably request. The Company shall also as promptly as reasonably practicable notify Legal Counsel and each Investor by facsimile, electronic mail or other electronic
transmission or in writing (i) when a prospectus or any prospectus supplement or post-effective amendment to the Registration Statement has been filed, and when a Registration Statement or any post-effective amendment to the Registration
Statement has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile, electronic mail or other electronic transmission within two (2) Business Days of such effectiveness) and
(ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information.
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g. The Company shall use its commercially reasonable efforts to prevent the issuance of any stop
order or other suspension of effectiveness of a Registration Statement or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction. If such an order or suspension is issued, the Company shall use its
commercially reasonable efforts to obtain the withdrawal of such order or suspension at the earliest possible moment, and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the
resolution thereof, or its receipt of notice of the initiation or threat of any proceeding for such purpose.
h. If any Investor is
required under applicable securities law to be described in the Registration Statement as an underwriter, at the reasonable request of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as an Investor may reasonably request, (i) a letter, dated such date, from the Companys independent certified public accountants in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten public offering, addressed to such Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration
Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to such Investors.
i. Upon
the written request of any Investor in connection with any Investors due diligence requirements, if any, the Company shall make available for inspection by (i) any Investor, (ii) Legal Counsel and (iii) one firm of accountants
or other agents selected by the Required Holders retained by the Investors (collectively, the Inspectors), all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively,
the Records), as shall be reasonably deemed necessary by each Inspector, and cause the Companys officers, directors and employees to supply all information that any Inspector may reasonably request that would be customarily
provided to underwriters in an underwritten public offering; provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to an Investor) or use of any Record or other
information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) in the opinion of Legal Counsel to the Investors, the disclosure of such Records is necessary to
avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure in violation of this or any other Transaction Document (as defined in the Visium Subscription
Agreement). Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company,
at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be
deemed to limit the Investors ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.
8
j. The Company shall not, and shall cause each of its Subsidiaries and its and each of their
respective officers, directors, employees and agents, not to, provide any Investor with any material, nonpublic information regarding the Company or any of its subsidiaries without the express written consent of such Investor. If an Investor has, or
believes it has, received any such material, nonpublic information regarding the Company or any of its subsidiaries from such Persons, it shall provide the Company with written notice thereof. The Company shall, within two (2) Trading Days of
receipt of such notice, make public disclosure of such material, nonpublic information, to the extent such information is both material and nonpublic. Trading Day means any day on which the Ordinary Shares are traded on the
principal securities exchange or securities market on which the Ordinary Shares are then traded (the Principal Market); provided that Trading Day shall not include any day on which the Ordinary Shares are
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Ordinary Shares are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in
advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time). Without the prior written consent of an Investor, neither the Company nor any of its subsidiaries or affiliates shall disclose
the name of such Investor in any filing, announcement, release or otherwise other than in connection with the Registration Statement, unless such disclosure is required by law, regulation or the Principal Market.
k. The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company which the
Investor determines in good faith to be confidential, and of which determination the Company is so notified (and such information shall not include information provided to the Company by the Investor for use in connection with the filing of any
Registration Statement) unless (i) the disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any
Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made
generally available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a court
or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at the Investors expense, to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, such information.
l. The Company shall use its commercially reasonable efforts to cause all of the Registrable
Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange.
m. The Company shall cooperate with the Investors who hold Registrable Securities being offered and,
to the extent applicable, facilitate the timely preparation
9
and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates to be in
such denominations or amounts, as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.
n. If requested by an Investor, the Company shall (i) as soon as reasonably practicable, incorporate in a prospectus supplement or
post-effective amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable
Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as reasonably practicable, make all required filings of such
prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as reasonably practicable, supplement or make amendments to
any Registration Statement if reasonably requested by an Investor holding any Registrable Securities.
o. The Company shall use its
commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such
Registrable Securities.
p. Unless available on the the SECs Electronic Data Gathering Analysis and Retrieval system, the
Company shall make generally available to Investors as soon as practical, but in any event not later than ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided
by, the provisions of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Companys fiscal quarter next following the effective date of a Registration Statement.
q. The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC in
connection with any registration hereunder.
r. Within two (2) Business Days after a Registration Statement which covers Registrable
Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investors whose Registrable Securities are
included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.
s. Notwithstanding anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material,
non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the board of directors of the Company and its counsel, in the best interest of the Company and otherwise required (a
Grace Period); provided, that the Company shall promptly (i) notify the Investors in writing of the existence of material, non-public information giving rise to a Grace
10
Period (provided that in each notice the Company will not disclose the content of such material, non-public information to the Investors) and the date on which the Grace Period will begin, and
(ii) notify the Investors in writing of the date on which the Grace Period ends; provided further, that no Grace Period shall exceed ten (10) consecutive days and during any three hundred sixty five (365) day period, such Grace
Periods shall not exceed an aggregate of thirty (30) days, and the first day of any Grace Period must be at least five (5) trading days after the last day of any prior Grace Period. For purposes of determining the length of a Grace Period
above, the Grace Period shall begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice referred to in clause (ii) or the
date referred to in such notice. The last sentence of Section 3(a), first sentence of Section 3(b), and provisions of Section 3(g) and 3(n) hereof shall not be applicable during any Grace Period. Upon expiration of the Grace Period,
the Company shall again be bound by the provisions of Sections 3(a), 3(b), 3(g) and 3(n) with respect to the information giving rise thereto unless such information is no longer material. Notwithstanding anything to the contrary in the Transaction
Documents, the Company shall cause its transfer agent to deliver unlegended Ordinary Shares to a transferee of an Investor, in accordance with the terms of the Visium Subscription Agreement, in connection with any sale of Registrable Securities with
respect to which an Investor has entered into a contract for sale prior to the Investors receipt of the notice of a Grace Period and for which the Investor has not yet settled, and deliver a copy of the prospectus included as part of the
applicable Registration Statement (unless an exemption from such prospectus delivery requirement exists).
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4. |
Obligations of the Investors. |
a. At least five (5) Business Days prior to the
first anticipated filing date of a Registration Statement, the Company shall notify each Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such Investors Registrable
Securities included in such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that
(i) such Investor shall promptly furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to
effect the effectiveness of the registration of such Registrable Securities, and (ii) the Investor execute such documents in connection with such registration as the Company may reasonably request.
b. Each Investor, by such Investors acceptance of the Registrable Securities, agrees to use commercially reasonable efforts cooperate
with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has notified the Company in writing of such Investors election to exclude all
of such Investors Registrable Securities from such Registration Statement.
c. Each Investor agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of 3(f), written notice from the Company of a Grace Period or written notice from the Company that a previously effective
Registration Statement is no longer effective, such Investor
11
will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until such Investors receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice that no supplement or amendment is required or that the Grace Period has ended or that the Registration Statement is
effective. Notwithstanding anything to the contrary in the Transaction Documents, the Company shall cause its transfer agent to deliver unlegended Ordinary Shares to a transferee of an Investor, in accordance with the terms of the Visium
Subscription Agreement, in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investors receipt of a notice from the Company of the happening of any event of
the kind described in Section 3(g) or the first sentence of 3(f), and for which the Investor has not yet settled.
d. Each Investor
covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.
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5. |
Expenses of Registration. |
All reasonable expenses, other than underwriting discounts
and commissions incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and
disbursements of counsel for the Company, shall be paid by the Company. The Company shall not be liable to Investors for the fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to Sections 2 and
3 of this Agreement.
In the event any Registrable Securities are included in a Registration
Statement under this Agreement:
a. To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless
and defend each Investor, the directors, officers, members, partners, employees, agents, representatives thereof, and each Person, if any, who controls any Investor within the meaning of the 1933 Act or the 1934 Act (each, an Indemnified
Person), against any losses, claims, damages, liabilities, judgments, fines, penalties, reasonable charges, reasonable costs, reasonable attorneys fees, amounts paid in settlement or reasonable expenses, joint or several, incurred in
investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending
or threatened, whether or not an indemnified party is or may be a party thereto (Losses), to which any of them may become subject insofar as such Losses arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other Blue Sky Laws, or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue
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statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the light of the circumstances
under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any state securities law, or any rule or regulation thereunder relating to the offer or sale of
the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, Violations). Subject to Section 6(c), the Company shall promptly reimburse
the Indemnified Persons for Losses as they are incurred. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to Losses incurred by an Indemnified
Person arising out of or based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Indemnified Person
expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section 3(d) and (ii) shall not
apply to amounts paid in settlement if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, delayed or conditioned. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.
b. In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers, employees and agents and each Person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act (each, an Indemnified Party), against any Losses to which any of them have become subject, insofar as such Losses arise out of or are based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection with such Registration Statement;
provided, however, that such Investors obligation to reimburse any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating or defending any action, claim, suit, inquiry, proceeding,
investigation or appeal taken from the foregoing (each, a Claim) is subject to Section 6(c); provided further, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to
contribution contained in Section 7 shall not apply to amounts paid in settlement if such settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld, delayed or conditioned;
provided further, however, that such Investor shall be liable under this Section 6(b) for only Losses that do not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.
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c. Promptly after receipt by an Indemnified Person or Indemnified Party under this
Section 6 of notice of the commencement of any Claim, such Indemnified Person or Indemnified Party shall, if a request for indemnification in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the
indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the reasonable fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding sentence shall be selected by the Investors holding at least a
majority in interest of the Registrable Securities included in the Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or
defense of any such Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such Claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any Claim effected without its
prior written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release
from all liability in respect to such Claim, and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all
rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action.
d. The indemnification required by this Section 6 shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Losses are incurred, and in each case submitted to the indemnifying party for payment subject to and in accordance with this
Section 6. In the event the indemnifying party is found not to be liable for indemnification upon settlement of a Claim, the Indemnified Party or Indemnified Person shall, within three (3) Business Days of such Claim settlement, return any
and all funds received during the course of such investigation or defense.
14
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right
of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.
To the extent any indemnification by an indemnifying party is prohibited
or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no Person involved in the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person
involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities pursuant to such Registration Statement.
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8. |
Reports Under the 1934 Act. |
With a view to making available to the Investors the
benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (Rule 144), the
Company agrees to:
a. make and keep public information available, as those terms are understood and defined in Rule 144;
b. file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long
as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and
c. furnish or otherwise make available, as applicable, to each Investor so long as such Investor owns Registrable Securities, promptly upon
request, (i) a written statement by the Company that it has, or that it has not, complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company and (iii) such other information as may be reasonably requested to permit the Investors to sell such securities without registration pursuant to Rule 144.
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9. |
Assignment of Registration Rights. |
The rights under this Agreement shall be
automatically assignable by the Investors to any transferee of all or any portion of such Investors Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights and a copy of such
agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such
transferee or assignee and (b) the securities with
15
respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by the
transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees
in writing with the Company to be bound by all of the provisions contained herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Visium Subscription Agreement.
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10. |
Amendment of Registration Rights. |
Provisions of this Agreement may be amended and the
observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver effected in accordance with
this Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective if it applies to less than all of the holders of the Registrable Securities. No consideration 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 also is offered to all of the parties to this Agreement.
a. A Person is deemed to be a holder of Registrable Securities whenever
such Person owns or is deemed to own of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon
the basis of instructions, notice or election received from the record owner of such Registrable Securities.
b. Any notices, consents,
waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile, electronic mail or other electronic transmission (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a
nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and electronic mail addresses for such communications shall be:
If to the Company:
If to the
Company:
Quotient Limited
Elizabeth House
9 Castle Street
St Helier
JE2 3RT
Jersey, Channel Islands
Telephone: +44 131 445 6159
Facsimile: +44 153 4700 007
Attention: Paul Cowan
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With a copy (for informational purposes) to:
Clifford Chance US LLP
31 West
52nd Street
New York, New York 10019
Attention: Alejandro E. Camacho and Per B. Chilstrom
Facsimile: 212-878-8375
If to
Legal Counsel:
Brown Rudnick LLP
7 Times Square #47
New York, NY
10036
Telephone: 212-209-4918
Attention: John F. Storz
Facsimile: 212-938-2825
If to Subscriber, to
its address, facsimile number and electronic mail address set forth on the Schedule of Subscribers attached hereto, with copies to such Subscribers representatives as set forth on the Schedule of Subscribers, or to such other address and/or
facsimile number and/or electronic mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the senders facsimile machine or other electronic device containing the time,
date, recipient facsimile number or electronic mail address, as applicable, and an image of the first page of such transmission or sent copy of any such electronic mail or (C) provided by a courier or overnight courier service shall be
rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.
c. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.
d. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of
17
any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York,
Borough of Manhattan, 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 proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such 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. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY.
e. This Agreement, the other Transaction Documents (as defined in the Visium Subscription
Agreement) and the instruments referenced herein and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement, the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.
f. Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be
binding upon the permitted successors and assigns of each of the parties hereto.
g. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.
h. This Agreement may be executed in identical
counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission or electronic email
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.
i. Each party shall do and perform, or
cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
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j. All consents, approvals, waivers and other determinations required to be made by the
Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by the Required Holders.
k. 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.
l. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.
m. The obligations of each Investor hereunder are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor hereunder. Nothing contained herein, and no action taken by any Investor pursuant
hereto, shall be deemed to constitute the Investor as, and the Company acknowledges that the Investors do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are
in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated herein.
* * * * * *
19
IN WITNESS WHEREOF, Subscriber and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above.
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COMPANY: |
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QUOTIENT LIMITED |
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By: |
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/s/ D.J.P.E. Cowan |
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Name: |
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D.J.P.E. Cowan |
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Title: |
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Chairman & CEO |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, Subscriber and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBER: |
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VISIUM BALANCED MASTER FUND, LTD. |
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By: |
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Visium Asset Management, LP |
Its: |
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Investment Manager |
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By: |
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/s/ Mark Gottlieb |
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Name: |
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Mark Gottlieb |
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Title: |
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CAO |
[Registration Rights
Agreement
Signature Page]
SCHEDULE OF SUBSCRIBERS
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Subscriber |
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Subscribers Address, Facsimile Number
and Electronic Mail Address |
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Subscribers Representatives
Address, Facsimile Number and
Electronic Mail Address |
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Visium Balanced Master Fund, Ltd. |
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EXHIBIT A
FORM OF NOTICE OF EFFECTIVENESS
OF REGISTRATION STATEMENT
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Attention: [ ]
Re: [ ]
Ladies and Gentlemen:
[We are][I am] counsel
to Quotient Limited, a company organized under the laws of Jersey (the Company), and have represented the Company in connection with that certain Subscription Agreement (the Visium Subscription Agreement),
entered into by and among the Company and Visium Balanced Master Fund, Ltd., an exempted company organized under the laws of the Cayman Islands (Visium) pursuant to which the Company issued to Visium its ordinary shares of no par
value per share in the capital of the Company (the Ordinary Shares) and warrants exercisable for shares of Ordinary Shares (the Warrants). Pursuant to the Visium Subscription Agreement, the Company also has
entered into a Registration Rights Agreement with Visium (the Visium Registration Rights Agreement) pursuant to which the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the
Visium Registration Rights Agreement), including the Ordinary Shares issuable upon exercise of the Warrants, under the Securities Act of 1933, as amended (the 1933 Act). In connection with the Companys obligations under the
Visium Registration Rights Agreement, on , 2014, the Company filed a Registration Statement on Form [S-1][S-3] (File
No. 333- ) (the Registration Statement) with the United States Securities and Exchange Commission (the SEC) relating to the Registrable
Securities which names Visium as a selling shareholder thereunder.
In connection with the foregoing, [we][I] advise you that a member of
the SECs staff has advised [us][me] by telephone that the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no
knowledge, after telephonic inquiry of a member of the SECs staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the Registration Statement.
This letter shall serve as our standing
instruction to you that the Ordinary Shares are freely transferable by Visium pursuant to the Registration Statement. You need not require further letters from us to effect any future legend-free issuance or reissuance of Ordinary Shares to Visium
provided at the time of such reissuance, the Company has not otherwise notified you that the Registration Statement is unavailable for the resale of the Registrable Securities.
Exhibit A-1
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Very truly yours, |
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[ISSUERS COUNSEL] |
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By: |
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CC: |
[Visium Balanced Master Fund, Ltd.] |
Exhibit A-2
EXHIBIT B
SELLING SHAREHOLDERS
The
ordinary shares being offered by the Selling Shareholders are those previously issued to the Selling Shareholders and those issuable to the Selling Shareholders upon exercise of the warrants. For additional information regarding the issuances of
ordinary shares and the warrants, see [Private Placement of Ordinary shares] above. We are registering the ordinary shares in order to permit the Selling Shareholders and their donees, pledgees, transferees or other
successors-in-interest that receive their shares after the date of this prospectus to offer the shares, as well as any shares that we may issue or may be issuable by reason of any share split, share dividend or similar transaction involving these
shares, for resale from time to time in the manner contemplated under Plan of Distribution.. Except for the ownership of the ordinary shares and the warrants [or as otherwise set forth in the table and related footnotes below], the
Selling Shareholders have not had any material relationship with us within the past three years.
The table below, including the
footnotes, lists the Selling Shareholders and other information regarding the beneficial ownership of the ordinary shares by each of the Selling Shareholders based in part on information provided to us by the Selling Shareholders. The second column
lists the number of ordinary shares beneficially owned by each selling shareholder, based on its ownership of the ordinary shares and the warrants, as of ,
20[ ], assuming exercise of the warrants held by the Selling Shareholders on that date, without regard to any limitations on exercise.
The third column lists the ordinary shares being offered by this prospectus by the Selling Shareholders.
In accordance with the terms of registration rights agreements with the holders of the ordinary shares and the warrants, this prospectus
generally covers the resale of that number of ordinary shares equal to the number of ordinary shares held by such holdersand the number of ordinary shares issuable upon exercise of the warrants held by such holders, determined as if the outstanding
warrants were exercised, as applicable, in full, in each case, as of the trading day immediately preceding the date this registration statement was initially filed with the SEC. The fourth column assumes the sale of all of the shares offered by the
Selling Shareholders pursuant to this prospectus. However, because the Selling Shareholders may sell all or some of their shares under this prospectus from time to time, or in another permitted manner, we cannot assure you as to the actual number of
shares that will be sold by the Selling Shareholders or that will be held by the Selling Shareholders after completion of any sales. We do not know how long the Selling Shareholders will hold the shares before selling them. Information concerning
the Selling Shareholders may change from time to time and changed information will be presented in a supplement to this prospectus if and when necessary and required.
The Selling Shareholders may sell all, some or none of their shares in this offering. See Plan of Distribution.
Exhibit B-1
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Name of Selling Shareholder |
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Number of Shares Owned Prior to Offering |
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Maximum Number of Shares to be Sold Pursuant to this Prospectus |
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Number of Shares Owned After Offering |
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Exhibit B-2
PLAN OF DISTRIBUTION
We are registering the Ordinary Shares previously issued and the Ordinary Shares issuable upon exercise of the warrants to permit the resale
of these Ordinary Shares by the holders of the Ordinary Shares and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling shareholders of the Ordinary Shares. We will bear
all fees and expenses incident to our obligation to register the Ordinary Shares.
The selling shareholders may (subject to receipt by us
and/or such selling shareholders of any applicable regulatory consents) sell all or a portion of the Ordinary Shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or
agents. If the Ordinary Shares are sold through underwriters or broker-dealers, the selling shareholders will be responsible for underwriting discounts or commissions or agents commissions. The Ordinary Shares may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block
transactions,
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on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale; |
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in the over-the-counter market; |
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in transactions otherwise than on these exchanges or systems or in the over-the-counter market; |
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through the writing of options, whether such options are listed on an options exchange or otherwise; |
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
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block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
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purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
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an exchange distribution in accordance with the rules of the applicable exchange; |
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privately negotiated transactions; |
Exhibit B-3
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sales pursuant to Rule 144; |
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broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share; |
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a combination of any such methods of sale; and |
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any other method permitted pursuant to applicable law. |
If the selling shareholders effect
such transactions by selling Ordinary Shares to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling shareholders
or commissions from purchasers of the Ordinary Shares for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the Ordinary Shares or otherwise, the selling shareholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Ordinary
Shares in the course of hedging in positions they assume. The selling shareholders may also sell Ordinary Shares short and deliver Ordinary Shares covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling shareholders may also loan or pledge Ordinary Shares to broker-dealers that in turn may sell such shares.
The selling shareholders may pledge or grant a security interest in some or all of the Ordinary Shares owned by them or issuable upon exercise
of the warrants and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Ordinary Shares from time to time pursuant to this prospectus or any amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933 (the 1933 Act), as amended, amending, if necessary, the list of selling shareholders to include the pledgee, transferee or other successors in interest as
selling shareholders under this prospectus. The selling shareholders also may transfer and donate the Ordinary Shares in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.
The selling shareholders and any broker-dealer participating in the distribution of
the Ordinary Shares may be deemed to be underwriters within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or
discounts under the 1933 Act. At the time a particular offering of the Ordinary Shares is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of Ordinary Shares being offered and the terms of the
offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling shareholders and any discounts, commissions or concessions allowed or reallowed or paid to
broker-dealers.
Under the securities laws of some states, the Ordinary Shares may be sold in such states only through registered or
licensed brokers or dealers. In addition, in some states the Ordinary Shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied
with.
Exhibit B-4
There can be no assurance that any selling shareholder will sell any or all of the Ordinary
Shares registered pursuant to the registration statement, of which this prospectus forms a part.
The selling shareholders and any other
person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which
may limit the timing of purchases and sales of any of the Ordinary Shares by the selling shareholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the Ordinary Shares to
engage in market-making activities with respect to the Ordinary Shares. Further, regulatory consents may be required in Jersey, Channel Islands in connection with certain types of offers of Ordinary Shares by selling shareholders, including offers
to more than 50 persons other than on any national securities exchange or quotation service on which the securities are listed or quoted at the time of sale. All of the foregoing may affect the marketability of the Ordinary Shares and the ability of
any person or entity to engage in market-making activities with respect to the Ordinary Shares.
We will pay all expenses of the
registration of the Ordinary Shares pursuant to the registration rights agreement, estimated to be $[ ] in total, including, without limitation, Securities and Exchange
Commission filing fees and expenses of compliance with state securities or Blue Sky laws; provided, however, that a selling shareholder will pay all underwriting discounts and selling commissions, if any. We will indemnify
the selling shareholders against liabilities, including some liabilities under the 1933 Act, in accordance with the registration rights agreements, or the selling shareholders will be entitled to contribution. We may be indemnified by the selling
shareholders against civil liabilities, including liabilities under the 1933 Act, that may arise from any written information furnished to us by the selling shareholder specifically for use in this prospectus, in accordance with the related
registration rights agreement, or we may be entitled to contribution.
Once sold under the registration statement, of which this
prospectus forms a part, the Ordinary Shares will be freely tradable in the hands of persons other than our affiliates.
Exhibit B-5
Exhibit 4.2
REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT (this Agreement), dated as of November 25, 2014, by and among Quotient Limited, a
company organized under the laws of Jersey (the Company), and the undersigned subscribers (each, a Subscriber, and collectively, the Subscribers).
WHEREAS:
A. In
connection with the Subscription Agreement by and among the parties hereto of even date herewith (the Subscription Agreement), the Company has agreed, upon the terms and subject to the conditions of the Subscription Agreement, to
issue on the date hereof to each Subscriber new ordinary shares, with no par value in the capital of the Company (the Ordinary Shares and, the shares issued to each Subscriber, the New Ordinary Shares).
B. To induce the Subscribers to execute and deliver the Subscription Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the 1933 Act), and applicable state securities laws.
C. On or about the date hereof, the Company has entered into a Subscription Agreement (the Visium Subscription
Agreement) with Visium Balanced Master Fund, Ltd., an exempted company organized under the laws of the Cayman Islands (Visium), whereby the Company has agreed, upon the terms and subject to the conditions of the Visium
Subscription Agreement, to issue on the date thereof to Visium new Ordinary Shares (the Visium Shares) and warrants (the Warrants), which will be exercisable to purchase Ordinary Shares (collectively, upon
exercise, the Warrant Shares).
D. To induce Visium to execute and deliver the Visium Subscription
Agreement, the Company has agreed to provide certain registration rights under the 1933 Act and applicable state securities laws (the Visium RRA).
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and each of the Subscribers hereby agree as follows:
Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings set forth in the Subscription Agreement. As used in this Agreement, the following terms shall have the following meanings:
a. Business Day means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New
York are authorized or required by law to remain closed.
b. Closing Date shall have the meaning set forth in the Subscription
Agreement.
c. Effective Date means the date the Registration Statement has been declared effective by the SEC.
d. Effectiveness Deadline means the date that is 90 days after the Closing Date.
e. Filing Deadline means the date that is 30 days after the Closing Date.
f. Investor means a Subscriber or any transferee or assignee thereof to whom a Subscriber assigns its rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become
bound by the provisions of this Agreement in accordance with Section 9.
g. Person means an individual, a limited
liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.
h. register, registered and registration refer to a registration effected by
preparing and filing one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415 and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.
i. Registrable Securities means (i) the New Ordinary Shares, and (ii) any shares in the capital of the Company
issued or issuable with respect to the New Ordinary Shares as a result of any share split, share dividend, recapitalization, exchange or similar event or otherwise.
j. Registration Statement means a registration statement or registration statements of the Company filed under the 1933
Act covering the Registrable Securities.
k. Required Holders means the holders of at least a majority of the
Registrable Securities.
l. Required Registration Amount for the Registration Statement means the number of New
Ordinary Shares issued pursuant to the Subscription Agreement, subject to adjustment as provided in Section 2(f).
m. Rule
415 means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities on a continuous or delayed basis.
n. SEC means the United States Securities and Exchange Commission.
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a. Mandatory Registration. The Company shall prepare, and, as
soon as reasonably practicable but in no event later than the Filing Deadline, file with the SEC the Registration Statement covering the resale of at least the number of Ordinary Shares equal to the Required Registration Amount determined as of date
the Registration Statement is initially filed with the SEC. In the event that Form S-3 is unavailable for such a registration, the Company shall use such other form as is available for such a registration and reasonably acceptable to the Required
Holders, subject to the provisions of Section 2(f). The Registration Statement shall contain (except if otherwise directed by the Required Holders) the Selling Shareholders and Plan of Distribution sections
in substantially the form attached hereto as Exhibit B. The Company shall use its commercially reasonable efforts to have the Registration Statement declared effective by the SEC as soon as reasonably practicable, but in no event later than
the Effectiveness Deadline. By 5:30 p.m. on the second Business Day following the Effective Date, the Company shall file with the SEC, in accordance with Rule 424 under the 1933 Act, the final prospectus to be used in connection with sales pursuant
to such Registration Statement.
b. Combined Registration. Notwithstanding Section 2(d), the Company shall include in
any Registration Statement filed hereunder the Visium Shares and the Warrant Shares required to be registered under the Visium RRA. For so long as such Visium Shares and/or Warrant Shares are included in any Registration Statement, the holders
of such Visium Shares and/or Warrant Shares (determined as if all of the Warrants then outstanding related to such Warrant Shares have been exercised without regard to any limitations on the exercise of such Warrants) shall be deemed to be holders
of Registrable Securities for purposes of the definition of Required Holders as such term is used in Sections 2 and 3.
c. Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the
number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number of Registrable Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or
otherwise transfers any of such Investors Registrable Securities, each transferee that is assigned rights under this Agreement pursuant to Section 9 shall be allocated a pro rata portion of the number of Registrable Securities then
included in such Registration Statement for such transferor. Any Ordinary Shares included in a Registration Statement that remain allocated to any Person who does not hold any Registrable Securities covered by such Registration Statement shall be
allocated to the remaining Investors, pro rata based on the number of Registrable Securities then held by such Investors that are covered by such Registration Statement. In no event shall the Company include any securities other than Registrable
Securities on any Registration Statement without the prior written consent of the Required Holders.
d. Legal Counsel. Subject to
Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee any registration pursuant to this Section 2 (Legal Counsel), which shall be counsel designated by the Required
Holders. The Company and Legal Counsel shall reasonably cooperate with each other in performing the Companys obligations under this Agreement.
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e. Ineligibility for Form S-3. In the event that Form S-3 is not available for the
registration of the resale of Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable to the Required Holders and (ii) undertake to
register the Registrable Securities on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3
covering the Registrable Securities has been declared effective by the SEC.
f. Sufficient Number of Shares Registered. In the
event the number of shares available under a Registration Statement filed pursuant to Section 2(a) is insufficient to cover all of the Registrable Securities pursuant to Section 2(c), the Company shall amend the applicable Registration
Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, to register at least the Required Registration Amount of Registrable Securities, determined as of the trading day immediately preceding
the date of the filing of such amendment or new Registration Statement. The filing of the amendment or new Registration Statement, as applicable, should occur as soon as reasonably practicable, but in any event not later than fifteen (15) days
after the necessity therefor arises. The Company shall use its commercially reasonable efforts to cause such amendment and/or new Registration Statement to become effective as soon as reasonably practicable following the filing thereof. For purposes
of the foregoing provision, the number of shares available under a Registration Statement shall be deemed insufficient to cover all of the Registrable Securities if at any time the number of Ordinary Shares available for resale under the
Registration Statement is less than the Required Registration Amount.
g. Effect of Failure to File and Obtain and Maintain
Effectiveness of Registration Statement. If (i) a Registration Statement covering all of the Registrable Securities required to be covered thereby and required to be filed by the Company pursuant to this Agreement is (A) not filed with
the SEC on or before the Filing Deadline (a Filing Failure) or (B) not declared effective by the SEC on or before the Effectiveness Deadline (an Effectiveness Failure); or (ii) on any day after the
Effective Date sales of all of the Registrable Securities required to be included on such Registration Statement cannot be made (other than during (I) the period (the Post Effective Period) beginning on the first day
on which a post-effective amendment is required to be filed by the Company pursuant to the undertakings referred to in Rule 415(a)(3) of the 1933 Act and ending on the earlier of (x) the thirtieth
(30th) day after such date and (y) the date on which such post-effective amendment is declared effective by the SEC or (II) a Grace Period (as defined in Section 3(r)) pursuant to
such Registration Statement (including, without limitation, because of a failure to keep such Registration Statement effective, failure to disclose such information as is necessary for sales to be made pursuant to such Registration Statement or
failure to register a sufficient number of Ordinary Shares) (a Maintenance Failure) then, as partial relief for the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying Ordinary
Shares, the Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one percent (1.0%) of the aggregate Subscription Price) (as such term is defined in the Subscription
Agreement) of such Investors Registrable Securities included in such Registration Statement on each of the following dates: (i) within five (5) Business Days of a Filing Failure and on every thirtieth day (pro rated for periods
shorter than thirty (30) days)
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thereafter until such Filing Failure is cured; (ii) within five (5) Business Days of an Effectiveness Failure and on every thirtieth day (pro rated for periods shorter than thirty
(30) days) thereafter until such Effectiveness Failure is cured; and (iii) and on every thirtieth day (pro rated for periods shorter than thirty (30) days) following a Maintenance Failure until such Maintenance Failure is cured (which
payments shall be exclusive remedies available under this Agreement or under applicable law). The payments to which a holder shall be entitled pursuant to this Section 2(g) are referred to herein as Registration Delay
Payments. Registration Delay Payments shall be paid on the earlier of (I) the last day of the calendar month during which such Registration Delay Payments are incurred and (II) the third Business Day after the event or failure giving
rise to the Registration Delay Payments is cured. In the event the Company fails to make Registration Delay Payments within five (5) Business Days after the date payable, such Registration Delay Payments shall bear interest at the rate of one
percent (1.0%) per month (pro rated for shorter periods) until paid in full. Notwithstanding anything to the contrary herein or in the Subscription Agreement, in no event shall the aggregate amount of Registration Delay Payments (other than
Registration Delay Payments payable pursuant to events that are within the Companys control) exceed, in the aggregate, 10% of the aggregate Subscription Price of the New Ordinary Shares.
At such time as the Company is obligated to file a Registration
Statement with the SEC pursuant to Section 2(a), 2(e) or 2(f), the Company will use its commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof, and,
pursuant thereto, the Company shall have the following obligations:
a. The Company shall submit to the SEC, within two
(2) Business Days after the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that the staff has no further comments on a particular Registration Statement, as the case may be, a
request for acceleration of effectiveness of such Registration Statement to a time and date not later than 48 hours after the submission of such request. Other than during any Post Effective Period, the Company shall keep each Registration Statement
effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors may sell all of the Registrable Securities covered by such Registration Statement pursuant to Rule 144 (or any successor thereto)
promulgated under the 1933 Act without the requirement for the Company to be in compliance with the current public information required thereunder and without volume or manner-of sale restrictions, or (ii) the date on which the Investors shall
have sold all of the Registrable Securities covered by such Registration Statement (the Registration Period). The Company shall ensure that each Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.
b. The Company shall (i) prepare and file with the SEC such amendments (including post-effective amendments) and supplements to
the Registration Statement and the Rule 424 prospectus used in connection with such Registration Statement as may be necessary to keep such Registration Statement effective at all times during the
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Registration Period, and (ii) during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities covered by such Registration
Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of
amendments and supplements to a Registration Statement that are required to be filed pursuant to this Agreement, including, pursuant to this Section 3(b), by reason of the Company filing a report on Form 10-Q, Form 10-QSB, Form 10-K, Form
10-KSB or any analogous report under the Securities Exchange Act of 1934, as amended (the 1934 Act), the Company shall either incorporate such report by reference into such Registration Statement, if applicable, or file such
amendments or supplements with the SEC on the same day on which the 1934 Act report is filed that created the requirement for the Company to amend or supplement such Registration Statement.
c. The Company shall permit Legal Counsel to review and comment upon (i) a Registration Statement at least three (3) Business Days
prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports on Form 10-K and Form 10-KSB, Current Reports on Form 8-K, and Quarterly Reports on Form 10-Q and Form 10-QSB and
any similar or successor reports) within a reasonable number of days prior to their filing with the SEC. The Company shall furnish to Legal Counsel, without charge, (i) copies of any correspondence from the SEC or the staff of the SEC to the
Company or its representatives relating to any Registration Statement, (ii) if requested by Legal Counsel, promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto,
including financial statements and schedules, all documents incorporated therein by reference, and all exhibits (in each case except for Annual Reports on Form 10-K and Form 10-KSB, Current Reports on Form 8-K, and Quarterly Reports on Form 10-Q and
Form 10-QSB and any similar or successor reports), and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements thereto. The Company shall
reasonably cooperate with Legal Counsel in performing the Companys obligations pursuant to this Section 3.
d. The Company
shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge, (i) if requested by an Investor, promptly after the same is prepared and filed with the SEC, an electronic copy of such
Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference (in each case except for Annual Reports on Form 10-K and Form 10-KSB, Current Reports on Form 8-K, and
Quarterly Reports on Form 10-Q and Form 10-QSB and any similar or successor reports), all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, such number of copies of the prospectus included in
such Registration Statement and all amendments and supplements thereto as such Investor may reasonably request, and (iii) such other documents, including copies of any preliminary or final prospectus, as such Investor may reasonably request
from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor.
e. The Company shall use
its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification applies, the resale
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by Investors of the Registrable Securities covered by a Registration Statement under such other securities or Blue Sky laws of all applicable jurisdictions in the United States,
(ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration
Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto (x) to qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) to file a general consent to service of process in any such jurisdiction. The Company shall
promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale
under the securities or Blue Sky laws of any jurisdiction in the United States or its receipt of notice of the initiation or threatening of any proceeding for such purpose.
f. The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as reasonably practicable
after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to Section 3(r), as promptly as reasonably practicable
prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and, if requested by Legal Counsel or an Investor, deliver such number of copies of such supplement or amendment to Legal Counsel and each
Investor as Legal Counsel or such Investor may reasonably request. The Company shall also as promptly as reasonably practicable notify Legal Counsel and each Investor by facsimile, electronic mail or other electronic transmission or in writing
(i) when a prospectus or any prospectus supplement or post-effective amendment to the Registration Statement has been filed, and when a Registration Statement or any post-effective amendment to the Registration Statement has become effective
(notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile, electronic mail or other electronic transmission within two (2) Business Days of such effectiveness) and (ii) of any request by the SEC
for amendments or supplements to a Registration Statement or related prospectus or related information.
g. The Company shall use its
commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction. If
such an order or suspension is issued, the Company shall use its commercially reasonable efforts to obtain the withdrawal of such order or suspension at the earliest possible moment, and to notify Legal Counsel and each Investor who holds
Registrable Securities being sold of the issuance of such order and the resolution thereof, or its receipt of notice of the initiation or threat of any proceeding for such purpose.
7
h. If any Investor is required under applicable securities law to be described in the
Registration Statement as an underwriter, at the reasonable request of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an
Investor may reasonably request, (i) a letter, dated such date, from the Companys independent certified public accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to such Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given in an
underwritten public offering, addressed to such Investors.
i. Upon the written request of any Investor in connection with any
Investors due diligence requirements, if any, the Company shall make available for inspection by (i) any Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by the Investors (collectively, the
Inspectors), all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively, the Records), as shall be reasonably deemed necessary by each Inspector, and
cause the Companys officers, directors and employees to supply all information that any Inspector may reasonably request that would be customarily provided to underwriters in an underwritten public offering; provided, however,
that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to an Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of which
determination the Inspectors are so notified, unless (a) in the opinion of Legal Counsel to the Investors, the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise
required under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made
generally available to the public other than by disclosure in violation of this or any other Transaction Document (as defined in the Subscription Agreement). Each Investor agrees that it shall, upon learning that disclosure of such Records is sought
in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors ability to sell Registrable Securities in a manner which is
otherwise consistent with applicable laws and regulations.
j. The Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company which the Investor determines in good faith to be confidential, and of which determination the Company is so notified (and such information shall not include information provided to the
Company by the Investor for use in connection with the filing of any Registration Statement) unless (i) the disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such
information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental
body of competent jurisdiction, or (iv) such information has been made generally available to the public other than
8
by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by
a court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at the Investors expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, such information.
k. The Company shall use its commercially reasonable efforts to cause all of the
Registrable Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then
permitted under the rules of such exchange.
l. The Company shall cooperate with the Investors who hold Registrable Securities being
offered and, to the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such
certificates to be in such denominations or amounts, as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.
m. If requested by an Investor, the Company shall (i) as soon as reasonably practicable, incorporate in a prospectus supplement or
post-effective amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable
Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as reasonably practicable, make all required filings of such
prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as reasonably practicable, supplement or make amendments to
any Registration Statement if reasonably requested by an Investor holding any Registrable Securities.
n. The Company shall use its
commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such
Registrable Securities.
o. Unless available on the the SECs Electronic Data Gathering Analysis and Retrieval system, the
Company shall make generally available to its security holders as soon as practical, but in any event not later than ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with, and in the
manner provided by, the provisions of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Companys fiscal quarter next following the effective date of a Registration Statement.
p. The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC in
connection with any registration hereunder.
9
q. Within two (2) Business Days after a Registration Statement which covers Registrable
Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investors whose Registrable Securities are
included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.
r. Notwithstanding anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material,
non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the board of directors of the Company and its counsel, in the best interest of the Company and otherwise required (a
Grace Period); provided, that the Company shall promptly (i) notify the Investors in writing of the existence of material, non-public information giving rise to a Grace Period (provided that in each notice the Company
will not disclose the content of such material, non-public information to the Investors) and the date on which the Grace Period will begin, and (ii) notify the Investors in writing of the date on which the Grace Period ends; provided
further, that no Grace Period shall exceed ten (10) consecutive days and during any three hundred sixty five (365) day period, such Grace Periods shall not exceed an aggregate of thirty (30) days, and the first day of any Grace
Period must be at least five (5) trading days after the last day of any prior Grace Period. For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investors receive the notice
referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice referred to in clause (ii) or the date referred to in such notice. The last sentence of Section 3(a), first sentence of
Section 3(b), and provisions of Section 3(g) and 3(m) hereof shall not be applicable during any Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by the provisions of Sections 3(a), 3(b), 3(g) and 3(m)
with respect to the information giving rise thereto unless such information is no longer material. Notwithstanding anything to the contrary in the Transaction Documents, the Company shall cause its transfer agent to deliver unlegended Ordinary
Shares to a transferee of an Investor, in accordance with the terms of the Subscription Agreement, in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the
Investors receipt of the notice of a Grace Period and for which the Investor has not yet settled, and deliver a copy of the prospectus included as part of the applicable Registration Statement (unless an exemption from such prospectus delivery
requirement exists).
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4. |
Obligations of the Investors. |
a. At least five (5) Business Days prior to the
first anticipated filing date of a Registration Statement, the Company shall notify each Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such Investors Registrable
Securities included in such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that
(i) such Investor shall promptly furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to
effect the effectiveness of the registration of such Registrable Securities, and (ii) the Investor execute such documents in connection with such registration as the Company may reasonably request.
10
b. Each Investor, by such Investors acceptance of the Registrable Securities, agrees to
cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has notified the Company in writing of such Investors election to
exclude all of such Investors Registrable Securities from such Registration Statement.
c. Each Investor agrees that, upon receipt
of any notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of 3(f), written notice from the Company of a Grace Period or written notice from the Company that a previously effective
Registration Statement is no longer effective, such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until such Investors receipt of the
copies of the supplemented or amended prospectus contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice that no supplement or amendment is required or that the Grace Period has ended or that the Registration Statement
is effective. Notwithstanding anything to the contrary in the Transaction Documents, the Company shall cause its transfer agent to deliver unlegended Ordinary Shares to a transferee of an Investor, in accordance with the terms of the Subscription
Agreement, in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investors receipt of a notice from the Company of the happening of any event of the kind
described in Section 3(g) or the first sentence of 3(f), and for which the Investor has not yet settled.
d. Each Investor covenants
and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.
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5. |
Expenses of Registration. |
All reasonable expenses, other than underwriting discounts
and commissions incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and
disbursements of counsel for the Company, shall be paid by the Company. The Company shall not be liable to the Investors for the fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to Sections 2
and 3 of this Agreement.
In the event any Registrable Securities are included in a Registration
Statement under this Agreement:
a. To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless
and defend each Investor, the directors, officers, members, partners, employees, agents, representatives thereof, and each Person, if any, who controls any Investor within the meaning of the 1933 Act or the 1934 Act (each, an
11
Indemnified Person), against any losses, claims, damages, liabilities, judgments, fines, penalties, reasonable charges, reasonable costs, reasonable attorneys fees,
amounts paid in settlement or reasonable expenses, joint or several, incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or
governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (Losses), to which any of them may become subject insofar as
such Losses arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification
of the offering under the securities or other blue sky laws of any jurisdiction in which Registrable Securities are offered (Blue Sky Filing), or the omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the
statements made therein, in the light of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any state securities law, or any
rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, Violations).
Subject to Section 6(c), the Company shall promptly reimburse the Indemnified Persons for Losses as they are incurred. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a):
(i) shall not apply to Losses incurred by an Indemnified Person arising out of or based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written
information furnished to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by
the Company pursuant to Section 3(d) and (ii) shall not apply to amounts paid in settlement if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, delayed or
conditioned. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.
b. In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers, employees and agents and each Person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act (each, an Indemnified Party), against any Losses to which any of them have become subject, insofar as such Losses arise out of or are based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection with such Registration Statement;
provided, however, that such Investors obligation to reimburse any legal or other expenses reasonably incurred by an Indemnified Party in connection with
12
investigating or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing (each, a Claim) is subject to
Section 6(c); provided further, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement if such
settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld, delayed or conditioned; provided further, however, that such Investor shall be liable under this Section 6(b)
for only Losses that do not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made
by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.
c. Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
Claim, such Indemnified Person or Indemnified Party shall, if a request for indemnification in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the
commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with
counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the reasonable fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by
such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included
in the Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such Claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person reasonably
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any Claim effected without its prior written consent; provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter
into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim, and
such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified
Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the
13
indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under
this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.
d. The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Losses are incurred, and in each case submitted to the
indemnifying party for payment subject to and in accordance with this Section 6.
The indemnity agreements contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.
To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no Person involved in the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to
contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.
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8. |
Reports Under the 1934 Act. |
With a view to making available to the Investors the
benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (Rule 144), the
Company agrees to:
a. make and keep public information available, as those terms are understood and defined in Rule 144;
b. file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long
as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and
c. furnish or otherwise make available, as applicable, to each Investor so long as such Investor owns Registrable Securities, promptly upon
request, (i) a written statement by the Company, if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such
other reports and documents so filed by the Company and (iii) such other information as may be reasonably requested to permit the Investors to sell such securities without registration pursuant to Rule 144.
14
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9. |
Assignment of Registration Rights. |
The rights under this Agreement shall be
automatically assignable by the Investors to any transferee of all or any portion of such Investors Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights and a copy of such
agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such
transferee or assignee and (b) the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by the
transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees
in writing with the Company to be bound by all of the provisions contained herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Subscription Agreement.
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10. |
Amendment of Registration Rights. |
Provisions of this Agreement may be amended and the
observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver effected in accordance with
this Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective if it applies to less than all of the holders of the Registrable Securities. No consideration 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 also is offered to all of the parties to this Agreement.
a. A Person is deemed to be a holder of Registrable Securities whenever
such Person owns or is deemed to own of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon
the basis of instructions, notice or election received from the record owner of such Registrable Securities.
15
b. Any notices, consents, waivers or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile, electronic mail or other electronic transmission
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses, facsimile numbers and electronic mail addresses for such communications shall be:
If to the Company:
Elizabeth
House
9 Castle Street
St
Helier
JE2 3RT
Jersey,
Channel Islands
Telephone: +44 131 445 6159
Facsimile: +44 153 4700 007
Attention: Paul Cowan
If to
Legal Counsel, if any, at such address as may be provided to the Company from time to time.
With a copy (for informational purposes) to:
Clifford Chance US LLP
31
West 52nd Street
New York, New York 10019
Attention: Alejandro E. Camacho and Per B. Chilstrom
Facsimile: 212-878-8375
If to a Subscriber, to
its address, facsimile number and electronic mail address set forth on the Schedule of Subscribers attached hereto, with copies to such Subscribers representatives as set forth on the Schedule of Subscribers, or to such other address and/or
facsimile number and/or electronic mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the senders facsimile machine or other electronic device containing the time,
date, recipient facsimile number or electronic mail address, as applicable, and an image of the first page of such transmission or sent copy of any such electronic mail or (C) provided by a courier or overnight courier service shall be
rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.
c. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.
d. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
16
exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, 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 proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such 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. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
e. This Agreement, the other Transaction Documents (as defined in the Subscription Agreement) and the instruments referenced herein and
therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.
This Agreement, the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.
f. Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto.
g. The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof.
h. This Agreement may be executed in identical counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission or electronic email of a copy of this Agreement bearing the
signature of the party so delivering this Agreement.
i. Each party shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and
the consummation of the transactions contemplated hereby.
17
j. All consents, approvals, waivers and other determinations required to be made by the
Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by the Required Holders.
k. 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.
l. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.
m. The obligations of each Investor hereunder are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor hereunder. Nothing contained herein, and no action taken by any Investor pursuant
hereto, shall be deemed to constitute the Investor as, and the Company acknowledges that the Investors do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are
in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated herein.
* * * * * *
18
IN WITNESS WHEREOF, each Subscriber and the Company have caused its respective
signature page to this Registration Rights Agreement to be duly executed as of the date first written above.
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COMPANY: |
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QUOTIENT LIMITED |
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By: |
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/s/ D.J.P.E. Cowan |
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Name: |
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D.J.P.E. Cowan |
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Title: |
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Chairman & CEO |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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CORMORANT GLOBAL HEALTHCARE MASTER FUND, LP |
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By: |
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/s/ Bihua Chen |
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Name: |
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Bihua Chen |
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Title: |
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CEO/CIO |
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Managing Member of GP |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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COX FLP, LTD. |
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By: |
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/s/ David S. Boylan |
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Name: |
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David S. Boylan |
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Title: |
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President of GP |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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ARROWSMITH FUND, LTD. |
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By: Arrowsmith, LLC |
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By: |
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/s/ James R. Hodge |
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Name: |
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James R. Hodge |
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Title: |
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Managing Member |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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ANN ARBOR PARTNERS, L.P. |
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By: Souede & Hodge Associates |
Its: General Partner |
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By: |
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/s/ James R. Hodge |
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Name: |
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James R. Hodge |
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Title: |
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General Partner |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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SOUTHWELL CAPITAL, LP |
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By: |
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/s/ Nelson Jaeggli |
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Name: |
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Nelson Jaeggli |
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Title: |
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Partner |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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LAWRENCE B. LEVEY TRUST |
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By: Lawrence B. Levey |
Its: Trustee |
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By: |
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/s/ Lawrence B. Levey |
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Name: |
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Lawrence B. Levey |
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Title: |
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Trustee |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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JOSEPH M. COHEN |
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By: |
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/s/ Joseph M. Cohen |
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Name: |
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Joseph M. Cohen |
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Title: |
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Chairman |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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JON M. COHEN |
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By: |
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/s/ Jon M. Cohen |
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Name: |
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Jon M. Cohen |
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Title: |
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MD |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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JOSEPH M. COHEN FAMILY LIMITED PARTNERSHIP |
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By: |
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/s/ Jon M. Cohen |
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Name: |
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Jon M. Cohen |
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Title: |
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Trustee |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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BENJAMIN LING |
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By: |
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/s/ Benjamin Ling |
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Name: |
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Benjamin Ling |
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Title: |
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[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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GANTCHER FAMILY LIMITED
PARTNERSHIP |
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By: |
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Gantcher Family Partners, LLC |
Its: |
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General Partner |
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By: |
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/s/ Nathan Gantcher |
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Name: |
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Nathan Gantcher |
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Title: |
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Managing Member |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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FORESITE CAPITAL FUND II, L.P. |
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By: |
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Foresite Capital Management II, LLC |
Its: |
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General Partner |
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By: |
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/s/ Dennis D. Ryan |
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Name: |
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Dennis D. Ryan |
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Title: |
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CFO |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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GALEN PARTNERS V, L.P. |
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By: |
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Galen V, LLC |
Its: |
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General Partner |
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By: |
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/s/ David W. Jahns |
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Name: |
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David W. Jahns |
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Title: |
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Managing Member |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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GALEN PARTNERS INTERNATIONAL V, L.P. |
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By: |
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Galen V, LLC |
Its: |
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General Partner |
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By: |
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/s/ David W. Jahns |
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Name: |
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David W. Jahns |
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Title: |
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Managing Member |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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PERCEPTIVE LIFE SCIENCES MASTER FUND LTD. |
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By: |
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/s/ James H. Mannix |
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Name: |
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James H. Mannix |
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Title: |
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COO |
[Registration Rights
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first written above.
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SUBSCRIBERS: |
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TITAN PERC, LTD. |
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By: |
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/s/ Darren Ross |
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Name: |
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Darren Ross |
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Title: |
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Director |
[Registration Rights
Agreement
Signature Page]
SCHEDULE OF SUBSCRIBERS
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Subscriber
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Subscribers Address, Facsimile Number
and Electronic Mail Address |
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Subscribers Representatives
Address, Facsimile Number and
Electronic Mail Address |
Cormorant Global Healthcare Master Fund, L.P. |
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Cox FLP, Ltd. |
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Arrowsmith Fund, Ltd. |
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Ann Arbor Partners, L.P. |
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Southwell Capital, L.P. |
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Lawrence B. Levey, Trustee of the Lawrence B. Levey Trust u/a/d 9/11/06 |
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Joseph M. Cohen |
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Jon M. Cohen |
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Joseph M. Cohen Family Limited Partnership |
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Benjamin Ling |
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Gantcher Family Limited Partnership |
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Foresite Capital Fund II, L.P. |
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Galen Partners V, L.P. |
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Galen Partners International V, L.P. |
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Perceptive Life Sciences Master Fund Ltd. |
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Titan Perc, Ltd. |
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EXHIBIT A
FORM OF NOTICE OF EFFECTIVENESS
OF REGISTRATION STATEMENT
[ ]
[ ]
[ ]
Attention: [ ]
Re: [ ]
Ladies and Gentlemen:
[We are][I am]
counsel to Quotient Limited, a company organized under the laws of Jersey (the Company), and have represented the Company in connection with that certain Subscription Agreement (the Subscription Agreement),
entered into by and among the Company and the subscribers named therein (collectively, the Holders) pursuant to which the Company issued to the Holders its ordinary shares of no par value per share in the capital of the Company
(the Ordinary Shares). Pursuant to the Subscription Agreement, the Company also has entered into a Registration Rights Agreement with the Holders (the Registration Rights Agreement) pursuant to which the Company
agreed, among other things, to register the resale of the Registrable Securities (as defined in the Registration Rights Agreement). In connection with the Companys obligations under the Registration Rights Agreement, on
, 2014, the Company filed a Registration Statement on Form [S-1][S-3] (File No. 333- ) (the
Registration Statement) with the Securities and Exchange Commission (the SEC) relating to the Registrable Securities which names each of the Holders as a selling shareholder thereunder.
In connection with the foregoing, [we][I] advise you that a member of the SECs staff has advised [us][me] by telephone that the
SEC has entered an order declaring the Registration Statement effective under the Securities Act of 1933, as amended (the 1933 Act) at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and
[we][I] have no knowledge, after telephonic inquiry of a member of the SECs staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the
Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement.
This letter shall serve
as our standing instruction to you that the Ordinary Shares are freely transferable by the Holders pursuant to the Registration Statement. You need not require further letters from us to effect any future legend-free issuance or reissuance of
Ordinary Shares to the Holders provided at the time of such reissuance, the Company has not otherwise notified you that the Registration Statement is unavailable for the resale of the Registrable Securities.
.
Exhibit A-1
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Very truly yours, |
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[ISSUERS COUNSEL] |
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By: |
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CC: |
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[LIST NAMES OF HOLDERS] |
Exhibit A-2
EXHIBIT B
SELLING SHAREHOLDERS
The
ordinary shares being offered by the Selling Shareholders are those previously issued to the Selling Shareholders. For additional information regarding the issuances of ordinary shares, see [Private Placement of Ordinary shares] above.
We are registering the ordinary shares in order to permit the Selling Shareholders and their donees, pledgees, transferees or other successors-in-interest that receive their shares after the date of this prospectus to offer the shares, as well as
any shares that we may issue or may be issuable by reason of any share split, share dividend or similar transaction involving these shares, for resale from time to time in the manner contemplated under Plan of Distribution.. Except for
the ownership of the ordinary shares [or as otherwise set forth in the table and related footnotes below], the Selling Shareholders have not had any material relationship with us within the past three years.
The table below, including the footnotes, lists the Selling Shareholders and other information regarding the beneficial ownership of the
ordinary shares by each of the Selling Shareholders based in part on information provided to us by the Selling Shareholders. The second column lists the number of ordinary shares beneficially owned by each selling shareholder, based on its ownership
of the ordinary shares, as of , 20[ ].
The
third column lists the ordinary shares being offered by this prospectus by the Selling Shareholders.
In accordance with the terms of
registration rights agreements with the holders of the ordinary shares, this prospectus generally covers the resale of that number of ordinary shares equal to the number of ordinary shares issued to such holders in the private placement described in
[Private Placement of Ordinary shares] above, held by such holders as of the trading day immediately preceding the date this registration statement was initially filed with the SEC. The fourth column assumes the sale of all of the shares
offered by the Selling Shareholders pursuant to this prospectus. However, because the Selling Shareholders may sell all or some of their shares under this prospectus from time to time, or in another permitted manner, we cannot assure you as to the
actual number of shares that will be sold by the Selling Shareholders or that will be held by the Selling Shareholders after completion of any sales. We do not know how long the Selling Shareholders will hold the shares before selling them.
Information concerning the Selling Shareholders may change from time to time and changed information will be presented in a supplement to this prospectus if and when necessary and required.
The Selling Shareholders may sell all, some or none of their shares in this offering. See Plan of Distribution.
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Name of Selling Shareholder |
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Number of Shares Owned Prior to Offering |
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Maximum Number of Shares to be Sold Pursuant to this Prospectus |
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Number of Shares Owned After Offering |
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Exhibit B-1
PLAN OF DISTRIBUTION
We are registering the Ordinary Shares previously issued to permit the resale of these Ordinary Shares by the holders of the Ordinary Shares
from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling shareholders of the Ordinary Shares. We will bear all fees and expenses incident to our obligation to register the Ordinary
Shares.
The selling shareholders may (subject to receipt by us and/or such selling shareholders of any applicable regulatory consents)
sell all or a portion of the Ordinary Shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the Ordinary Shares are sold through underwriters or
broker-dealers, the selling shareholders will be responsible for underwriting discounts or commissions or agents commissions. The Ordinary Shares may be sold in one or more transactions at fixed prices, at prevailing market prices at the time
of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,
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on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale; |
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in the over-the-counter market; |
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in transactions otherwise than on these exchanges or systems or in the over-the-counter market; |
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through the writing of options, whether such options are listed on an options exchange or otherwise; |
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
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block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
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purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
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an exchange distribution in accordance with the rules of the applicable exchange; |
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privately negotiated transactions; |
Exhibit B-2
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sales pursuant to Rule 144; |
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broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share; |
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a combination of any such methods of sale; and |
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any other method permitted pursuant to applicable law. |
If the selling shareholders effect
such transactions by selling Ordinary Shares to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling shareholders
or commissions from purchasers of the Ordinary Shares for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the Ordinary Shares or otherwise, the selling shareholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Ordinary
Shares in the course of hedging in positions they assume. The selling shareholders may also sell Ordinary Shares short and deliver Ordinary Shares covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling shareholders may also loan or pledge Ordinary Shares to broker-dealers that in turn may sell such shares.
The selling shareholders may pledge or grant a security interest in some or all of the Ordinary Shares owned by them and, if they default in
the performance of their secured obligations, the pledgees or secured parties may offer and sell the Ordinary Shares from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act of 1933, as amended, amending, if necessary, the list of selling shareholders to include the pledgee, transferee or other successors in interest as selling shareholders under this prospectus. The selling shareholders also may
transfer and donate the Ordinary Shares in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.
The selling shareholders and any broker-dealer participating in the distribution of the Ordinary Shares may be deemed to be
underwriters within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the
time a particular offering of the Ordinary Shares is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of Ordinary Shares being offered and the terms of the offering, including the name or
names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling shareholders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers.
Under the securities laws of some states, the Ordinary Shares may be sold in such states only through registered or licensed brokers or
dealers. In addition, in some states the Ordinary Shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.
Exhibit B-3
There can be no assurance that any selling shareholder will sell any or all of the Ordinary
Shares registered pursuant to the registration statement, of which this prospectus forms a part.
The selling shareholders and any other
person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which
may limit the timing of purchases and sales of any of the Ordinary Shares by the selling shareholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the Ordinary Shares to
engage in market-making activities with respect to the Ordinary Shares. Further, regulatory consents may be required in Jersey, Channel Islands in connection with certain types of offers of Ordinary Shares by selling shareholders, including offers
to more than 50 persons other than on any national securities exchange or quotation service on which the securities are listed or quoted at the time of sale. All of the foregoing may affect the marketability of the Ordinary Shares and the ability of
any person or entity to engage in market-making activities with respect to the Ordinary Shares.
We will pay all expenses of the
registration of the Ordinary Shares pursuant to the registration rights agreement, estimated to be $[ ] in total, including, without limitation, Securities and Exchange Commission filing fees and
expenses of compliance with state securities or Blue Sky laws; provided, however, that a selling shareholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling shareholders
against liabilities, including some liabilities under the Securities Act, in accordance with the registration rights agreements, or the selling shareholders will be entitled to contribution. We may be indemnified by the selling shareholders against
civil liabilities, including liabilities under the Securities Act, that may arise from any written information furnished to us by the selling shareholder specifically for use in this prospectus, in accordance with the related registration rights
agreement, or we may be entitled to contribution.
Once sold under the registration statement, of which this prospectus forms a part, the
Ordinary Shares will be freely tradable in the hands of persons other than our affiliates.
Exhibit B-4
Exhibit 4.3
NEITHER THE ISSUANCE AND SALE OF THIS WARRANT NOR THE ORDINARY SHARES INTO WHICH THIS WARRANT IS EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND THE ORDINARY SHARES INTO WHICH THIS WARRANT IS EXERCISABLE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT AND THE ORDINARY SHARES INTO WHICH THIS WARRANT IS EXERCISABLE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
THIS WARRANT OR SUCH ORDINARY SHARES.
THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON THE THIRD ANNIVERSARY OF THE DATE OF ISSUANCE SET
FORTH BELOW.
PRE-FUNDED WARRANT
QUOTIENT LIMITED
Warrant No.:
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Warrant Shares: |
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Initial Exercise Date: , 2014 |
THIS PRE-FUNDED WARRANT (this Warrant) certifies that, for value received,
or its assigns (the Holder) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the Initial Exercise Date, as listed above, and on or prior to the close of business on the third (3rd) year anniversary of the Initial Exercise Date (the Termination Date) but not thereafter, to subscribe for and
purchase from Quotient Limited, a Jersey, Channel Islands company (the Company), up to ordinary shares (as subject to adjustment hereunder, the
Warrant Shares), of no par value per share (Ordinary Shares), in the capital of the Company. The purchase price of one Ordinary Share under this Warrant shall be equal to the Exercise Price, as defined in
Section 2(b). This Warrant is being issued pursuant to the Subscription Agreement, dated as of (the Subscription Agreement), among the Company and the
initial holder of the Warrant. Capitalized terms used herein have the respective meanings ascribed thereto in the Subscription Agreement unless otherwise defined herein.
Section 1. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated in this
Section 1:
Affiliate means any Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.
Board of Directors means the board of directors of the Company.
Business Day means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States
or a legal holiday in Jersey, Channel Islands or any day on which banking institutions in the State of New York or in Jersey, Channel Islands are authorized or required by law or other governmental action to close.
Commission means the United States Securities and Exchange Commission.
Exchange Act means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
Liens means a lien, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction.
Ordinary Share Equivalent means any securities of the Company that would entitle the holder thereof to
acquire at any time Ordinary Shares, including, without limitation, any debt, preference shares, rights, options, warrants, share appreciation rights, restricted share units or other instrument that is at any time convertible into or exercisable or
exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares.
Person means an individual or
corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
Proceeding means an action, claim, suit, investigation or proceeding (including, without limitation, an informal
investigation or partial proceeding, such as a deposition), whether commenced or threatened.
Rule 144 means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as
such Rule.
Securities Act means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.
Trading Day means a day on which the Ordinary Shares are traded on a Trading Market.
Trading Market means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for
trading on the date in question: the NYSE MKT LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing).
Transfer Agent means Continental Stock Transfer & Trust Company, the current transfer agent of the Company, with a
mailing address of 17 Battery Place, New York, New York 10004 and a facsimile number of 212-616-7615, and any successor transfer agent of the Company.
VWAP means, 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)), (b) if the Ordinary Shares are not then listed or quoted on a Trading Market and if the Ordinary Shares are then listed
or quoted on the OTC Bulletin Board, the volume weighted average price of the Ordinary Shares for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Ordinary Shares are not then listed or quoted for trading on the
OTC Bulletin Board and if prices for the Ordinary Shares are then reported in the Pink Sheets published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid
price per Ordinary Share so reported,
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or (d) in all other cases, the fair market value of the Ordinary Shares as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.
Section 2. Exercise.
(a) Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, on any business
day not later than 5:00 P.M., New York time, on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to the Holder), (a) if required pursuant to the immediately following sentence, this Warrant, (b) a Notice of Exercise form annexed hereto, properly delivered by the Holder via facsimile, and (c) the aggregate Exercise Price
for the shares specified in the applicable Notice of Exercise, and all applicable taxes and charges due in connection with the exercise of this Warrant, in lawful money of the United States of America by certified or official bank check or by bank
wire transfer in immediately available funds (such funds to be delivered on or prior to the Warrant Share Delivery Date (as defined below)). Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and this Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three
(3) Trading Days after the date the final Notice of Exercise is delivered to the Company, as applicable. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares
purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day after receipt of such notice. Upon delivery of the Notice of Exercise form to the Company pursuant to
this Section 2(a), the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised. Each exercise hereof shall constitute the re-affirmation
by the Holder that the representations and warranties contained in Article 2 of the Subscription Agreement are true and correct in all material respects with respect to the Holder with respect to the Warrant Shares as of the time of such
exercise (except for any representation or warranty made as of a specified date, which shall be true and correct in all respects as of such specified date). The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that,
by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face
hereof.
(b) Exercise Price. The exercise price per share of the Ordinary Shares under this Warrant shall be $0.01, subject to
adjustment hereunder (the Exercise Price).
(c) Mechanics of Exercise.
(i) Delivery of Warrant Shares Upon Exercise. Subject to Section 2(e) hereof, the Company shall cause the Transfer Agent to
transmit Warrant Shares purchased hereunder to the Holder by crediting the account of the Holders prime broker with the Depository Trust Company (Depository) through its system (DWAC) system if the Company
is then a participant in such system and either (A) there is an effective registration statement under the Securities Act permitting the resale of the Warrant Shares by the Holder, or (B) the Warrant Shares are otherwise eligible to be
sold under Rule 144 without regard to the volume or manner of sale restrictions thereunder, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise, in each case by the date that is three
(3)
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Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise and receipt of the DWAC request from the Holders prime broker (if applicable),
(B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (such date, the Warrant Share Delivery Date). Delivery of the Warrant Shares is subject to payment to the
Company of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant to Section 2(c)(vi) prior to the issuance of such shares, having been paid.
(ii) Delivery of New Warrant Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of the
Holder and upon surrender of this Warrant, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares
called for by this Warrant, which new Warrant shall in all other respects be identical to this Warrant.
(iii) Rescission Rights.
If the Company fails to cause the Transfer Agent to transmit either to the Holders prime broker the Warrant Shares or to the Holder a certificate or the certificates representing the Warrant Shares, as applicable pursuant to
Section 2(c)(i) hereof by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.
(iv)
Compensation for Buy-In on Failure to Timely Deliver Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holders prime broker the Warrant
Shares, or to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open
market transaction or otherwise) or the Holders brokerage firm otherwise purchases, Ordinary Shares to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
Buy-In), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holders total purchase price (including brokerage commissions, if any) for the Ordinary Shares so purchased exceeds
(y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such
purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of this Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed
rescinded) or deliver to the Holder the number of Ordinary Shares that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Ordinary Shares having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Ordinary Shares with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the
Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and evidence of the amount of such loss. Nothing herein shall limit the
Holders right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Companys failure to timely deliver
certificates representing Ordinary Shares upon exercise of this Warrant as required pursuant to the terms hereof.
(v) No Fractional
Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.
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(vi) Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the
name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.
(vii) Closing of Books. The Company will not close its shareholder books or records in any manner which prevents the
timely exercise of this Warrant, pursuant to the terms hereof.
(d) Holders Exercise Limitations. The Company shall not
effect any exercise of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the
applicable Notice of Exercise, the Holder (together with the Holders Affiliates, and any other Persons acting as a group together with the Holder or any of the Holders Affiliates) would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of Ordinary Shares beneficially owned by the Holder and its Affiliates shall include the number of Ordinary Shares issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of Ordinary Shares which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of
its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Ordinary Share Equivalents) subject to a limitation on conversion or
exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(d) applies, the determination of
whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice
of Exercise shall be deemed to be the Holders determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each
case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of this Warrant that are not in compliance with the
Beneficial Ownership Limitation. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For
purposes of this Section 2(d), in determining the number of outstanding Ordinary Shares, the Holder may rely on the number of outstanding Ordinary Shares as reflected in (A) the Companys most recent periodic or annual report filed
with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company setting forth the number of Ordinary Shares outstanding. Upon the written or oral request of
the Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares shall be determined after giving effect to the
conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding Ordinary Shares was reported. The Beneficial Ownership Limitation
shall be 9.99% of
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the number of Ordinary Shares outstanding immediately after giving effect to the issuance of Ordinary Shares issuable upon exercise of this Warrant. The Holder, upon not less than 61 days
prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(d). Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The
provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this
Warrant.
(e) Compliance with the Securities Act of 1933. Except as provided in the Subscription Agreement, the Company may
cause the legend set forth on the first page of this Warrant to be set forth on this Warrant, and, if required, a similar legend on any security issued or issuable upon exercise of this Warrant, unless counsel for the Company is of the opinion
as to any such security that such legend is unnecessary. For the avoidance of doubt, the Warrant Shares will be considered Registrable Securities for purposes of the Registration Rights Agreement, dated as of
, by and between the Company and the Holder (the Registration Rights Agreement) and will be entitled to the
registration rights set out therein.
Section 3. Certain Adjustments.
(a) Share Dividends and Splits. If the Company, at any time while this Warrant is outstanding, effects a share split or payment of
share dividend, then upon the effective date thereof, the number of Ordinary Shares which the Holder shall be entitled to purchase upon exercise of this Warrant shall be increased or decreased, as the case may be, in direct proportion to the
increase or decrease in the number of Ordinary Shares by reason of such share split or payment of share dividend and the Exercise Price shall be, in the case of an increase in the number of shares, proportionally decreased and, in the case of
decrease in the number of shares, proportionally increased. Any adjustment made pursuant to this Section 3(a) shall become effective immediately prior to 9:00 a.m. (New York city time) on the Ex-Dividend Date for such dividend or distribution
or the effective date of such subdivision or combination, as the case may be. Ex-Dividend Date means, when used with respect to any dividend, distribution or issuance, the first date on which the Ordinary Shares trade on the
Trading Market, regular way, without the right to receive the relevant dividend, distribution or issuance.
(b) Subsequent Rights
Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Ordinary Share Equivalents or rights to purchase shares, warrants, securities or other property pro rata to the
record holders of Ordinary Shares (the Purchase Rights), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the
Holder had held the number of Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on
which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary Shares are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holders right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in
such Purchase Right to such extent (or beneficial ownership of such Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).
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(c) Pro Rata Distributions. The Holder, as the holder of this Warrant, shall be entitled
to receive such dividends paid and distributions of any kind made to the holders of Ordinary Shares of the Company to the same extent as if the Holder had exercised this Warrant into Ordinary Shares (without regard to any limitations on exercise
herein or elsewhere and without regard to whether or not a sufficient number of shares are authorized and reserved to effect any such exercise and issuance) and had held such Ordinary Shares on the record date for such dividends and distributions.
Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders of Ordinary Shares.
(d)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person and
the Company is not the surviving corporation, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of
related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any
reclassification, reorganization or recapitalization of the Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares are effectively converted into or exchanged for other securities, cash or property, or (v) the
Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with another Person or group of Persons whereby such other Person or group of Persons acquires more than 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a Fundamental Transaction), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in
Section 2(d) on the exercise of this Warrant), the number of Ordinary Shares of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the Alternate
Consideration) receivable as a result of such Fundamental Transaction by a holder of the number of Ordinary Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in
Section 2(d) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one Ordinary Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction the Company or any Successor Entity (as defined below) shall, at the Holders
option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the
remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction. Black Scholes Value means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from
the OV function on Bloomberg, L.P. (Bloomberg) determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to
the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the
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applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as
of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater of (i) the weighted average price of the Ordinary
Shares for the Trading Day immediately preceding the date of announcement of the applicable Fundamental Transaction, (ii) the weighted average price of the Ordinary Shares for the Trading Day immediately following the date of announcement of
the applicable Fundamental Transaction and (iii) the weighted average price of the Ordinary Shares for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction and (D) a remaining option time
equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the
Successor Entity) to assume in writing all of the obligations of the Company under this Warrant and the Registration Rights Agreement in accordance with the provisions of this Section 3(d) pursuant to written agreements and
shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Ordinary Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this
Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such
Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the Registration Rights Agreement referring to the Company shall refer instead to the Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Warrant and the Registration Rights Agreement with the same effect as if such Successor Entity had been named as the Company herein.
(e) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as
the case may be. For purposes of this Section 3, the number of Ordinary Shares deemed to be issued and outstanding as of a given date shall be the sum of the number of Ordinary Shares (excluding treasury shares, if any) issued and outstanding.
(f) Notice to Holder.
(i) Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company
shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
(ii) Notice to Allow Exercise by Holder. If during the term in which this Warrant may be exercised by the Holder (A) the Company
shall declare a dividend (or any other distribution in whatever form) on the Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares, (C) the Company shall authorize the
granting to all holders of the Ordinary Shares rights or warrants to subscribe for or purchase any share capital of any class, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification of the
Ordinary Shares, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange
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whereby the Ordinary Shares are converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of
the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Ordinary Shares of record shall be entitled to exchange their shares of the Ordinary Shares for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be
specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously disclose such information in
compliance with applicable securities laws. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be
expressly set forth herein.
Section 4. Transfer of Warrant.
(a) Transferability. As provided herein, this Warrant may be transferred only pursuant to a registration statement filed under the
Securities Act, or an exemption from such registration. Subject to such restrictions and subject to compliance with the applicable laws of Jersey, Channel Islands, the Company shall transfer this Warrant from time to time upon the books to be
maintained by the Company for that purpose, upon surrender hereof for transfer, properly endorsed or accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company to establish that such
transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued to the transferee and the surrendered Warrant shall be canceled by the Company.
(b) New Warrant. This Warrant may be combined with other Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in
such combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for this Warrant or Warrants to be combined in accordance with such notice. All Warrants issued on transfers or exchanges shall include reference to the
initial issuance date set forth on the first page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto and the Warrant number.
(c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company or on behalf of the Company
for that purpose (the Warrant Register), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise
hereof or any distribution to the Holder, and for all other purposes, absent actual written notice to the contrary.
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Section 5. Miscellaneous.
(a) No Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a shareholder of the Company prior to the issuance of the Warrant Shares as set forth in Section 2(c)(i) except as set forth in Section 3 hereof.
(b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any share certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon
surrender and cancellation of such Warrant or share certificate, if mutilated, the Company will make and deliver a new Warrant or share certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or share certificate.
Applicants for a replacement Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable charges as the Company may prescribe.
(c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.
(d) No Inconsistent Actions. Except and to the extent as waived or consented to by the Holder, the Company shall not by any action,
including, without limitation, amending its certificate of incorporation or articles of association or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such
exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this
Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations
under this Warrant.
(e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this
Warrant shall be determined in accordance with the laws of the State of New York.
(f) Restrictions. The Holder acknowledges that
the Warrant Shares acquired upon the exercise of this Warrant, if not registered for resale under the Securities Act, will have restrictions upon resale imposed by state and federal securities laws unless the shares are sold under an exemption from
registration, including, without limitation, Rule 144 (if available).
(g) Nonwaiver and Expenses. No course of dealing or any
delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of such right or otherwise prejudice Holders rights, powers or remedies. Without limiting any other provision of this Warrant or the
Subscription Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover
any reasonable costs and expenses including, but not limited to, reasonable attorneys fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights,
powers or remedies hereunder.
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(h) Notices. Any notice, request or other document required or permitted to be given or
delivered under this Warrant must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications to the Company shall be:
If to the Company:
Elizabeth House
9 Castle Street
St Helier
JE2 3RT
Jersey, Channel Islands
Telephone: +44 131 445 6159
Facsimile: +44 153 4700 007
Attention: Paul Cowan
With
Copies to:
Clifford Chance US LLP
31 West 52nd Street
New York, New York 10019
Attention: Alejandro E. Camacho and Per B. Chilstrom
Facsimile: 212-878-8375
If to
an initial Holder, to the address provided in the Subscription Agreement.
If to a transferee Holder, to the address of such Holder set
forth in the transfer documentation provided to the Company.
(i) Limitation of Liability. No provision hereof, in the absence of
any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Ordinary
Shares or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.
(j)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to seek specific performance of its rights under this Warrant. The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be
adequate.
(k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from
time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.
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(l) Amendment. This Warrant may be modified or amended or the provisions hereof waived
with the written consent of the Company and the Holder.
(m) Severability. Wherever possible, each provision of this Warrant shall
be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.
(n) Headings. The
headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
********************
(Signature Page Follows)
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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto
duly authorized as of the date first above indicated.
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QUOTIENT LIMITED |
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By: |
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Name: |
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Title: |
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[Prefunded Warrant
Signature Page]
NOTICE OF EXERCISE
The undersigned is the Holder of Warrant
No. (the Warrant) issued by Quotient Limited, a Jersey, Channel Islands company (the Company). As a condition to this exercise,
the undersigned Holder hereby represents and warrants to the Company that the representations and warranties set forth in Article 2 of the Subscription Agreement (as defined in the Warrant) are true and correct in all material respects as of
the date hereof as if they had been made on such date with respect to the Warrant Shares (except for any representation or warranty made as of a specified date, which shall be true and correct in all respects as of such specified date). The
undersigned Holder further acknowledges that the sale, transfer, assignment or hypothecation of the Warrant Shares to be issued upon exercise of this Warrant is subject to the terms and conditions contained in the Warrant. Capitalized terms
used herein and not otherwise defined have the respective meanings set forth in the Warrant.
(1) The undersigned hereby elects to
purchase Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.
(2) Unless the Warrant Shares will be delivered electronically via DWAC, please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:
and deliver the physical certificate representing said Warrant Shares to the following address:
If the Warrant Shares will be delivered electronically via DWAC, please issue them to the following
account:
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Name of DTC Participant: |
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DTC Participant Number: |
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Name of Account at DTC Participant to be credited with the Warrant Shares: |
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Account Number at DTC Participant to be credited with the Warrant Shares: |
[SIGNATURE OF HOLDER]
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Name of Investing Entity: |
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Signature of Authorized Signatory of Investing Entity: |
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Name of Authorized Signatory: |
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Title of Authorized Signatory: |
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Date: |
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute
this form and supply required information.
Do not use this form to exercise the Warrant.)
FOR VALUE RECEIVED, all of the shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to
whose
address is
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Holders Signature: |
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Holders Address: |
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NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the
foregoing Warrant.
Exhibit 10.1
SUBSCRIPTION AGREEMENT
SUBSCRIPTION AGREEMENT (the Agreement), dated as of November 25, 2014, by and among Quotient Limited, a company
organized under the laws of Jersey (the Company), and the investors listed on the Schedule of Subscribers attached hereto (individually, a Subscriber and collectively, the Subscribers).
WHEREAS:
A. The Company
and each Subscriber 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 1933 Act), and Rule 506 of
Regulation D (Regulation D) as promulgated by the United States Securities and Exchange Commission (the SEC) under the 1933 Act.
B. Each Subscriber wishes to subscribe for, and the Company wishes to issue, upon the terms and conditions stated in this Agreement,
(i) that aggregate number of ordinary shares, of no par value per share in the capital of the Company (the Ordinary Shares), set forth opposite such Subscribers name in column (3) on the Schedule of Subscribers
(which aggregate amount for all Subscribers under this Agreement and Other Subscription Agreements (as defined below) shall be 2,000,000 Ordinary Shares and shall collectively be referred to herein as the New Ordinary Shares), and
(ii) a warrant to acquire up to that number of additional Ordinary Shares set forth opposite such Subscribers name in column (4) on the Schedule of Subscribers (the Warrants) (as exercised, collectively, the
Warrant Shares). For purposes of this Agreement, Other Subscription Agreements means subscription agreements executed and delivered to the Company contemporaneously with this Agreement, which subscription
agreements will be on substantially similar terms and conditions as this Agreement.
C. 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 the Company
has agreed to provide certain registration rights with respect to the New Ordinary Shares, and the Warrant Shares under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.
D. The New Ordinary Shares, the Warrants and the Warrant Shares collectively are referred to herein as the Securities.
NOW, THEREFORE, the Company and each Subscriber hereby agree as follows:
1. SUBSCRIPTION AND ISSUE OF NEW ORDINARY SHARES AND WARRANTS
(a) Issue of New Ordinary Shares and Warrants.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue to each Subscriber,
and each Subscriber severally, but not
jointly, shall subscribe for on the Closing Date (as defined below), the number of New Ordinary Shares as is set forth opposite such Subscribers name in column (3) on the Schedule of
Subscribers, along with the Warrants to acquire up to that number of Warrant Shares as is set forth opposite such Subscribers name in column (4) on the Schedule of Subscribers (the Closing).
(i) Closing. The date and time of the Closing (the Closing Date) shall be November 28, 2014, 12:00 p.m., New
York City time, on the date hereof (or such later date as is mutually agreed to by the Company and each Subscriber) after notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below at the offices of
Cooley LLP at 1114 Avenue of the Americas, New York, NY 10036.
(ii) Subscription Price. The aggregate subscription price for the
New Ordinary Shares and the Warrants to be subscribed for by each such Subscriber at the Closing (the Subscription Price) shall be the amount set forth opposite each Subscribers name in column (5) of the Schedule of
Subscribers. The subscription price for the New Ordinary Shares shall be $9.50 per share and the subscription price for the Warrants shall be $9.49 multiplied by the number of underlying Warrant Shares.
(b) Form of Payment. On the Closing Date, (i) each Subscriber shall pay its Subscription Price to the Company for the New Ordinary
Shares and the Warrants to be issued and sold to such Subscriber at the Closing, by wire transfer of immediately available funds in accordance with the Companys written wire instructions and (ii) the Company shall deliver to each
Subscriber the New Ordinary Shares (allocated in the amounts as such Subscriber shall request) which such Subscriber is subscribing for hereunder, along with the Warrants (allocated in the amounts as such Subscriber shall request) which such
Subscriber is purchasing, in each case duly executed on behalf of the Company and registered in the name of such Subscriber or its designee.
2. SUBSCRIBERS REPRESENTATIONS AND WARRANTIES.
Each Subscriber represents, warrants and agrees with respect to only itself that:
(a) Organization and Good Standing. Such Subscriber is an exempted company duly incorporated or organized, validly existing
and in good standing under the laws of the Cayman Islands.
(b) Authorization and Power. Such Subscriber has the requisite power
and authority, corporate or otherwise, to enter into and perform the Transaction Documents (as defined below) to which such Subscriber is a party and to subscribe for the New Ordinary Shares and Warrants being sold to it hereunder. The execution,
delivery and performance of the Transaction Documents to which such Subscriber is a party by such Subscriber and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary company action,
and no further consent or authorization of such Subscriber or its Board of Directors, stockholders or partners, as the case may be, is required.
(c) No Public Sale or Distribution. Such Subscriber is subscribing for the New Ordinary Shares and the Warrants, and upon exercise of
the Warrants will acquire the Warrant
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Shares issuable upon exercise of the Warrants, for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales
registered or exempted under the 1933 Act; provided, however, that by making the representations herein, such Subscriber does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the
Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act and pursuant to the applicable terms of the Transaction Documents. Such Subscriber is subscribing for the Securities hereunder in
the ordinary course of its business. Such Subscriber does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. For purposes of this Agreement, Person means
an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.
(d) Accredited Investor Status. Such Subscriber is an accredited investor as that term is defined in Rule 501(a) of
Regulation D.
(e) Reliance on Exemptions. Such Subscriber understands that the Securities are being offered and issued 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 Subscribers compliance with, the
representations, warranties, agreements, acknowledgments and understandings of such Subscriber set forth herein in order to determine the availability of such exemptions and the eligibility of such Subscriber to subscribe for the Securities.
(f) Information. Such Subscriber and its advisors, if any, have been furnished with, or had access to, all materials relating to the
business, finances and operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Subscriber as it has deemed necessary or appropriate to conduct its due diligence investigation and has
sufficient knowledge and experience in investing in companies similar to the Company in terms of the Companys stage of development so as to be able to evaluate the risks and merits of its investment in the Company. Such Subscriber and its
advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by such Subscriber or its advisors, if any, or its representatives shall modify, amend
or affect such Subscribers right to rely on the Companys representations and warranties contained herein. Such Subscriber understands that its investment in the Securities involves a high degree of risk and is able to afford a complete
loss of such investment. Such Subscriber has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. Such Subscriber has not relied on any
information or advice furnished by or on behalf of the Agent (as defined below) in connection with the transactions contemplated hereby.
(g) No Governmental Review. Such Subscriber 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.
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(h) Transfer or Resale. Such Subscriber understands that except as provided in the
Registration Rights Agreement: (i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) such Subscriber shall have delivered to the Company an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or
transferred pursuant to an exemption from such registration, or (C) such Subscriber provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 promulgated under the 1933 Act (or
a successor rule thereto) (collectively, Rule 144); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale
of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act
or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions
of any exemption thereunder. The Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale or
assignment of the Securities hereunder, and no Subscriber effecting a pledge of the Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other
Transaction Document, including, without limitation, this Section 2(h).
(i) Legends. Such Subscriber understands that the
certificates or other instruments representing the New Ordinary Shares and the Warrants and, until such time as the resale of the Warrant Shares have been registered under the 1933 Act as contemplated by the Registration Rights Agreement, the share
certificates representing the Warrant Shares, except as set forth below, shall bear any legend as required by the blue sky laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be
placed against transfer of such share certificates):
NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN] [THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, 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 OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM
REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID 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.
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The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the
holder of the Securities upon which it is stamped, if, unless otherwise required by state securities laws, (i) such Securities are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such
holder provides the Company with an opinion of a law firm reasonably acceptable to the Company, in a form reasonably acceptable to the Company, to the effect that such sale, assignment or transfer of the Securities may be made without registration
under the applicable requirements of the 1933 Act, or (iii) such holder provides the Company with reasonable assurance that the Securities can be sold, assigned or transferred pursuant to Rule 144.
(j) Validity; Enforcement. The Transaction Documents to which such Subscriber is a party have been duly and validly authorized,
executed and delivered on behalf of such Subscriber and shall constitute the legal, valid and binding obligations of such Subscriber enforceable against such Subscriber in accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors rights and remedies.
(k) No Conflicts. The execution, delivery and performance by such Subscriber of the Transaction Documents to which such Subscriber
is a party and the consummation by such Subscriber of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Subscriber or (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 Subscriber 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 Subscriber, 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 Subscriber to perform its obligations hereunder.
(l) Residency. Such Subscriber maintains an office in the jurisdiction specified below its address on the Schedule of Subscribers.
(m) No General Solicitation. Each Subscriber acknowledges that the Securities were not offered to such Subscriber by means of any form
of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, website, or
similar media, or broadcast over television or radio, or (ii) any seminar or meeting to which such Subscriber was invited by any of the foregoing means of communications.
(n) No Affiliates; Independent Investment. Such Subscriber is not (i) an officer or director of the Company, (ii) an
affiliate of the Company or any of its subsidiaries (as defined in Rule 144 of the 1933 Act) or (iii) a beneficial owner of more than 10% of Ordinary Shares
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(as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the 1934 Act)). Except as may be disclosed in any filings with the SEC by the
Subscribers under Section 13 and/or Section 16 of the 1934 Act, no Subscriber has agreed to act with any other Subscriber for the purpose of acquiring, holding, voting or disposing of the Securities subscribed for hereunder for purposes of
Section 13(d) under the 1934 Act, and each Subscriber is acting independently with respect to its investment in the Securities.
(o)
Brokers. Such Subscriber has no actual knowledge of any brokerage or finders fees or commissions that are or will be payable by the Company or any of its Subsidiaries to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person or entity, other than the Agent, with respect to the transactions contemplated by this Agreement.
3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company represents and warrants to each of the Subscribers that:
(a) Defined Terms. Capitalized terms used in this Section 3 without definition have the meanings ascribed to them in Annex A
hereto.
(b) Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement, the Registration Rights Agreement and the Warrants (collectively, the Transaction Documents) and to issue the Securities in accordance with the terms hereof and thereof. The execution
and delivery of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the New Ordinary Shares and the Warrants and the
reservation for issuance and the issuance of the Warrant Shares issuable upon exercise of the Warrants have been duly authorized by the Companys Board of Directors and no further filing, consent or authorization is required by the Company, its
Board of Directors, its shareholders or, to the Companys knowledge, any other Person. This Agreement and the other Transaction Documents have been duly executed and delivered by the Company, and constitute the legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with their respective terms, except as (i) such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors rights and remedies and (ii) enforceability of the indemnification and contributions provisions set forth in the
Transaction Documents may be limited by the federal or state securities laws of the United States or the public policy underlying such laws.
(c) Issuance of Securities. The New Ordinary Shares and the Warrants are duly authorized and, upon issuance in accordance with the
terms hereof, shall be validly issued and free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof and the New Ordinary Shares shall be fully paid and nonassessable with the holders being entitled to all
rights accorded to a holder of Ordinary Shares. As of the Closing, a number of Ordinary Shares shall have been duly authorized and reserved for issuance which equals or exceeds 100% of the aggregate of the maximum number of Ordinary Shares issuable
upon exercise of the Warrants. Upon exercise in accordance with the Warrants, the Warrant Shares
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will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof, with the holders being entitled to
all rights accorded to a holder of Ordinary Shares. Assuming the accuracy of and compliance with each of the representations, warranties and agreements of the Subscribers herein, the offer and issuance by the Company of the Securities is exempt from
registration under the 1933 Act.
(d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the
Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the New Ordinary Shares and the Warrants and the reservation for issuance and the issuance of the Warrant
Shares issuable upon exercise of the Warrants) will not (i) result in a violation of the certificate of incorporation (or certificate of incorporation on change of name) or the articles of association of the Company or the articles of
association, charters or bylaws (as applicable) or other applicable organizational documents of any of its Subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a
violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of The NASDAQ Global Market (the Principal Market) applicable to
the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the cases of clauses (ii) and (iii) such as would not reasonably be expected to have a
Material Adverse Effect.
(e) Consents. Neither the Company nor any of its Subsidiaries is required to obtain any consent,
authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under or
contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof (other than (x) any consent, authorization or order that has been obtained as of the date hereof, (y) any filing or registration that
has been made as of the date hereof or (z) any filings which may be required to be made by the Company with the SEC, state securities administrators or the Principal Market or The NASDAQ Stock Market, LLC, subsequent to the Closing; provided
that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of and compliance with each of the relevant representations, warranties and agreements of the Subscribers herein). The Company is
unaware of any facts or circumstances that might prevent the Company from obtaining or effecting any of the registration, application or filings pursuant to the preceding sentence. The Company is not in violation of the listing requirements of the
Principal Market and has no knowledge of any facts that would reasonably lead to delisting or suspension of the Ordinary Shares in the foreseeable future.
(f) Acknowledgment Regarding Subscribers Subscription of the Securities. The Company acknowledges and agrees that each Subscriber
is acting solely in the capacity of an arms length subscriber with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that no Subscriber is acting as a financial advisor
or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
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hereby and thereby, and any advice given by a Subscriber or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to such Subscribers subscription of the Securities. The Company further represents to each Subscriber that the Companys decision to enter into the Transaction Documents has been based solely on the independent
evaluation by the Company and its representatives.
(g) No General Solicitation; Placement Agents Fees. Neither the Company,
nor any of its Subsidiaries or affiliates, nor, to the Companys knowledge, any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with
the offer or sale of the Securities. The Company shall be responsible for the payment of any placement agents fees, financial advisory fees, or brokers commissions (other than for persons engaged by any Subscriber or its investment
advisor) relating to or arising out of the transactions contemplated hereby. The Company acknowledges that it has engaged Jefferies LLC as placement agent (the Agent) in connection with the sale of the Securities. Other than the
Agent, neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the sale of the Securities.
(h) No Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, and, to the Companys knowledge, any
Person acting on 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 require registration of the issuance of any of the Securities under the
1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval of shareholders of the Company for purposes of any applicable shareholder approval provisions, including, without
limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated. None of the Company, its Subsidiaries, their affiliates and, to the Companys
knowledge, any Person acting on their behalf will take, directly or indirectly, any action or steps referred to in the preceding sentence that would require registration of the issuance of any of the Securities under the 1933 Act or cause the
offering of the Securities to be integrated with other offerings for purposes of any such applicable shareholder approval provisions.
(i)
Application of Takeover Protections; Rights Agreement. 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 certificate of incorporation (or certificate of incorporation on change of name) or the articles of association of the Company or the laws of Jersey,
Channel Islands or any other applicable jurisdiction which is or could become applicable to any Subscriber as a result of the transactions contemplated by this Agreement, including, without limitation, the Companys issuance of the Securities
and any Subscribers ownership of the Securities. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any shareholder rights plan or similar arrangement relating to accumulations of
beneficial ownership of Ordinary Shares or a change in control of the Company.
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(j) SEC Documents; Financial Statements. The Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof or prior to the date of the Closing and all exhibits
included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the SEC Documents). As of their respective filing dates, the SEC Documents
complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Any Supplemental Disclosure
Document (as defined below), as of its date and as of the date hereof, did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. As of their respective filing dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as
may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all
material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No
other information provided by or on behalf of the Company to the Subscribers which is not included in the SEC Documents, including, without limitation, disclosure contained in any supplemental disclosure document prepared by the Company and provided
by the Company to be delivered to potential subscribers (Supplemental Disclosure Document) and information referred to in Section 2(f) of this Agreement or in any disclosure schedules, contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance under which they are or were made, not misleading.
(k) Transfer Taxes. On the Closing Date, all share transfer or other taxes (other than income or similar taxes) which are required to
be paid in connection with the issue of the New Ordinary Shares and the Warrants to be subscribed for by each Subscriber hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or
will have been complied with.
(l) Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf
has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Ordinary Shares, (ii) other than the
Agent, sold, bid for, purchased, or paid any compensation for soliciting subscriptions of, the Securities, or (iii) other than the Agent, paid or agreed to pay to any person any compensation for soliciting another to subscribe for any other
securities of the Company.
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(m) Disclosure. The Company confirms that neither it nor, to the Companys knowledge,
any other Person acting on its behalf has provided any of the Subscribers or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic information. The Company understands and
confirms that each of the Subscribers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Subscribers regarding the Company or any of its Subsidiaries, their business and
the transactions contemplated hereby furnished by the Company is true and correct 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. No material event or circumstance has occurred or material information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects,
operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed.
(n) Acknowledgement Regarding Subscribers Trading Activity. Anything in this Agreement or elsewhere herein to the contrary
notwithstanding, but subject to compliance by the Subscribers with applicable law, it is understood and acknowledged by the Company (i) that none of the Subscribers have been asked by the Company or its Subsidiaries to agree, nor has any
Subscriber agreed with the Company or its Subsidiaries, to desist from purchasing or selling, long and/or short, securities of the Company, or derivative securities based on securities issued by the Company or to hold the Securities for
any specified term; (ii) that past or future open market or other transactions by any Subscriber, including, without limitation, short sales or derivative transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Companys publicly-traded securities; (iii) that any Subscriber, and counter parties in derivative transactions to which any such Subscriber is a party, directly or
indirectly, presently may have a short position in the Ordinary Shares, and (iv) that each Subscriber shall not be deemed to have any affiliation with or control over any arms length counter-party in any derivative
transaction. The Company further understands and acknowledges that, subject to compliance by the Subscribers with applicable law, (a) one or more Subscribers may engage in hedging and/or trading activities at various times during the period
that the Securities are outstanding, and (b) such hedging and/or trading activities (if any) could reduce the value of the existing shareholders equity interests in the Company at and after the time that the hedging and/or trading
activities are being conducted.
(o) Additional Representations and Warranties. In addition to the representations and warranties
set out in this Agreement, the Company hereby makes the representations and warranties set forth in Annex A hereto, each of which is incorporated in its entirety as if set forth herein.
4. COVENANTS.
(a)
Best Efforts. Each party shall use its best efforts timely to satisfy each of the covenants and conditions to be satisfied by it as provided in Sections 6 and 7 of this Agreement.
(b) Form D and Blue Sky. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to
provide a copy thereof to each Subscriber upon
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request promptly after such filing. The Company, on or before the Closing Date, shall take such action as is necessary in order to obtain an exemption for or to qualify the Securities for
subscription by the Subscribers at the Closing pursuant to this Agreement under applicable securities or Blue Sky laws of the states of the United States, and shall upon request provide evidence of any such action so taken to the
Subscribers on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and issue of the Securities required under applicable securities or Blue Sky laws of the states of the United States
following the Closing Date; provided, however, the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation or as a dealer in securities in any jurisdiction or to consent to general
service of process in any jurisdiction.
(c) Reporting Status. From the date hereof until the date on which the Investors (as
defined in the Registration Rights Agreement) shall have sold all the New Ordinary Shares and Warrant Shares or are able to sell all the New Ordinary Shares and Warrant Shares under Rule 144 without the requirement for the Company to be in
compliance with the current public information required thereunder and without volume or manner of sale restrictions and none of the Warrants is outstanding (the Reporting Period), the Company shall timely file all reports
required to be filed with the SEC pursuant to the 1934 Act, including any extension period under Rule 12b-25 of the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934
Act or the rules and regulations thereunder would otherwise permit such termination.
(d) Use of Proceeds. The Company will use the
proceeds from the issue of the New Ordinary Shares and the Warrants for general corporate purposes, including to fund the development costs for MosaiQ, and not for (A) the repayment of any outstanding Indebtedness of the Company or any of
its Subsidiaries or (B) redemption or repurchase of any of its or its Subsidiaries equity securities.
(e) Financial
Information. The Company agrees to send the following to each Investor (as defined in the Registration Rights Agreement) during the Reporting Period, unless the following are filed with the SEC through EDGAR and are available to the public
through the EDGAR system, (i) within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports in Form 10-K and Quarterly Reports on Form, 10-Q, any Current Reports on Form 8-K and any registration statements
(other than on Form S-8) or amendments filed pursuant to the 1933 Act (other than amendments in respect of the Companys Registration Statement on Form S-1 (Registration No. 333-194390), as amended), (ii) within one (1) Business
Day after the release thereof, facsimile or e-mailed copies of all press releases issued by the Company or any of its Subsidiaries, and (iii) copies of any notices and other information made available or given to the shareholders of the Company
generally, contemporaneously with the making available or giving thereof to the shareholders. As used herein, Business Day means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York
are authorized or required by law to remain closed.
(f) Listing. The Company shall as soon as reasonably practicable secure the
listing of all of the Registrable Securities (as defined in the Registration Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which Ordinary Shares are then listed (subject to official notice of
issuance) and shall maintain, so long as any
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other Ordinary Shares shall be so listed, such listing of all Registrable Securities from time to time issuable under the terms of the Transaction Documents. The Company shall maintain the
Ordinary Shares authorization for quotation on the Principal Market. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Ordinary Shares on
the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(f).
(g) Fees. The Company shall be responsible for the payment of (i) any placement agents fees, financial advisory fees, or
brokers commissions (other than for Persons engaged by any Subscriber) relating to or arising out of the transactions contemplated hereby, including, without limitation, any reasonable fees or commissions payable to the Agents, and
(ii) the reasonable legal fees incurred by Subscriber in connection with the issue of the Securities to the Subscriber and such other fees and expenses as may specified in the Transaction Documents.
(h) Pledge of Securities. The Company acknowledges and agrees that the Securities may be pledged by an Investor (as defined in the
Registration Rights Agreement) in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the
Securities hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document,
including, without limitation, Section 2(h) of this Agreement; provided that an Investor and its pledgee shall be required to comply with the provisions of Section 2(h) of this Agreement in order to effect a sale, transfer or assignment of
Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by an Investor; provided that any and
all costs to effect the pledge of the Securities are borne by the pledgor and/or pledgee and not the Company.
(i) Disclosure of
Transactions and Other Material Information. On or before 8:30 a.m., New York City time, on the first Business Day following the date of this Agreement, the Company shall issue a press release and promptly thereafter file a Current Report on
Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement, the form of Warrant and
the form of the Registration Rights Agreement) as exhibits to such filing (including all attachments, the 8-K Filing). From and after the filing of the 8-K Filing with the SEC, no Subscriber shall be in possession of any material,
nonpublic information received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, that is not disclosed in the 8-K Filing. The Company shall not, and shall cause each of its Subsidiaries
and its and each of their respective officers, directors, employees and agents, not to, provide any Subscriber with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing with
the SEC without the express written consent of such Subscriber. If a Subscriber has, or believes it has, received any such material, nonpublic information regarding the Company or any of its Subsidiaries from such Persons, it shall provide the
Company with written notice thereof. The Company shall, within two (2) Trading Days of receipt of such notice, make public disclosure of such material, nonpublic information, to the extent such information is both material and nonpublic.
Trading Day means any day on which
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the Ordinary Shares are traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Ordinary Shares, then on the principal securities exchange or
securities market on which the Ordinary Shares are then traded; provided that Trading Day shall not include any day on which the Ordinary Shares are scheduled to trade on such exchange or market for less than 4.5 hours or any day that
the Ordinary Shares are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour
ending at 4:00 p.m., New York time). Neither the Company, its Subsidiaries nor any Subscriber shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company
shall be entitled, without the prior approval of any Subscriber, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and
(ii) as is required by applicable law and regulations. Without the prior written consent of any applicable Subscriber, neither the Company nor any of its Subsidiaries or affiliates shall disclose the name of such Subscriber in any filing,
announcement, release or otherwise other than in connection with the Registration Statement, as contemplated pursuant to the Registration Rights Agreement, and other than in connection with the 8-K Filing, as contemplated pursuant to this Agreement,
unless such disclosure is required by law, regulation or the Principal Market.
(j) Conduct of Business. During the Reporting
Period, the business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.
(k) Corporate Existence. So long as any Subscriber beneficially owns any
Warrants, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Companys assets, except in the event of a merger or consolidation or sale of all or substantially all of the Companys assets
where the surviving or successor entity in such transaction (if other than the Company) (i) assumes the Companys obligations under the Warrants and the Registration Rights Agreement and (ii) is a publicly traded entity whose common
equity is quoted on or listed for trading on a national securities exchange registered with the SEC under Section 6 of the 1934 Act.
(l) Reservation of Shares. The Company shall take all action necessary to at all times have authorized, and reserved for the purpose of
issuance, no less than 100% of 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).
5. REGISTER; TRANSFER AGENT INSTRUCTIONS.
(a) Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may
designate by notice to each holder of Ordinary Shares or Warrants), a register for the Ordinary Shares and Warrants in which the Company shall record the name and address of the Person in whose name the Ordinary Shares or Warrants have been issued
(including the name and address of each transferee) and the number of Warrant Shares issuable upon exercise of the Warrants held by such Person. The Company shall keep the register open and available at all times during business hours for inspection
of any Subscriber or its legal representatives.
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(b) Transfer Agent Matters. The Company represents and warrants that no instruction, other
than stop transfer instructions to give effect to Section 2(h) hereof, will be given by the Company to its transfer agent or any subsequent transfer agent with respect to the Securities, 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. If a Subscriber effects a sale, assignment or transfer of the Securities in accordance with Section 2(h),
the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Subscriber
to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or, to the extent available, pursuant to Rule 144,
the transfer agent shall issue such Securities to the Subscriber, assignee or transferee, as the case may be, without any restrictive legend.
(c) Breach. The Company acknowledges that a breach by it of its obligations under this Section 5 will cause irreparable harm to a
Subscriber. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this
Section 5, that a Subscriber 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.
(d) Additional Relief. If the Company shall fail for any reason or for no
reason to issue to a Subscriber holding New Ordinary Shares or Warrant Shares unlegended certificates within three (3) Business Days of (x) receipt of documents necessary for the removal of the legend set forth above in Section 2(i)
or (y) the date of its obligation to deliver the Ordinary Shares as contemplated pursuant to clause (ii) below (the Deadline Date), then, in addition to all other remedies available to such Subscriber, if on or after the
Trading Day immediately following such three Business Day period, such Subscriber purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale by such Subscriber of Ordinary Shares that such Subscriber
anticipated receiving from the Company (a Buy-In), then the Company shall, within three Business Days after such Subscribers request and in such Subscribers discretion, either (i) pay cash to such Subscriber in an
amount equal to such Subscribers total purchase price (including brokerage commissions, if any) for the Ordinary Shares so purchased (the Buy-In Price), at which point the Companys obligation to deliver such
certificate (and to issue such Ordinary Shares) shall terminate, or (ii) promptly honor its obligation to deliver to such Subscriber a certificate or certificates representing such Ordinary Shares and pay cash to such Subscriber in an amount
equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Ordinary Shares, times (B) the Closing Bid Price on the Deadline Date. Closing Bid Price means, for any security as of any date, the
last closing price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price then the last bid price of such security
prior to 4:00:00 p.m., New York Time, as
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reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing price of such security on the principal
securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing price of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such security as reported in the pink sheets by OTC Markets Group
(formerly Pink Sheets LLC). If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price of such security on such date shall be the fair market value as mutually determined by
the Company and such Subscriber, all such determinations to be appropriately adjusted for any share dividend, share split, share combination (consolidation) or other similar transaction during the applicable calculation period.
6. CONDITIONS TO THE COMPANYS OBLIGATION TO ISSUE.
The obligation of the Company hereunder to issue the New Ordinary Shares and the related Warrants to each Subscriber at the Closing is
subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Companys sole benefit and may be waived by the Company at any time in its sole discretion by providing
each Subscriber with prior written notice thereof:
(i) Such Subscriber shall have executed each of the Transaction Documents to which it
is a party and delivered the same to the Company.
(ii) Such Subscriber shall have delivered to the Company the Subscription Price for
the New Ordinary Shares and the related Warrants being purchased by such Subscriber, and each other subscriber party to the Other Subscription Agreements shall have delivered to the Company the subscription price for the New Ordinary Shares and the
Warrants pursuant to such Other Subscription Agreements, in each case, at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.
(iii) The representations and warranties of such Subscriber shall be true and correct in all material respects (except for those
representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such specified date), and such Subscriber shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by such Subscriber at or prior to the Closing Date.
7.
CONDITIONS TO EACH SUBSCRIBERS OBLIGATION TO SUBSCRIBE.
The obligation of each Subscriber hereunder to subscribe for the
New Ordinary Shares and the related Warrants at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for each Subscribers sole benefit and may be
waived by such Subscriber at any time in its sole discretion by providing the Company with prior written notice thereof:
(i) The Company
shall have duly executed and delivered to such Subscriber (i) each of the Transaction Documents and (ii) the New Ordinary Shares (in such amounts as such Subscriber shall request) and the related Warrants (in such amounts as such
Subscriber shall request) being subscribed for by such Subscriber at the Closing pursuant to this Agreement.
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(ii) Such Subscriber shall have received the opinion of Clifford Chance US LLP, counsel for the
Company (Company Counsel), dated as of the Closing Date, in substantially the form of Exhibit B attached hereto.
(iii) Such Subscriber shall have received the opinion of Carey Olsen, counsel for the Company with respect to the laws of Jersey
(Jersey Company Counsel), dated as of the Closing Date, in substantially the form of Exhibit C attached hereto.
(iv) The Company shall have delivered to such Subscriber a certificate (Good Standing Certificate) evidencing the
incorporation and good standing of the Company and each of its operating Subsidiaries in such corporations state of incorporation issued by the Secretary of State of such state of incorporation as of a date within 10 days of the Closing
Date, or such other document in lieu of a Good Standing Certificate reasonably satisfactory to the Subscriber.
(v) The Ordinary
Shares (I) shall be listed on the Principal Market and (II) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market
have been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market or (B) by falling below the minimum listing maintenance requirements of the Principal Market.
(vi) The Company shall have delivered to such Subscriber a certificate, executed by the Secretary of the Company and dated as of the Closing
Date, in a form reasonably acceptable to such Subscriber, as to (i) the resolutions consistent with Section 3(b) as adopted by the Companys Board of Directors, and (ii) the Articles of Association of the Company each as in
effect at the Closing.
(vii) The representations and warranties of the Company shall be true and correct in all material respects
(except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except
for representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date. Such Subscriber shall have received a certificate, executed by the Chief Executive Officer of the Company,
dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Subscriber.
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(viii) The Company shall have obtained all governmental, regulatory or third party consents and
approvals, if any, necessary for the sale of the New Ordinary Shares and the Warrants.
(ix) The Company shall have delivered to such
Subscriber such other documents relating to the transactions contemplated by this Agreement as such Subscriber or its counsel may reasonably request.
(x) The Company shall have received the full subscription price for the New Ordinary Shares and the Warrants subscribed for pursuant to the
Other Subscription Agreements, which shall be no less than $17,637,453, in each case, at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.
8. TERMINATION. In the event that the Closing shall not have occurred with respect to a Subscriber on or before five (5) Business
Days from the date hereof due to the Companys or such Subscribers failure to satisfy the conditions set forth in Sections 6 and 7 above (and the nonbreaching partys failure to waive such unsatisfied condition(s)), the nonbreaching
party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date without liability of any party to any other party.
9. MISCELLANEOUS.
(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan 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 proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such 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 HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
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(b) Counterparts. This Agreement may be executed in two or more identical counterparts,
all of which 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; provided that a facsimile (or other electronic form of) signature shall be
considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile (or other electronic form of) signature.
(c) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.
(d) Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.
(e) Entire Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written
agreements between the Subscribers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the other Transaction Documents contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Subscriber makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the holders of Securities representing at least a majority of the amount of the Securities, or, if prior to the Closing Date, the Subscribers
listed on the Schedule of Subscribers as being obligated to subscribe at least a majority of the amount of the Securities. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is
sought. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Securities then outstanding. The Company has not, directly or indirectly, made any agreements with any Subscribers relating to the
terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Subscriber has
made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise.
(f) Notices. Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case
properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:
If to the
Company:
Quotient Limited
Elizabeth House
9 Castle
Street
St Helier
JE2 3RT
Jersey, Channel Islands
Telephone: +44 131 445 6159
Facsimile: +44 153 4700 007
Attention: Paul Cowan
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with a copy (for informational purposes only) to:
Clifford Chance US LLP
31 West
52nd Street
New York, New York 10019
Attention: Alejandro E. Camacho and Per B. Chilstrom
Facsimile: 212-878-8375
If to
the Transfer Agent:
Continental Stock Transfer & Trust Company
17 Battery Place
New York, NY
10004
Telephone: 212-845-3277
Facsimile: 212-616-7615
Attention: Henry Farrell
If to a Subscriber,
to its address and facsimile number set forth on the Schedule of Subscribers, with copies to such Subscribers representatives as set forth on the Schedule of Subscribers and to such other address and/or facsimile number and/or to the attention
of such other Person as the Subscriber has specified by written notice given to the Company five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver
or other communication, (B) mechanically or electronically generated by the senders facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an
overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.
(g) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective permitted
successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the holders of at least a majority of the aggregate number of Registrable Securities issued and issuable
hereunder. A Subscriber shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company, in which event such assignee shall be deemed to be a Subscriber hereunder with respect to such assigned
rights and obligations.
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(h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that the Agent may rely upon the representations and warranties contained in
Sections 2 and 3 hereof.
(i) Survival. Unless this Agreement is terminated under Section 8, the representations and
warranties of the Company and the Subscribers contained in Sections 2 and 3, and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing. Each Subscriber shall be responsible only for its own representations,
warranties, agreements and covenants hereunder.
(j) Further Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of
this Agreement and the consummation of the transactions contemplated hereby.
(k) Indemnification. In consideration of each
Subscribers execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all of the Companys other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless each Subscriber, the directors, officers, members, partners, employees, agents and representatives thereof, and each Person, if any, who controls any Subscriber within the meaning of the 1933 Act or the 1934 Act
(collectively, the Indemnitees), from and against any and all actions, causes of action, suits, claims, losses, reasonable costs, penalties, reasonable fees, liabilities and damages, and reasonable expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys fees and disbursements (the Indemnified Liabilities), incurred by any
Indemnitee as a result of, or arising out of, or relating to any untrue statement of a material fact in the SEC Documents or any Supplemental Disclosure Document or any omission to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations of the parties under this
Section 9(k) shall be the same as those set forth in Section 6 of the Registration Rights Agreement.
(l) No Strict
Construction. 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.
(m) Remedies. Each Subscriber shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies
which such Subscribers have been granted at
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any time under any other agreement or contract and all of the rights which such Subscribers have under any law. Any Person having any rights under any provision of this Agreement shall be
entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company
recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Subscribers, or any of them. The Company therefore
agrees that any Subscriber shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security.
(n) Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions
of) the Transaction Documents, whenever any Subscriber 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 at any time
prior to performance by the Company of such obligation such Subscriber 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.
(o) Payment Set Aside. To the extent that the Company makes a payment or payments to
the Subscribers hereunder or pursuant to any of the other Transaction Documents or the Subscribers enforce or exercise their rights hereunder or thereunder, and such 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, foreign, 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.
(p)
Independent Nature of Subscribers Obligations and Rights. The obligations of each Subscriber under any Transaction Document are several and not joint with the obligations of any other Subscriber, and no Subscriber shall be responsible
in any way for the performance of the obligations of any other Subscriber under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Subscriber pursuant hereto or thereto, shall be
deemed to constitute the Subscribers as, and the Company acknowledges that the Subscribers do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Subscribers are in any way
acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Subscribers are not acting in
concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Company acknowledges and each Subscriber confirms that it has independently participated in the negotiation of the transaction
contemplated hereby with the advice of its own counsel and advisors. Each Subscriber shall be entitled to independently protect and enforce its rights,
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including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Subscriber to be joined as an
additional party in any proceeding for such purpose.
(q) Exculpation of the Agent. Each party acknowledges that it has read the
notice available at http://www.jefferies.com/CMSFiles/Jefferies.com/files/Reg%20A%20and%20D%20Disclosure%207_2014(1).pdf and hereto agrees for the express benefit of each of the Agent, its affiliates and its representatives that:
(i) Neither Jefferies LLC (as the Agent) nor any of its affiliates or any of its representatives (1) has any duties or obligations other
than those specifically set forth herein or in the engagement letter, dated as of November 3, 2014, among the Company and Jefferies LLC (the Engagement Letter); (2) shall be liable for any improper payment made in
accordance with the information provided by the Company; (3) makes any representation or warranty, or has any responsibilities as to the validity, accuracy, value or genuineness of any information, certificates or documentation delivered by or
on behalf of the Company pursuant to this Agreement or the Transaction Documents or in connection with any of the transactions contemplated hereby and thereby; or (4) shall be liable (x) for any action taken, suffered or omitted by any of
them in good faith and reasonably believed to be authorized or within the discretion or rights or powers conferred upon it by this Agreement or any Transaction Document or (y) for anything which any of them may do or refrain from doing in
connection with this Agreement or any Transaction Document, except for such partys own gross negligence, willful misconduct or bad faith.
(ii) Each of the Agent, its affiliates and its representatives shall be entitled to (1) rely on, and shall be protected in acting upon,
any certificate, instrument, notice, letter or any other document or security delivered to any of them by or on behalf of the Company, and (2) be indemnified by the Company for acting as the Agent hereunder pursuant the indemnification
provisions set forth in the Engagement Letter.
[Signature Page Follows]
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IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
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COMPANY: |
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QUOTIENT LIMITED |
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By: |
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/s/ D.J.P.E. Cowan |
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Name: |
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D.J.P.E. Cowan |
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Title: |
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Chairman & CEO |
[Subscription Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective
signature page to this Subscription Agreement to be duly executed as of the date first written above.
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SUBSCRIBER: |
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VISIUM BALANCED MASTER FUND, LTD. |
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By: |
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Visium Asset Management, LP |
Its: |
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Investment Manager |
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By: |
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/s/ Mark Gottlieb |
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Name: |
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Mark Gottlieb |
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Title: |
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Authorized Signatory |
[Subscription Agreement
Signature Page]
SCHEDULE OF SUBSCRIBERS
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(1) |
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(2) |
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(3) |
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(4) |
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(5) |
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(6) |
Subscriber |
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Address and Facsimile Number |
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Number of New Ordinary Shares |
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Number of Warrants |
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Subscription Price |
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Legal Representatives
Address and Facsimile Number |
Visium Balanced Master Fund, Ltd. |
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143,426 |
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850,000 |
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$ |
9,429,047 |
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ANNEX A ADDITIONAL REPRESENTATIONS AND WARRANTIES
1. Representations and Warranties. The Company represents and warrants to each of the Subscribers that (capitalized terms used in this
Annex A without definition have the meanings ascribed to them in the Subscription Agreement to which this Annex A relates (the Subscription Agreement)):
(a) as of the date of the Subscription Agreement, the Company has an authorized and outstanding capitalization as set forth in the Companys Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2014 (the Q214 10-Q), and, as of the Closing Date, the Company shall have an authorized and outstanding capitalization as set forth in the Q214 10-Q (subject,
in each case, to the issuance of Ordinary Shares upon exercise of share options and warrants disclosed as outstanding in the SEC Documents (excluding the exhibits thereto), the grant of options, shares or other awards under incentive compensation
plans described in the SEC Documents (excluding the exhibits thereto), the subscription of Securities hereunder, and the subscription of New Ordinary Shares pursuant to the Other Subscription Agreements); all of the issued and outstanding shares in
the capital, including the Ordinary Shares, of the Company have been duly authorized and validly issued and are fully paid and non-assessable, have been issued in compliance with all applicable securities laws and were not issued in violation of any
preemptive right, resale right, right of first refusal or similar right; and the certificate of incorporation (or certificate of incorporation on change of name) of the Company and the articles of association of the Company, each in the form filed
with the SEC, have been heretofore duly authorized and approved in accordance with the laws of Jersey and are effective and in full force and effect;
(b)
the Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of Jersey, with full corporate power and authority to own, lease and operate its properties and conduct its business as described in the
SEC Documents;
(c) the Company is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where the ownership
or leasing of its properties or the conduct of its business requires such qualification, except where the failure to be so qualified and in good standing would not, individually or in the aggregate, either (i) have a material adverse effect on
the business, properties, financial condition, results of operations or prospects of the Company and the Subsidiaries (as defined below) taken as a whole or (ii) prevent or materially interfere with consummation of the transactions contemplated
by the Subscription Agreement (the occurrence of any such effect or any such prevention or interference or any such result described in the foregoing clauses (i) and (ii) being herein referred to as a Material Adverse
Effect);
(d) the Company has no subsidiaries (as defined under the 1933 Act) other than QBD (QSIP) Limited, a company formed under the laws of
Jersey, Quotient Biodiagnostics, Inc., a Delaware corporation, Alba Bioscience Limited, a company formed under the laws of Scotland, and Quotient Suisse SA, a company formed under the laws of Switzerland (collectively, the
Subsidiaries); the Company owns all of the issued and outstanding share capital or capital stock (as applicable) of each of the Subsidiaries; other than the share capital or capital stock of the Subsidiaries, the Company does not
own, directly or indirectly, any shares in the capital, shares of stock or any other equity interests or long-term debt securities of any corporation, firm,
partnership, joint venture, association or other entity; each Subsidiary has been duly incorporated or formed and is validly existing as a corporation or other entity in good standing under the
laws of its respective jurisdiction of incorporation or formation, with full power and authority, corporate or otherwise, to own, lease and operate its properties and to conduct its business as described in the SEC Documents; each Subsidiary is duly
qualified to do business as a foreign corporation or other entity and is in good standing in each jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification, except where the failure to
be so qualified and in good standing would not, individually or in the aggregate, have a Material Adverse Effect; all of the outstanding shares in the capital or shares of capital stock of each of the Subsidiaries have been duly authorized and
validly issued, are fully paid and non-assessable, have been issued in compliance with all applicable securities laws, were not issued in violation of any preemptive right, resale right, right of first refusal or similar right and, except as
disclosed in the SEC Documents, are owned by the Company subject to no security interest, other encumbrance or adverse claims; and no options, warrants or other rights to purchase, agreements or other obligations to issue or other rights to convert
any obligation into shares in the capital, shares of capital stock or ownership interests in the Subsidiaries are outstanding;
(e) the share capital of
the Company, including the Securities, conforms in all material respects to each description thereof, if any, contained in the SEC Documents; and the certificates for the New Ordinary Shares are in due and proper form;
(f) there is no franchise, contract or other document of a character required to be described in the SEC Documents, or to be filed as an exhibit thereto,
which is not described or filed as required;
(g) neither the Company nor any of the Subsidiaries is in breach or violation of or in default under (nor
has any event occurred which, with notice, lapse of time or both, would result in any breach or violation of, constitute a default under or give the holder of any indebtedness (or a person acting on such holders behalf) the right to require
the repurchase, redemption or repayment of all or a part of such indebtedness under) (A) its respective certificate of incorporation or certificate of incorporation on name change or articles of association, charter or bylaws or other
applicable organizational documents, or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to which it is a party or by
which it or any of its properties may be bound or affected, or (C) any federal, state, local or foreign law, regulation or rule, or (D) any rule or regulation of any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, the rules and regulations of the Principal Market), or (E) any decree, judgment or order applicable to it or any of its properties, except, in the case of clauses (B), (C) or (D), where such
breach, violation, default, event or right would not, individually or in the aggregate, have a Material Adverse Effect;
(h) each of the Company and the
Subsidiaries has all necessary licenses, authorizations, consents and approvals and has made all necessary filings required under any applicable law, regulation or rule, and has obtained all necessary licenses, authorizations, consents and approvals
from other persons, in order to conduct their respective businesses, except where the failure to have or have obtained such licenses, authorizations, consents or approvals or make such filings
would not, individually or in the aggregate, have a Material Adverse Effect; neither the Company nor any of the Subsidiaries is in violation of, or in default under, or has received notice of any
proceedings relating to revocation or modification of, any such license, authorization, consent or approval or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any of the
Subsidiaries, except where such violation, default, revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect;
(i) none of the Company or any of its subsidiaries nor any of its or their properties or assets has any immunity from the jurisdiction of any court or from
any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) under the laws of Jersey, Scotland or Switzerland;
(j) Except as except as described in the SEC Documents, there are no actions, suits, claims, investigations or proceedings pending or, to the Companys
knowledge, threatened or contemplated to which the Company or any of the Subsidiaries or any of their respective directors or officers is or would be a party or of which any of their respective properties is or would be subject at law or in equity,
before or by any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency, or before or by any self-regulatory organization or other non-governmental regulatory authority (including, without
limitation, the Principal Market), except any such action, suit, claim, investigation or proceeding which, if resolved adversely to the Company or any Subsidiary, would not, individually or in the aggregate, have a Material Adverse Effect;
(k) the financial statements included in the SEC Documents, together with the related notes and schedules, present fairly the consolidated financial position
of the Company and the Subsidiaries as of the dates indicated and the consolidated results of operations, cash flows and changes in shareholders equity of the Company and the Subsidiaries for the periods specified and have been prepared in all
material respects in compliance with the requirements of the Exchange Act and in conformity with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved; the other financial and accounting data of the
Company contained in the SEC Documents are accurately and fairly presented and prepared on a basis consistent with the financial statements or the books and records of the Company; there are no financial statements (historical or pro forma) that are
required to be included in the SEC Documents that are not included as required; the Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described
in the SEC Documents (excluding the exhibits thereto); and all disclosures, if any, contained in the SEC Documents regarding non-GAAP financial measures (as such term is defined by the rules and regulations of the SEC) comply with
Regulation G of the Exchange Act and Item 10 of Regulation S-K under the 1933 Act, to the extent applicable;
(l) except as disclosed in the SEC
Documents (excluding the exhibits thereto), each share option granted under any share option plan of the Company or any Subsidiary (each, a Stock Plan) was granted with a per share exercise price no less than the fair market value
per share of the applicable class of share in the capital or capital stock of the Company or such Subsidiary on the grant date of such option, and no such grant involved any back-dating, forward-dating, or similar practice
with respect to the effective date of such grant; except as would not,
individually or in the aggregate, have a Material Adverse Effect, each such option (i) was granted in compliance with applicable law and with the applicable Stock Plan(s), (ii) was duly
approved by the Board of Directors (or a duly authorized committee thereof or an officer of the Company or such Subsidiary duly authorized by the Board of Directors or authorized committee thereof to make such grants) of the Company or such
Subsidiary, as applicable, and (iii) has been properly accounted for in the Companys financial statements in accordance with U.S. generally accepted accounting principles and disclosed in the Companys filings with the SEC;
(m) Except as disclosed in the SEC Documents, subsequent to the respective dates as of which information is given in the SEC Documents, in each case excluding
any amendments to the foregoing made after the execution of the Subscription Agreement, there has not been (i) any material adverse change, or any development involving a prospective material adverse change, in the business, properties,
management, financial condition or results of operations of the Company and the Subsidiaries taken as a whole, (ii) any transaction which is material to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability,
direct or contingent (including any off-balance sheet obligations), incurred by the Company or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any change in the share capital, capital stock or
outstanding indebtedness of the Company or any Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the share capital or capital stock of the Company or any Subsidiary;
(n) neither the Company nor any Subsidiary is required to register as an investment company, as such term is defined in the Investment Company Act
of 1940, as amended (the Investment Company Act), nor will they be after giving effect to the offering and sale of the New Ordinary Shares and the Warrants and the application of the proceeds thereof;
(o) based on the projected composition of the Companys income and fair market value of its assets, the Company does not expect to be a passive
foreign investment company (as defined in Section 1297 of the Internal Revenue Code and the regulations promulgated thereunder) for its taxable year ended March 31, 2014 and the foreseeable future;
(p) except as disclosed in the SEC Documents, the Company and each of the Subsidiaries have good and marketable title to all property (real and personal,
excluding for the purposes of this Section 1(p), Intellectual Property (as defined below)) described in the SEC Documents as being owned by any of them, free and clear of all liens, claims, security interests or other encumbrances, except for
such liens, claims, security interests or encumbrances as do not materially and adversely affect the value of such property and do not materially interfere with the use made or proposed to be made of such property by the Company or such Subsidiary;
all the property described in the SEC Documents as being held under lease by the Company or a Subsidiary is held thereby under valid, subsisting and enforceable leases, except that the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, receivership, moratorium, fraudulent conveyance or other similar laws relating to creditors rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding
therefor may be brought (the Enforceability Exceptions);
(q) except as disclosed in the SEC Documents, the Company and the
Subsidiaries own the inventions, patent applications, patents, trademarks (both registered and unregistered),
tradenames, service names, copyrights, trade secrets and other proprietary information (collectively, Intellectual Property) described in the SEC Documents as being owned by
them and own or have obtained valid and enforceable licenses for, or other rights to use all Intellectual Property (except that the enforcement thereof may be subject to the Enforceability Exceptions) used in and necessary for the conduct of their
respective businesses as currently conducted or as currently proposed to be conducted (including the commercialization of products or services described in the SEC Documents as under development) (collectively, Company Intellectual
Property); to the Companys knowledge, (i) there are no third parties who have or will be able to establish rights to any Company Intellectual Property that is described in the SEC Documents as owned or purported to be owned by
the Company or any of the Subsidiaries, except for, and to the extent of, the ownership rights of any co-owners of such Company Intellectual Property that are disclosed in the SEC Documents (excluding the exhibits thereto); (ii) there is no
infringement by misappropriation or other violation by any third parties of any Company Intellectual Property owned by or exclusively licensed to the Company or any of the Subsidiaries; (iii) there is no pending or, to the Companys
knowledge, threatened action, suit, proceeding or claim by others challenging the Companys or any Subsidiarys rights in or to any Company Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis
for any such action, suit, proceeding or claim; (iv) neither the Company nor any Subsidiary has received any notice from, and there is no pending or, to the Companys knowledge, threatened action, suit, proceeding or claim by others
challenging the validity, enforceability or scope of any Company Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (v) neither the Company nor any
Subsidiary has received any notice from, and there is no pending or, to the Companys knowledge, threatened action, suit, proceeding or claim by others that the Company or any Subsidiary infringes, misappropriates or otherwise violates, or
could, upon the commercialization of any product or service described in the SEC Documents as under development, infringe, misappropriate or violate any Intellectual Property of others, and the Company is unaware of any facts which could form a
reasonable basis for any such action, suit, proceeding or claim; (vi) the Company and the Subsidiaries have complied with the material terms of each agreement pursuant to which Company Intellectual Property has been licensed to the Company or
any Subsidiary, and all such agreements are in full force and effect; (vii) to the Companys knowledge there is no patent or patent application that contains claims that interfere with the issued or pending claims of any patents included
in the Company Intellectual Property owned by or exclusively licensed to the Company or any of the Subsidiaries; (viii) the products described in the SEC Documents as under development by the Company or the Subsidiaries fall within the scope of
the claims of one or more patents owned by, or exclusively licensed to, the Company or any Subsidiary; (ix) all patents and patent applications owned by and, to the Companys knowledge, exclusively licensed to the Company and any
Subsidiary have been duly and properly filed and maintained and the Company and the Subsidiaries and, to the Companys knowledge, the applicable licensor have complied in all material respects with their duty of candor and disclosure to the
U.S. Patent and Trademark Office (the PTO) or other applicable patent office with respect to all patent applications owned by or exclusively licensed to the Company or any of the Subsidiaries and included in the Company
Intellectual Property and filed with the PTO or other applicable patent office; (x) the Company and the Subsidiaries have taken all steps reasonably necessary to secure their respective interest in the Company Intellectual Property owned or
purported to be owned by the Company or any of the Subsidiaries, including
obtaining all necessary assignments from its employees, consultants and contractors pursuant to a written agreement; (xi) the Company and the Subsidiaries have taken reasonable steps in
accordance with normal industry practice to maintain the confidentiality of all material trade secrets included in any Intellectual Property, and no such Company Intellectual Property has been disclosed other than to employees, representatives,
independent contractors, collaborators, licensors, licensees, agents and advisors of the Company and the Subsidiaries who are legally bound to a duty of confidentiality; (xii) the Company and the Subsidiaries are not a party to or bound by any
options, licenses or agreements with respect to the Intellectual Property of any other person or entity that are required to be described in the SEC Documents that are not so described therein; (xiii) all conditions stated in any license
agreement under which Company Intellectual Property is exclusively licensed to the Company or any Subsidiary that are required to be satisfied in order for the Company to retain exclusive rights have been timely satisfied; (xiv) to the
Companys knowledge, the issued patents owned by or exclusively licensed to the Company or any of the Subsidiaries are valid and enforceable and the Company is unaware of any facts that would preclude the issuance of a valid and enforceable
patent on any pending patent application owned by the Company or any of the Subsidiaries; and (xv) except as disclosed in the SEC Documents, no government funding, facilities or resources of a university, college, other educational institution
or research center was used in the development of any Company Intellectual Property that is owned or purported to be owned by the Company or any Subsidiary that would confer upon any governmental agency or body, university, college, other
educational institution or research center any claim or right in or to any such Company Intellectual Property;
(r) except for matters which would not,
individually or in the aggregate, have a Material Adverse Effect, (i) neither the Company nor any of the Subsidiaries is engaged in any unfair labor practice, (ii) there is (A) no unfair labor practice complaint pending or, to the
Companys knowledge, threatened against the Company or any of the Subsidiaries before the National Labor Relations Board or any similar foreign body, and no grievance or arbitration proceeding arising out of or under collective bargaining
agreements is pending or, to the Companys knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Companys knowledge, threatened against the Company or any of the Subsidiaries and (C) no
union representation dispute currently existing concerning the employees of the Company or any of the Subsidiaries, (iii) to the Companys knowledge, no union organizing activities are currently taking place concerning the employees of the
Company or any of the Subsidiaries and (iv) there has been no violation of any applicable federal, state, local or foreign law relating to discrimination in the hiring, promotion or pay of employees, any applicable wage or hour laws, or the
rules and regulations promulgated thereunder, or any similar applicable foreign law, rule or regulation, concerning the employees of the Company or any of the Subsidiaries;
(s) the Company and the Subsidiaries and their respective properties, assets and operations are in compliance with, and the Company and each of the
Subsidiaries hold all permits, authorizations and approvals required under, Environmental Laws (as defined below), except to the extent that failure to so comply or to hold such permits, authorizations or approvals would not, individually or in the
aggregate, have a Material Adverse Effect; there are no past, present or, to the Companys knowledge, reasonably anticipated future events, conditions, circumstances, activities, practices, actions, omissions or plans that could reasonably be
expected to give rise to any material costs or liabilities to the Company or any Subsidiary under, or to
interfere with or prevent compliance by the Company or any Subsidiary with, Environmental Laws; except as would not, individually or in the aggregate, have a Material Adverse Effect, neither the
Company nor any of the Subsidiaries (i) is the subject of any investigation, (ii) has received any notice or claim, (iii) is a party to or affected by any pending or, to the Companys knowledge, threatened action, suit or
proceeding, (iv) is bound by any judgment, decree or order or (v) has entered into any agreement, in each case relating to any alleged violation of any Environmental Law or any actual or alleged release or threatened release or cleanup at
any location of any Hazardous Materials (as defined below) (as used herein, Environmental Law means any applicable federal, state, local or foreign law, statute, ordinance, rule, regulation, order, decree, judgment, injunction,
permit, license, authorization or other binding requirement, or common law, relating to health, safety or the protection, cleanup or restoration of the environment or natural resources, including those relating to the distribution, processing,
generation, treatment, storage, disposal, transportation, other handling or release or threatened release of Hazardous Materials, and Hazardous Materials means any material (including, without limitation, pollutants, contaminants,
hazardous or toxic substances or wastes) that is regulated by or may give rise to liability under any Environmental Law);
(t) all material tax returns
required to be filed by the Company or any of the Subsidiaries have been timely filed (within any applicable time limit extensions permitted by the relevant tax authority), and all material taxes and other assessments of a similar nature (whether
imposed directly or through withholding) including any interest, additions to tax or penalties applicable thereto due or claimed to be due from such entities have been timely paid, other than those being contested in good faith and for which
adequate reserves have been provided;
(u) At no time in the past six years has the Company or any ERISA Affiliate maintained, sponsored, participated in,
contributed to or has or had any liability or obligation in respect of any Employee Benefit Plan subject to Part 3 of Subtitle B of Title I of ERISA, Title IV of ERISA, or Section 412 of the Code or any multiemployer plan as defined
in Section 3(37) of ERISA or any multiple employer plan for which the Company or any ERISA Affiliate has incurred or could incur material liability under Section 4063 or 4064 of ERISA. No welfare benefit plan as defined in
Section 3(1) of ERISA provides or promises, or at any time provided or promised, retiree health, life insurance, or other retiree welfare benefits except as may be required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended, or similar state law and except, on a case by case basis, limited extensions of health insurance benefits to former employees receiving severance payments from the Company. Each Employee Benefit Plan is and has been operated in material
compliance with its terms and all applicable laws, including but not limited to ERISA and the Code and, to the knowledge of the Company, no event has occurred and no condition exists that would subject the Company to any material tax, fine, lien,
penalty or liability imposed by ERISA, the Code or other applicable law. Each Employee Benefit Plan intended to be qualified under Code Section 401(a) is so qualified and has a favorable determination or opinion letter from the IRS upon which
it can rely, and any such determination or opinion letter remains in effect and has not been revoked; to the knowledge of the Company, nothing has occurred since the date of any such determination or opinion letter that is reasonably likely to
adversely affect such qualification; with respect to each Foreign Benefit Plan, such Foreign Benefit Plan (1) if intended to qualify for special tax treatment, meets, in all material respects, the requirements for such treatment, and
(2) if required to be funded, is funded to the extent required by applicable law, and with respect to all other Foreign Benefit
Plans, adequate reserves therefor have been established on the accounting statements of the applicable Company or subsidiary to the extent required by applicable law; the Company does not have
any obligations under any collective bargaining agreement with any union. As used in this Annex A, Code means the Internal Revenue Code of 1986, as amended; Employee Benefit Plan means any
employee benefit plan within the meaning of Section 3(3) of ERISA, including, without limitation, all stock purchase, stock option, stock-based severance, employment, change-in-control, medical, disability, fringe benefit, bonus,
incentive, deferred compensation, employee loan and all other employee benefit plans, agreements, programs, policies or other arrangements, whether or not subject to ERISA, under which (x) any current or former employee, director or independent
contractor of the Company or its subsidiaries has any present or future right to benefits and which are contributed to, sponsored by or maintained by the Company or any of its respective subsidiaries or (y) the Company or any of its
subsidiaries has had or has any present or future direct or contingent obligation or liability; ERISA means the Employee Retirement Income Security Act of 1974, as amended; ERISA Affiliate means any member of
the companys controlled group as determined pursuant to Code Section 414(b), (c), (m) or (o); and Foreign Benefit Plan means any Employee Benefit Plan established, maintained or contributed to outside of the United
States of America or which covers any employee working or residing outside of the United States;
(v) the Company and each of the Subsidiaries maintain
insurance covering their respective properties, operations, personnel and businesses as the Company reasonably deems adequate; such insurance insures against such losses and risks to an extent which is adequate in accordance with customary industry
practice to protect the Company and the Subsidiaries and their respective businesses; all such insurance is fully in force on the date of the Subscription Agreement and will be fully in force at the time of purchase and each additional time of
purchase, if any; neither the Company nor any Subsidiary has any reason to believe that it will not be able to (i) renew any such insurance as and when such insurance expires or (ii) obtain comparable coverage from similar institutions as
may be necessary or appropriate to conduct its business as now conducted at a cost that would not result in any Material Adverse Effect;
(w) neither the
Company nor any Subsidiary has sent or received any communication regarding termination of, or intent not to renew, any of the material contracts or agreements referred to or described in the SEC Documents, or referred to or described in, or filed
as an exhibit to, the SEC Documents, and no such termination or non-renewal has been threatened by the Company or any Subsidiary or, to the Companys knowledge, by any other party to any such contract or agreement;
(x) the Company and each of the Subsidiaries have established and maintain a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with managements general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with managements general or specific authorization; and (iv) the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken with respect to any differences;
(y) the Company has established and maintains and evaluates disclosure controls and procedures (as
such term is defined in Rules 13a-15 and 15d-15 under the 1934 Act) and internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the 1934 Act); such disclosure controls and procedures are
designed to ensure that material information relating to the Company, including the Subsidiaries, is made known to the Companys Chief Executive Officer and its Chief Financial Officer by others within those entities, and such disclosure
controls and procedures are effective to perform the functions for which they were established; the Companys independent registered public accountants and the Audit Committee of the Board of Directors of the Company have been advised of:
(i) all significant deficiencies, if any, in the design or operation of internal controls which could adversely affect the Companys ability to record, process, summarize and report financial data; and (ii) all fraud, if any, whether
or not material, that involves management or other employees who have a role in the Companys internal controls; all significant deficiencies and material weaknesses (as such terms are defined in Rule 1-02(a)(4) of
Regulation S-X under the 1933 Act) of the Company, if any, have been identified to the Companys independent registered public accountants and are disclosed in the SEC Documents (excluding the exhibits thereto); since the end of the
Companys most recent audited fiscal year, there have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to significant
deficiencies and material weaknesses, and the Company has taken all necessary actions to ensure that the Company and the Subsidiaries and their respective officers and directors, in their capacities as such, are in compliance in all material
respects with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act) and the rules and regulations promulgated thereunder;
(z) each forward-looking statement (within the meaning of Section 27A of the 1933 Act or Section 21E of the 1934 Act) contained in the
SEC Documents has been made or reaffirmed with a reasonable basis and in good faith;
(aa) all statistical or market-related data included in the SEC
Documents (other than that discussed in Section 1(k) of this Annex A) are based on or derived from sources that the Company reasonably believes to be reliable and accurate, and the Company has obtained the written consent to the use of such
data from such sources to the extent required;
(bb) neither the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director,
officer, agent, employee or affiliate of the Company or any of the Subsidiaries, has taken any action, directly or indirectly, that would result in a violation by such persons of any applicable anti-bribery laws, rules, or regulations of any
locality, including but not limited to any law, rule, or regulation promulgated to implement the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed December 17, 1997, the U.S. Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the Foreign Corrupt Practices Act), the U.K. Bribery Act 2010, or any other law, rule or regulation of similar purposes and scope; neither the
Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of the Subsidiaries, is aware of any such action, directly or indirectly, having been taken on behalf
of the Company or any of the Subsidiaries; and the Company and the Subsidiaries and, to the knowledge of the Company, their respective affiliates have instituted and maintain policies and procedures designed to ensure continued compliance therewith;
(cc) the operations of the Company and the Subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the USA Patriot Act, the Bank Secrecy 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 agency or intergovernmental group or organization, or any executive order, directive or regulation pursuant to the authority of the foregoing or any orders or
licenses issued thereunder (collectively, the Money Laundering Laws); and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator or non-governmental authority involving the
Company or any of the Subsidiaries with respect to the Money Laundering Laws is pending or, to the Companys knowledge, threatened;
(dd) neither the
Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of the Subsidiaries is currently subject to any sanctions administered or enforced by the Office of
Foreign Assets Control of the United States Treasury Department, the United Nations Security Council, the European Union, Her Majestys Treasury or any other relevant sanctions authority (collectively, Sanctions), or located,
organized or residing in a country or territory that is the subject of Sanctions; the Company will not directly or indirectly use the proceeds of the offering of the Securities contemplated by the Subscription Agreement, or lend, contribute or
otherwise make available such proceeds to any Subsidiary, joint venture partner or other person or entity for the purpose of financing the activities of any person currently subject to any Sanctions administered or enforced by such authorities; for
the past five years, neither the Company or any of its Subsidiaries has knowingly engaged in, and is not now knowingly engaged in, any dealings or transactions with any individual or entity, or in any country or territory, that at the time of the
dealing or transaction is or was the subject of Sanctions; none of the Company, any Subsidiaries or, to the knowledge of the Company, any director, officer, employee, agent, affiliate, joint venture partner or other person associated with or acting
on behalf of the Company or any of its Subsidiaries (other than the Underwriters, as to which no representation or warranty is made) has engaged in activities sanctionable under the Iran Sanctions Act, the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010, the Iran Threat Reduction and Syria Human Rights Act of 2012, the National Defense Authorization Act for the Fiscal Year 2012, the National Defense Authorization Act for the Fiscal Year 2013, Executive
Order Nos. 13628, 13622, and 13608, or any other U.S. economic sanctions relating to Iran (collectively, the Iran Sanctions), and neither the Company nor any Subsidiary will engage in any activities or business that would subject
it to sanction under the Iran Sanctions;
(ee) no Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company,
from making any other distribution on such Subsidiarys capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiarys property or assets to the Company
or any other Subsidiary of the Company, except, in each case, as described in the SEC Documents (excluding the exhibits thereto);
(ff) (i) All dividends and other distributions declared and payable on the share capital of the Company, now or
in the future, may, under the current laws and regulations of Jersey, be paid in United States Dollars that (subject to any applicable Sanctions) may be freely transferred out of Jersey; (ii) all such dividends and other distributions are not
or will not be, as the case may be, subject to withholding or other taxes under the current laws and regulations of Jersey; and (iii) all such dividends and other distributions under such current laws and regulations are or will be otherwise
free and clear of any other tax (save for any income tax that may be payable by the recipient of a distribution who is resident in Jersey), withholding or deduction in Jersey and (subject to any applicable Sanctions) without the necessity of
obtaining any consent, approval, authorization or order in Jersey;
(gg) each of the Company and its Subsidiaries have submitted and possess, or qualify
for applicable exemptions to, such valid and current registrations, listings, approvals, clearances, licenses, certificates, authorizations or permits and supplements or amendments thereto issued or required by the appropriate state, federal or
foreign regulatory agencies or bodies necessary to conduct their business, including, without limitation, all such certificates, authorizations and permits required by the United States Food and Drug Administration (FDA), the
United States Department of Health and Human Services (HHS), the European Medicines Agency (EMA) or any other state, federal or foreign agencies or bodies engaged in the regulation of medical devices (including
diagnostic products), biological products, drugs or biohazardous materials (collectively, the Regulatory Agencies), and the Company and its Subsidiaries have not received any notice of proceedings relating to the revocation or
modification of, or non-compliance with, any such license, certificate, authorization or permit, except for notices which would not, individually or in the aggregate, have a Material Adverse Effect;
(hh) the feasibility studies that are described in, or the results thereof which are referred to in, the SEC Documents were conducted in all material respects
in accordance with standard accepted medical and scientific research procedures; each description of the results of such studies contained in the SEC Documents is accurate and complete in all material respects and fairly presents the data derived
from such studies, and the Company and the Subsidiaries have no knowledge of any other studies or tests or trials the results of which are inconsistent with, or otherwise call into question, the results described or referred to in the SEC Documents;
(ii) the Company and its Subsidiaries and, to the Companys knowledge, the Companys and its Subsidiaries respective directors, officers,
employees, and agents (while acting in such capacity) are, and at all times prior hereto were, in material compliance with, all health care laws applicable to the Company, any of its subsidiaries or any of its or their products or activities,
including, but not limited to, the federal Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the Anti-Inducement Law (42 U.S.C. Section 1320a-7a(a)(5)), the civil False Claims Act (31 U.S.C. Section 3729 et seq.), the
administrative False Claims Law (42 U.S.C. Section 1320a-7b(a)), the Stark law (42 U.S.C. Section 1395nn), the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.) as amended by the Health
Information Technology for Economic and Clinical Health Act (42 U.S.C. Section 17921 et seq.), the exclusion laws (42 U.S.C. Section 1320a-7), the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 et seq.), the Controlled
Substances Act (21 U.S.C. Section 801 et seq.), the Public Health Service Act (42 U.S.C. Section 201 et seq.), Medicare (Title XVIII of the Social Security Act), Medicaid (Title XIX of the Social Security Act), the regulations
promulgated pursuant to such laws, and any other state, federal or foreign law, accreditation standards, regulation, memorandum, opinion letter, or other issuance which imposes legally binding
requirements on the manufacturing, development, testing, labeling, advertising, marketing or distribution of drugs, biological products and/or medical devices (including diagnostic products), kickbacks, patient or program charges, recordkeeping,
claims process, documentation requirements, medical necessity, referrals, the hiring of employees or acquisition of services or supplies from those who have been excluded from government health care programs, quality, safety, privacy, security,
licensure, accreditation or any other aspect of providing health care, clinical laboratory or diagnostics products or services (collectively, Health Care Laws) except, with respect to any of the foregoing, such as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any notification, correspondence or any other written or oral communication, including
notification of any pending or threatened claim, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any governmental authority, including, without limitation, the FDA, the EMEA, the United States Federal Trade
Commission, the United States Drug Enforcement Administration (DEA), the Centers for Medicare & Medicaid Services, HHSs Office of Inspector General, the United States Department of Justice and state Attorneys
General or similar agencies of potential or actual non-compliance by, or liability of, the Company or any of its subsidiaries under any Health Care Laws, except, with respect to any of the foregoing, such as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. To the Companys knowledge, there are no facts or circumstances that would reasonably be expected to give rise to material liability of the Company or any of its subsidiaries
under any Health Care Laws;
(jj) the manufacture by or on behalf of the Company or any of its Subsidiaries of the Companys and any
Subsidiarys respective products is being conducted in compliance in all material respects with all applicable Health Care Laws, including, without limitation, the FDAs current good manufacturing practice regulations at 21 C.F.R. Parts
210, 211, 600 through 680, and 820, and, to the extent applicable, the respective counterparts thereof promulgated by governmental authorities in countries outside the United States;
(kk) the Company and its Subsidiaries are complying in all material respects with all applicable regulatory post-market reporting obligations, including,
without limitation, the FDAs adverse event reporting requirements at 21 C.F.R. Parts 310, 314, 600, and 803, and, to the extent applicable, the respective counterparts thereof promulgated by governmental authorities in countries outside the
United States;
(ll) except as disclosed in the SEC Documents, neither the Company nor any of its Subsidiaries has had any product, clinical laboratory or
manufacturing site (whether Company-owned or owned by any of its Subsidiaries or a third party manufacturer for the Companys or its Subsidiaries respective products) subject to a governmental authority (including FDA) shutdown or import
or export prohibition, nor received any FDA Form 483 or other governmental authority notice of inspectional observations, warning letters, untitled letters, requests to make changes to the Companys or any of its
Subsidiaries respective products, processes or operations, or similar correspondence or notice from the FDA or other governmental authority alleging or asserting material noncompliance with any applicable Health Care Laws. To the
Companys knowledge, neither the FDA nor any other governmental authority is considering such action;
(mm) except as disclosed in the SEC Documents, there have been no material recalls, field notifications, field
corrections, market withdrawals or replacements, warnings, dear doctor letters, investigator notices, safety alerts or other notice of action relating to an alleged lack of safety, efficacy, or regulatory compliance with respect to the
Companys or any of its Subsidiaries respective products (Safety Notices); to the Companys knowledge, there are no facts that would be reasonably likely to result in (i) a Safety Notice with respect to the
Companys or any of its Subsidiaries respective products or services, (ii) a material change in labeling of any the Companys or any of its Subsidiaries respective products or services, or (iii) a material termination
or suspension of marketing or testing of any of the Companys or any of its Subsidiaries respective products or services;
(nn) the Company has
not knowingly made any false statements on, or material omissions from, any applications, approvals, reports or other submissions to any Regulatory Agency, or in or from any other records and documentation prepared or maintained to comply with the
requirements of any Regulatory Agency relating to the Companys or any of its Subsidiaries respective products. None of the Company, any of its Subsidiaries or, to the knowledge of the Company, any officer, employee or agent of the
Company has been convicted of any crime or engaged in any conduct that would reasonably be expected to result in (a) debarment under 21 U.S.C. Section 335a or any similar state or foreign law or regulation or (b) exclusion under 42
U.S.C. Section 1320a-7 or any similar state or foreign law or regulation, and none of the Company or any such person has been so debarred or excluded;
(oo) neither the Company nor any of its Subsidiaries has any securities that are rated by any nationally recognized statistical rating agency (as
that term is defined in Section 3(a)(62) of the 1934 Act).
Exhibit A
Form of Registration Rights Agreement
Exhibit B
Form of Company Counsel Opinion
Exhibit C
Form of Jersey Counsel Opinion
Exhibit 10.2
SUBSCRIPTION AGREEMENT
SUBSCRIPTION AGREEMENT (the Agreement), dated as of November 25, 2014, by and among Quotient Limited, a
company organized under the laws of Jersey (the Company), and the investors listed on the Schedule of Subscribers attached hereto (individually, a Subscriber and collectively, the
Subscribers).
WHEREAS:
A. The Company and each Subscriber 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 1933 Act), and Rule 506 of Regulation D (Regulation D) as promulgated by the United States Securities and Exchange Commission (the
SEC) under the 1933 Act.
B. Each Subscriber wishes to subscribe for, and the Company wishes to issue, upon the terms
and conditions stated in this Agreement, that aggregate number of ordinary shares, of no par value per share in the capital of the Company (the Ordinary Shares), set forth opposite such Subscribers name in column (3) on
the Schedule of Subscribers (which aggregate amount for all Subscribers under this Agreement and Other Subscription Agreements (as defined below) shall be 2,000,000 Ordinary Shares and shall collectively be referred to herein as the New
Ordinary Shares). For purposes of this Agreement, Other Subscription Agreements means subscription agreements executed and delivered to the Company contemporaneously with this Agreement, which subscription agreements
will be on substantially similar terms and conditions as this Agreement.
C. 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 the Company has agreed
to provide certain registration rights with respect to the New Ordinary Shares under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.
NOW, THEREFORE, the Company and each Subscriber hereby agree as follows:
1. SUBSCRIPTION AND ISSUE OF NEW ORDINARY SHARES
(a) Issue of New Ordinary Shares.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue to each Subscriber,
and each Subscriber severally, but not jointly, shall subscribe for on the Closing Date (as defined below), the number of New Ordinary Shares as is set forth opposite such Subscribers name in column (3) on the Schedule of Subscribers (the
Closing).
(i) Closing. The date and time of the Closing (the Closing Date) shall be
November 28, 2014, 12:00 p.m., New York City time, on the date hereof (or such later
date as is mutually agreed to by the Company and each Subscriber) after notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below at the
offices of Cooley LLP at 1114 Avenue of the Americas, New York, NY 10036.
(ii) Subscription Price. The aggregate subscription
price for the New Ordinary Shares to be subscribed for by each such Subscriber at the Closing (the Subscription Price) shall be the amount set forth opposite each Subscribers name in column (4) of the Schedule of
Subscribers.
(b) Form of Payment. On the Closing Date, (i) each Subscriber shall pay its Subscription Price to the Company
for the New Ordinary Shares to be issued and sold to such Subscriber at the Closing, by wire transfer of immediately available funds in accordance with the Companys written wire instructions and (ii) the Company shall deliver to each
Subscriber the New Ordinary Shares (allocated in the amounts as such Subscriber shall request) which such Subscriber is subscribing for hereunder, duly executed on behalf of the Company and registered in the name of such Subscriber or its designee.
2. SUBSCRIBERS REPRESENTATIONS AND WARRANTIES.
Each Subscriber represents, warrants and agrees with respect to only itself that:
(a) Organization and Good Standing. Such Subscriber is a corporation, partnership or limited liability company duly incorporated or
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization.
(b)
Authorization and Power. Such Subscriber has the requisite power and authority, corporate or otherwise, to enter into and perform the Transaction Documents (as defined below) to which such Subscriber is a party and to subscribe for the
Ordinary Shares being sold to it hereunder. The execution, delivery and performance of the Transaction Documents to which such Subscriber is a party by such Subscriber and the consummation by it of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate, partnership or limited liability company action, and no further consent or authorization of such Subscriber or its Board of Directors, stockholders or partners, as the case may be, is required.
(c) No Public Sale or Distribution. Such Subscriber is subscribing for the New Ordinary Shares for its own account and not with a
view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations herein, such Subscriber does not agree
to hold any of the New Ordinary Shares for any minimum or other specific term and reserves the right to dispose of the New Ordinary Shares at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act and
pursuant to the applicable terms of the Transaction Documents. Such Subscriber is subscribing for the New Ordinary Shares hereunder in the ordinary course of its business. Such Subscriber does not presently have any agreement or understanding,
directly or indirectly, with any Person to distribute the New Ordinary Shares. For purposes of this Agreement, Person means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency thereof.
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(d) Accredited Investor Status. Such Subscriber is an accredited investor as
that term is defined in Rule 501(a) of Regulation D.
(e) Reliance on Exemptions. Such Subscriber understands that the
New Ordinary Shares are being offered and issued 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 Subscribers compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Subscriber set forth herein in order to determine the availability of such exemptions and the eligibility of such
Subscriber to subscribe for the New Ordinary Shares.
(f) Information. (i) Such Subscriber and its advisors, if any, have been
furnished with, or had access to, all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the New Ordinary Shares that have been requested by such Subscriber as it has deemed
necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience in investing in companies similar to the Company in terms of the Companys stage of development so as to be able to evaluate the
risks and merits of its investment in the Company. Such Subscriber and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by such
Subscriber or its advisors, if any, or its representatives shall modify, amend or affect such Subscribers right to rely on the Companys representations and warranties contained herein. Such Subscriber understands that its investment in
the New Ordinary Shares involves a high degree of risk and is able to afford a complete loss of such investment. Such Subscriber has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
with respect to its acquisition of the New Ordinary Shares. Such Subscriber has not relied on any information or advice furnished by or on behalf of the Agent (as defined below) in connection with the transactions contemplated hereby.
(g) No Governmental Review. Such Subscriber 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 New Ordinary Shares or the fairness or suitability of the investment in the New Ordinary Shares nor have such authorities passed upon or endorsed the merits of the
offering of the New Ordinary Shares.
(h) Transfer or Resale. Such Subscriber understands that except as provided in the
Registration Rights Agreement: (i) the New Ordinary Shares have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder, (B) such Subscriber shall have delivered to the Company an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such New Ordinary Shares to be sold, assigned or transferred may be sold,
assigned or transferred pursuant to an exemption from such registration, or (C) such Subscriber provides the Company with reasonable assurance that such New Ordinary Shares can be sold, assigned or transferred pursuant to Rule 144 promulgated
under the 1933 Act, as amended, (or a successor rule thereto) (collectively, Rule 144); (ii) any sale of the New Ordinary Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and
further, if Rule 144 is not applicable, any resale of the New Ordinary Shares under
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circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other
exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the New Ordinary Shares under the 1933 Act or any state securities laws or
to comply with the terms and conditions of any exemption thereunder. The New Ordinary Shares may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the New Ordinary Shares and such pledge of
New Ordinary Shares shall not be deemed to be a transfer, sale or assignment of the New Ordinary Shares hereunder, and no Subscriber effecting a pledge of the New Ordinary Shares shall be required to provide the Company with any notice thereof or
otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document, including, without limitation, this Section 2(h).
(i) Legends. Such Subscriber understands that the certificates or other instruments representing the New Ordinary Shares, except as set
forth below, shall bear any legend as required by the blue sky laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such share certificates):
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, 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 OF 1933, AS AMENDED, OR (B) AN
OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID 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 legend set forth above shall be removed and the
Company shall issue a certificate without such legend to the holder of the New Ordinary Shares upon which it is stamped, if, unless otherwise required by state securities laws, (i) such New Ordinary Shares are registered for resale under the
1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of a law firm reasonably acceptable to the Company, in a form reasonably acceptable to the Company, to the effect that such
sale, assignment or transfer of the New Ordinary Shares may be made without registration under the applicable requirements of the 1933 Act, or (iii) such holder provides the Company with reasonable assurance that the New Ordinary Shares can be
sold, assigned or transferred pursuant to Rule 144.
(j) Validity; Enforcement. The Transaction Documents to which such Subscriber
is a party have been duly and validly authorized, executed and delivered on behalf of such Subscriber and shall constitute the legal, valid and binding obligations of such Subscriber enforceable
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against such Subscriber in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors rights and remedies.
(k) No Conflicts. The execution, delivery and performance by such Subscriber of the Transaction Documents to which such Subscriber is a
party and the consummation by such Subscriber of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Subscriber or (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 Subscriber 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 Subscriber, 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 Subscriber to perform its obligations hereunder.
(l) Residency. Such Subscriber is a resident of that jurisdiction specified below its address on the Schedule of Subscribers.
(m) No General Solicitation. Each Subscriber acknowledges that the New Ordinary Shares were not offered to such Subscriber by means of
any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine,
website, or similar media, or broadcast over television or radio, or (ii) any seminar or meeting to which such Subscriber was invited by any of the foregoing means of communications.
(n) No Affiliates; Independent Investment. Such Subscriber is not (i) an officer or director of the Company, (ii) an
affiliate of the Company or any of its subsidiaries (as defined in Rule 144 of the 1933 Act) or (iii) a beneficial owner of more than 10% of Ordinary Shares (as defined for purposes of Rule 13d-3 of the Securities
Exchange Act of 1934, as amended (the 1934 Act)); provided however, (ii) and (iii) of the foregoing shall not apply to Galen Partners V, L.P. or Galen Partners International V, L.P., which, together with
their affiliates, beneficially own over 10% of the Companys Ordinary Shares. Except as may be disclosed in any filings with the SEC by the Subscribers under Section 13 and/or Section 16 of the 1934 Act, no Subscriber has
agreed to act with any other Subscriber for the purpose of acquiring, holding, voting or disposing of the New Ordinary Shares subscribed for hereunder for purposes of Section 13(d) under the 1934 Act, and each Subscriber is acting independently
with respect to its investment in the Shares.
(o) Brokers. Each Subscriber has no knowledge of any brokerage or finders fees
or commissions that are or will be payable by the Company or any of its Subsidiaries to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person or entity, other than the Agent, with respect to
the transactions contemplated by this Agreement.
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3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company represents and warrants to each of the Subscribers that:
(a) Defined Terms. Capitalized terms used in this Section 3 without definition have the meanings ascribed to them in Annex A
hereto.
(b) Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement and the Registration Rights Agreement (collectively, the Transaction Documents) and to issue the New Ordinary Shares in accordance with the terms hereof and thereof. The execution and
delivery of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the New Ordinary Shares have been duly authorized by the
Companys Board of Directors and no further filing, consent or authorization is required by the Company, its Board of Directors or its shareholders. This Agreement and the other Transaction Documents have been duly executed and delivered by the
Company, and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as (i) such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors rights and remedies and (ii) enforceability of the indemnification and
contributions provisions set forth in the Transaction Documents may be limited by the federal or state securities laws of the United States or the public policy underlying such laws.
(c) Issuance of New Ordinary Shares. The New Ordinary Shares are duly authorized and, upon issuance in accordance with the terms
hereof, shall be validly issued and free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof and the New Ordinary Shares shall be fully paid and nonassessable with the holders being entitled to all
rights accorded to a holder of Ordinary Shares. Assuming the accuracy of and compliance with each of the representations, warranties and agreements of the Subscribers herein, the offer and issuance by the Company of the New Ordinary Shares is exempt
from registration under the 1933 Act.
(d) No Conflicts. The execution, delivery and performance of the Transaction Documents by
the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the New Ordinary Shares) will not (i) result in a violation of the certificate of incorporation
(or certificate of incorporation on change of name) or the articles of association of the Company or the articles of association, charters or bylaws (as applicable) or other applicable organizational documents of any of its Subsidiaries or
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and
regulations and the rules and regulations of The NASDAQ Global Market (the Principal Market) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected, except in the cases of clauses (ii) and (iii) such as would not reasonably be expected to have a Material Adverse Effect.
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(e) Consents. Neither the Company nor any of its Subsidiaries is required to obtain any
consent, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under
or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof (other than (x) any consent, authorization or order that has been obtained as of the date hereof, (y) any filing or registration that
has been made as of the date hereof or (z) any filings which may be required to be made by the Company with the SEC, state securities administrators or the Principal Market or The NASDAQ Stock Market, LLC, subsequent to the Closing; provided
that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of and compliance with each of the relevant representations, warranties and agreements of the Subscribers herein). The Company is
unaware of any facts or circumstances that might prevent the Company from obtaining or effecting any of the registration, application or filings pursuant to the preceding sentence. The Company is not in violation of the listing requirements of the
Principal Market and has no knowledge of any facts that would reasonably lead to delisting or suspension of the Ordinary Shares in the foreseeable future.
(f) Acknowledgment Regarding Subscribers Subscription of the New Ordinary Shares. The Company acknowledges and agrees that each
Subscriber is acting solely in the capacity of an arms length subscriber with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that no Subscriber is acting as a
financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Subscriber or any of its
representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Subscribers subscription of the New Ordinary Shares. The Company further represents to
each Subscriber that the Companys decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.
(g) No General Solicitation; Placement Agents Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor, to the
Companys knowledge, any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the New Ordinary Shares. The
Company shall be responsible for the payment of any placement agents fees, financial advisory fees, or brokers commissions (other than for persons engaged by any Subscriber or its investment advisor) relating to or arising out of the
transactions contemplated hereby. The Company acknowledges that it has engaged Jefferies LLC as placement agent (the Agent) in connection with the sale of the New Ordinary Shares. Other than the Agent, neither the Company nor any
of its Subsidiaries has engaged any placement agent or other agent in connection with the sale of the New Ordinary Shares.
(h) No
Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, and, to the Companys knowledge, any Person acting on their behalf has, directly or
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indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the New Ordinary
Shares under the 1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the New Ordinary Shares to require approval of shareholders of the Company for purposes of any applicable shareholder approval
provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated. None of the Company, its Subsidiaries, their affiliates
and, to the Companys knowledge, any Person acting on their behalf will take, directly or indirectly, any action or steps referred to in the preceding sentence that would require registration of the issuance of any of the New Ordinary Shares
under the 1933 Act or cause the offering of the New Ordinary Shares to be integrated with other offerings for purposes of any such applicable shareholder approval provisions.
(i) Application of Takeover Protections; Rights Agreement. 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 certificate of incorporation (or
certificate of incorporation on change of name) or the articles of association of the Company or the laws of Jersey, Channel Islands or any other applicable jurisdiction which is or could become applicable to any Subscriber as a result of the
transactions contemplated by this Agreement, including, without limitation, the Companys issuance of the New Ordinary Shares and any Subscribers ownership of the New Ordinary Shares. The Company and its Board of Directors have taken all
necessary action, if any, in order to render inapplicable any shareholder rights plan or similar arrangement relating to accumulations of beneficial ownership of Ordinary Shares or a change in control of the Company.
(j) SEC Documents; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof or prior to the date of the Closing and all exhibits included therein and financial statements, notes
and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the SEC Documents). As of their respective filing dates, the SEC Documents complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact
or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Any Supplemental Disclosure Document (as defined below), as of its date and as of
the date hereof, did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
As of their respective filing dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be
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condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other information provided by or on behalf of the Company to the Subscribers which is not included in the SEC Documents, including, without
limitation, disclosure contained in any supplemental disclosure document prepared by the Company and provided by the Company to be delivered to potential subscribers (Supplemental Disclosure Document) and information referred to
in Section 2(f) of this Agreement or in any disclosure schedules, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance under
which they are or were made, not misleading.
(k) Transfer Taxes. On the Closing Date, all share transfer or other taxes (other
than income or similar taxes) which are required to be paid in connection with the issue of New Ordinary Shares to be subscribed for by each Subscriber hereunder will be, or will have been, fully paid or provided for by the Company, and all laws
imposing such taxes will be or will have been complied with.
(l) Manipulation of Price. The Company has not, and to its knowledge
no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Ordinary
Shares, (ii) other than the Agent, sold, bid for, purchased, or paid any compensation for soliciting subscriptions of, the New Ordinary Shares, or (iii) other than the Agent, paid or agreed to pay to any person any compensation for
soliciting another to subscribe for any other securities of the Company.
(m) Disclosure. The Company confirms that neither it nor,
to the Companys knowledge, any other Person acting on its behalf has provided any of the Subscribers or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic
information. The Company understands and confirms that each of the Subscribers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Subscribers regarding the Company or any
of its Subsidiaries, their business and the transactions contemplated hereby furnished by the Company is true and correct 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. No material event or circumstance has occurred or material information exists with respect to the Company or any of its Subsidiaries or its or
their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed.
(n) Acknowledgement Regarding Subscribers Trading Activity. Anything in this Agreement or elsewhere herein to the contrary
notwithstanding, but subject to compliance by the Subscribers with applicable law, it is understood and acknowledged by the Company (i) that none of the Subscribers have been asked by the Company or its Subsidiaries to agree, nor has any
Subscriber agreed with the Company or its Subsidiaries, to desist from purchasing or selling, long and/or short, securities of the Company, or derivative securities based on securities issued
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by the Company or to hold the New Ordinary Shares for any specified term; (ii) that past or future open market or other transactions by any Subscriber, including, without limitation, short
sales or derivative transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Companys publicly-traded securities; (iii) that any Subscriber, and
counter parties in derivative transactions to which any such Subscriber is a party, directly or indirectly, presently may have a short position in the Ordinary Shares, and (iv) that each Subscriber shall not be deemed to
have any affiliation with or control over any arms length counter-party in any derivative transaction. The Company further understands and acknowledges that, subject to compliance by the Subscribers with applicable law,
(a) one or more Subscribers may engage in hedging and/or trading activities at various times during the period that the New Ordinary Shares are outstanding, and (b) such hedging and/or trading activities (if any) could reduce the value of
the existing shareholders equity interests in the Company at and after the time that the hedging and/or trading activities are being conducted.
(o) Additional Representations and Warranties. In addition to the representations and warranties set out in this Agreement, the Company
hereby makes the representations and warranties set forth in Annex A hereto.
4. COVENANTS.
(a) Best Efforts. Each party shall use its best efforts timely to satisfy each of the covenants and conditions to be satisfied by it as
provided in Sections 6 and 7 of this Agreement.
(b) Form D and Blue Sky. The Company agrees to file a Form D with respect to the
New Ordinary Shares as required under Regulation D and to provide a copy thereof to each Subscriber upon request promptly after such filing. The Company, on or before the Closing Date, shall take such action as is necessary in order to obtain an
exemption for or to qualify the New Ordinary Shares for subscription by the Subscribers at the Closing pursuant to this Agreement under applicable securities or Blue Sky laws of the states of the United States, and shall upon request
provide evidence of any such action so taken to the Subscribers on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and issue of the New Ordinary Shares required under applicable securities or
Blue Sky laws of the states of the United States following the Closing Date; provided, however, the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation or as a dealer in
securities in any jurisdiction or to consent to general service of process in any jurisdiction.
(c) Reporting Status. From the
date hereof until the date on which the Investors (as defined in the Registration Rights Agreement) shall have sold all the New Ordinary Shares or are able to sell all the New Ordinary Shares under Rule 144 without the requirement for the Company to
be in compliance with the current public information required thereunder and without volume or manner of sale restrictions (the Reporting Period), the Company shall timely file all reports required to be filed with the SEC
pursuant to the 1934 Act, including any extension period under Rule 12b-25 of the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would otherwise permit such termination.
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(d) Use of Proceeds. The Company will use the proceeds from the issue of the New Ordinary
Shares for general corporate purposes, including to fund the development costs for MosaiQ, and not for (A) the repayment of any outstanding Indebtedness of the Company or any of its Subsidiaries or (B) redemption or repurchase of any
of its or its Subsidiaries equity securities.
(e) Financial Information. The Company agrees to send the following to each
Investor (as defined in the Registration Rights Agreement) during the Reporting Period, unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, (i) within one (1) Business Day
after the filing thereof with the SEC, a copy of its Annual Reports in Form 10-K and Quarterly Reports on Form, 10-Q, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments filed pursuant to the 1933
Act (other than amendments in respect of the Companys Registration Statement on Form S-1 (Registration No. 333-194390), as amended), (ii) within one (1) Business Day after the release thereof, facsimile or e-mailed copies of all
press releases issued by the Company or any of its Subsidiaries, and (iii) copies of any notices and other information made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving
thereof to the shareholders. As used herein, Business Day means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required by law to remain closed.
(f) Listing. The Company shall as soon as reasonably practicable secure the listing of all of the Registrable Securities (as defined in
the Registration Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which Ordinary Shares are then listed (subject to official notice of issuance) and shall maintain, so long as any other Ordinary
Shares shall be so listed, such listing of all Registrable Securities from time to time issuable under the terms of the Transaction Documents. The Company shall maintain the Ordinary Shares authorization for quotation on the Principal Market.
Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Ordinary Shares on the Principal Market. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section 4(f).
(g) Fees. The Company shall be responsible for the
payment of any placement agents fees, financial advisory fees, or brokers commissions (other than for Persons engaged by any Subscriber) relating to or arising out of the transactions contemplated hereby, including, without limitation,
any reasonable fees or commissions payable to the Agents. Except as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the issue of the New Ordinary Shares to the
Subscribers.
(h) Pledge of New Ordinary Shares. The Company acknowledges and agrees that the New Ordinary Shares may be pledged by
an Investor (as defined in the Registration Rights Agreement) in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the New Ordinary Shares. The pledge of New Ordinary Shares shall not be deemed to
be a transfer, sale or assignment of the New Ordinary Shares hereunder, and no Investor effecting a pledge of New Ordinary Shares shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant
to this Agreement or any other Transaction Document, including, without limitation, Section 2(h)
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of this Agreement; provided that an Investor and its pledgee shall be required to comply with the provisions of Section 2(h) of this Agreement in order to effect a sale, transfer or
assignment of New Ordinary Shares to such pledgee. The Company hereby agrees to execute and deliver such documentation as a pledgee of the New Ordinary Shares may reasonably request in connection with a pledge of the New Ordinary Shares to such
pledgee by an Investor; provided that any and all costs to effect the pledge of the New Ordinary Shares are borne by the pledgor and/or pledgee and not the Company.
(i) Disclosure of Transactions and Other Material Information. On or before 8:30 a.m., New York City time, on the first Business Day
following the date of this Agreement, the Company shall issue a press release and promptly thereafter file a Current Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by the
1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement and the form of the Registration Rights Agreement) as exhibits to such filing (including all attachments, the 8-K Filing).
From and after the filing of the 8-K Filing with the SEC, no Subscriber shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or
agents, that is not disclosed in the 8-K Filing. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents, not to, provide any Subscriber with any material,
nonpublic information regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing with the SEC without the express written consent of such Subscriber. If a Subscriber has, or believes it has, received any such
material, nonpublic information regarding the Company or any of its Subsidiaries from such Persons, it shall provide the Company with written notice thereof. The Company shall, within five (5) Trading Days of receipt of such notice, make public
disclosure of such material, nonpublic information, to the extent such information is both material and nonpublic. Trading Day means any day on which the Ordinary Shares are traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Ordinary Shares, then on the principal securities exchange or securities market on which the Ordinary Shares are then traded; provided that Trading Day shall not include any day on which
the Ordinary Shares are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Ordinary Shares are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market
does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time). Neither the Company, its Subsidiaries nor any Subscriber shall issue any press releases or any other
public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of any Subscriber, to make any press release or other public disclosure with respect to such
transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations. Without the prior written consent of any applicable Subscriber, neither the Company
nor any of its Subsidiaries or affiliates shall disclose the name of such Subscriber in any filing, announcement, release or otherwise other than in connection with the Registration Statement, as contemplated pursuant to the Registration Rights
Agreement, and other than in connection with the 8-K Filing, as contemplated pursuant to this Agreement, unless such disclosure is required by law, regulation or the Principal Market.
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(j) Conduct of Business. During the Reporting Period, the business of the Company and its
Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse
Effect.
5. REGISTER; TRANSFER AGENT INSTRUCTIONS.
(a) Register and Transfer Agent. The Company shall maintain a transfer agent and, if necessary under the jurisdiction of incorporation
of the Company, a registrar for the Ordinary Shares.
(b) Transfer Agent Matters. The Company represents and warrants that no
instruction, other than stop transfer instructions to give effect to Section 2(h) hereof, will be given by the Company to its transfer agent or any subsequent transfer agent with respect to the New Ordinary Shares, and that the New Ordinary
Shares 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. If a Subscriber effects a sale, assignment or transfer of the New Ordinary
Shares in accordance with Section 2(h), the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such
denominations as specified by such Subscriber to effect such sale, transfer or assignment.
(c) Breach. The Company acknowledges
that a breach by it of its obligations under this Section 5 will cause irreparable harm to a Subscriber. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5, that a Subscriber 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.
(d) Additional Relief. If the Company shall fail for any reason or for no reason to issue to a Subscriber holding New Ordinary Shares
unlegended certificates within three (3) Business Days of (x) receipt of documents necessary for the removal of the legend set forth above in Section 2(i) or (y) the date of its obligation to deliver the Ordinary Shares as
contemplated pursuant to clause (ii) below (the Deadline Date), then, in addition to all other remedies available to such Subscriber, if on or after the Trading Day immediately following such three Business Day period, such
Subscriber purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale by such Subscriber of Ordinary Shares that such Subscriber anticipated receiving from the Company (a Buy-In),
then the Company shall, within three Business Days after such Subscribers request and in such Subscribers discretion, either (i) pay cash to such Subscriber in an amount equal to such Subscribers total purchase price
(including brokerage commissions, if any) for the Ordinary Shares so purchased (the Buy-In Price), at which point the Companys obligation to deliver such certificate (and to issue such Ordinary Shares) shall terminate, or
(ii) promptly honor its obligation to deliver to such Subscriber a certificate or certificates representing such Ordinary Shares and pay cash to such Subscriber in an amount equal to the excess (if any) of the Buy-In
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Price over the product of (A) such number of Ordinary Shares, times (B) the Closing Bid Price on the Deadline Date. Closing Bid Price means, for any security as of
any date, the last closing price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price then the last bid price of
such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing price of such security on the principal
securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing price of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such security as reported in the pink sheets by OTC Markets Group
(formerly Pink Sheets LLC). If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price of such security on such date shall be the fair market value as mutually determined by
the Company and such Subscriber, all such determinations to be appropriately adjusted for any share dividend, share split, share combination (consolidation) or other similar transaction during the applicable calculation period.
6. CONDITIONS TO THE COMPANYS OBLIGATION TO ISSUE.
The obligation of the Company hereunder to issue the New Ordinary Shares to each Subscriber at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following conditions, provided that these conditions are for the Companys sole benefit and may be waived by the Company at any time in its sole discretion by providing each Subscriber with prior
written notice thereof:
(i) Such Subscriber shall have executed each of the Transaction Documents to which it is a party and delivered
the same to the Company.
(ii) Such Subscriber shall have delivered to the Company the Subscription Price for the New Ordinary Shares,
and each other Subscriber shall have delivered to the Company the Subscription Price for the New Ordinary Shares, in each case, at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.
(iii) The representations and warranties of such Subscriber shall be true and correct in all material respects (except for those
representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such specified date), and such Subscriber shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by such Subscriber at or prior to the Closing Date.
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7. CONDITIONS TO EACH SUBSCRIBERS OBLIGATION TO SUBSCRIBE.
The obligation of each Subscriber hereunder to subscribe for the New Ordinary Shares is subject to the satisfaction, at or before the Closing
Date, of each of the following conditions, provided that these conditions are for each Subscribers sole benefit and may be waived by such Subscriber at any time in its sole discretion by providing the Company with prior written notice thereof:
(i) The Company shall have duly executed and delivered to such Subscriber (i) each of the Transaction Documents and (ii) the
New Ordinary Shares (in such amounts as such Subscriber shall request) being subscribed for by such Subscriber at the Closing pursuant to this Agreement.
(ii) Such Subscriber shall have received the opinion of Clifford Chance US LLP, counsel for the Company (Company Counsel),
dated as of the Closing Date, in substantially the form of Exhibit B attached hereto.
(iii) Such Subscriber shall have
received the opinion of Carey Olsen, counsel for the Company with respect to the laws of Jersey (Jersey Company Counsel), dated as of the Closing Date, in substantially the form of Exhibit C attached hereto.
(iv) The Company shall have delivered to such Subscriber a certificate (Good Standing Certificate) evidencing the
incorporation and good standing of the Company and each of its operating Subsidiaries in such corporations state of incorporation issued by the Secretary of State of such state of incorporation as of a date within 10 days of the Closing Date,
or such other document in lieu of a Good Standing Certificate reasonably satisfactory to the Subscriber.
(v) The Ordinary Shares
(I) shall be listed on the Principal Market and (II) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have
been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market or (B) by falling below the minimum listing maintenance requirements of the Principal Market.
(vi) The Company shall have delivered to such Subscriber a certificate, executed by the Secretary of the Company and dated as of the Closing
Date, in a form reasonably acceptable to such Subscriber, as to (i) the resolutions consistent with Section 3(b) as adopted by the Companys Board of Directors, and (ii) the Articles of Association of the Company each as in
effect at the Closing.
(vii) The representations and warranties of the Company shall be true and correct in all material respects
(except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except
for representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by the
-15-
Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date. Such Subscriber shall have received a certificate, executed by the Chief
Executive Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Subscriber.
(viii) The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of
the New Ordinary Shares.
(ix) The Company shall have delivered to such Subscriber such other documents relating to the transactions
contemplated by this Agreement as such Subscriber or its counsel may reasonably request.
8. TERMINATION. In the event that the
Closing shall not have occurred with respect to a Subscriber on or before five (5) Business Days from the date hereof due to the Companys or such Subscribers failure to satisfy the conditions set forth in Sections 6 and 7 above (and
the nonbreaching partys failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date without liability of
any party to any other party.
9. MISCELLANEOUS.
(a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan 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 proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such 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 HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
(b) Counterparts. This Agreement may be executed in two or more identical counterparts, all of which 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; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with
the same force and effect as if the signature were an original, not a facsimile signature.
-16-
(c) Headings. The headings of this Agreement are for convenience of reference and shall
not form part of, or affect the interpretation of, this Agreement.
(d) Severability. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.
(e) Entire Agreement; Amendments. This Agreement and the other Transaction Documents
supersede all other prior oral or written agreements between the Subscribers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the other Transaction Documents
contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Subscriber makes any representation, warranty, covenant or
undertaking with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the holders of New Ordinary Shares representing at least a majority of the amount of the New
Ordinary Shares, or, if prior to the Closing Date, the Subscribers listed on the Schedule of Subscribers as being obligated to subscribe at least a majority of the amount of the New Ordinary Shares. No provision hereof may be waived other than by an
instrument in writing signed by the party against whom enforcement is sought. No such amendment shall be effective to the extent that it applies to less than all of the holders of the New Ordinary Shares then outstanding. The Company has not,
directly or indirectly, made any agreements with any Subscribers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the
Company confirms that, except as set forth in this Agreement, no Subscriber has made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise.
(f) Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall
be:
If to the Company:
|
|
|
Elizabeth House 9 Castle Street
St Helier JE2 3RT
Jersey, Channel Islands |
Telephone: |
|
+44 131 445 6159 |
Facsimile: |
|
+44 153 4700 007 |
Attention: |
|
Paul Cowan |
-17-
with a copy (for informational purposes only) to:
|
|
|
Clifford Chance US LLP 31 West 52nd Street New York, New York 10019 |
Attention: |
|
Alejandro E. Camacho and Per B. Chilstrom |
Facsimile: |
|
212-878-8375 |
If to the Transfer Agent:
|
|
|
Continental Stock Transfer & Trust Company
17 Battery Place New York, NY 10004 |
|
|
Telephone: |
|
212-845-3277 |
Facsimile: |
|
212-616-7615 |
Attention: |
|
Henry Farrell |
If to a Subscriber, to its address and facsimile number set forth on the Schedule of Subscribers, with copies to such
Subscribers representatives as set forth on the Schedule of Subscribers and to such other address and/or facsimile number and/or to the attention of such other Person as the Subscriber has specified by written notice given to the Company five
(5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the senders
facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.
(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the holders of at least a majority of the aggregate number of Registrable Securities issued and issuable hereunder. A Subscriber shall not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Company, in which event such assignee shall be deemed to be a Subscriber hereunder with respect to such assigned rights and obligations.
(h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that the Agent may rely upon the representations and warranties contained in Sections 2 and 3 hereof.
-18-
(i) Survival. Unless this Agreement is terminated under Section 8, the
representations and warranties of the Company and the Subscribers contained in Sections 2 and 3, and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing. Each Subscriber shall be responsible only for its own
representations, warranties, agreements and covenants hereunder.
(j) Further Assurances. Each party shall do and perform, or cause
to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions contemplated hereby.
(k) Indemnification. In consideration
of each Subscribers execution and delivery of the Transaction Documents and acquiring the New Ordinary Shares thereunder and in addition to all of the Companys other obligations under the Transaction Documents, the Company shall defend,
protect, indemnify and hold harmless each Subscriber, the directors, officers, members, partners, employees, agents and representatives thereof, and each Person, if any, who controls any Subscriber within the meaning of the 1933 Act or the 1934 Act
(collectively, the Indemnitees), from and against any and all actions, causes of action, suits, claims, losses, reasonable costs, penalties, reasonable fees, liabilities and damages, and reasonable expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys fees and disbursements (the Indemnified Liabilities), incurred by any
Indemnitee as a result of, or arising out of, or relating to any untrue statement of a material fact in the SEC Documents or any Supplemental Disclosure Document or any omission to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations of the parties under this
Section 9(k) shall be the same as those set forth in Section 6 of the Registration Rights Agreement.
(l) No Strict
Construction. 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.
(m) Remedies. Each Subscriber shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies
which such Subscribers have been granted at any time under any other agreement or contract and all of the rights which such Subscribers have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in
the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Subscribers, or any of them. The Company therefore agrees that any
Subscriber shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security.
-19-
(n) Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) the Transaction Documents, whenever any Subscriber 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 at any time prior to performance by the Company of such obligation such Subscriber 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.
(o) Payment Set Aside. To the extent that the
Company makes a payment or payments to the Subscribers hereunder or pursuant to any of the other Transaction Documents or the Subscribers enforce or exercise their rights hereunder or thereunder, and such 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, foreign, 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.
(p) Independent Nature of Subscribers Obligations and Rights. The obligations of each Subscriber under any Transaction Document
are several and not joint with the obligations of any other Subscriber, and no Subscriber shall be responsible in any way for the performance of the obligations of any other Subscriber under any Transaction Document. Nothing contained herein or in
any other Transaction Document, and no action taken by any Subscriber pursuant hereto or thereto, shall be deemed to constitute the Subscribers as, and the Company acknowledges that the Subscribers do not so constitute, a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that the Subscribers are in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the
transactions contemplated by the Transaction Documents and the Company acknowledges that the Subscribers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The
Company acknowledges and each Subscriber confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Subscriber shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Subscriber to be joined as an additional party in any
proceeding for such purpose.
-20-
(q) Exculpation of the Agent. Each party acknowledges that it has read the notice
available at http://www.jefferies.com/CMSFiles/Jefferies.com/files/Reg%20A%20and%20D%20Disclosure%207_2014(1).pdf and hereto agrees for the express benefit of each of the Agent, its affiliates and its representatives that:
(i) Neither Jefferies LLC (as the Agent) nor any of its affiliates or any of its representatives (1) has any duties or obligations other
than those specifically set forth herein or in the engagement letter, dated as of November 3, 2014, among the Company and Jefferies LLC (the Engagement Letter); (2) shall be liable for any improper payment made in
accordance with the information provided by the Company; (3) makes any representation or warranty, or has any responsibilities as to the validity, accuracy, value or genuineness of any information, certificates or documentation delivered by or
on behalf of the Company pursuant to this Agreement or the Transaction Documents or in connection with any of the transactions contemplated hereby and thereby; or (4) shall be liable (x) for any action taken, suffered or omitted by any of
them in good faith and reasonably believed to be authorized or within the discretion or rights or powers conferred upon it by this Agreement or any Transaction Document or (y) for anything which any of them may do or refrain from doing in
connection with this Agreement or any Transaction Document, except for such partys own gross negligence, willful misconduct or bad faith.
(ii) Each of the Agent, its affiliates and its representatives shall be entitled to (1) rely on, and shall be protected in acting upon,
any certificate, instrument, notice, letter or any other document or security delivered to any of them by or on behalf of the Company, and (2) be indemnified by the Company for acting as the Agent hereunder pursuant the indemnification
provisions set forth in the Engagement Letter.
[Signature Page Follows]
-21-
IN WITNESS WHEREOF, each Subscriber and the Company have caused its respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
COMPANY: |
|
QUOTIENT LIMITED |
|
|
By: |
|
/s/ D.J.P.E. Cowan |
|
|
Name: |
|
D.J.P.E. Cowan |
|
|
Title: |
|
Chairman & CEO |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective
signature page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
CORMORANT GLOBAL HEALTHCARE MASTER FUND, LP |
|
|
By: |
|
/s/ Bihua Chen |
|
|
Name: |
|
Bihua Chen |
|
|
Title: |
|
CEO/CIO |
|
|
|
|
Managing Member of GP |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
COX FLP, LTD. |
|
|
By: |
|
/s/ David S. Boylan |
|
|
Name: |
|
David S. Boylan |
|
|
Title: |
|
President of GP |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
ARROWSMITH FUND, LTD. |
|
|
By: |
|
Arrowsmith, LLC |
|
|
By: |
|
/s/ James R. Hodge |
|
|
Name: |
|
James R. Hodge |
|
|
Title: |
|
Managing Member |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
ANN ARBOR PARTNERS, L.P. |
|
|
By: |
|
Souede & Hodge Associates |
Its: |
|
General Partner |
|
|
By: |
|
/s/ James R. Hodge |
|
|
Name: |
|
James R. Hodge |
|
|
Title: |
|
General Partner |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
SOUTHWELL CAPITAL, LP |
|
|
By: |
|
/s/ Nelson Jaeggli |
|
|
Name: |
|
Nelson Jaeggli |
|
|
Title: |
|
Partner |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
LAWRENCE B. LEVEY TRUST |
|
|
By: |
|
Lawrence B. Levey |
Its: |
|
Trustee |
|
|
By: |
|
/s/ Lawrence B. Levey |
|
|
Name: |
|
Lawrence B. Levey |
|
|
Title: |
|
Trustee |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
JOSEPH M. COHEN |
|
|
By: |
|
/s/ Joseph M. Cohen |
|
|
Name: |
|
Joseph M. Cohen |
|
|
Title: |
|
Chairman |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
JON M. COHEN |
|
|
By: |
|
/s/ Jon M. Cohen |
|
|
Name: |
|
Jon M. Cohen |
|
|
Title: |
|
MD |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
JOSEPH M. COHEN FAMILY |
LIMITED PARTNERSHIP |
|
|
By: |
|
/s/ Jon M. Cohen |
|
|
Name: |
|
Jon M. Cohen |
|
|
Title: |
|
Trustee |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
BENJAMIN LING |
|
|
By: |
|
/s/ Benjamin Ling |
|
|
Name: |
|
Benjamin Ling |
|
|
Title: |
|
|
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
GANTCHER FAMILY LIMITED PARTNERSHIP |
|
|
By: |
|
Gantcher Family Partners, LLC |
Its: |
|
General Partner |
|
|
By: |
|
/s/ Nathan Gantcher |
|
|
Name: |
|
Nathan Gantcher |
|
|
Title: |
|
Managing Member |
[Signature Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
FORESITE CAPITAL FUND II, L.P. |
|
|
By: |
|
Foresite Capital Management II, LLC |
Its: |
|
General Partner |
|
|
By: |
|
/s/ Dennis D. Ryan |
|
|
Name: |
|
Dennis D. Ryan |
|
|
Title: |
|
CFO |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
GALEN PARTNERS V, L.P. |
|
|
By: |
|
Galen V, LLC |
Its: |
|
General Partner |
|
|
By: |
|
/s/ David W. Jahns |
|
|
Name: |
|
David W. Jahns |
|
|
Title: |
|
Managing Member |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
GALEN PARTNERS INTERNATIONAL V, L.P. |
|
|
By: |
|
Galen V, LLC |
Its: |
|
General Partner |
|
|
By: |
|
/s/ David W. Jahns |
|
|
Name: |
|
David W. Jahns |
|
|
Title: |
|
Managing Member |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
PERCEPTIVE LIFE SCIENCES MASTER FUND LTD. |
|
|
By: |
|
/s/ James H. Mannix |
|
|
Name: |
|
James H. Mannix |
|
|
Title: |
|
COO |
[Subscription
Agreement
Signature Page]
IN WITNESS WHEREOF, each Subscriber and the Company have caused their respective signature
page to this Subscription Agreement to be duly executed as of the date first written above.
|
|
|
|
|
SUBSCRIBERS: |
|
TITAN PERC, LTD. |
|
|
By: |
|
/s/ Darren Ross |
|
|
Name: |
|
Darren Ross |
|
|
Title: |
|
Director |
[Subscription
Agreement
Signature Page]
SCHEDULE OF SUBSCRIBERS
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
(2) |
|
(3) |
|
|
(4) |
|
|
(5) |
Subscriber |
|
Address and Facsimile Number |
|
Number of New Ordinary Shares |
|
|
Subscription Price |
|
|
Legal Representatives
Address and Facsimile Number |
Cormorant Global Healthcare Master Fund, L.P. |
|
|
|
|
600,000 |
|
|
$ |
5,700,000.00 |
|
|
|
Cox FLP, Ltd. |
|
|
|
|
315,789 |
|
|
$ |
2,999,995.50 |
|
|
|
Arrowsmith Fund, Ltd. |
|
|
|
|
52,631 |
|
|
$ |
499,994.50 |
|
|
|
Ann Arbor Partners, L.P. |
|
|
|
|
52,631 |
|
|
$ |
499,994.50 |
|
|
|
Southwell Capital, L.P. |
|
|
|
|
26,315 |
|
|
$ |
249,992.50 |
|
|
|
Lawrence B. Levey, Trustee of the Lawrence B. Levey Trust u/a/d 9/11/06 |
|
|
|
|
26,315 |
|
|
$ |
249,992.50 |
|
|
|
Joseph M. Cohen |
|
|
|
|
15,789 |
|
|
$ |
149,995.50 |
|
|
|
Jon M. Cohen |
|
|
|
|
5,263 |
|
|
$ |
49,998.50 |
|
|
|
Joseph M. Cohen Family Limited Partnership |
|
|
|
|
5,263 |
|
|
$ |
49,998.50 |
|
|
|
Benjamin Ling |
|
|
|
|
10,526 |
|
|
$ |
99,997.00 |
|
|
|
Gantcher Family Limited Partnership |
|
|
|
|
50,000 |
|
|
$ |
475,000.00 |
|
|
|
Foresite Capital Fund II, L.P. |
|
|
|
|
327,631 |
|
|
$ |
3,112,494.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
(2) |
|
(3) |
|
|
(4) |
|
|
(5) |
Subscriber |
|
Address and Facsimile Number |
|
Number of New Ordinary Shares |
|
|
Subscription Price |
|
|
Legal Representatives
Address and Facsimile Number |
Galen Partners V, L.P. |
|
|
|
|
145,473 |
|
|
$ |
1,381,993.50 |
|
|
|
Galen Partners International V, L.P. |
|
|
|
|
12,422 |
|
|
$ |
118,009.00 |
|
|
|
Perceptive Life Sciences Master Fund Ltd. |
|
|
|
|
180,527 |
|
|
$ |
1,715,006.50 |
|
|
|
Titan Perc, Ltd. |
|
|
|
|
29,999 |
|
|
$ |
284,990.50 |
|
|
|
ANNEX A ADDITIONAL REPRESENTATIONS AND WARRANTIES
1. Representations and Warranties. The Company represents and warrants to each of the Subscribers that (capitalized terms used in this
Annex A without definition have the meanings ascribed to them in the Subscription Agreement to which this Annex A relates (the Subscription Agreement)):
(a) as of the date of the Subscription Agreement, the Company has an authorized and outstanding capitalization as set forth in the Companys Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2014 (the Q214 10-Q), and, as of the Closing Date, the Company shall have an authorized and outstanding capitalization as set forth in the Q214 10-Q
(subject, in each case, to the issuance of Ordinary Shares upon exercise of share options and warrants disclosed as outstanding in the SEC Documents (excluding the exhibits thereto), the grant of options, shares or other awards under incentive
compensation plans described in the SEC Documents (excluding the exhibits thereto), the subscription of New Ordinary Shares hereunder, and the subscription of New Ordinary Shares and warrants to acquire additional Ordinary Shares pursuant to the
Other Subscription Agreements); all of the issued and outstanding shares in the capital, including the Ordinary Shares, of the Company have been duly authorized and validly issued and are fully paid and non-assessable, have been issued in compliance
with all applicable securities laws and were not issued in violation of any preemptive right, resale right, right of first refusal or similar right; and the certificate of incorporation (or certificate of incorporation on change of name) of the
Company and the articles of association of the Company, each in the form filed with the SEC, have been heretofore duly authorized and approved in accordance with the laws of Jersey and are effective and in full force and effect;
(b) the Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of Jersey, with full corporate power and
authority to own, lease and operate its properties and conduct its business as described in the SEC Documents;
(c) the Company is duly qualified to do
business as a foreign corporation and is in good standing in each jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification, except where the failure to be so qualified and in good
standing would not, individually or in the aggregate, either (i) have a material adverse effect on the business, properties, financial condition, results of operations or prospects of the Company and the Subsidiaries (as defined below) taken as
a whole or (ii) prevent or materially interfere with consummation of the transactions contemplated by the Subscription Agreement (the occurrence of any such effect or any such prevention or interference or any such result described in the
foregoing clauses (i) and (ii) being herein referred to as a Material Adverse Effect);
(d) the Company has no subsidiaries
(as defined under the 1933 Act) other than QBD (QSIP) Limited, a company formed under the laws of Jersey, Quotient Biodiagnostics, Inc., a Delaware corporation, Alba Bioscience Limited, a company formed under the laws of Scotland, and Quotient
Suisse SA, a company formed under the laws of Switzerland (collectively, the Subsidiaries); the Company owns all of the issued and outstanding share capital or capital stock (as applicable) of each of the Subsidiaries; other than
the share capital or capital stock of the Subsidiaries, the Company does not own, directly or indirectly, any shares in the capital, shares of stock or any other equity interests or long-term debt securities of any corporation, firm,
partnership, joint venture, association or other entity; each Subsidiary has been duly incorporated or formed and is validly existing as a corporation or other entity in good standing under the
laws of its respective jurisdiction of incorporation or formation, with full power and authority, corporate or otherwise, to own, lease and operate its properties and to conduct its business as described in the SEC Documents; each Subsidiary is duly
qualified to do business as a foreign corporation or other entity and is in good standing in each jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification, except where the failure to
be so qualified and in good standing would not, individually or in the aggregate, have a Material Adverse Effect; all of the outstanding shares in the capital or shares of capital stock of each of the Subsidiaries have been duly authorized and
validly issued, are fully paid and non-assessable, have been issued in compliance with all applicable securities laws, were not issued in violation of any preemptive right, resale right, right of first refusal or similar right and, except as
disclosed in the SEC Documents, are owned by the Company subject to no security interest, other encumbrance or adverse claims; and no options, warrants or other rights to purchase, agreements or other obligations to issue or other rights to convert
any obligation into shares in the capital, shares of capital stock or ownership interests in the Subsidiaries are outstanding;
(e) the share capital of
the Company, including the New Ordinary Shares, conforms in all material respects to each description thereof, if any, contained in the SEC Documents; and the certificates for the New Ordinary Shares are in due and proper form;
(f) there is no franchise, contract or other document of a character required to be described in the SEC Documents, or to be filed as an exhibit thereto,
which is not described or filed as required;
(g) neither the Company nor any of the Subsidiaries is in breach or violation of or in default under (nor
has any event occurred which, with notice, lapse of time or both, would result in any breach or violation of, constitute a default under or give the holder of any indebtedness (or a person acting on such holders behalf) the right to require
the repurchase, redemption or repayment of all or a part of such indebtedness under) (A) its respective certificate of incorporation or certificate of incorporation on name change or articles of association, charter or bylaws or other
applicable organizational documents, or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to which it is a party or by
which it or any of its properties may be bound or affected, or (C) any federal, state, local or foreign law, regulation or rule, or (D) any rule or regulation of any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, the rules and regulations of the Principal Market), or (E) any decree, judgment or order applicable to it or any of its properties, except, in the case of clauses (B), (C) or (D), where such
breach, violation, default, event or right would not, individually or in the aggregate, have a Material Adverse Effect;
(h) each of the Company and the
Subsidiaries has all necessary licenses, authorizations, consents and approvals and has made all necessary filings required under any applicable law, regulation or rule, and has obtained all necessary licenses, authorizations, consents and approvals
from other persons, in order to conduct their respective businesses, except where the failure to have or have obtained such licenses, authorizations, consents or approvals or make such filings
would not, individually or in the aggregate, have a Material Adverse Effect; neither the Company nor any of the Subsidiaries is in violation of, or in default under, or has received notice of any
proceedings relating to revocation or modification of, any such license, authorization, consent or approval or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any of the
Subsidiaries, except where such violation, default, revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect;
(i) none of the Company or any of its subsidiaries nor any of its or their properties or assets has any immunity from the jurisdiction of any court or from
any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) under the laws of Jersey, Scotland or Switzerland;
(j) Except as except as described in the SEC Documents, there are no actions, suits, claims, investigations or proceedings pending or, to the Companys
knowledge, threatened or contemplated to which the Company or any of the Subsidiaries or any of their respective directors or officers is or would be a party or of which any of their respective properties is or would be subject at law or in equity,
before or by any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency, or before or by any self-regulatory organization or other non-governmental regulatory authority (including, without
limitation, the Principal Market), except any such action, suit, claim, investigation or proceeding which, if resolved adversely to the Company or any Subsidiary, would not, individually or in the aggregate, have a Material Adverse Effect;
(k) the financial statements included in the SEC Documents, together with the related notes and schedules, present fairly the consolidated financial position
of the Company and the Subsidiaries as of the dates indicated and the consolidated results of operations, cash flows and changes in shareholders equity of the Company and the Subsidiaries for the periods specified and have been prepared in all
material respects in compliance with the requirements of the Exchange Act and in conformity with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved; the other financial and accounting data of the
Company contained in the SEC Documents are accurately and fairly presented and prepared on a basis consistent with the financial statements or the books and records of the Company; there are no financial statements (historical or pro forma) that are
required to be included in the SEC Documents that are not included as required; the Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described
in the SEC Documents (excluding the exhibits thereto); and all disclosures, if any, contained in the SEC Documents regarding non-GAAP financial measures (as such term is defined by the rules and regulations of the SEC) comply with
Regulation G of the Exchange Act and Item 10 of Regulation S-K under the 1933 Act, to the extent applicable;
(l) except as disclosed in the SEC
Documents (excluding the exhibits thereto), each share option granted under any share option plan of the Company or any Subsidiary (each, a Stock Plan) was granted with a per share exercise price no less than the fair market value
per share of the applicable class of share in the capital or capital stock of the Company or such Subsidiary on the grant date of such option, and no such grant involved any back-dating, forward-dating, or similar practice
with respect to the effective date of such grant; except as would not,
individually or in the aggregate, have a Material Adverse Effect, each such option (i) was granted in compliance with applicable law and with the applicable Stock Plan(s), (ii) was duly
approved by the Board of Directors (or a duly authorized committee thereof or an officer of the Company or such Subsidiary duly authorized by the Board of Directors or authorized committee thereof to make such grants) of the Company or such
Subsidiary, as applicable, and (iii) has been properly accounted for in the Companys financial statements in accordance with U.S. generally accepted accounting principles and disclosed in the Companys filings with the SEC;
(m) Except as disclosed in the SEC Documents, subsequent to the respective dates as of which information is given in the SEC Documents, in each case excluding
any amendments to the foregoing made after the execution of the Subscription Agreement, there has not been (i) any material adverse change, or any development involving a prospective material adverse change, in the business, properties,
management, financial condition or results of operations of the Company and the Subsidiaries taken as a whole, (ii) any transaction which is material to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability,
direct or contingent (including any off-balance sheet obligations), incurred by the Company or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any change in the share capital, capital stock or
outstanding indebtedness of the Company or any Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the share capital or capital stock of the Company or any Subsidiary;
(n) neither the Company nor any Subsidiary is required to register as an investment company, as such term is defined in the Investment Company Act
of 1940, as amended (the Investment Company Act), nor will they be after giving effect to the offering and sale of the New Ordinary Shares and the application of the proceeds thereof;
(o) based on the projected composition of the Companys income and fair market value of its assets, the Company does not expect to be a passive
foreign investment company (as defined in Section 1297 of the Internal Revenue Code and the regulations promulgated thereunder) for its taxable year ended March 31, 2014 and the foreseeable future;
(p) except as disclosed in the SEC Documents, the Company and each of the Subsidiaries have good and marketable title to all property (real and personal,
excluding for the purposes of this Section 1(p), Intellectual Property (as defined below)) described in the SEC Documents as being owned by any of them, free and clear of all liens, claims, security interests or other encumbrances, except for
such liens, claims, security interests or encumbrances as do not materially and adversely affect the value of such property and do not materially interfere with the use made or proposed to be made of such property by the Company or such Subsidiary;
all the property described in the SEC Documents as being held under lease by the Company or a Subsidiary is held thereby under valid, subsisting and enforceable leases, except that the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, receivership, moratorium, fraudulent conveyance or other similar laws relating to creditors rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding
therefor may be brought (the Enforceability Exceptions);
(q) except as disclosed in the SEC Documents, the Company and the
Subsidiaries own the inventions, patent applications, patents, trademarks (both registered and unregistered),
tradenames, service names, copyrights, trade secrets and other proprietary information (collectively, Intellectual Property) described in the SEC Documents as being owned by
them and own or have obtained valid and enforceable licenses for, or other rights to use all Intellectual Property (except that the enforcement thereof may be subject to the Enforceability Exceptions) used in and necessary for the conduct of their
respective businesses as currently conducted or as currently proposed to be conducted (including the commercialization of products or services described in the SEC Documents as under development) (collectively, Company Intellectual
Property); to the Companys knowledge, (i) there are no third parties who have or will be able to establish rights to any Company Intellectual Property that is described in the SEC Documents as owned or purported to be owned by
the Company or any of the Subsidiaries, except for, and to the extent of, the ownership rights of any co-owners of such Company Intellectual Property that are disclosed in the SEC Documents (excluding the exhibits thereto); (ii) there is no
infringement by misappropriation or other violation by any third parties of any Company Intellectual Property owned by or exclusively licensed to the Company or any of the Subsidiaries; (iii) there is no pending or, to the Companys
knowledge, threatened action, suit, proceeding or claim by others challenging the Companys or any Subsidiarys rights in or to any Company Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis
for any such action, suit, proceeding or claim; (iv) neither the Company nor any Subsidiary has received any notice from, and there is no pending or, to the Companys knowledge, threatened action, suit, proceeding or claim by others
challenging the validity, enforceability or scope of any Company Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (v) neither the Company nor any
Subsidiary has received any notice from, and there is no pending or, to the Companys knowledge, threatened action, suit, proceeding or claim by others that the Company or any Subsidiary infringes, misappropriates or otherwise violates, or
could, upon the commercialization of any product or service described in the SEC Documents as under development, infringe, misappropriate or violate any Intellectual Property of others, and the Company is unaware of any facts which could form a
reasonable basis for any such action, suit, proceeding or claim; (vi) the Company and the Subsidiaries have complied with the material terms of each agreement pursuant to which Company Intellectual Property has been licensed to the Company or
any Subsidiary, and all such agreements are in full force and effect; (vii) to the Companys knowledge there is no patent or patent application that contains claims that interfere with the issued or pending claims of any patents included
in the Company Intellectual Property owned by or exclusively licensed to the Company or any of the Subsidiaries; (viii) the products described in the SEC Documents as under development by the Company or the Subsidiaries fall within the scope of
the claims of one or more patents owned by, or exclusively licensed to, the Company or any Subsidiary; (ix) all patents and patent applications owned by and, to the Companys knowledge, exclusively licensed to the Company and any
Subsidiary have been duly and properly filed and maintained and the Company and the Subsidiaries and, to the Companys knowledge, the applicable licensor have complied in all material respects with their duty of candor and disclosure to the
U.S. Patent and Trademark Office (the PTO) or other applicable patent office with respect to all patent applications owned by or exclusively licensed to the Company or any of the Subsidiaries and included in the Company
Intellectual Property and filed with the PTO or other applicable patent office; (x) the Company and the Subsidiaries have taken all steps reasonably necessary to secure their respective interest in the Company Intellectual Property owned or
purported to be owned by the Company or any of the Subsidiaries, including
obtaining all necessary assignments from its employees, consultants and contractors pursuant to a written agreement; (xi) the Company and the Subsidiaries have taken reasonable steps in
accordance with normal industry practice to maintain the confidentiality of all material trade secrets included in any Intellectual Property, and no such Company Intellectual Property has been disclosed other than to employees, representatives,
independent contractors, collaborators, licensors, licensees, agents and advisors of the Company and the Subsidiaries who are legally bound to a duty of confidentiality; (xii) the Company and the Subsidiaries are not a party to or bound by any
options, licenses or agreements with respect to the Intellectual Property of any other person or entity that are required to be described in the SEC Documents that are not so described therein; (xiii) all conditions stated in any license
agreement under which Company Intellectual Property is exclusively licensed to the Company or any Subsidiary that are required to be satisfied in order for the Company to retain exclusive rights have been timely satisfied; (xiv) to the
Companys knowledge, the issued patents owned by or exclusively licensed to the Company or any of the Subsidiaries are valid and enforceable and the Company is unaware of any facts that would preclude the issuance of a valid and enforceable
patent on any pending patent application owned by the Company or any of the Subsidiaries; and (xv) except as disclosed in the SEC Documents, no government funding, facilities or resources of a university, college, other educational institution
or research center was used in the development of any Company Intellectual Property that is owned or purported to be owned by the Company or any Subsidiary that would confer upon any governmental agency or body, university, college, other
educational institution or research center any claim or right in or to any such Company Intellectual Property;
(r) except for matters which would not,
individually or in the aggregate, have a Material Adverse Effect, (i) neither the Company nor any of the Subsidiaries is engaged in any unfair labor practice, (ii) there is (A) no unfair labor practice complaint pending or, to the
Companys knowledge, threatened against the Company or any of the Subsidiaries before the National Labor Relations Board or any similar foreign body, and no grievance or arbitration proceeding arising out of or under collective bargaining
agreements is pending or, to the Companys knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Companys knowledge, threatened against the Company or any of the Subsidiaries and (C) no
union representation dispute currently existing concerning the employees of the Company or any of the Subsidiaries, (iii) to the Companys knowledge, no union organizing activities are currently taking place concerning the employees of the
Company or any of the Subsidiaries and (iv) there has been no violation of any applicable federal, state, local or foreign law relating to discrimination in the hiring, promotion or pay of employees, any applicable wage or hour laws, or the
rules and regulations promulgated thereunder, or any similar applicable foreign law, rule or regulation, concerning the employees of the Company or any of the Subsidiaries;
(s) the Company and the Subsidiaries and their respective properties, assets and operations are in compliance with, and the Company and each of the
Subsidiaries hold all permits, authorizations and approvals required under, Environmental Laws (as defined below), except to the extent that failure to so comply or to hold such permits, authorizations or approvals would not, individually or in the
aggregate, have a Material Adverse Effect; there are no past, present or, to the Companys knowledge, reasonably anticipated future events, conditions, circumstances, activities, practices, actions, omissions or plans that could reasonably be
expected to give rise to any material costs or liabilities to the Company or any Subsidiary under, or to
interfere with or prevent compliance by the Company or any Subsidiary with, Environmental Laws; except as would not, individually or in the aggregate, have a Material Adverse Effect, neither the
Company nor any of the Subsidiaries (i) is the subject of any investigation, (ii) has received any notice or claim, (iii) is a party to or affected by any pending or, to the Companys knowledge, threatened action, suit or
proceeding, (iv) is bound by any judgment, decree or order or (v) has entered into any agreement, in each case relating to any alleged violation of any Environmental Law or any actual or alleged release or threatened release or cleanup at
any location of any Hazardous Materials (as defined below) (as used herein, Environmental Law means any applicable federal, state, local or foreign law, statute, ordinance, rule, regulation, order, decree, judgment, injunction,
permit, license, authorization or other binding requirement, or common law, relating to health, safety or the protection, cleanup or restoration of the environment or natural resources, including those relating to the distribution, processing,
generation, treatment, storage, disposal, transportation, other handling or release or threatened release of Hazardous Materials, and Hazardous Materials means any material (including, without limitation, pollutants, contaminants,
hazardous or toxic substances or wastes) that is regulated by or may give rise to liability under any Environmental Law);
(t) all material tax returns
required to be filed by the Company or any of the Subsidiaries have been timely filed (within any applicable time limit extensions permitted by the relevant tax authority), and all material taxes and other assessments of a similar nature (whether
imposed directly or through withholding) including any interest, additions to tax or penalties applicable thereto due or claimed to be due from such entities have been timely paid, other than those being contested in good faith and for which
adequate reserves have been provided;
(u) At no time in the past six years has the Company or any ERISA Affiliate maintained, sponsored, participated in,
contributed to or has or had any liability or obligation in respect of any Employee Benefit Plan subject to Part 3 of Subtitle B of Title I of ERISA, Title IV of ERISA, or Section 412 of the Code or any multiemployer plan as defined
in Section 3(37) of ERISA or any multiple employer plan for which the Company or any ERISA Affiliate has incurred or could incur material liability under Section 4063 or 4064 of ERISA. No welfare benefit plan as defined in
Section 3(1) of ERISA provides or promises, or at any time provided or promised, retiree health, life insurance, or other retiree welfare benefits except as may be required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended, or similar state law and except, on a case by case basis, limited extensions of health insurance benefits to former employees receiving severance payments from the Company. Each Employee Benefit Plan is and has been operated in material
compliance with its terms and all applicable laws, including but not limited to ERISA and the Code and, to the knowledge of the Company, no event has occurred and no condition exists that would subject the Company to any material tax, fine, lien,
penalty or liability imposed by ERISA, the Code or other applicable law. Each Employee Benefit Plan intended to be qualified under Code Section 401(a) is so qualified and has a favorable determination or opinion letter from the IRS upon which
it can rely, and any such determination or opinion letter remains in effect and has not been revoked; to the knowledge of the Company, nothing has occurred since the date of any such determination or opinion letter that is reasonably likely to
adversely affect such qualification; with respect to each Foreign Benefit Plan, such Foreign Benefit Plan (1) if intended to qualify for special tax treatment, meets, in all material respects, the requirements for such treatment, and
(2) if required to be funded, is funded to the extent required by applicable law, and with respect to all other Foreign Benefit
Plans, adequate reserves therefor have been established on the accounting statements of the applicable Company or subsidiary to the extent required by applicable law; the Company does not have
any obligations under any collective bargaining agreement with any union. As used in this Annex A, Code means the Internal Revenue Code of 1986, as amended; Employee Benefit Plan means any
employee benefit plan within the meaning of Section 3(3) of ERISA, including, without limitation, all stock purchase, stock option, stock-based severance, employment, change-in-control, medical, disability, fringe benefit, bonus,
incentive, deferred compensation, employee loan and all other employee benefit plans, agreements, programs, policies or other arrangements, whether or not subject to ERISA, under which (x) any current or former employee, director or independent
contractor of the Company or its subsidiaries has any present or future right to benefits and which are contributed to, sponsored by or maintained by the Company or any of its respective subsidiaries or (y) the Company or any of its
subsidiaries has had or has any present or future direct or contingent obligation or liability; ERISA means the Employee Retirement Income Security Act of 1974, as amended; ERISA Affiliate means any member of
the companys controlled group as determined pursuant to Code Section 414(b), (c), (m) or (o); and Foreign Benefit Plan means any Employee Benefit Plan established, maintained or contributed to outside of the United
States of America or which covers any employee working or residing outside of the United States;
(v) the Company and each of the Subsidiaries maintain
insurance covering their respective properties, operations, personnel and businesses as the Company reasonably deems adequate; such insurance insures against such losses and risks to an extent which is adequate in accordance with customary industry
practice to protect the Company and the Subsidiaries and their respective businesses; all such insurance is fully in force on the date of the Subscription Agreement and will be fully in force at the time of purchase and each additional time of
purchase, if any; neither the Company nor any Subsidiary has any reason to believe that it will not be able to (i) renew any such insurance as and when such insurance expires or (ii) obtain comparable coverage from similar institutions as
may be necessary or appropriate to conduct its business as now conducted at a cost that would not result in any Material Adverse Effect;
(w) neither the
Company nor any Subsidiary has sent or received any communication regarding termination of, or intent not to renew, any of the material contracts or agreements referred to or described in the SEC Documents, or referred to or described in, or filed
as an exhibit to, the SEC Documents, and no such termination or non-renewal has been threatened by the Company or any Subsidiary or, to the Companys knowledge, by any other party to any such contract or agreement;
(x) the Company and each of the Subsidiaries have established and maintain a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with managements general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with managements general or specific authorization; and (iv) the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken with respect to any differences;
(y) the Company has established and maintains and evaluates disclosure controls and procedures (as
such term is defined in Rules 13a-15 and 15d-15 under the 1934 Act) and internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the 1934 Act); such disclosure controls and procedures are
designed to ensure that material information relating to the Company, including the Subsidiaries, is made known to the Companys Chief Executive Officer and its Chief Financial Officer by others within those entities, and such disclosure
controls and procedures are effective to perform the functions for which they were established; the Companys independent registered public accountants and the Audit Committee of the Board of Directors of the Company have been advised of:
(i) all significant deficiencies, if any, in the design or operation of internal controls which could adversely affect the Companys ability to record, process, summarize and report financial data; and (ii) all fraud, if any, whether
or not material, that involves management or other employees who have a role in the Companys internal controls; all significant deficiencies and material weaknesses (as such terms are defined in Rule 1-02(a)(4) of
Regulation S-X under the 1933 Act) of the Company, if any, have been identified to the Companys independent registered public accountants and are disclosed in the SEC Documents (excluding the exhibits thereto); since the end of the
Companys most recent audited fiscal year, there have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to significant
deficiencies and material weaknesses, and the Company has taken all necessary actions to ensure that the Company and the Subsidiaries and their respective officers and directors, in their capacities as such, are in compliance in all material
respects with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act) and the rules and regulations promulgated thereunder;
(z) each forward-looking statement (within the meaning of Section 27A of the 1933 Act or Section 21E of the 1934 Act) contained in the
SEC Documents has been made or reaffirmed with a reasonable basis and in good faith;
(aa) all statistical or market-related data included in the SEC
Documents (other than that discussed in Section 1(k) of this Annex A) are based on or derived from sources that the Company reasonably believes to be reliable and accurate, and the Company has obtained the written consent to the use of such
data from such sources to the extent required;
(bb) neither the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director,
officer, agent, employee or affiliate of the Company or any of the Subsidiaries, has taken any action, directly or indirectly, that would result in a violation by such persons of any applicable anti-bribery laws, rules, or regulations of any
locality, including but not limited to any law, rule, or regulation promulgated to implement the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed December 17, 1997, the U.S. Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the Foreign Corrupt Practices Act), the U.K. Bribery Act 2010, or any other law, rule or regulation of similar purposes and scope; neither the
Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of the Subsidiaries, is aware of any such action, directly or indirectly, having been taken on behalf
of the Company or any of the Subsidiaries; and the Company and the Subsidiaries and, to the knowledge of the Company, their respective affiliates have instituted and maintain policies and procedures designed to ensure continued compliance therewith;
(cc) the operations of the Company and the Subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the USA Patriot Act, the Bank Secrecy 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 agency or intergovernmental group or organization, or any executive order, directive or regulation pursuant to the authority of the foregoing or any orders or
licenses issued thereunder (collectively, the Money Laundering Laws); and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator or non-governmental authority involving the
Company or any of the Subsidiaries with respect to the Money Laundering Laws is pending or, to the Companys knowledge, threatened;
(dd) neither the
Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of the Subsidiaries is currently subject to any sanctions administered or enforced by the Office of
Foreign Assets Control of the United States Treasury Department, the United Nations Security Council, the European Union, Her Majestys Treasury or any other relevant sanctions authority (collectively, Sanctions), or located,
organized or residing in a country or territory that is the subject of Sanctions; the Company will not directly or indirectly use the proceeds of the offering of the New Ordinary Shares contemplated by the Subscription Agreement, or lend, contribute
or otherwise make available such proceeds to any Subsidiary, joint venture partner or other person or entity for the purpose of financing the activities of any person currently subject to any Sanctions administered or enforced by such authorities;
for the past five years, neither the Company or any of its Subsidiaries has knowingly engaged in, and is not now knowingly engaged in, any dealings or transactions with any individual or entity, or in any country or territory, that at the time of
the dealing or transaction is or was the subject of Sanctions; none of the Company, any Subsidiaries or, to the knowledge of the Company, any director, officer, employee, agent, affiliate, joint venture partner or other person associated with or
acting on behalf of the Company or any of its Subsidiaries (other than the Underwriters, as to which no representation or warranty is made) has engaged in activities sanctionable under the Iran Sanctions Act, the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010, the Iran Threat Reduction and Syria Human Rights Act of 2012, the National Defense Authorization Act for the Fiscal Year 2012, the National Defense Authorization Act for the Fiscal Year 2013, Executive
Order Nos. 13628, 13622, and 13608, or any other U.S. economic sanctions relating to Iran (collectively, the Iran Sanctions), and neither the Company nor any Subsidiary will engage in any activities or business that would subject
it to sanction under the Iran Sanctions;
(ee) no Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company,
from making any other distribution on such Subsidiarys capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiarys property or assets to the Company
or any other Subsidiary of the Company, except, in each case, as described in the SEC Documents (excluding the exhibits thereto);
(ff) (i) All dividends and other distributions declared and payable on the share capital of the Company, now or
in the future, may, under the current laws and regulations of Jersey, be paid in United States Dollars that (subject to any applicable Sanctions) may be freely transferred out of Jersey; (ii) all such dividends and other distributions are not
or will not be, as the case may be, subject to withholding or other taxes under the current laws and regulations of Jersey; and (iii) all such dividends and other distributions under such current laws and regulations are or will be otherwise
free and clear of any other tax (save for any income tax that may be payable by the recipient of a distribution who is resident in Jersey), withholding or deduction in Jersey and (subject to any applicable Sanctions) without the necessity of
obtaining any consent, approval, authorization or order in Jersey;
(gg) each of the Company and its Subsidiaries have submitted and possess, or qualify
for applicable exemptions to, such valid and current registrations, listings, approvals, clearances, licenses, certificates, authorizations or permits and supplements or amendments thereto issued or required by the appropriate state, federal or
foreign regulatory agencies or bodies necessary to conduct their business, including, without limitation, all such certificates, authorizations and permits required by the United States Food and Drug Administration (FDA), the
United States Department of Health and Human Services (HHS), the European Medicines Agency (EMA) or any other state, federal or foreign agencies or bodies engaged in the regulation of medical devices (including
diagnostic products), biological products, drugs or biohazardous materials (collectively, the Regulatory Agencies), and the Company and its Subsidiaries have not received any notice of proceedings relating to the revocation or
modification of, or non-compliance with, any such license, certificate, authorization or permit, except for notices which would not, individually or in the aggregate, have a Material Adverse Effect;
(hh) the feasibility studies that are described in, or the results thereof which are referred to in, the SEC Documents were conducted in all material respects
in accordance with standard accepted medical and scientific research procedures; each description of the results of such studies contained in the SEC Documents is accurate and complete in all material respects and fairly presents the data derived
from such studies, and the Company and the Subsidiaries have no knowledge of any other studies or tests or trials the results of which are inconsistent with, or otherwise call into question, the results described or referred to in the SEC Documents;
(ii) the Company and its Subsidiaries and, to the Companys knowledge, the Companys and its Subsidiaries respective directors, officers,
employees, and agents (while acting in such capacity) are, and at all times prior hereto were, in material compliance with, all health care laws applicable to the Company, any of its subsidiaries or any of its or their products or activities,
including, but not limited to, the federal Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the Anti-Inducement Law (42 U.S.C. Section 1320a-7a(a)(5)), the civil False Claims Act (31 U.S.C. Section 3729 et seq.), the
administrative False Claims Law (42 U.S.C. Section 1320a-7b(a)), the Stark law (42 U.S.C. Section 1395nn), the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.) as amended by the Health
Information Technology for Economic and Clinical Health Act (42 U.S.C. Section 17921 et seq.), the exclusion laws (42 U.S.C. Section 1320a-7), the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 et seq.), the Controlled
Substances Act (21 U.S.C. Section 801 et seq.), the Public Health Service Act (42 U.S.C. Section 201 et seq.), Medicare (Title XVIII of the Social Security Act), Medicaid (Title XIX of the Social Security Act), the regulations
promulgated pursuant to such laws, and any other state, federal or foreign law, accreditation standards, regulation, memorandum, opinion letter, or other issuance which imposes legally binding
requirements on the manufacturing, development, testing, labeling, advertising, marketing or distribution of drugs, biological products and/or medical devices (including diagnostic products), kickbacks, patient or program charges, recordkeeping,
claims process, documentation requirements, medical necessity, referrals, the hiring of employees or acquisition of services or supplies from those who have been excluded from government health care programs, quality, safety, privacy, security,
licensure, accreditation or any other aspect of providing health care, clinical laboratory or diagnostics products or services (collectively, Health Care Laws) except, with respect to any of the foregoing, such as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any notification, correspondence or any other written or oral communication, including
notification of any pending or threatened claim, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any governmental authority, including, without limitation, the FDA, the EMEA, the United States Federal Trade
Commission, the United States Drug Enforcement Administration (DEA), the Centers for Medicare & Medicaid Services, HHSs Office of Inspector General, the United States Department of Justice and state Attorneys
General or similar agencies of potential or actual non-compliance by, or liability of, the Company or any of its subsidiaries under any Health Care Laws, except, with respect to any of the foregoing, such as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. To the Companys knowledge, there are no facts or circumstances that would reasonably be expected to give rise to material liability of the Company or any of its subsidiaries
under any Health Care Laws;
(jj) the manufacture by or on behalf of the Company or any of its Subsidiaries of the Companys and any
Subsidiarys respective products is being conducted in compliance in all material respects with all applicable Health Care Laws, including, without limitation, the FDAs current good manufacturing practice regulations at 21 C.F.R. Parts
210, 211, 600 through 680, and 820, and, to the extent applicable, the respective counterparts thereof promulgated by governmental authorities in countries outside the United States;
(kk) the Company and its Subsidiaries are complying in all material respects with all applicable regulatory post-market reporting obligations, including,
without limitation, the FDAs adverse event reporting requirements at 21 C.F.R. Parts 310, 314, 600, and 803, and, to the extent applicable, the respective counterparts thereof promulgated by governmental authorities in countries outside the
United States;
(ll) except as disclosed in the SEC Documents, neither the Company nor any of its Subsidiaries has had any product, clinical laboratory or
manufacturing site (whether Company-owned or owned by any of its Subsidiaries or a third party manufacturer for the Companys or its Subsidiaries respective products) subject to a governmental authority (including FDA) shutdown or import
or export prohibition, nor received any FDA Form 483 or other governmental authority notice of inspectional observations, warning letters, untitled letters, requests to make changes to the Companys or any of its
Subsidiaries respective products, processes or operations, or similar correspondence or notice from the FDA or other governmental authority alleging or asserting material noncompliance with any applicable Health Care Laws. To the
Companys knowledge, neither the FDA nor any other governmental authority is considering such action;
(mm) except as disclosed in the SEC Documents, there have been no material recalls, field notifications, field
corrections, market withdrawals or replacements, warnings, dear doctor letters, investigator notices, safety alerts or other notice of action relating to an alleged lack of safety, efficacy, or regulatory compliance with respect to the
Companys or any of its Subsidiaries respective products (Safety Notices); to the Companys knowledge, there are no facts that would be reasonably likely to result in (i) a Safety Notice with respect to the
Companys or any of its Subsidiaries respective products or services, (ii) a material change in labeling of any the Companys or any of its Subsidiaries respective products or services, or (iii) a material termination
or suspension of marketing or testing of any of the Companys or any of its Subsidiaries respective products or services;
(nn) the Company has
not knowingly made any false statements on, or material omissions from, any applications, approvals, reports or other submissions to any Regulatory Agency, or in or from any other records and documentation prepared or maintained to comply with the
requirements of any Regulatory Agency relating to the Companys or any of its Subsidiaries respective products. None of the Company, any of its Subsidiaries or, to the knowledge of the Company, any officer, employee or agent of the
Company has been convicted of any crime or engaged in any conduct that would reasonably be expected to result in (a) debarment under 21 U.S.C. Section 335a or any similar state or foreign law or regulation or (b) exclusion under 42
U.S.C. Section 1320a-7 or any similar state or foreign law or regulation, and none of the Company or any such person has been so debarred or excluded;
(oo) neither the Company nor any of its Subsidiaries has any securities that are rated by any nationally recognized statistical rating agency (as
that term is defined in Section 3(a)(62) of the 1934 Act).
Exhibit A
Form of Registration Rights Agreement
Exhibit B
Form of Company Counsel Opinion
Exhibit C
Form of Jersey Counsel Opinion
Exhibit 99.1
Quotient Limited Announces $27
Million Private Placement
JERSEY, Channel Islands, November 25, 2014 Quotient Limited (Quotient) (NASDAQ:
QTNT), a commercial-stage diagnostics company, today announced that it has entered into agreements to issue to certain subscribers 2,000,000 ordinary shares at $9.50 per share and 850,000 pre-funded warrants at $9.49 per warrant, exercisable for up
to 850,000 ordinary shares at $0.01 per ordinary share. The aggregate gross proceeds of the private placement are expected to be approximately $27 million. Quotient intends to use the net proceeds from the financing for general corporate
purposes, including to fund the development costs for MosaiQ. Subject to the satisfaction of customary closing conditions, the private placement is expected to close on or about November 28, 2014.
The ordinary shares and warrants issued in the private placement, and the ordinary shares issuable upon exercise of the warrants, have not been registered
under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from the registration requirements.
The ordinary shares and warrants were offered only to a limited number of accredited investors. Quotient has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the ordinary shares issued in the
private placement and the ordinary shares issuable upon exercise of the warrants.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of
any such jurisdiction.
About Quotient Limited
Quotient is an established, commercial-stage diagnostics company committed to reducing healthcare costs and improving patient care through the development and
commercialization of innovative tests, currently focused on blood grouping and serological disease screening. Quotient is developing its proprietary MosaiQTM technology platform to offer a breadth
of tests that is unmatched by any commercially available transfusion diagnostic instrument platform. The companys operations are based in Edinburgh, Scotland; Newtown, Pennsylvania; and Eysins, Switzerland.
Forward-Looking Statements
This news release contains
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements
include statements regarding the closing of the private placement, the intended use of proceeds from the private placement, the registration of the shares sold in the private placement, the exercise of the warrants, and the registration of the
shares issuable upon exercise of warrants. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are
beyond our control, include the risks and uncertainties associated with Quotients ability to complete the private placement, the application of the net proceeds from the private placement as well as the other risks set forth in the
companys filings with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Quotient disclaims any obligation to update these
forward-looking statements.
The Quotient logo and MosaiQ are registered trademarks or trademarks of Quotient Limited and its subsidiaries in
various jurisdictions.
CONTACT: Stephen Unger, Chief Financial Officer stephen.unger@quotientbd.com; (212) 228-7572
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