As filed with the Securities and Exchange Commission on March 22, 2018

 

Registration No. 333-______

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

 

FORM S-8

REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933

____________________

 

Auris Medical Holding AG

(Exact Name of Registrant as Specified in Its Charter)

 

Switzerland   Not Applicable
(State or Other Jurisdiction of
Incorporation or Organization) 		  (I.R.S. Employer
Identification Number)
  Bahnhofstrasse 21
6300 Zug
Switzerland 		 

(Address, Including Zip Code of Principal Executive Offices)

____________________

 

Auris Medical Holding AG Equity Incentive Plan, as amended

Auris Medical Holding AG Stock Option Plan A

Auris Medical Holding AG Stock Option Plan C

(Full title of Plans)

____________________

 

Cogency Global, Inc.

10 East 40 th Street, 10th Floor
New York, New York 10016
(212) 947-7200

(Name, address and telephone number, including area code, of agent for service)

____________________

 

  Copies to:  
 

Sophia Hudson  

Davis Polk & Wardwell LLP

  450 Lexington Avenue

New York, New York 10017

(212) 450-4000  

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ☐ Accelerated filer   ☐
Non-accelerated filer   ☒   (Do not check if a smaller reporting company) Smaller reporting company   ☐

____________________

 

CALCULATION OF REGISTRATION FEE
Title Of Securities To Be Registered Amount To Be Registered(1) Proposed Maximum Offering Price Per Share Proposed Maximum Aggregate Offering Price Amount Of
Registration Fee
Common Shares, nominal value CHF 0.02 per share, reserved for issuance pursuant to stock option awards outstanding under the EIP, Plan A and Plan C 220,154 $16.70(2) $3,676,571.80(2) $457.73(2)
Common Shares, nominal value CHF 0.02 per share, reserved for issuance pursuant to the EIP, Plan A and Plan C 694,846 $1.48(3) $1,028,372.08(3) $128.03(3)
Total Common Shares 915,000 N/A $4,704,943.88 $585.77
(1) This Registration Statement on Form S-8 (this “Registration Statement”) covers (i) common shares, nominal value CHF 0.02 per share (“Common Shares”), of Auris Medical Holding AG (the “Registrant”) issuable pursuant to (x) the Auris Medical Holding AG Equity Incentive Plan, as amended (the “EIP”) assumed by the Registrant in connection with the Merger (as defined in the Explanatory Statement below) and registered by Old Auris Medical Holding AG (as defined in the Explanatory Statement below) prior to the Merger on two Registration Statements on Form S-8 (File Nos. 333-200805 and 333-217306) filed with the U.S. Securities and Exchange Commission (the “Commission”) on December 8, 2014 and April 14, 2017, and (y) the Auris Medical Holding AG Stock Option Plan A, as amended (“Plan A”) and Auris Medical Holding AG Stock Option Plan C (“Plan C”) (Plan A and Plan C, and together with the EIP, the “Plans”) assumed by the Registrant in connection with the Merger and registered by Old Auris Medical Holding AG prior to the Merger on one Registration Statement on Form S-8 (File No. 333-198037), filed with the Commission on August 11, 2014; and (ii) pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the “Securities Act”), any additional Common Shares that become issuable under the Plans by reason of any share dividend, share split or other similar transaction.

(2) Estimated pursuant to Rule 457(h) and Rule 457(c) under the Securities Act, solely for the purpose of computing the registration fee, based on the weighted average exercise price of the stock options outstanding under the applicable Plan.

(3) Estimated pursuant to Rule 457(h) and Rule 457(c) under the Securities Act, solely for the purpose of computing the registration fee for Common Shares to be issued pursuant to the Plans, based on the average of the high and low prices reported for a Common Share on the NASDAQ Capital Market on March 16, 2018.

 

 
 

EXPLANATORY NOTE

 

On March 13, 2018, old Auris Medical Holding AG (“Old Auris Medical Holding AG”) merged (the “Merger”) into Auris Medical NewCo Holding AG, a newly incorporated, wholly-owned Swiss subsidiary (“Auris NewCo”) following shareholder approval at an extraordinary general meeting of shareholders held on the same day. Following the Merger, Auris NewCo, the surviving company had a share capital of CHF 122,347.76, divided into 6,117,388 common shares with a nominal value of CHF 0.02 each. Pursuant to the Merger, the shareholders of Old Auris Medical Holding AG received one common share with a nominal value of CHF 0.02 of Auris NewCo for every 10 of Old Auris Medical Holding AG common shares held prior to the Merger, effectively resulting in a “reverse share split” at a ratio of 10-for-1. Auris NewCo changed its name to Auris Medical Holding AG in connection with the closing of the Merger and as a result, future filings with the Commission are being made under the name Auris Medical Holding AG, which is the Registrant. On March 14, 2018 the common shares of Auris NewCo began trading on the Nasdaq Capital Market under the trading symbol “EARS”.

 

PART I

 

INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS

 

The documents containing the information specified in Item 1 and Item 2 of Part I of Form S-8 will be delivered to participants as specified by Rule 428(b)(1) under the Securities Act. In accordance with the rules and regulations of the Commission and the instructions to Form S-8, such documents are not being filed with the Commission either as part of this Registration Statement or as prospectuses or prospectus supplements pursuant to Rule 424 under the Securities Act.

 

PART II

 

INFORMATION REQUIRED IN THE REGISTRATION STATEMENT

 

Item 3. Incorporation of Documents by Reference.

 

The following documents are incorporated herein by reference:

 

(a)  The Registrant’s Annual Report on Form 20-F for the fiscal year ended December 31, 2017, filed with the Commission on March 22, 2018.

 

(b)  All reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since December 31, 2017.

 

(c)  The description of the Registrant’s Common Shares which is contained in the predecessor to the Registrant’s Exchange Act Registration Statement on Form 8-A, dated July 29, 2014 and amended on June 1, 2016, including any amendments or supplements thereto or report filed for the purpose of updating such description.

 

In addition, all documents subsequently filed by the Registrant with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a post-effective amendment to this Registration Statement which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in this Registration Statement and to be a part hereof from the date of the filing of such documents.

 

Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein (or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference herein) modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.

 

Item 4. Description of Securities.

 

Not applicable.

 

 

Item 5. Interests of Named Experts and Counsel.

 

Not applicable.

 

Item 6. Indemnification of Directors and Officers.

 

Under Swiss law, a corporation may indemnify its directors or officers against losses and expenses (except for such losses and expenses arising from willful misconduct or negligence, although legal scholars advocate that at least gross negligence be required), including attorney’s fees, judgments, fines and settlement amounts actually and reasonably incurred in a civil or criminal action, suit or proceeding by reason of having been the representative of, or serving at the request of, the corporation.

 

Subject to Swiss law, Article 17 of the Registrant’s articles of association provides for indemnification of the existing and former members of our board of directors, executive management, and their heirs, executors and administrators, against liabilities arising in connection with the performance of their duties in such capacity, and permits the Registrant to advance the expenses of defending any act, suit or proceeding to members of the Registrant’s board of directors and executive management.

 

In addition, under general principles of Swiss employment law, an employer may be required to indemnify an employee against losses and expenses incurred by such employee in the proper execution of their duties under the employment agreement with the company.

 

The Registrant has entered into indemnification agreements with each of the members of our board of directors and executive officers in the form filed as Exhibit 99.4 to the Registrant’s Form 6-K filed with the Commission on May 11, 2016.

 

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the Registrant, the Registrant has been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act of 1933, as amended, and is, therefore, unenforceable.

 

Item 7. Exemption from Registration Claimed

 

Not Applicable.

 

Item 8. Exhibits.

 

Exhibit Number  
4.1 Articles of Association of Auris Medical Holding AG (incorporated by reference to exhibit 1.1 of the Registration Statement on Form 20-F filed with the Commission on March 22, 2018)
4.2 Form of Registration Rights Agreement (incorporated herein by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form F-1/A, filed with the Commission on July 21, 2014 (Registration File No. 333-197105))
5 Opinion of Walder Wyss Ltd., Swiss counsel to the Registrant (filed herewith)
23.1 Consent of Deloitte AG (filed herewith)
23.2 Consent of Walder Wyss Ltd., Swiss counsel to the Registrant (included in Exhibit 5)
24 Power of Attorney (included in the signature pages hereof)
99.1 Auris Medical Holding AG Equity Incentive Plan, as amended (filed herewith)
99.2 Auris Medical Holding AG Stock Option Plan A, as amended (filed herewith)
99.3 Amendment to Auris Medical Holding AG Stock Option Plan A (filed herewith)
99.4 Auris Medical Holdings AG Stock Option Plan C (filed herewith)

2  

Item 9. Undertakings.

 

(a)  The undersigned Registrant hereby undertakes:

 

(1)  To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:

 

(i)  To include any prospectus required by Section 10(a)(3) of the Securities Act;

 

(ii)  To reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective Registration Statement;

 

(iii)  To include any material information with respect to the Plans not previously disclosed in this Registration Statement or any material change to such information in this Registration Statement;

 

provided ,  however , that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or 15(d) of the Exchange Act that are incorporated by reference in this Registration Statement.

 

(2)  That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(3)  To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

 

(4) To file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A. of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3, a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or Rule 3-19 of this chapter if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3.

 

(b)  The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant’s annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in this Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial  bona fide  offering thereof.

 

3  

(c)  Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

4  

Signatures

 

Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing this Registration Statement and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Zug, Switzerland on this 22nd day of March, 2018.

 

  Auris Medical Holding AG  
     
     
  By: /s/ Thomas Meyer  
    Name: Thomas Meyer  
    Title:   Chief Executive Officer  

 

 

5  

POWER OF ATTORNEY

 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Thomas Meyer, Hernan Levett and Raoul Dias and each of them, individually, as his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead in any and all capacities, in connection with this Registration Statement, including to sign in the name and on behalf of the undersigned, this Registration Statement and any and all amendments thereto, including post-effective amendments and registrations filed pursuant to Rule 462 under the U.S. Securities Act of 1933, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto such attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or either of them or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

 

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

 

Name  

Title   

Date   

     
/s/ Thomas Meyer Chief Executive Officer and Director  
Thomas Meyer (principal executive officer) March 22, 2018
     
     
/s/ Hernan Levett Chief Financial Officer  
Hernan Levett (principal financial officer and
principal accounting officer) 		March 22, 2018
     
     
/s/ Armando Anido Director March 22, 2018
Armando Anido
     
     
/s/ Mats Blom Director March 22, 2018
Mats Blom
     
     
  Director March 22, 2018 
Alain Munoz  
     
   
  Director March 22, 2018 
Calvin W. Roberts  
     
     
/s/ Colleen A. DeVries SVP of Cogency Global, Inc. March 22, 2018
Colleen A. DeVries Authorized Representative in the
United States

 

 

6  

EXHIBIT INDEX

 

 

Exhibit Number  
4.1 Articles of Association of Auris Medical Holding AG (incorporated by reference to exhibit 1.1 of the Registration Statement on Form 20-F filed with the Commission on March 22, 2018)
4.2 Form of Registration Rights Agreement (incorporated herein by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form F-1/A, filed with the Commission on July 21, 2014 (Registration File No. 333-197105))
5 Opinion of Walder Wyss Ltd., Swiss counsel to the Registrant (filed herewith)
23.1 Consent of Deloitte AG (filed herewith)
23.2 Consent of Walder Wyss Ltd., Swiss counsel to the Registrant (included in Exhibit 5)
24 Power of Attorney (included in the signature pages hereof)
99.1 Auris Medical Holding AG Equity Incentive Plan, as amended (filed herewith)
99.2 Auris Medical Holding AG Stock Option Plan A, as amended (filed herewith)
99.3 Amendment to Auris Medical Holding AG Stock Option Plan A (filed herewith)
99.4 Auris Medical Holdings AG Stock Option Plan C (filed herewith)

 

 

7  

EXHIBIT 5

 

 

Walder Wyss Ltd. Seefeldstrasse 123 

P.O. Box

8034 Zurich

Switzerland

 

Telephone +41 58 658 58 58 

Fax +41 58 658 59 59 

www.walderwyss.com

 

To:

 

Auris Medical Holding AG 

Bahnhofstrasse 21 

6300 Zug 

Switzerland

 

Zurich, as of 22 March 2018 

ANI / 7797170v1

 

Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

Dear Madam, Dear Sir,

 

We have acted as Swiss counsel to Auris Medical Holding AG, Zug, Switzerland (the Company ) in connection with the filing on the date hereof of a registration statement on Form S-8 (the Registration Statement ) by the Company with the U.S. Securities and Exchange Commission (the Commission ) pursuant to the Securities Act of 1933, as amended (the Securities Act ) for the purpose of registering under the Securities Act the offer of 689,846 registered common shares, par value of CHF 0.02 each of the Company, which may be issued on the basis of the Company’s Conditional Share Capital (as defined below) after the date hereof pursuant to certain Company’s equity incentive plans (being a certain equity incentive plan dated 13 April 2017, a certain stock option plan A dated 24 November 2009 and a certain stock option plan C dated 22 April 2013), all of which have been adopted by the Company’s board of directors on 12 March 2018 (together, the Equity Incentive Plans ) (such shares, the Shares and each a Share ) and which, following the merger of Auris Medical Holding AG into Auris Medical NewCo Holding AG as surviving entity (now: Auris Medical Holding AG) effective 13 March 2018, applies to Auris Medical Hold-ing AG as surviving entity.

 

Attorneys admitted in Switzerland or in a EU/EFTA state are registered with the attorneys' registry Page 1 of 7

  Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

As such counsel, we have been requested to render an opinion as to certain matters of Swiss law. 

 

 

1. Scope and Limitation of Opinion

 

Our opinion is strictly confined to matters of Swiss law as in force at the date hereof and as it is presently applied by the Swiss courts. Such law and its interpretation are subject to change. In the absence of explicit statutory law or established case law, we base our opinion solely on our independent professional judgment.

 

Our opinion is strictly limited to the Documents (as defined below) and the matters stated herein and is not to be read as extending, by implication or otherwise, to any agreement or document referred to in any of the Documents or any other matter.

 

For purposes of this opinion, we have not conducted any due diligence or similar investigation or verification as to any matters stated herein.

 

In this opinion, Swiss legal concepts are expressed in English terms and not in their original language. These concepts may not be identical to the concepts described by the same English language terms as they exist under the laws of other jurisdictions.

 

 

2. Documents

 

For purposes of rendering the opinion expressed herein, we have received the following documents (the Documents ):

 

(a) a .pdf copy of the Registration Statement;

 

(b) a .pdf copy of the public deed on the resolution of the Company’s share-holders’ meeting dated 30 January 2018 approving the incorporation of the Company as well as the conditional share capital of the Company under its articles of association (the Incorporation Resolution );

 

(c) a .pdf copy of the public deed on the resolution of Auris Medical Holding AG’s shareholders’ meeting dated 12 March 2018 approving, inter alia , the merger into the Company (the First Merger EGM Resolution );

  

Page 2 of 7

  Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

(d) a .pdf copy of the public deed on the resolution of the Company’s shareholders’ meeting dated 12 March 2018 approving, inter alia , the merger of Auris Medical Holding AG into the Company (the Second Merger EGM Resolution , and together with the Incorporation Resolution and the First Merger EGM Resolution, the GM Resolutions );

 

(e) a .pdf copy of the certified articles of incorporation of the Company in their version of 13 March 2018 (the Articles );

 

(f) a .pdf copy of a certified excerpt from the daily registry ( Tagebuchauszug ) of the Commercial Register of the Canton of Zug dated 13 March 2018 relating to recording of the merger of Auris Medical Holding AG into the Company and the Articles as per the Second Merger EGM Resolution (the Excerpt );

  

(g) a .pdf copy of the Equity Incentive Plans; and

 

(h) a .pdf copy of the resolution of the board of directors of the Company dated 12 March 2018 approving, inter alia , the adoption of the Equity Incentive Plans for the Company (the Board Resolution );

 

No documents have been reviewed by us in connection with this opinion other than the Documents listed in this Section 2 ( Documents ).

 

All terms used in this opinion in uppercase form shall have the meaning ascribed to them in the Registration Statement, unless otherwise defined herein.

 

 

3. Assumptions

 

In rendering the opinion below, we have assumed:

 

(a) the conformity to the Documents of all documents produced to us as copies, fax copies or via e-mail, and that the original was executed in the manner appearing on the copy of the draft;

 

(b) the genuineness and authenticity of the signatures on all copies of the original Documents thereof which we have examined, and the accuracy of all factual information contained in, or material statements given in connection with, the Documents;

 

Page 3 of 7

  Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

(c) the Board Resolution has been duly resolved in meetings duly convened, or, respectively, in duly executed circular resolutions and have not been rescinded or amended and are in full force and effect;

 

(d) the GM Resolutions have been duly resolved in meetings duly convened and has not been rescinded or amended and is in full force and effect;

 

(e) the Registration Statement and the Equity Incentive Plans have been duly filed by the Company;

 

(f) the Articles and the Excerpt are unchanged and correct as of the date hereof and no changes have been made which should have been or should be reflected in the Articles and the Excerpt as of the date hereof;

 

(g) the exercise notice with respect to the Shares to be issued out of the Conditional Share Capital of the Company will be duly delivered in accordance with the Equity Incentive Plans;

 

(h) the payment of the exercise price in connection with an exercise notice relating to Shares will be made in accordance with the Equity Incentive Plans; and

 

(i) if and to the extent the Shares are to be issued out of the Company’s Conditional Share Capital, such Shares are and will be issued and fully paid up in compliance with the laws of Switzerland.

  

Page 4 of 7

  Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

 

4. Opinion

 

Based upon the foregoing and subject to the qualifications set out below, we are of the following opinion:

 

The Company’s conditional share capital for equity incentive plans under article 3b para. 3 of the Articles (the Conditional Share Capital ) provides the Company with the authority to issue up to 915,000 registered common shares with a par value of CHF 0.02 each for purposes of the Equity Incentive Plans without the requirement of further approval in connection with the Equity Incentive Plans. If and to the extent the Shares are issued out of the Conditional Share Capital of the Company pursuant to the Equity Incentive Plans, such Shares will be validly issued, fully paid and non-assessable.

 

 

5. Qualifications

 

The above opinions are subject to the following qualifications:

 

(a) The lawyers of our firm are members of the Swiss bar and do not hold themselves to be experts in any laws other than the laws of Switzerland. Accordingly, we are opining herein as to Swiss law only and we express no opinion with respect to the applicability thereto, or the effect thereon, of the laws of any other jurisdiction.

 

(b) This opinion is based on the current provisions of the laws of Switzerland and the regulations thereunder in effect on the date hereof and only as currently interpreted in Switzerland. Such laws and their interpretation are subject to change.

 

(c) We express no opinion as regards the withdrawal of the shareholders’ preferential subscription rights ( Vorwegzeichnungsrechte ) in connection with any issuance of Shares.

 

(d) When used in this opinion, the term “non-assessable” means that no further contributions have to be made to the Company by the relevant holder of the Shares.

 

(e) We express no opinion as to the future availability of conditional share capital of the Company.

 

Page 5 of 7

  Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

 

(f) Any issuance of the Shares out of conditional share capital must be confirmed by the auditor of the Company, and amended articles of association of the Company reflecting the issuance of Shares out of the conditional share capital, together with ascertainments by the Company's board of directors in a public deed and said confirmation by the Company's auditor, must be filed with the competent commercial register no later than three months after the end of the Company's fiscal year.

 

(g) We express no opinion as to the accuracy or completeness of the information contained in the Registration Statement.

 

(h) It should be noted that pursuant to article 706 and 706a of the CO, the shareholders are entitled to challenge resolutions adopted by the shareholders' meeting ( Generalversammlungsbeschlüsse ) that violate the law or a company's articles of association by initiating legal proceedings against a company within two months following such meeting. Such period has not lapsed with respect to the GM Resolutions.

 

(i) We express no opinion as to any commercial, calculating, auditing or other non-legal matters. Further, we express no opinion as to tax law.

 

 

6. Miscellaneous

 

(a) We do not assume any obligation to advise you of any changes in applicable law or any other matter that may come to our attention after the date hereof that may affect our opinion expressed herein.

 

(b) We hereby consent to the filing of this opinion on the date hereof with the Commission as an exhibit to the Registration Statement and to the incorporation by reference of this opinion in the Registration Statement. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act.

 

(c) This opinion is governed by and shall be construed in accordance with the substantive laws of Switzerland, the ordinary Courts of Zurich having exclusive jurisdiction.

 

 

Page 6 of 7

  Auris Medical Holding AG – Swiss Legal Opinion (Registration Statement on Form S-8)

 

 

Yours faithfully,

 

/s/ Alex Nikitine 

 

Alex Nikitine

 

Page 7 of 7

 

 

EXHIBIT 23.1

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

We consent to the incorporation by reference in this Registration Statement on Form S-8 of our report dated March 22, 2018, relating to the consolidated financial statements of Auris Medical Holding AG and its subsidiaries (the “Company”), appearing in the Annual Report on Form 20-F of the Company for the year ended December 31, 2017.

 

 

Deloitte AG

 

 

 

/s/ Matthias Gschwend /s/ Adrian Kaeppeli

 

 

Zurich, Switzerland

March 22, 2018

 

 

 

 

 

 

EXHIBIT 99.1

 

Auris Medical Holding AG

 

Equity Incentive Plan

 

Adopted August 21, 2014 and amended on April 13, 2017

 

Section 1. Purpose . The purpose of the Auris Medical Holding AG Long Term Incentive Plan (the “ Plan ”) is to motivate and reward those employees and other individuals who are expected to contribute significantly to the success of Auris Medical Holding AG (the “ Company ”) and its Affiliates, to perform at the highest level and to further the best interests of the Company and its shareholders.

 

Section 2. Definitions . As used in the Plan, the following terms shall have the meanings set forth below:

 

(a)       “ Affiliate ” means (i) any entity that, directly or indirectly, is controlled by the Company and (ii) any entity in which the Company, directly or indirectly, has a significant equity interest, in each case as determined by the Committee.

 

(b)       “ Applicable Laws ” means the laws applicable to the Company, its Affiliate, any employment or other relationship with a Participant, as the case may be, stock market or exchange rules and regulations or any stock exchange on which the Company is listed, or applicable accounting or tax rules and regulations.

 

(c)       “ Award ” means any Option, SAR, Restricted Stock, RSU, Performance Award or Other Stock-Based Award granted under the Plan.

 

(d)       “ Award Agreement ” means any agreement, contract or other instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant.

 

(e)        “ Beneficiary ” means a person entitled to receive payments or other benefits or exercise rights that are available under the Plan in the event of the Participant’s death in accordance with Applicable Law.

 

(f)       “ Board ” means the board of directors of the Company.

 

(g)       “ Cause ” means, with respect to any Participant, “ cause ” as defined in such Participant’s Award Agreement, or if not so defined, such Participant:

 

(i)       having engaged in material misconduct in providing services to the Company or its Affiliates, including a material breach of the Company or its Affiliates internal policies or code of conduct;

 

(ii)       having engaged in conduct that he or she knew or reasonably should have known would be materially injurious to the Company or its Affiliates;

 

1  

 

(iii)       having committed (x) a felony or (y) any other criminal offense involving moral turpitude, fraud or, in the course of the performance of the Participant’s service to the Company or its Affiliates, material dishonesty; or

 

(iv)       the commission of an act of fraud, embezzlement or misappropriation, in each case, against the Company or any Affiliate.

 

(h)       “ Change of Control ” means the occurrence of any one or more of the following events:

 

(i)        any one person, or more than one person acting as a group, acquires directly or indirectly ownership of the stock of the Company that, together with the stock held by such person or group, that constitutes more than 50% of the combined voting power of the Company’s outstanding securities ; or

 

(ii)       the consummation of (A) a merger or consolidation of the Company or any of its Affiliates with any other corporation or entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or being converted into voting securities of the surviving entity or, if applicable, the ultimate parent thereof) at least 50% of the combined voting power and total fair market value of the securities of the Company or such surviving entity or parent outstanding immediately after such merger or consolidation, or (B) any sale, lease, exchange or other transfer to any person or entity of assets of the Company and/or any of its Affiliates, in one transaction or a series of related transactions, having an aggregate fair market value of more than 50% of the fair market value of the Company and its Affiliates (the “ Company Value ”) immediately prior to such transaction(s), but only to the extent that, in connection with such transaction(s) or within a reasonable period thereafter, the Company’s stockholders receive distributions of cash and/or assets having a fair market value that is greater than 50% of the Company Value immediately prior to such transaction(s).

 

(i)       “ Code ” means the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder. Any reference to a provision in the Code shall include any successor provision thereto.

 

(j)       “ Committee ” means the compensation committee of the Board or such other committee as may be designated by the Board. If the Board does not designate the Committee, references herein to the “Committee” shall refer to the Board.

 

(k)       “ Consultant ” means any person, including an advisor, who is providing services to the Company or any Affiliate other than as an employee, officer or Director.

 

(l)        “ Director ” means any member of the Company’s Board of Directors.

 

(m)       “ Disability ” means, with respect to any Participant,:

 

(i)       a permanent and total disability that entitles the Participant to disability income payments under any long-term disability plan or policy provided by the

 

2  

 

Company, its Affiliates or a pension plan under which the Participant is covered, as such plan or policy is then in effect;

 

(ii)       a permanent and total disability that entitles the Participant to disability income payments under any government invalidity or disability insurance; or

 

(iii)       if the Participant is not covered under a long-term disability plan or insurance, then the term “Disability” means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last, for a continuous period of not less than 12 months. In this case, the existence of any such Disability will be certified by a physician acceptable to the Company.

 

(n)       “ Effective Date ” means the date on which the Plan is adopted by the Board.

 

(o)       “ Employee ” means any person employed by the Company or any Affiliate, with the status of employment determined based upon such factors as are deemed appropriate by the Committee in its discretion.

 

(p)       “ Employment Agreement ” means any employment, or similar agreement between the Company or any of its Affiliates and a Participant.

 

(q)       “ Exchange Act ” means the Securities Exchange Act of 1934, as amended from time to time, and the rules, regulations and guidance thereunder. Any reference to a provision in the Exchange Act shall include any successor provision thereto.

 

(r)       “ Fair Market Value ” means (i) with respect to Shares, the closing price of a Share on the day prior to the date in question (or, if there is no reported sale on such prior day, on the last preceding date on which any reported sale occurred) on the principal stock market or exchange on which the Shares are quoted or traded, or if Shares are not so quoted or traded, fair market value of a Share as determined by the Committee, and (ii) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee.

 

(s)       “ Intrinsic Value ” with respect to an Option or SAR Award means (i) the excess, if any, of the price or implied price per Share in a Change of Control or other event over (ii) the exercise or hurdle price of such Award multiplied by (iii) the number of Shares covered by such Award.

 

(t)        “ Option ” means an option representing the right to purchase Shares from the Company, granted pursuant to Section 5.

 

(u)       “ Other Stock-Based Award ” means an Award granted pursuant to Section 9.

 

(v)       “ Participant ” means the recipient of an Award granted under the Plan.

 

(w)       “ Performance Award ” means an Award granted pursuant to Section 8.

 

3  

 

(x)       “ Performance Period ” means the period established by the Committee at the time any Performance Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award are measured.

 

(y)        “ Restricted Stock ” means any Share granted pursuant to Section 7.

 

(z)        “ Retirement ” means the Participant’s retirement after reaching the retirement age as established by the legislation in force in the jurisdiction of the Participant’s principal place of employment or as otherwise determined under applicable Company or Affiliate policies.

 

(aa)    “ RSU ” (“Restricted Stock Units”) means a contractual right granted pursuant to Section 7 that is denominated in Shares. Each RSU represents a right to receive the value of one Share (or a percentage of such value) in cash, Shares or a combination thereof. Awards of RSUs may include the right to receive dividend equivalents.

 

(bb)    “ SAR ” (“Stock Appreciation Right”) means any right granted pursuant to Section 6 to receive upon exercise by a Participant or settlement, in cash, Shares or a combination thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise or settlement over (ii) the exercise or hurdle price of the right on the date of grant, or if granted in connection with an Option, on the date of grant of the Option.

 

(cc)     “ Shares ” means shares of the Company’s common stock.

 

(dd)     “ Substitute Award ” means an Award granted in assumption of, or in substitution for, an outstanding award previously granted by a company or other business acquired by the Company or with which the Company combines.

 

(ee)     “ Termination of Service ” means, (i) in the case of a Participant who is an employee of the Company or an Affiliate, cessation of the employment relationship such that the Participant is no longer an employee of the Company or Affiliate, or, (ii) in the case of a Participant who is an independent contractor or other service provider, the date the performance of services for the Company or an Affiliate ended, or, (iii) in the case of a Director, the date such person ceases to provide services as a Director; provided , however , that in the case of an employee, the transfer of employment from the Company to an Affiliate, from an Affiliate to the Company, from one Affiliate to another Affiliate or, unless the Committee determines otherwise, the cessation of employee status but the continuation of the performance of services for the Company or an Affiliate as a Director or an independent contractor shall not be deemed a cessation of service that would constitute a Termination of Service; provided , further , that a Termination of Service will be deemed to occur for a Participant employed by an Affiliate when an Affiliate ceases to be an Affiliate unless such Participant’s employment continues with the Company or another Affiliate.

 

Section 3. Eligibility .

 

(a)       Any Employee, Director, Consultant or any other individual who provides services to the Company or any Affiliate shall be eligible to be selected by the Committee at its discretion to receive an Award under the Plan, to the extent an offer of an Award or a receipt of such Award is permitted by Applicable Law.

 

4  

 

(b)       Holders of options and other types of awards granted by a company acquired by the Company or with which the Company combines are eligible to be selected by the Committee at its discretion for grants of Substitute Awards under the Plan to the extent permitted under Applicable Law.

 

Section 4. Administration .

 

(a)        Administration of the Plan . The Plan shall be administered by the Committee. All decisions of the Committee shall be final, conclusive and binding upon all parties, including the Company and its Participants and any Beneficiaries thereof. The Committee may issue rules and regulations for administration of the Plan. It shall meet at such times and places as it may determine. The Committee may delegate to one or more officers of the Company the authority to grant Awards.

 

(b)        Authority of Committee . Subject to the terms of the Plan, the Company’s articles of association and Applicable Law, the Committee (or its delegate) shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards (including Substitute Awards) to be granted to each Participant under the Plan; (iii) determine the terms and conditions of any Award; (iv) determine whether, to what extent and under what circumstances Awards may be settled or exercised in cash, Shares, other Awards, other property, net settlement, or any combination thereof, or canceled, forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (v) determine whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vi) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (vii) establish, amend, suspend or waive such rules and regulations and appoint such agents, trustees, brokers, depositories and advisors and determine such terms of their engagement as it shall deem appropriate for the proper administration of the Plan and due compliance with Applicable Law; and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan and due compliance with Applicable Law.

 

(c)        Restrictive Covenants . The Committee may impose restrictions on any Award with respect to non-competition, confidentiality and other restrictive covenants as it deems necessary or appropriate in its sole discretion.

 

Section 5. Options . Within the limits of the articles of association, the Committee is authorized to grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:

 

(a)       The exercise price per Share under an Option shall be determined by the Committee at the time of grant; provided , however , that such exercise price shall not be less than the nominal value of a Share on the date of grant of such Option. A grantee of an Option shall not have any rights to dividends or other rights of a shareholder with respect to Shares subject to the Option until the grantee has exercised the Option and the Company has issued Shares to the grantee.

 

5  

 

(b)       The term of each Option shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such Option; provided that the Committee may (but shall not be required to) provide in an Award Agreement for an extension of such 10-year term in the event the exercise of the Option would be prohibited by law on the expiration date.

 

(c)       The Committee shall determine the time or times at which an Option becomes vested and exercisable in whole or in part; provided that the minimum vesting period shall be 3 months. The Committee may specify in an Award Agreement that an “in-the-money” Option shall be automatically exercised on its expiration date.

 

(d)       The Committee shall determine the method or methods by which, and the form or forms, including cash, Shares, other Awards, other property, net settlement, broker assisted cashless exercise or any combination thereof, having a Fair Market Value on the exercise date equal to the exercise price of the Shares as to which the Option shall be exercised, in which payment of the exercise price with respect thereto may be made or deemed to have been made.

 

Section 6. Stock Appreciation Rights . The Committee is authorized to grant SARs to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:

 

(a)       SARs may be granted under the Plan to Participants either alone (“freestanding”) or in addition to other Awards granted under the Plan (“tandem”) and may, but need not, relate to a specific Option granted under Section 5.

 

(b)       The exercise or hurdle price per Share under a SAR shall be determined by the Committee; provided , however , that, except in the case of Substitute Awards, such exercise or hurdle price shall not be less than the Fair Market Value of a Share on the date of grant of such SAR.

 

(c)       The term of each SAR shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such SAR.

 

(d)       The Committee shall determine the time or times at which a SAR may be exercised or settled in whole or in part.

 

Section 7. Restricted Stock and RSUs . The Committee is authorized to grant Awards of Restricted Stock and RSUs to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:

 

(a)       The Award Agreement shall specify the vesting schedule and, with respect to RSUs, the delivery schedule (which may include deferred delivery later than the vesting date).

 

(b)       Shares of Restricted Stock and RSUs shall be subject to such restrictions as the Committee may impose (including any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend, dividend equivalent or other right), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate.

 

6  

 

(c)       Any share of Restricted Stock granted under the Plan may be evidenced in such manner as the Committee may deem appropriate, including book-entry registration.

 

(d)       The Committee may condition the grant of Restricted Stock or RSUs upon the attainment of specified performance criteria set forth in Section 8.

 

(e)       Unless otherwise determined by the Committee, an amount equivalent to any dividends declared on a Share will be credited with respect to an Award of Restricted Stock or RSUs and will be paid out in cash or Shares, as determined by the Committee, upon the vesting of the applicable Restricted Stock or RSU.

 

Section 8. Performance Awards . The Committee is authorized to grant Performance Awards to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:

 

(a)       Performance Awards may be denominated as a cash amount, number of Shares or a combination thereof and are Awards which may be earned upon achievement or satisfaction of performance conditions specified by the Committee. In addition, the Committee may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction of such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. Subject to the terms of the Plan, the performance goals to be achieved during any Performance Period, the length of any Performance Period, the amount of any Performance Award granted and the amount of any payment or transfer to be made pursuant to any Performance Award shall be determined by the Committee.

 

(b)       Settlement of Performance Awards shall be in cash, Shares, other Awards, other property, net settlement, or any combination thereof, in the discretion of the Committee. The Committee shall specify the circumstances in which, and the extent to which, Performance Awards shall be paid or forfeited in the event of a Participant’s Termination of Service.

 

(c)       Performance Awards will be settled only after the end of the relevant Performance Period.

 

Section 9. Other Stock-Based Awards . The Committee is authorized, subject to limitations under Applicable Law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares or factors that may influence the value of Shares, including convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Company or business units thereof or any other factors designated by the Committee. The Committee shall determine the terms and conditions of such Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 9 shall be purchased for such consideration, paid for at such times, by such methods and in such forms, including cash, Shares, other Awards, other property, or any combination thereof, as the Committee shall determine. Cash awards, as an element of or supplement to any other Award under the Plan, may also be granted pursuant to this Section 9.

 

7  

 

Section 10. Effect of Termination of Service or a Change of Control on Awards .

 

(a)       The Committee may provide, by rule or regulation or in any Award Agreement, the circumstances in which, and the extent to which, an Award may be exercised, settled, vested, paid or forfeited, including by way of repurchase by the Company, in the event of a Participant’s Termination of Service prior to the end of a Performance Period or exercise or settlement of such Award.

 

(b)       The Committee may set forth the treatment of an Award upon a Change of Control in the applicable Award Agreement.

 

(c)       In the case of an Option or SAR Award, except as otherwise provided in the applicable Award Agreement, upon a Change of Control, a merger or consolidation involving the Company or any other event with respect to which the Committee deems it appropriate, the Committee may cause such Award to be canceled in consideration of (i) the full acceleration of such Award and either (A) a period of at least ten days prior to the effective date of such Change of Control to exercise the Award or (B) a payment in cash or other consideration to the Participant who holds such Award in an amount equal to the Intrinsic Value of such Award (which may be equal to but not less than zero), which, if in excess of zero, shall be payable upon the effective date of such Change of Control, merger, consolidation or other event or (ii) a Substitute Award (which immediately upon grant shall have an Intrinsic Value equal to the Intrinsic Value of such Award).

 

Section 11. General Provisions Applicable to Awards .

 

(a)       Awards shall be granted for such cash or other consideration, if any, as the Committee determines but within the limits of the articles of association; provided that in no event shall Awards be issued for less than such minimal consideration as may be required by applicable law.

 

(b)       Awards may, in the discretion of the Committee but within the limits of the articles of association and any shareholders’ resolutions applicable, be granted either alone or in addition to or in tandem with any other Award or any award granted under any other plan of the Company. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at the same time as or at a different time from the grant of such other Awards or awards.

 

(c)       Subject to the terms of the Plan, payments or transfers to be made by the Company upon the grant, exercise or settlement of an Award may be made in the form of cash, Shares, other Awards, other property, net settlement, or any combination thereof, as determined by the Committee in its discretion but within the limits of the articles of association and any shareholders’ resolutions at the time of grant, and may be made in a single payment or transfer, in installments or on a deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments.

 

(d)       Except as may be permitted by the Committee, as specifically provided in an Award Agreement or in the event of the Participant’s death, (i) no Award and no right under any Award shall be assignable, alienable, saleable or transferable by a Participant and (ii)

 

8  

 

during a Participant’s lifetime, each Award, and each right under any Award, shall be exercisable only by such Participant. The provisions of this Section 11(d) shall not apply to any Award that has been fully exercised or settled, as the case may be, and shall not preclude forfeiture of an Award in accordance with the terms thereof.

 

Section 12. Amendments and Termination .

 

(a)        Amendment or Termination of Plan . Except to the extent prohibited by Applicable Law and unless otherwise expressly provided in an Award Agreement or in the Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided , however , that no such amendment, alteration, suspension, discontinuation or termination shall be made without the consent of the affected Participant, if such action would materially adversely affect the vested rights of such Participant under any outstanding Award, except (x) to the extent any such amendment, alteration, suspension, discontinuance or termination is made to cause the Plan to comply with the Company’s articles of association and Applicable Law or (y) to impose any “clawback” or recoupment provisions on any Awards in accordance with Section 16 of the Plan. Notwithstanding anything to the contrary in the Plan, the Committee may amend the Plan, or create sub-plans, in such manner as may be necessary to enable the Plan to achieve its stated purposes in any jurisdiction in a tax-efficient manner and in compliance with the Company’s articles of association and Applicable Laws. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect.

 

(b)        Dissolution or Liquidation . In the event of the dissolution or liquidation of the Company, each Award will terminate immediately prior to the consummation of such action, unless otherwise determined by the Committee.

 

(c)        Terms of Awards . The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate any Award granted, prospectively or retroactively, without the consent of any relevant Participant or holder or Beneficiary of an Award; provided , however , that no such action shall materially adversely affect the rights of any affected Participant or holder or Beneficiary under any Award granted under the Plan, except (x) to the extent any such action is made to cause the Plan to comply with the Company’s articles of association and Applicable Law, or (y) to impose any “clawback” or recoupment provisions on any Awards in accordance with Section 16 of the Plan. The Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of events (including the events described in Section 13(e)) affecting the Company, or the financial statements of the Company, or of changes in the Company’s articles of association or Applicable Laws, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(d)        No Repricing. Notwithstanding the foregoing, except as provided in Section 13(e), no action shall directly or indirectly, through cancellation and regrant or any other method, reduce, or have the effect of reducing, the exercise price of any Award established at the time of grant thereof without approval of the Committee.

 

9  

 

Section 13. Miscellaneous .

 

(a)       No employee, Participant or other person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants under the Plan. The terms and conditions of Awards need not be the same with respect to each Participant. Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future Awards. The Company, in its sole discretion, maintains the right to make available future Awards under the Plan.

 

(b)       The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or to continue to provide services to, the Company or any Affiliate. Further, the Company or the applicable Affiliate may at any time dismiss a Participant, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement or in any other agreement binding the parties. The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth in the applicable Award Agreement.

 

(c)       Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

 

(d)       The Company, or as the case may be, any Affiliate, shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other Awards, other property, net settlement, or any combination thereof) of applicable social security contributions, withholding taxes, source taxes and/or any other applicable taxes and contributions due in respect of an Award, its exercise or settlement or any payment or transfer under such Award or under the Plan and to take such other action (including providing for elective payment of such amounts in cash or Shares by such Participant) as may be necessary in the opinion of the Company or as the case may be, any Affiliate, to satisfy all obligations for the payment of such taxes; provided that if the Committee allows the withholding or surrender of Shares to satisfy a Participant’s social security contributions, withholding taxes, source taxes and/or any other applicable taxes and contributions, the Company shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for applicable tax purposes, including payroll taxes.

 

(e)       In the event that the Board determines that, as a result of any dividend or other distribution (whether in the form of cash, Shares or other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions of securities of the Company, or other similar corporate transaction or event affecting the Shares, or of changes in Applicable Laws or accounting principles, an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall adjust equitably any or all of:

 

(i)       the number and type of Shares (or other securities) which thereafter may be made the subject of Awards;

 

10  

 

(ii)       the number and type of Shares (or other securities) subject to outstanding Awards; and

 

(iii)       the grant, purchase, exercise or hurdle price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award;

 

provided , however , that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

 

(f)       If any provision of the Plan or any Award Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award Agreement, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any such Award Agreement shall remain in full force and effect.

 

(g)       Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.

 

(h)       No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

 

Section 14. Effective Date of the Plan. The Plan shall be effective as of the Effective Date.

 

Section 15. Term of the Plan . No Award shall be granted under the Plan after the Board terminates the Plan in accordance with Section 12(a). However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted prior to such date shall remain in full force and effect, and the authority of the Committee to amend, alter, adjust, suspend, discontinue or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such termination date.

 

Section 16. Cancellation or “Clawback” of Awards. The Company may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement, and shall, to the extent required, cancel or require reimbursement of any Awards granted to a Participant. Any Award granted to a member of the Company’s executive management team or Board is, to the extent required by applicable Swiss laws and the Company’s articles of association, subject to approval by the general meeting of the shareholders of the Company.

 

11  

 

Section 17. Section 409A of the Code . In the case any Participant is subject to U.S. taxation, with respect to Awards subject to Section 409A of the Code (“ Section 409 ”), awards granted to such Participant under the Plan are intended to comply with the requirements of Section 409A and the regulations thereunder, and shall be interpreted in a manner that satisfies the requirements of Section 409A. Notwithstanding anything else in the Plan, if the Board considers a Participant to be a “specified employee” under Section 409A at the time of such Participant’s “separation from service” (as defined in Section 409A) and the amount hereunder is “deferred compensation” subject to Section 409A, any distribution that otherwise would be made to such Participant with respect to this Award as a result of such termination shall not be made until the date that is six months after such separation from service, except to the extent that earlier distribution would not result in such Participant’s incurring interest or additional tax under Section 409A.

 

Section 18. Governing Law . The Plan and each Award Agreement shall be governed by the laws of Switzerland, without application of the conflicts of law principles thereof.

 

12  

Exhibit 99.2

 

Stock Option Plan A

 

Auris Medical AG  

Aeschenvorstadt 37

4051 Basel

 

1. Purpose

 

The purpose of this Stock Option Plan A (hereinafter referred to as the “Plan”) is to recruit, retain and motivate persons in key positions at Auris Medical AG by offering additional incentives to achieve a high level of corporate performance.

 

2. Definitions

 

          a)    “Option Agreement” means an agreement entered into by the Company and each Participant setting forth the terms and conditions applicable to options granted under the Plan;

 

        b)  “Board of Directors” means the Board of Directors of the Company

 

        c)  “Company” means Auris Medical AG, in Basel

 

        d)  “Company’s stock” means registered shares of the Company with a nominal value of CHF 10 each;

 

        e)  “Exercise Price” means the price at which stock of the Company may be purchased by a Participant pursuant to options granted under the Plan;

 

        f)   “Participants” eligible for awards under the Plan are directors, employees, advisors and agents of the Company as defined by the Board of Directors (individually “Participant”);

 

        g)  “Shareholders’ Agreement” means the agreement entered into by and among the shareholders of the Company on December 13, 2007.

 

3. Stock Option Rights

 

Stock options granted under the Plan give the Participants the right to purchase shares of the Company under the terms and conditions set forth in the Option Agreement.

 

4. Availability of Company’s Stock

 

Subject to the Articles of Incorporation of the Company, the provisions of the present Plan and any other existing applicable regulations, the Board of Directors shall, in its sole discretion, determine the mode and conditions under which stock of the Company is made available to satisfy the purposes of the Plan.

 

5. Extent and Timing of the Option Grant

 

Subject to the provisions of the Plan, the Board of Directors may, upon proposal made by the CEO but in its sole discretion, select among all eligible Participants those to whom options shall effectively be granted. A grant of options in one year shall not preclude a grant of additional options in subsequent years. Likewise, a grant of options in one year shall not entitle a Participant to a grant of options in subsequent years.

 

The number of options to be granted in each year is determined by the Board of Directors in its sole discretion.

 

1  

6. Option Agreements / Date of Grant

 

Options granted to an eligible Participant in any given year shall be granted by an Option Agreement that specifies in particular:

 

• the number of options granted;

 

• the exercise price;

 

• the duration of the options;

 

• the vesting period;

 

• the exercise terms and conditions; and

 

• such other provisions as the Board of Directors shall determine.

 

Option Agreements shall be dated and signed by the Participant and returned to the Board of Directors of the Company within 30 days of receipt. By signing the Option Agreements, the Participant accepts to be granted options subject to the terms and conditions of the Plan.

 

The Option Agreement shall not form part of any contract of employment between the Company and the Participant.

 

The date of the Option Agreement which, in principle, shall not be earlier than six (6) months after beginning of the employment or mandate between the Company and the Participant, is deemed to correspond to the date of grant of the options, save any earlier deemed date of grant fixed by the Board of Directors, in its sole discretion.

 

7. Terms and Conditions

 

Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions as the Board of Directors shall deem desirable. The Board of Directors of the Company retains the right, in its absolute discretion but under exceptional circumstances only, to grant options subject to terms and conditions different from those set forth in the Plan, in particular in this Section 7 of the Plan.

 

7.1 Option Price

 

Unless otherwise provided in the Option Agreement, options are granted to Participants free of charge.

 

7.2 Duration

 

Subject to Section 7.4, options granted under the Plan shall expire five (5) years after the date of grant. The Company shall not be held responsible for any consequences pertaining to such expiration.

 

7.3 Vesting Period and Earliest Date of Exercise

 

The options granted under the Plan are vesting after 3 (three) years. Cases where vesting is accelerated are reserved (see Section 7.4 below).

 

2  

7.4 Acceleration of Vesting

 

In case of IPO, merger or change of control (hereinafter referred to as each a “Transaction”) as well as in case of transfer of the Participant’s employment contract to another employer arising out of the transfer of all or part of the Company’s assets or activities to said employer, any option, even if not vested as per Section 7.3 above, shall:

 

•   vest as from the written announcement of the Transaction to the Participants, but in any case on the closing date of the Transaction (which closing shall be announced by the Company by written communication to all Participants at the latest on the closing date) and shall become immediately exercisable upon vesting for a maximum duration of 60 days following the closing date of the Transaction (for the avoidance of doubt, it is precised that, in such case, the 5 year duration of Section 7.2 above is shortened to 60 days after the closing date of the Transaction);

 

•   vest as from the written announcement to the Participant of the transfer of his employment contract to another employer, and become exercisable as per the Earliest Date of Exercise set forth in Section 7.3 above.

 

For the purpose of this Section:

 

•   an IPO shall be defined as an initial public offering (or going public), which purports to a first sale to the public of stocks in the Company by way of issuing and listing of its shares;

 

•   a merger shall be defined as the merger of the Company with or into another corporation (without liquidation);

 

•   a change of control shall be defined as a transaction following which one party (or several parties acting together) acquires more than 51% of the voting rights of the Company;

 

•   the closing date shall be the date on which the Transaction becomes effective.

 

7.5 Exercise Price

 

The Exercise Price of each option granted under the Plan shall be defined in the Option Agreement. It shall amount to not less than the pro rate valuation of the Company in its last financing round.

 

Each option shall pertain to one share only.

 

7.6 Adjustments upon Changes in Capital Structure

 

Subject to any required actions by the shareholders of the Company, the number of shares covered by each outstanding option respectively the exercise price of each outstanding option, shall be proportionately adjusted for any increase or decrease in the number of issued shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the shares.

 

In case of a subscription rights offering with a discounted subscription price, the exercise price for all outstanding options shall be adjusted according to generally accepted formulas adopted by the Board of Directors.

 

Any adjustment under this section shall be made by the Board of Directors, whose determination in that respect shall be final, binding and conclusive, save obvious mathematical mistakes.

 

7.7 Exercise Procedure

 

A Participant may exercise the options granted to him under the Plan by giving written notice (by registered mail) of such exercise to the Board of Directors which shall constitute the Participant’s binding agreement to pay the Exercise Price, and which shall also contain the express written adherence to the Shareholders’ Agreement as per Section 10 below.

 

3  

The date upon which such written notice is sent to the Company shall be deemed to be the exercise date for the option.

 

7.8 Financing

 

The financing of the Exercise Price is the sole concern of the Participant.

 

In case of change of control of the Company to, the Company will use its best efforts to organizing setting off agreements.

 

8. Non-transferability of Options

 

Except as specifically authorized by the Board of Directors or the Plan, options and Option Agreements shall not be assignable or transferable by the Participant, including to other employees of the Company. Any attempted or executed assignment or transfer of an option or Option Agreement shall be null and void.

 

The transfer of options by reason of death or disability is reserved.

 

9. Restricted Transferability of the Shares acquired upon Exercise of the Options

 

The shares acquired upon exercise of the options will be registered shares each of nominal value of CHF 10 and subject to a restriction of transferability, as provided for by the Articles 685 and seq. of the Swiss Code of Obligations, the Articles of association of the Company and the Shareholders’ Agreement.

 

10. Adherence to the Shareholders’ Agreement

 

Any effective exercise of the options shall be subject to full adherence by express written consent from the Participant to the Shareholders’ Agreement executed on December 13, 2007 or to any subsequent shareholder’s agreement, and from such date of adherence, said Participant shall have all rights and obligations of a Shareholder, as defined by the Shareholders’ Agreement.

 

11. Termination of Employment

 

11.1

 

In case of termination of the employment or agency / mandate agreement by a Participant or the Company during the vesting period, all unvested option held by such Participant upon the date of effect of such termination shall terminate, without compensation, payment or liability on the part of the Company, such termination being effective as of the date of the termination of the employment or agency / mandate agreement.

 

11.2

 

In case of termination of the employment by reason of death or permanent disability (recognized as such permanent disability by Swiss social security authorities and, in any case, evidenced to the satisfaction of the Board of Directors as causing the employment termination) of the Participant, only 50% of all unvested option held by such Participant shall terminate as per 11.1.

 

4  

12. Amendments

 

The Board of Directors shall have the authority at any time to make amendments as necessary to carry out the purposes of the Plan. In no case shall the Board of Directors have the authority to amend the Plan to deprive any Participant of any earned benefit under the Plan.

 

13. Interpretation

 

Any question arising as to the interpretation of this Plan shall be in the full discretionary authority of the Board of Directors whose decision shall be final, conclusive and binding.

 

14. Miscellaneous

 

No Participant or employee of the Company shall have any claim or right to be granted an option under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant or employee any right to be retained by the Company.

 

15. Entry into force

 

The Plan is deemed to correspond to the specific Company regulations provided for by the Article 3b of the Articles of Incorporation of the Company, which allows the Board of Directors to determine the conditions under which options may be granted.

 

The Plan shall be effective as of November 24, 2009, amending and superseding the previous version of November 21, 2008. A copy shall be handed out to all receivers of options under the previous version.

 

Basel, 24 November 2009
 
For the Board of Directors
 

 

 

5  

Exhibit 99.3

 

Amendment to

Auris Medical Holding AG (f/k/a Auris Medical AG)

Stock Option Plan A

 

Based on the decision by the Company’s Board of Directors of August 8, 2014, Art. 7.4 is amended as follows:

 

In case of IPO, merger or change of control (hereinafter referred to as each a “Transaction”) as well as in case of transfer of the Participant’s employment contract to another employer arising out of the transfer of all or part of the Company’s assets or activities to said employer, any option, even if not vested as per Section 7.3 above, shall:

 

• vest as from the written announcement of the Transaction to the Participants, but in any case on the closing date of the Transaction (which closing shall be announced by the Company by written communication to all Participants at the latest on the closing date) and shall become immediately exercisable upon vesting for a maximum duration of 60 days following the closing date of the Transaction (for the avoidance of doubt, it is precised that, in such case, the 5 year duration of Section 7.2 above is shortened to 60 days after the closing date of the Transaction) ;

 

…

 

Zug, August 8, 2014

 

For the Board of Directors

 

 

Thomas Meyer, Chairman

 

 

 

Exhibit 99.4

 

 

Stock Option Plan C

 

Auris Medical AG
Falknerstrasse 4
4001 Basel

 

1. Purpose

 

The purpose of this Stock Option Plan C (hereinafter referred to as the “Plan”) is to recruit, retain and motivate persons in key positions at Auris Medical AG as well as key service providers by offering additional incentives to achieve a high level of corporate performance.

 

The Stock Option Plan C will replace Stock Option Plan A for any future option grants effective as from April 5, 2013.

 

2. Definitions

 

a) “Option Agreement” means an agreement entered into by the Company and each Participant setting forth the terms and conditions applicable to options granted under the Plan;

 

b) “Board of Directors” means the Board of Directors of the Company;

 

c) “Company” means Auris Medical AG, in Basel;

 

d) “Company’s stock” means registered shares of the Company with a nominal value of CHF 10 each;

 

e) “Exercise Price” means the price at which stock of the Company may be purchased by a Participant pursuant to options granted under the Plan;

 

f) “Participants” eligible for awards under the Plan are directors, employees, advisors and agents of the Company as defined by the Board of Directors (individually “Participant”);

 

g) “Shareholders’ Agreement” means the agreement entered into by and among the shareholders of the Company on April 5, 2013.

 

3. Stock Option Rights

 

Stock options granted under the Plan give the Participants the right to purchase shares of the Company under the terms and conditions set forth in the Option Agreement.

 

4. Availability of Company’s Stock

 

Subject to the Articles of Incorporation of the Company, the provisions of the present Plan and any other existing applicable regulations, the Board of Directors shall, in its sole

 

discretion, determine the mode and conditions under which stock of the Company is made available to satisfy the purposes of the Plan.

 

5. Extent and Timing of the Option Grant

 

Subject to the provisions of the Plan, the Board of Directors may, upon proposal made by the CEO but in its sole discretion, select among all eligible Participants those to whom options shall effectively be granted. A grant of options in one year shall not preclude a grant of additional options in subsequent years. Likewise, a grant of options in one year shall not entitle a Participant to a grant of options in subsequent years.

 

The number of options to be granted in each year is determined by the Board of Directors in its sole discretion.

 

6. Option Agreements / Date of Grant

 

Options granted to an eligible Participant in any given year shall be granted by an Option Agreement that specifies in particular:

 

· the number of options granted;

 

· the exercise price;

 

· the duration of the options;

 

· the vesting period;

 

· the exercise terms and conditions; and

 

· such other provisions as the Board of Directors shall determine.

 

Option Agreements shall be dated and signed by the Participant and returned to the Board of Directors of the Company within 30 days of receipt. By signing the Option Agreements, the Participant accepts to be granted options subject to the terms and conditions of the Plan.

 

The Option Agreement shall not form part of any contract of employment between the Company and the Participant.

 

The date of the Option Agreement which, in principle, shall not be earlier than six (6) months after beginning of the employment or mandate between the Company and the Participant, is deemed to correspond to the date of grant of the options, save any earlier deemed date of grant fixed by the Board of Directors, in its sole discretion.

 

7. Terms and Conditions

 

Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions as the Board of Directors shall deem desirable. The Board of Directors of the Company retains the right, in its absolute discretion but under exceptional circumstances only, to grant options subject to terms and

 

2  

conditions different from those set forth in the Plan, in particular in this Section 7 of the Plan.

 

7.1 Option Price

 

Unless otherwise provided in the Option Agreement, options are granted to Participants free of charge.

 

7.2 Duration

 

Subject to Section 7.4, options granted under the Plan shall expire six (6) years after the date of grant. The Company shall not be held responsible for any consequences pertaining to such expiration.

 

7.3 Vesting Period and Earliest Date of Exercise

 

The options granted under the Plan are vesting after 4 (four) years. Cases where vesting is accelerated are reserved (see Section 7.4 below).

 

7.4 Acceleration of Vesting

 

In case of (i) a change of control, defined as transaction following which one party (or several parties acting together) acquires more than 51% of the voting rights of the Company, and, cumulatively (ii) a subsequent termination of a Participant’s employment agreement without cause during the vesting period, any option of such Participant, even if not vested as per Section 7.3 above, shall vest as from the written termination of said employment agreement and shall become immediately exercisable upon vesting.

 

7.5 Exercise Price

 

The Exercise Price of each option granted under the Plan shall be defined in the Option Agreement. It shall amount to not less than the pro rata valuation of the Company in its last financing round.

 

Each option shall pertain to one share only.

 

7.6 Adjustments upon Changes in Capital Structure

 

Subject to any required actions by the shareholders of the Company, the number of shares covered by each outstanding option respectively the exercise price of each outstanding option, shall be proportionately adjusted for any increase or decrease in the number of issued shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the shares.

 

In case of a subscription rights offering with a discounted subscription price, the exercise price for all outstanding options shall be adjusted according to generally accepted formulas adopted by the Board of Directors.

 

3  

Any adjustment under this section shall be made by the Board of Directors, whose determination in that respect shall be final, binding and conclusive, save obvious mathematical mistakes.

 

7.7 Exercise Procedure

 

A Participant may exercise the options granted to him under the Plan by giving written notice (by registered mail) of such exercise to the Board of Directors which shall constitute the Participant’s binding agreement to pay the Exercise Price, and which shall also contain the express written adherence to the Shareholders’ Agreement as per Section 10 below.

 

The date upon which such written notice is sent to the Company shall be deemed to be the exercise date for the option.

 

7.8 Financing

 

The financing of the Exercise Price is the sole concern of the Participant.

 

8. Non-transferability of Options

 

Except as specifically authorized by the Board of Directors or the Plan, options and Option Agreements shall not be assignable or transferable by the Participant, including to other employees of the Company. Any attempted or executed assignment or transfer of an option or Option Agreement shall be null and void.

 

The transfer of options by reason of death or disability is reserved.

 

9. Restricted Transferability of the Shares acquired upon Exercise of the Options

 

The shares acquired upon exercise of the options will be registered shares each of nominal value of CHF 10 and subject to a restriction of transferability, as provided for by the Articles 685 and seq. of the Swiss Code of Obligations, the Articles of association of the Company and the Shareholders’ Agreement.

 

10. Adherence to the Shareholders’ Agreement

 

Any effective exercise of the options shall be subject to full adherence by express written consent from the Participant to the Shareholders’ Agreement executed on April 5, 2013 or to any subsequent shareholder’s agreement, and from such date of adherence, said Participant shall have all rights and obligations of a Shareholder, as defined by the Shareholders’ Agreement in its current version.

 

4  

11. Termination of Employment

 

11.1

 

Except for the provisions under 7.4, in case of termination of the employment or agency / mandate agreement by a Participant or the Company during the vesting period, all unvested option held by such Participant upon the date of effect of such termination shall terminate, without compensation, payment or liability on the part of the Company, such termination being effective as of the date of the termination of the employment or agency / mandate agreement.

 

11.2

 

In case of termination of the employment by reason of death or permanent disability (recognized as such permanent disability by Swiss social security authorities and, in any case, evidenced to the satisfaction of the Board of Directors as causing the employment termination) of the Participant, only 50% of all unvested option held by such Participant shall terminate as per 11.1.

 

12. Amendments

 

The Board of Directors shall have the authority at any time to make amendments as necessary to carry out the purposes of the Plan. In no case shall the Board of Directors have the authority to amend the Plan to deprive any Participant of any earned benefit under the Plan.

 

13. Interpretation

 

Any question arising as to the interpretation of this Plan shall be in the full discretionary authority of the Board of Directors whose decision shall be final, conclusive and binding.

 

14. Miscellaneous

 

No Participant or employee of the Company shall have any claim or right to be granted an option under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant or employee any right to be retained by the Company.

 

15. Entry into force

 

The Plan is deemed to correspond to the specific Company regulations provided for by the Article 3b of the Articles of Incorporation of the Company, which allows the Board of Directors to determine the conditions under which options may be granted.

 

The Plan shall be effective as of April 5, 2013. Basel, April 22, 2013

 

For the Board of Directors

 

 

 

 

Thomas Meyer, Chairman

 

Wolfgang Arnold

(secretary)

 

 

5