As filed with the Securities and Exchange
Commission on December 23, 2020
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM F-3
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
AKARI THERAPEUTICS, PLC
(Exact name of registrant as specified
in its charter)
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England and Wales
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2834
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98-1034922
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(State or other jurisdiction of
incorporation or organization)
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(Primary Standard Industrial
Classification Code Number)
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(I.R.S. Employer
Identification No.)
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75/76 Wimpole Street
London W1G 9RT
United Kingdom
Tel: +44 20 8004 0270
(Address, including zip code, and telephone
number, including area code, of registrant’s principal executive offices)
Puglisi & Associates
850 Library Avenue
Newark, Delaware 19711
Tel: (302) 738-6680
(Name, Address, including zip code, and
telephone number, including area code, of agent for service)
Copies of all correspondence to:
Todd Finger, Esq.
Gary Emmanuel, Esq.
Richard Bass, Esq.
McDermott Will & Emery LLP
340 Madison Avenue
New York, NY 10173
Tel: (212) 547-5400
Approximate date of commencement of proposed sale to the
public: From time to time after this registration statement becomes effective.
If the only securities being registered
on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ¨
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933,
check the following box. x
If this Form is filed to register
additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. ¨
If this Form is a registration statement
pursuant to General Instruction I.C. or a post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box. ¨
If this Form is a post-effective amendment
to a registration statement filed pursuant to General Instruction I.C. filed to register additional securities or additional classes
of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ¨
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933.
Emerging growth company ¨
If an emerging growth company that prepares
its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 7(a)(2)(B) of
the Securities Act. ¨
CALCULATION OF REGISTRATION FEE
Title of each class of
securities to be registered
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Amount to be
registered(1)
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Proposed
maximum
offering price
per unit(2)
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Proposed maximum
aggregate offering
price(3)
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Amount of registration fee(4)
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Ordinary Shares, $0.0001 par value each (5)
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Warrants
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Subscription Rights
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Debt Securities
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Units
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Total
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$
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100,000,000
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$
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100,000,000
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$
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490.94
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(6)
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(1)
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There are being registered under this registration statement such indeterminate number of ordinary shares, warrants, subscription rights, debt securities, and units, as may be sold by the registrant from time to time, which collectively shall have an aggregate initial offering price not to exceed $100,000,000 or, if any securities are issued for consideration denominated in a foreign currency, such amount as shall result in an aggregate initial offering price equivalent to a maximum of $100,000,000. The securities registered hereunder also include such indeterminate number of ordinary shares as may be issued upon conversion, exercise or exchange of warrants or debt securities that provide for such conversion into, exercise for or exchange into ordinary shares. In addition, pursuant to Rule 416 under the Securities Act of 1933, as amended, or the Securities Act, the ordinary shares being registered hereunder include such indeterminate number of ordinary shares as may be issuable with respect to the shares being registered hereunder as a result of stock splits, stock dividends, or similar transactions. If any debt securities are issued at an original issue discount, then the offering may be in such greater principal amount as shall result in a maximum aggregate offering price not to exceed $100,000,000 after the date hereof.
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(2)
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Not specified as to each class of securities to be registered pursuant to General Instruction II.C. of Form F-3.
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(3)
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An indeterminate aggregate amount of securities is being registered as may from time to time be sold at indeterminate prices.
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(4)
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The registration fee has been calculated pursuant to Rule 457(o) under the Securities Act on the basis of the maximum aggregate offering price of the securities listed.
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(5)
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Ordinary shares may be in the form of American Depositary Shares. American Depositary Shares issuable on deposit of the ordinary shares registered hereby have been registered under separate registration statements on Form F-6 (File No. 333-185197) and Form F-6 (File No. 333-234213). Each American Depositary Share represents the right to receive one hundred ordinary shares.
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(6)
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As discussed below, pursuant to Rule 415(a)(6) of the Securities Act, this registration statement includes a total of $95,500,055.20 aggregate offering price of unsold securities that were previously registered on a registration statement on Form F-3 (Registration No. 333-220052) and for which the registration fee was previously paid. Accordingly, the $490.94 registration fee shown above has been calculated based on the proposed maximum offering price of the additional $4,499,944.80 of securities registered on this registration statement.
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Pursuant
to Rule 415(a)(6) of the Securities Act, the securities registered pursuant to this registration statement include $95,500,055.20
aggregate offering price of unsold securities of the registrant previously registered on its Registration Statement on Form F-3
(Registration No. 333-220052), filed on August 18, 2017 and declared effective on February 23, 2018, which the registrant
refers to as the Prior Registration Statement. The previously paid filing fee relating to such unsold securities under the Prior
Registration Statement will continue to be applied to such unsold securities registered in this registration statement. To the
extent that, after the filing date hereof and prior to the effectiveness of this registration statement, any such unsold securities
are sold pursuant to the Prior Registration Statement, the registrant will identify in a pre-effective amendment to this registration
statement the updated amount of unsold securities from the Prior Registration Statement to be included in this registration statement
pursuant to Rule 415(a)(6) and the updated amount of new securities to be registered on this registration statement.
Pursuant to Rule 415(a)(6), the offering of the unsold securities registered under the Prior Registration Statement, if not
previously terminated, will be deemed terminated as of the date of effectiveness of this Registration Statement.
The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the SEC, acting
pursuant to said Section 8(a), may determine.
The information in this prospectus
is not complete and may be changed. We may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities
and we are not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED
DECEMBER 23, 2020
AKARI THERAPEUTICS, PLC
$100,000,000
Ordinary Shares
American Depositary Shares representing
Ordinary Shares
Warrants
Subscription Rights
Debt Securities
Units
We
may offer, issue and sell from time to time up to US$100,000,000, or its equivalent in any other currency, currency units, or composite
currency or currencies, of our ordinary shares, including in the form of American Depositary Shares, or ADSs, warrants to purchase
ordinary shares, including in the form of ADSs, subscription rights, debt securities and a combination of such securities, separately
or as units, in one or more offerings. Each ADS represents 100 ordinary shares. This
prospectus provides a general description of offerings of these securities that we may undertake.
We
refer to our ADSs, ordinary shares, warrants, subscription rights, debt securities, and units collectively as “securities”
in this prospectus.
Each
time we sell our securities pursuant to this prospectus, we will provide the specific terms of such offering in a supplement to
this prospectus. The prospectus supplement may also add, update, or change information contained in this prospectus. You should
read this prospectus, the accompanying prospectus supplement, together with the additional information described under the heading
“Where You Can More Find Information,” before you make your investment decision.
We may, from time to
time, offer to sell the securities, through public or private transactions, directly or through underwriters, agents or dealers,
on or off the Nasdaq Capital Market, at prevailing market prices or at privately negotiated prices. If any underwriters, agents
or dealers are involved in the sale of any of these securities, the applicable prospectus supplement will set forth the names of
the underwriter, agent or dealer and any applicable fees, commissions or discounts.
Our
ADSs are listed on the Nasdaq Capital Market under the symbol “AKTX”.
On December 22, 2020, the closing price of our ADSs on the Nasdaq Capital Market
was $1.95 per ADS.
The aggregate market
value of our outstanding voting and non-voting common equity held by non-affiliates on December 22,
2020, as calculated in accordance with General Instruction I.B.5. of Form F-3, was approximately $61.2 million. We
have not issued any securities pursuant to Instruction I.B.5. of Form F-3 during the 12 calendar month period that ends on
and includes the date hereof.
Investing in these
securities involves a high degree of risk. Please carefully consider the risks discussed in this prospectus under “Risk Factors”
beginning on page 6 and the “Risk Factors” and in our reports filed with the Securities and Exchange Commission,
which are incorporated by reference in this prospectus and in any applicable prospectus supplement for a discussion of information
that should be considered in connection with an investment in our securities.
Neither the U.S.
Securities and Exchange Commission nor any state or other foreign securities commission has approved or disapproved of these securities
or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is , 2021
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is
part of a registration statement that we filed with the Securities and Exchange Commission, or SEC, using a “shelf”
registration process. Under this shelf registration process, we may sell our securities described in this prospectus in one or
more offerings up to a total dollar amount of $100,000,000. Each time we offer our securities, we will provide you with a supplement
to this prospectus that will describe the specific amounts, prices and terms of the securities we offer. The prospectus supplement
may also add, update or change information contained in this prospectus. This prospectus, together with applicable prospectus supplements
and the documents incorporated by reference in this prospectus and any prospectus supplements, includes all material information
relating to this offering. Please read carefully both this prospectus and any prospectus supplement together with additional information
described below under “Where You Can Find More Information” and “Incorporation By Reference.”
You should rely only
on the information contained in or incorporated by reference in this prospectus and any applicable prospectus supplement. We have
not authorized anyone to provide you with different or additional information. If anyone provides you with different or inconsistent
information, you should not rely on it. The information contained in this prospectus is accurate only as of the date of this prospectus,
regardless of the time of delivery of this prospectus or any sale of securities described in this prospectus. This prospectus is
not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer
or sale is not permitted. You should assume that the information appearing in this prospectus or any prospectus supplement, as
well as information we have previously filed with the SEC and incorporated by reference, is accurate as of the date on the front
of those documents only. Our business, financial condition, results of operations and prospects may have changed since those dates.
This prospectus may not be used to consummate a sale of our securities unless it is accompanied by a prospectus supplement.
Throughout this prospectus,
unless otherwise designated, the terms “we”, “us”, “our”, “Akari”, “the Company”
and “our Company” refer to Akari Therapeutics, Plc and its wholly-owned subsidiaries. References to “ordinary
shares”, “ADSs”, “warrants” and “share capital” refer to the ordinary shares, ADSs, warrants
and share capital, respectively, of Akari.
Market data and certain
industry data and forecasts used in, or incorporated by reference in, this prospectus were obtained from sources we believe to
be reliable, including market research databases, publicly available information, reports of governmental agencies and industry
publications and surveys. We have relied on certain data from third-party sources, including internal surveys, industry forecasts
and market research, which we believe to be reliable based on our management’s knowledge of the industry. Forecasts are particularly
likely to be inaccurate, especially over long periods of time. In addition, we do not necessarily know what assumptions regarding
general economic growth were used in preparing the third-party forecasts we cite. Statements as to our market position are based
on the most currently available data. While we are not aware of any misstatements regarding the industry data presented in this
prospectus, our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed
under the heading “Risk Factors” in this prospectus. Our historical results do not necessarily indicate our expected
results for any future periods.
Certain figures included
in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be
an arithmetic aggregation of the figures that precede them.
We have obtained the
statistical data, market data and other industry data and forecasts used in this prospectus and in our SEC filings incorporated
herein by reference from publicly available information. We have not sought the consent of the sources to refer to the publicly
available reports in this prospectus.
OUR BUSINESS
This summary highlights
selected information contained elsewhere in or incorporated by reference into this prospectus that we consider important. This
summary does not contain all of the information you should consider before investing in our securities. You should read this summary
together with the entire prospectus, any prospectus supplement, including the risks related to our business, our industry, investing
in our ordinary shares and our location in the United Kingdom, that we describe under “Risk Factors” and our consolidated
financial statements and the related notes incorporated by reference into this prospectus and the other documents incorporated
by reference into this prospectus, which are described under “Incorporation by Reference” before making an investment
in our securities..
We are a clinical-stage
biopharmaceutical company focused on developing treatments for acute and chronic inflammation, specifically through the inhibition
of the complement and leukotriene pathways. Each of these systems has scientifically well-supported causative roles in the diseases
being targeted by us. We believe that blocking early mediators of inflammation will prevent initiation and continual amplification
of the processes that cause certain diseases.
Our lead product candidate,
nomacopan (formerly known as Coversin) inhibits both terminal complement activation and leukotriene B4, or LTB4. It inhibits terminal
complement activation by tightly binding to C5 and preventing its cleavage. It inhibits LTB4 by capturing the fatty acid within
the body of the nomacopan protein.
Nomacopan is a recombinant
small protein (16,740 Da) derived from a protein originally discovered in the saliva of the Ornithodoros moubata tick, where it
modulates the host immune system to allow the parasite to feed without alerting the host to its presence or provoking an immune
response.
Nomacopan has received
orphan drug status from the U.S. Food and Drug Administration, or the FDA, and the European Medicines Agency, or the EMA, for paroxysmal
nocturnal hemoglobinuria, or PNH, Guillain Barré Syndrome, or GBS, high-risk hematopoietic stem cell transplant-associated
thrombotic microangiopathy, or HSCT-TMA, and bullous pemphigoid, or BP. Orphan drug designation provides us with certain benefits
and incentives, including a period of marketing exclusivity if regulatory approval of the drug is ultimately received for the designated
indication. The receipt of orphan drug designation status does not change the regulatory requirements or process for obtaining
marketing approval and the designation does not mean that marketing approval will be received.
We have received Fast
Track designation from the FDA for the investigation of nomacopan for the treatment of pediatric HSCT-TMA and for the treatment
of PNH in patients who have polymorphisms conferring Soliris® (eculizumab) resistance. The Fast Track program was created by
the FDA to facilitate the development and expedite the review of new drugs which show promise in treating a serious or life-threatening
disease and address an unmet medical need. Drugs with Fast Track designation may also qualify for priority review to expedite the
FDA review process, if relevant criteria are met.
Our clinical targets
for nomacopan are orphan inflammatory diseases where the inhibition of both C5 and LTB4 are implicated, including bullous pemphigoid,
or BP, pediatric HSCT-TMA, atopic keratoconjunctivitis, or AKC, and as well
as COVID-19 pneumonia. Our clinical programs are in different stages of development ranging from phase 1 to phase 3.
Corporate Information
Our legal and commercial
name is Akari Therapeutics, Plc.
We were originally
established as a private limited company under the laws of England and Wales on October 7, 2004 under the name Freshname No. 333
Limited. On January 19, 2005, we changed our name to Morria Biopharmaceuticals Limited and on February 3, 2005, we completed
a reverse merger with Morria Biopharmaceuticals Inc., or Morria, a Delaware corporation, in which Morria became our wholly-owned
subsidiary and we re-registered as a non-traded public limited company under the laws of England and Wales. Morria was dedicated
to the discovery and development of novel, first-in-class, non-steroidal, synthetic anti-inflammatory drugs. On March 22,
2011, we incorporated an Israeli subsidiary, Morria Biopharma Ltd. On June 25, 2013, we changed our name to Celsus Therapeutics
Plc and, on October 13, 2013, Morria was renamed Celsus Therapeutics Inc. As of the date of this prospectus, Celsus Therapeutics
Inc. and Morria Biopharma Ltd. do not conduct any operations.
On September 18,
2015, we completed an acquisition of all of the capital stock of Volution Immuno Pharmaceuticals SA, or Volution, a private Swiss
company, from RPC Pharma Limited, or RPC, Volution’s sole shareholder, in exchange for our ordinary shares, in accordance
with the terms of a Share Exchange Agreement, dated as of July 10, 2015. In connection with the acquisition, our name was
changed to Akari Therapeutics, Plc and the combined company focused on the development and commercialization of life-transforming
treatments for a range of rare and orphan autoimmune and inflammatory diseases caused by dysregulation of complement C5.
Our ADSs have been
listed on the Nasdaq Capital Market under the symbol “AKTX” since September 21, 2015 and under the symbol “CLTX”
from January 31, 2014 until September 18, 2015. Prior to that, our ADSs were quoted on the OTCQB under the symbol “CLSXD”
from January 3, 2014 to January 30, 2014 and were quoted on the OTCQB under the symbol “CLSXY” from September 16,
2013 until January 2, 2014 and under the symbol “MRRBY” from February 19, 2013 to September 15, 2013.
Effective January 3, 2014, our ratio of ADSs to ordinary shares changed from one ADS per each two ordinary shares to one ADS
per each ten ordinary shares and, effective as of September 17, 2015, our ratio of ADSs to ordinary shares changed from one
ADS per each ten ordinary shares to one ADS per each one hundred ordinary shares. Currently, each ADS represents by one hundred
ordinary shares.
Our principal
office is located at 75/76 Wimpole Street, London W1G 9RT, United Kingdom, and our telephone number is +44 20 8004 0270. Our
website address is www.akaritx.com. The information contained on, or that can be accessed through, our website is neither a
part of nor incorporated into this prospectus. We have included our website address in this prospectus solely as an inactive
textual reference. Puglisi & Associates, or Puglisi, serves as our agent for service of process in the United States
for this offering. Puglisi’s address is 850 Library Avenue, Suite 204, Newark, Delaware 19711. Effective December
8, 2020, the currency of the Company’s ordinary shares was changed from pounds sterling to US dollars and the nominal
(par) value of an ordinary share was reduced to USD0.0001.
Implications of being a Foreign Private
Issuer
On July 1, 2016,
we became a foreign private issuer having previously lost this status at the end of 2014. As a foreign private issuer, we are not
subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Exchange Act, we are subject
to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies.
For example, we will not be required to issue proxy statements that comply with the requirements applicable to U.S. domestic reporting
companies. We will also have four months after the end of each fiscal year to file our annual reports with the SEC and will not
be required to file current reports as frequently or promptly as U.S. domestic reporting companies. Furthermore, our officers,
directors, and principal shareholders will be exempt from the requirements to report transactions in our equity securities and
from the short-swing profit liability provisions contained in Section 16 of the Exchange Act. These exemptions and leniencies,
along with other corporate governance exemptions resulting from our ability to rely on home country rules, will reduce the frequency
and scope of information and protections to which you may otherwise have been eligible in relation to a U.S. domestic reporting
companies. If we were to lose our foreign private issuer status, the regulatory and compliance costs to us under U.S. securities
laws as a U.S. domestic issuer will be significantly more than costs we incur as a foreign private issuer.
RISK
FACTORS
Investing in our securities
involves significant risks. Before making an investment decision, you should carefully consider the risks described under “Risk
Factors” in the applicable prospectus supplement and under Item 3.D. – “Risk Factors” in our most recent
Annual Report on Form 20-F (the “Annual Report”), or any updates in our Reports on Form 6-K, together with
all of the other information appearing in this prospectus or incorporated by reference into this prospectus and any applicable
prospectus supplement, in light of your particular investment objectives and financial circumstances. The risks so described are
not the only risks facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our
business operations. Our business, financial condition and results of operations could be materially adversely affected by any
of these risks. The trading price of our securities could decline due to any of these risks, and you may lose all or part of your
investment. The discussion of risks includes or refers to forward-looking statements; you should read the explanation of the qualifications
and limitations on such forward-looking statements discussed elsewhere in this prospectus.
SPECIAL NOTE REGARDING FORWARD LOOKING
STATEMENTS
This prospectus, and
the documents incorporated hereby reference, contain express or implied “forward-looking statements” within the meaning
of U.S. Federal securities laws. All statements other than statements of historical facts contained in our SEC filings incorporated
herein by reference, including under Item 3.D. – “Risk Factors” in our most recent Annual Report and any updates
in our Reports on Form 6-K, which include statements regarding our strategy, future operations, future financial position,
future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or implied
by the forward-looking statements.
Words such as “may,”
“anticipate,” “estimate,” “expects,” “projects,” “intends,” “plans,”
“believes” and words and terms of similar substance used in connection with any discussion of future operating or financial
performance, identify forward-looking statements. Forward-looking statements represent management’s present judgment regarding
future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. These risks include, but are not limited to, risks and uncertainties regarding
our pre-clinical and clinical studies, the results of such trials, as well as risks and uncertainties relating to litigation, government
regulation and third-party reimbursement, economic conditions, markets, products, competition, intellectual property, services
and prices, key employees, future capital needs, dependence on third parties and other factors. Please also see the discussion
of risks and uncertainties under “Risk Factors” contained in the Annual Report and in our other SEC filings incorporated
herein by reference.
In light of these assumptions,
risks and uncertainties, the results and events discussed in the forward-looking statements contained in the Annual Report and
in our other SEC filings incorporated herein by reference might not occur. We are not under any obligation, and we expressly disclaim
any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
All subsequent forward-looking statements attributable to us or to any person acting on our behalf are expressly qualified in their
entirety by the cautionary statements contained or referred to in this section.
Public health epidemics
or outbreaks could adversely impact our business. In late 2019, a novel strain of coronavirus, known as COVID-19, was reported
in Wuhan, China. Epidemics such as this can adversely impact our business as a result of disruptions, such as travel bans, quarantines,
and interruptions to access the trial sites and supply chains, which could result in material delays and complications with respect
to our research and development programs and clinical trials. Moreover, as a result of the coronavirus, there is a general unease
of conducting unnecessary activities in medical centers. As a consequence, our ongoing trials have been halted or disrupted. It
is too early to assess the full impact of the coronavirus outbreak on trials for nomacopan, but it has affected and is likely to
continue to affect our ability to complete recruitment in our original timeframe. For example, we have halted our Phase I/II clinical
trial in patients with AKC study and recruitment in our Phase III clinical trial in pediatric patients with
HSCT-TMA was delayed and our long-term safety program was disrupted. The extent to which the coronavirus impacts our operations
will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration
and severity of the outbreak, and the actions that may be required to contain the coronavirus or treat its impact. In particular,
the continued spread of the coronavirus globally could adversely impact our operations and workforce, including our research and
clinical trials and our ability to raise capital, could affect the operations of key governmental agencies, such as the FDA, which
may delay the development of our product candidates, and could result in the inability of our suppliers to deliver components or
raw materials on a timely basis or at all, each of which in turn could have an adverse impact on our business, financial condition
and results of operation.
You should read this
prospectus and the documents incorporated herein by reference with the understanding that our actual future results may be materially
different from what we expect. We do not assume any obligation to update any forward-looking statements whether as a result of
new information, future events or otherwise, except as required by applicable law.
OFFER STATISTICS AND EXPECTED TIMETABLE
We may sell from time
to time pursuant to this prospectus (as may be detailed in prospectus supplements) an indeterminate number of securities as shall
have a maximum aggregate offering price of $100,000,000. The actual per share price of the securities that we will offer
pursuant hereto will depend on a number of factors that may be relevant as of the time of offer (see "Plan of Distribution"
below).
USE OF PROCEEDS
Except as otherwise
provided in the applicable prospectus supplement, we intend to use the net proceeds from the sale of the securities offered by
this prospectus for general corporate purposes, which may include working capital, capital expenditures, research and development
expenditures, regulatory affairs expenditures, clinical trial expenditures, acquisitions of new technologies and investments, and
the repayment, refinancing, redemption or repurchase of future indebtedness or capital stock.
The intended application
of proceeds from the sale of any particular offering of securities using this prospectus will be described in the accompanying
prospectus supplement relating to such offering. The precise amount and timing of the application of these proceeds will depend
on our funding requirements and the availability and costs of other funds.
CAPITALIZATION
The following table
sets forth our cash and capitalization as of September 30, 2020 on an actual basis.
The following information
should be read in conjunction with the unaudited interim condensed consolidated financial statements and related notes incorporated
by reference in this prospectus. For more details on how you can obtain the documents incorporated by reference in this prospectus,
see “Where You Can Find More Information” and “Incorporation of Certain Information by Reference.”
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As of September
30, 2020
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Actual
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(in
thousands,
except
share and per
share data)
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Cash
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$
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12,318
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Liability related to Options and Warrants
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5,449
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Shareholders' equity:
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Share capital
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46,579
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Additional paid-in capital
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113,070
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Accumulated other comprehensive income
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(621
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)
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Accumulated deficit
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(154,169
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)
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Total shareholders' equity
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4,858
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Total capitalization (long-term liabilities and equity)
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4,858
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The number of ordinary
shares indicated as issued and outstanding above is based on 3,386,573,113 ordinary shares outstanding as of September 30,
2020, and excludes:
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112,649,035 ordinary shares (equivalent to 1,126,490 ADSs) issuable upon the exercise of options outstanding as of September 30, 2020 at a weighted-average exercise price of $0.09 per ordinary share (equivalent to $8.95 per ADS);
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232,098,427 additional ordinary shares (equivalent to 2,320,984 ADSs) available for future issuance as of September 30, 2020 under our 2014 Equity Incentive Compensation Plan;
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279,763,600 ordinary shares (equivalent to 2,797,636 ADSs) issuable upon exercise of unregistered warrants issued to investors in a series of February 2020 private placements, having an exercise price of $2.20 per ADS;
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44,962,300 ordinary shares (equivalent to 449,623 ADSs) issuable upon exercise of unregistered warrants issued to the placement agent in connection with a series of February 2020 private placements, at an exercise price of $2.55 per ADS;
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118,421,300 ordinary shares (equivalent to 1,184,213 ADSs) issuable upon exercise of unregistered warrants issued to investors in a July 2019 financing, having an exercise price of $3.00 per ADS;
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17,762,900 ordinary shares (equivalent
to 177,629 ADSs) issuable upon exercise of unregistered warrants issued to the placement agent in connection with a
July 2019 financing, at an exercise price of $2.85 per ADS; and
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460,758,800 (equivalent to 4,607,588 ADSs) issued to Aspire
pursuant to our equity line facility with Aspire Capital Fund, LLC.
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DESCRIPTION OF SHARE CAPITAL AND ARTICLES
OF ASSOCIATION
We may issue ordinary
shares pursuant to this prospectus. The following summarizes the material rights of holders of ordinary shares, as set out in our
Articles of Association. The following summary is qualified in its entirety by reference to the Companies Act 2006 (the Companies
Act) and to our Articles of Association, which are filed as an exhibit to this prospectus.
We were originally
established as a private limited company under the laws of England and Wales on October 7, 2004 under the name Freshname No. 333
Limited. On January 19, 2005, we changed our name to Morria Biopharmaceuticals Limited and on February 3, 2005, we completed
a reverse merger with Morria Biopharmaceuticals Inc., or Morria, a Delaware corporation, in which Morria became our wholly-owned
subsidiary and we re-registered as a non-traded public limited company under the laws of England and Wales. Morria was dedicated
to the discovery and development of novel, first-in-class, non-steroidal, synthetic anti-inflammatory drugs. On March 22,
2011, we incorporated an Israeli subsidiary, Morria Biopharma Ltd. On June 25, 2013, we changed our name to Celsus Therapeutics
Plc and on October 13, 2013 Morria was renamed Celsus Therapeutics Inc. On September 25, 2015, we further changed our
name to “Akari Therapeutics, Plc”. As such our affairs are governed by our Articles of Association and English law.
In the following summary,
a “shareholder” is the person registered in our register of members as the holder of the relevant securities. For those
ordinary shares that have been deposited in our ADS facility pursuant to our deposit agreement with Deutsche Bank Trust Company
Americas, as depositary, Deutsche Bank Trust Company Americas, as depositary, or its nominee is deemed the shareholder.
Share Capital
Our board of directors
is generally authorized to issue up to 6,800,000,000 ordinary shares of $0.0001 each until June 28, 2022, without seeking
shareholder approval, subject to certain limitations. As of September 30, 2020, there were 112,649,035 ordinary shares outstanding,
outstanding options to purchase 74,649,035 ordinary shares and 232,098,427 ordinary shares available for future issuance under
our 2014 Equity Incentive Compensation Plan. All of our existing issued ordinary shares are fully paid. Accordingly, no further
capital may be required by us from the holders of such shares.
The rights and restrictions
to which the ordinary shares will be subject are prescribed in our Articles of Association. Our Articles of Association permit
our board of directors, with shareholder approval, to determine the terms of any preferred shares that we may issue. Our board
of directors is authorized, having obtained the consent of the shareholders, to provide from time to time for the issuance of other
classes or series of shares and to establish the characteristics of each class or series, including the number of shares, designations,
relative voting rights, dividend rights, liquidation and other rights, redemption, repurchase or exchange rights and any other
preferences and relative, participating, optional or other rights and limitations not inconsistent with applicable law.
English law does not
recognize fractional shares held of record. Accordingly, our Articles of Association do not provide for the issuance of fractional
ordinary shares, and our official English share register will not reflect any fractional shares.
We are not permitted
under English law to hold our own ordinary shares unless they are repurchased by us and held in treasury.
During the three years
ended September 30, 2020, we have issued an aggregate of 2,208,879,720 ordinary shares, options to purchase an aggregate of
67,950,000 ordinary shares and warrants to purchase an aggregate of 462,160,100 ordinary shares.
Issuance of Options and Warrants
Our Articles of Association
provide that, subject to any shareholder approval requirement under any laws, regulations or the rules of any stock exchange
to which we are subject, our board of directors is authorized, from time to time, in its discretion, to grant such persons, for
such periods and upon such terms as it deems advisable, options to purchase such number of shares of any class or classes or of
any series of any class as our board of directors may deem advisable, and to cause warrants or other appropriate instruments evidencing
such options to be issued. The Companies Act provides that directors may issue options or warrants without shareholder approval
once authorized to do so by the Articles of Association or an ordinary resolution of shareholders. Our board of directors may issue
shares upon exercise of options or warrants without shareholder approval or authorization, up to the relevant authorized share
capital limit.
Dividends
Our Articles of Association
provide that our board of directors may, subject to the applicable provisions of the Companies Act, from time to time, declare
such dividend as may appear to the board of directors to be justified by the distributable profits of the Company. Subject to the
rights of the holders of shares with preferential or other special rights that may be authorized in the future, holders of ordinary
shares are entitled to receive dividends according to their rights and interest in our distributable profits. Dividends, to the
extent declared, are distributed according to the proportion of the nominal value paid up on account of the shares held at the
date so appointed by the Company, without regard to the premium paid in excess of the nominal value, if any. A company may only
distribute a dividend out of the company’s distributable profits, as defined under the Companies Act.
Any dividend unclaimed
after a period of twelve years from the date of declaration of such dividend shall be forfeited and shall revert to us. In addition,
the payment by the board of directors of any unclaimed dividend, interest or other sum payable on or in respect of an ordinary
share into a separate account shall not constitute us as a trustee in respect thereof.
Rights in a Liquidation
In the event of our
liquidation, subject to applicable law, after satisfaction of liabilities to creditors, our assets will be distributed to the holders
of ordinary shares in proportion to their respective holdings. This liquidation right may be affected by the grant of preferential
dividends or distribution rights to the holders of a class of shares with preferential rights that may be authorized in the future.
Voting Rights
Holders of ordinary
shares have one vote for each ordinary share held on all matters submitted to a vote of shareholders. These voting rights may be
affected by the grant of any special voting rights to the holders of a class of shares with preferential rights that may be authorized
in the future.
The ordinary shares
do not have cumulative voting rights in the election of directors. As a result, holders of ordinary shares that represent more
than 50% of the voting power at the general meeting of shareholders, in person or by proxy, have the power to elect all the directors
whose positions are being filled at that meeting to the exclusion of the remaining shareholders. Each director must retire at the
next annual general meeting after the end of his appointment term of one, two or three years. In any two year period, a majority
of the directors must stand for re-election or replacement. In the event that this majority has not been met and the number of
directors eligible for retirement by rotation under the provision of our Articles of Association is not met, any further directors
to retire are those who have been in office the longest since their last appointment or re-appointment, but as between persons
who became or were last re-appointed directors on the same day, those to retire are determined by the Board of Directors at the
recommendation of the Chairman. A retiring director is eligible for re-appointment, subject to the terms of our Articles of Association.
The actions necessary
to change the rights of holders of the ordinary shares are as follows: the rights of the shareholders would need to be altered
by way of a special resolution requiring 75% vote of the shareholders who are present and voting in person or by proxy. In order
to change the rights of a separate class of shares, it will require such a vote by shareholders of that class of shares.
Preemptive Rights
There are no rights
of pre-emption under our Articles of Association in respect of transfers of issued ordinary shares. In certain circumstances, our
shareholders have preemptive rights with respect to new issuances of equity securities. However our board of directors is
generally authorized to allot equity securities for cash without triggering shareholder preemptive rights, provided that this power
shall (i) be limited to the allotment of equity securities up to an aggregate nominal amount of $680,000; and (ii) expire
(unless previously revoked or varied by us), on June 28, 2022.
Transfer of Shares
Fully paid ordinary
shares are issued in registered form and may be transferred pursuant to our Articles of Association, unless such transfer is restricted
or prohibited by another instrument and subject to applicable securities laws. The Articles of Association state that the directors
of the Company may refuse to authorize a transfer of shares if the shares in question have not been paid in full and are therefore
only partly paid.
Limitation on Owning Securities
Our Articles of Association
do not restrict in any way the ownership or voting of ordinary shares by non-residents. If the Company serves a demand on a person
under section 793 of the Companies Act, that person will be required to disclose any interest he has in the shares of the Company.
Fiduciary Duties of Office Holders
Directors owe fiduciary
duties to their companies. Chapter 2 of Part 10 of the Companies Act codifies certain of those duties. The relevant statutory
duties imposed on directors under the Companies Act are:
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to act in accordance with the company's constitution, and only exercise powers for the purposes for which they are conferred;
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to act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole;
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to exercise independent judgment;
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to exercise reasonable care, skill and diligence, being such as would be exercised by a reasonably diligent person with the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director, and the general knowledge, skill and experience that the director has;
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to avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company (including in particular through exploitation of any property, information or opportunity) unless authorized by the company or its board;
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not to accept benefits from third parties; and
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to declare an interest in a proposed transaction or arrangement.
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In addition, certain
additional duties are imposed by the common law, such as a duty of confidentiality.
Disclosure of Personal Interests of an Officer Holder
The Companies Act requires
a director to disclose to the board any direct or indirect personal interest that he or she may have in connection with any existing
or proposed transaction by the company. The disclosure is required to be made promptly and, in the case of a proposed transaction,
before it is entered into. All transactions in which a director has an interest must be declared, and not only those that are extraordinary
transactions.
Except as provided
in our Articles of Association, a director may not vote at a meeting of the board or of a committee of the board on any resolution
concerning a matter:
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in which he (directly or indirectly) has a material interest, other than an interest in shares or debentures or other securities of or in (or through) the Company; and
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subject to the Companies Act, which conflicts or may conflict with the interests of the Company.
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A director is not counted
in the quorum at a meeting in relation to any resolution on which he is debarred from voting.
Notwithstanding the
foregoing, a director is entitled to vote and be counted in the quorum in respect of any resolution concerning any of the following
matters:
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the giving of any security, guarantee or indemnity to a third party in respect of a debt or obligation of the Company or any of our subsidiaries for which he himself has assumed responsibility in whole or in part under a guarantee or indemnity or by the giving of security;
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any proposal concerning an offer of shares or debentures or other securities of or by the Company or any of our subsidiaries for subscription or purchase in which offer he is or is to be interested as a participant as the holder of such shares, debentures or other securities or in its underwriting or sub-underwriting;
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any contract, arrangement, transaction or other proposal concerning any other company in which he (together with any person connected with him) is interested (directly or indirectly) whether as an officer, shareholder, creditor or otherwise, unless he (together with any person connected with him) holds an interest representing one per cent. or more of any class of the equity share capital (exclusive of treasury shares) of such company or of the voting rights available to members of the relevant company;
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any contract, arrangement, transaction or other proposal concerning the adoption, modification or operation of a superannuation fund or retirement, death or disability benefits scheme under which he may benefit and which has been approved by or is subject to and conditional upon approval by Her Majesty’s Revenue & Customs;
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any contract, arrangement, transaction or proposal concerning the adoption, modification or operation of any scheme for enabling employees, including full time executive directors of the Company or any of our subsidiaries to acquire shares of the Company or any arrangement for the benefit of employees of the Company or any of our subsidiaries, which does not award him any privilege or benefit not awarded to the employees to whom such scheme relates; or
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any contract, arrangement, transaction or proposal concerning insurance which the Company proposes to maintain or purchase for the benefit of directors or for the benefit of persons including directors.
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Article 27 of
the Articles of Association states, that the board may authorize any matter which may otherwise involve a director breaching his
duties under certain sections of the Companies Act to avoid conflicts of interest.
Any director (including
the director which has the conflict) may propose that such conflicted director be authorized in relation to any matter which is
the subject of such a conflict. The director with the conflict will not count towards the quorum at the meeting at which the conflict
is considered and may not vote on any resolution authorizing the conflict. Where the board gives authority in relation to such
a conflict, the board may impose such terms on the relevant director as it deems appropriate.
Directors’ and Officers’ Compensation
The Companies Act requires
that a resolution approving provisions to appoint a director for a fixed period of more than two years must not be passed unless
a memorandum setting out the proposed contract incorporating the provision is made available to members: in the case of a resolution
at a meeting, by being made available for inspection by members of the company both (i) at the company’s registered
office for not less than 15 days ending with the date of the meeting, and (ii) at the meeting itself.
Directors’ Borrowing Powers
Our board of directors
may, from time to time, in its discretion, cause us to borrow or secure the payment of any sum or sums of money for the purposes
of our company.
Retirement of Directors
We do not have any
age limitations for our directors, nor do we have mandatory retirement as a result of reaching a certain age.
Share Qualification of Directors
No shareholding
qualification is required by a director.
Redemption Provisions
We may, subject to
applicable law and to our Articles of Association, issue redeemable shares and redeem the same.
Capital Calls
Under our Articles
of Association and the Companies Act, the liability of our shareholders is limited to the nominal value (i.e. par). The board of
directors has the authority to make calls upon the shareholders in respect of any money unpaid on their shares and each shareholder
shall pay to us as required by such notice the amount called on his shares. If a call remains unpaid after it has become due and
payable, and the fourteen days’ notice provided by the board of directors has not been complied with, any share in respect
of which such notice was given may be forfeited by a resolution of the board.
No Sinking Fund
Our ordinary shares
do not have sinking fund provisions.
Modification of Rights
Subject to the provisions
of the Companies Act, if at any time our capital is divided into different classes of shares, the rights attached to any class
may be varied or abrogated with the consent in writing of the holders of at least three-fourths in nominal value of that class
or with the sanction of a special resolution passed at a separate meeting of the holders of that class, but not otherwise. The
quorum at any such meeting is two or more persons holding, or representing by proxy, at least one-third in nominal value of the
issued shares in question.
Shareholders’ Meetings and Resolutions
Pursuant to our Articles
of Association, the quorum required for an ordinary meeting of shareholders consists of at least two shareholders present in person
or by proxy, who hold in aggregate more than 15% of our issued share capital. If at any time the Company has only one shareholder,
such shareholder, in person, by proxy or, if a corporation, by its representative, shall constitute a quorum. A meeting adjourned
for lack of a quorum generally is adjourned to the same day in the following week at the same time and place or any time and place
as the chairman of the board may designate. Furthermore, the board of the company may call a general meeting whenever they think
fit. If the Board, in its absolute discretion, considers that it is impractical or unreasonable for any reason to hold a general
meeting on the date or at the time or place specified in the notice calling the general meeting, it may postpone the general meeting
to another date, time and/or place.
Under the Companies
Act, each shareholder of record must be provided at least 14 calendar days’ prior notice of any general shareholders’
meeting and 21 days’ prior notice of an annual general meeting. Subject to the provisions of the Companies Act, our annual
general meeting will be held at such time and place or places (any of which may be electronic facilities) as our board may determine.
Our board may call a general meeting whenever it thinks fit, and must do so when required under the Companies Act. General meetings
must be convened on such requisition, or in default may be convened by such requisitionists or by court order, as provided by the
Companies Act.
Voting at any general
meeting of shareholders is by a show of hands, unless a poll is demanded. A poll may be demanded by:
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the chairman of the meeting;
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at least five shareholders entitled to vote at the meeting;
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any shareholder or shareholders representing in the aggregate not less than one-tenth of the total voting rights of all shareholders entitled to vote at the meeting; or
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any shareholder or shareholders holding shares conferring a right to vote at the meeting on which there have been paid up sums in the aggregate equal to not less than one-tenth of the total sum paid up on all the shares conferring that right.
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In a vote by a show
of hands, every shareholder who is present in person or by proxy at a general meeting has one vote. In a vote on a poll, every
shareholder who is present in person or by proxy shall have one vote for every share of which they are registered as the holder
(provided that no shareholder shall have more than one vote on a show of hands notwithstanding that he may have appointed more
than one proxy to vote on his behalf). The quorum for a shareholders’ meeting is a minimum of two persons holding at least
15% of the share capital, present in person or by proxy.
Holders of ADSs are
entitled to vote by supplying their voting instructions to Deutsche Bank Trust Company Americas, as depositary, who, subject to
the terms of the deposit agreement, will vote the ordinary shares represented by their ADSs in accordance with their instructions.
The ability of Deutsche Bank Trust Company Americas, as depositary, to carry out voting instructions may be limited by practical
and legal limitations, the terms of the deposit agreement, the terms of our Articles of Association, and the terms of the ordinary
shares on deposit. We cannot assure the holders of our ADSs that they will receive voting materials in time to enable them to return
voting instructions to Deutsche Bank Trust Company Americas, as depositary, in a timely manner.
Unless otherwise required
by law or the Articles of Association, voting in a general meeting is by ordinary resolution. An ordinary resolution is approved
by a majority vote of the shareholders present at a meeting at which there is a quorum. Examples of matters that can be approved
by an ordinary resolution include:
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the election of directors;
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the approval of financial statements;
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the declaration of final dividends;
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the appointment of auditors; and
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the grant of authority to allot shares.
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A special resolution
requires the affirmative vote of not less than three-fourths of the eligible votes cast. Examples of matters that must be approved
by a special resolution include changes to the Articles of Association, or our winding-up.
Limitation on Owning Securities
Our Articles of Association do not restrict
in any way the ownership or voting of ordinary shares by non-residents. Furthermore, there is no general obligation for a shareholder
of a U.K. company which is not listed in the U.K. or E.U. to voluntarily disclose his shareholding unless required to do so by
the Company. If the Company serves a demand on a person under section 793 of the Companies Act, that person will be required to
disclose any interest he has in the shares of the Company.
Change in Control
We can issue additional
shares with any rights or restrictions attached to them as long as the Company is not restricted by any rights attached to existing
shares. These rights or restrictions can be decided by the directors so long as there is no conflict with any resolution passed
by the shareholders. The ability of the directors to issue shares with rights or restrictions that are different than those attached
to the currently outstanding ordinary shares could have the effect of delaying, deferring or preventing change of control of our
Company.
In addition, our board
of directors is divided into three classes for purposes of election. One class is elected at each annual general meeting to serve
for a three-year term. Because this would prevent shareholders from replacing the entire board at a single meeting, this provision
could also have the effect of delaying, deferring or preventing a change in control of our Company.
Differences in Corporate Law Between England and the State
Of Delaware
As a public limited
company incorporated under the laws of England and Wales, the rights of our shareholders are governed by applicable English law,
including the Companies Act, and not by the law of any U.S. state. As a result, our directors and shareholders are subject to
different responsibilities, rights and privileges than are applicable to directors and shareholders of U.S. corporations. We have
set below a summary of the differences between the provisions of the Companies Act applicable to us and the Delaware General Corporation
Law relating to shareholders’ rights and protections. This summary is not intended to be a complete discussion of the respective
rights and it is qualified in its entirety by reference to English law, Delaware law and our Articles of Association. Before investing,
you should consult your legal advisor regarding the impact of English corporate law on your specific circumstances and reasons
for investing. The summary below does not include a description of rights or obligations under the U.S. federal securities laws
or Nasdaq listing requirements. You are also urged to carefully read the relevant provisions of the Delaware General Corporation
Law and the Companies Act for a more complete understanding of the differences between Delaware and English law.
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Delaware
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England
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Number of Directors
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Under Delaware law, a corporation must have at least one director and the number of directors shall be fixed by or in the manner provided in the bylaws, unless specified in the certificate of incorporation.
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Under the Companies Act, a public limited company must have at least two directors and the number of directors may be fixed by or in the manner provided in a company’s articles of association.
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Delaware
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England
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Removal of Directors
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Under Delaware law, directors may be removed from office, with or without cause, by a majority shareholder vote, except (a) in the case of a corporation whose board is classified, shareholders may effect such removal only for cause, unless otherwise provided in the certificate of incorporation, and (b) in the case of a corporation having cumulative voting, if less than the entire board is to be removed, no director may be removed without cause if the votes cast against his or her removal would be sufficient to elect him or her if then cumulatively voted at an election of the entire board of directors, or, if there are classes of directors, at an election of the class of directors of which he or she is a part.
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Under the Companies Act, shareholders may remove a director without cause by an ordinary resolution (which is passed by a simple majority of those voting in person or by proxy at a general meeting) irrespective of any provisions of any service contract the director has with the company, provided that 28 clear days’ notice of the resolution is given to the company and certain other procedural requirements under the Companies Act are followed (such as allowing the director to make representations against his or her removal at the meeting and/or in writing).
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Vacancies on the Board of Directors
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Under Delaware law, vacancies and newly created directorships may be filled by a majority of the directors then in office (even though less than a quorum) or by a sole remaining director unless otherwise provided in the certificate of incorporation or bylaws of the corporation.
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Under English law, the procedure by which directors (other than a company’s initial directors) are appointed is generally set out in a company’s articles of association, provided that where two or more persons are appointed as directors of a public limited company by resolution of the shareholders, resolutions appointing each director must be voted on individually unless a resolution of the shareholders that such resolutions do not have to be voted on individually is first agreed to by the meeting without any vote being given against it.
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Annual General Meeting
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Under Delaware law, the annual meeting of shareholders shall be held at such place, on such date and at such time as may be designated from time to time by the board of directors or as provided in the certificate of incorporation or by the bylaws.
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Under the Companies Act, a public limited company must hold an annual general meeting each year. This meeting must be held within six months beginning with the day following the company’s accounting reference date.
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General Meeting
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Under Delaware law, special meetings of the shareholders may be called by the board of directors or by such person or persons as may be authorized by the certificate of incorporation or by the bylaws.
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Under the Companies Act, a general meeting of the shareholders of a public limited company may be called by the directors. Shareholders holding at least 5% of the paid-up capital (excluding any paid-up capital held as treasury shares) of the company carrying voting rights at general meetings can also require the directors to call a general meeting.
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Notice of General Meetings
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Under Delaware law, written notice of any meeting of the shareholders must be given to each shareholder entitled to vote at the meeting not less than ten nor more than 60 days before the date of the meeting and shall specify the place, date, hour and purpose or purposes of the meeting.
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The Companies Act provides that a general
meeting (other than an adjourned meeting) must be called by notice of:
• in the case of an annual general
meeting, at least 21 days; and
• in any other case, at least 14 days.
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The company’s articles of association may provide for a longer period of notice and, in addition, certain matters (such as the removal of directors or auditors) require special notice, which is 28 clear days’ notice. The shareholders of a company may in all cases consent to a shorter notice period, the proportion of shareholders’ consent required being 100% of those entitled to attend and vote in the case of an annual general meeting and, in the case of any other general meeting, a majority in number of the members having a right to attend and vote at the meeting, being a majority who together hold not less than 95% in nominal value of the shares giving a right to attend and vote at the meeting.
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Delaware
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England
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Quorum
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The certificate of incorporation or bylaws may specify the number of shares, the holders of which shall be present or represented by proxy at any meeting in order to constitute a quorum, but in no event shall a quorum consist of less than 1/3 of the shares entitled to vote at the meeting. In the absence of such specification in the certificate of incorporation or bylaws, a majority of the shares entitled to vote, present in person or represented by proxy, shall constitute a quorum at a meeting of shareholders.
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Subject to the provisions of a company’s articles of association, the Companies Act provides that two shareholders present at a meeting (in person or by proxy) shall constitute a quorum.
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Proxy
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Under Delaware law, at any meeting of shareholders, a shareholder may designate another person to act for such shareholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period.
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Under the Companies Act, at any meeting of shareholders, a shareholder may designate another person to attend, speak and vote at the meeting on their behalf by proxy (or, in the case of a shareholder which is a corporate body, by way of a corporate representative).
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Issue of New Shares
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Under Delaware law, if the company’s certificate of incorporation so provides, the directors have the power to authorize additional stock. The directors may authorize capital stock to be issued for consideration consisting of cash, any tangible or intangible property or any benefit to the company or any combination thereof.
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Under the Companies Act, the directors
of a company must not exercise any power to allot shares or grant rights to subscribe for, or to convert any security into, shares
unless they are authorized to do so by the company’s articles of association or by an ordinary resolution of the shareholders.
Any authorization given must state the
maximum amount of shares that may be allotted under it and specify the date on which it will expire, which must be not more than
five years from the date the authorization was given. The authority can be renewed by a further resolution of the shareholders.
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Pre-emptive Rights
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Under Delaware law, unless otherwise provided in a corporation’s certificate of incorporation, a stockholder does not, by operation of law, possess pre-emptive rights to subscribe to additional issuances of the corporation’s stock.
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Under the Companies Act, “equity securities” (being (i) shares in the company other than shares that, with respect to dividends and capital, carry a right to participate only up to a specified amount in a distribution (“ordinary shares”) or (ii) rights to subscribe for, or to convert securities into, ordinary shares) proposed to be allotted for cash must be offered first to the existing equity shareholders in the company in proportion to the respective nominal value of their holdings, unless an exception applies or a special resolution to the contrary has been passed by shareholders in a general meeting or the articles of association provide otherwise in each case in accordance with the provisions of the Companies Act.
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Delaware
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England
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Liability of Directors and Officers
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Under Delaware law, a corporation’s
certificate of incorporation may include a provision eliminating or limiting the personal liability of a director to the corporation
and its shareholders for monetary damages arising from a breach of fiduciary duty as a director. However, no provision can limit
the liability of a director for:
• any
breach of the director’s duty of loyalty to the corporation or its shareholders;
• acts
or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
• willful
or negligent payment of unlawful dividends or stock purchases or redemptions; or
• any
transaction from which the director derives an improper personal benefit.
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Under the Companies Act, any provision
(whether contained in a company’s articles of association or any contract or otherwise) that purports to exempt a director
of a company (to any extent) from any liability that would otherwise attach to him in connection with any negligence, default,
breach of duty or breach of trust in relation to the company is void.
Any provision by which a company directly
or indirectly provides an indemnity (to any extent) for a director of the company or of an associated company against any liability
attaching to him in connection with any negligence, default, breach of duty or breach of trust in relation to the company of which
he or she is a director is also void except as permitted by the Companies Act, which provides exceptions for the company to: (i) purchase
and maintain insurance against such liability; (ii) provide a “qualifying third party indemnity” (being an indemnity
against liability incurred by the director to a person other than the company or an associated company, which must not cover fines
imposed in criminal proceedings, penalties imposed by regulatory bodies arising out of non-compliance with regulatory requirements,
the defense costs of criminal proceedings where the director is found guilty, the defense costs of civil proceedings successfully
brought against the director by the company or an associated company, or the costs of unsuccessful applications by the director
for certain reliefs); and (iii) provide a “qualifying pension scheme indemnity” (being an indemnity against liability
incurred in connection with the company’s activities as trustee of an occupational pension plan).
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Voting Rights
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Delaware law provides that, unless otherwise provided in the certificate of incorporation, each shareholder of record is entitled to one vote for each share of capital stock held by such shareholder.
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Under English law, unless a poll is demanded by the shareholders of a company or is required by the Chairman of the meeting or the company’s articles of association, shareholders shall vote on all resolutions on a show of hands.
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Under the Companies Act, a poll may be demanded by: (i) not fewer than five shareholders having the right to vote on the resolution; (ii) any shareholder(s) representing at least 10% of the total voting rights of all the shareholders having the right to vote on the resolution (excluding any voting rights attached to treasury shares); or (iii) any shareholder (s) holding shares in the company conferring a right to vote on the resolution being shares on which an aggregate sum has been paid up equal to not less than 10% of the total sum paid up on all the shares conferring that right. A company’s articles of association may provide more extensive rights for shareholders to call a poll.
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Under English law, an ordinary resolution is passed on a show of hands if it is approved by a simple majority (more than 50%) of the votes cast by shareholders present (in person or by proxy) and entitled to vote. If a poll is demanded, an ordinary resolution is passed if it is approved by holders representing a simple majority of the total voting rights of shareholders present (in person or by proxy) who (being entitled to vote) vote on the resolution. Special resolutions require the affirmative vote of not less than 75% of the votes cast by shareholders present (in person or by proxy) at the meeting.
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Delaware
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England
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Variation of Class Rights
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Under Delaware law, the holders of the outstanding shares of a class shall be entitled to vote as a class upon a proposed amendment, whether or not entitled to vote thereon by the certificate of incorporation, if the amendment would increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences or special rights of the shares of such class so as to affect them adversely.
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The Companies Act provides that rights
attached to a class of shares may only be varied or abrogated in accordance with provision in the company’s articles for
the variation or abrogation of those rights or, where the company’s articles contain no such provision, if the holders of
shares of that class consent to the variation or abrogation. Consent for these purposes means:
• consent
in writing from the holders of at least 75% in nominal value of the issued shares of that class (excluding any shares held as treasury
shares); or
• a
special resolution passed at a separate meeting of the holders of that class sanctioning the variation.
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The Companies Act provides that the quorum
for a class meeting is not less than two persons holding or representing by proxy at least one-third of the nominal value of the
issued shares of that class. Following a variation of class rights, shareholders who amount to not less than 15% of the shareholders
of the class in question who did not approve the variation may apply to court to have the variation cancelled. Any application
must be made within 21 days of the variation. The court may cancel the variation if it is satisfied having regard to all the
circumstances of the case that the variation would unfairly prejudice the shareholders of the class represented by the applicant.
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Shareholder Vote on Certain Transactions
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Generally, under Delaware law, unless the
certificate of incorporation provides for the vote of a larger portion of the stock, completion of a merger, consolidation, sale,
lease or exchange of all or substantially all of a corporation’s assets or dissolution requires:
• the
approval of the board of directors; and
• approval
by the vote of the holders of a majority of the outstanding stock or, if the certificate of incorporation provides for more or
less than one vote per share, a majority of the votes of the outstanding stock of a corporation entitled to vote on the matter.
Under Delaware law, a contract or transaction
between the company and one or more of its directors or officers, or between the company and any other organization in which one
or more of its directors or officers, are directors or officers, or have a financial interest, shall not be void solely for this
reason, or solely because the director or officer participates in the meeting of the board which authorizes the contract or transaction,
or solely because any such director’s or officer’s votes are counted for such purpose, if:
• the
material facts as to the director’s or officer’s relationship or interest and as to the contract or transaction are
disclosed or are known to the board, and the board in good faith authorizes the contract or transaction by the affirmative votes
of a majority of the disinterested directors, even though the disinterested directors be less than a quorum;
• the
material facts as to the director’s or officer’s relationship or interest and as to the contract or transaction are
disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in
good faith by vote of the shareholders; or
• the
contract or transaction is fair as to the corporation as of the time it is authorized, approved or ratified, by the board of directors,
a committee or the shareholders.
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The Companies Act provides for schemes
of arrangement, which are arrangements or compromises between a company and any class of shareholders or creditors that may be
used in certain types of reconstructions, amalgamations, capital reorganizations or takeovers. These arrangements require:
• the
approval at a shareholders’ or creditors’ meeting convened by order of the court, of a majority in number of shareholders
or creditors representing 75% in value of the capital held by, or debt owed to, the class of shareholders or creditors, or class
thereof present and voting, either in person or by proxy; and
• the
approval of the court.
Once approved, sanctioned and effective,
all shareholders or creditors of the relevant class and the company are bound by the terms of the scheme.
In addition, the Companies Act provides
for restructuring plans, which may be used by a company only for the purpose of reducing or mitigating the effects of financial
difficulties it is encountering that may affect its ability to carry on business as a going concern. These plans are similar to
schemes of arrangement, but: the only shareholder or creditor approval required is that of shareholders or creditors representing
75% in value of the capital held by, or debt owed to, the members present and voting of one class of shareholders or creditors
that would have a genuine economic interest in the company if the plan were not approved; and if that approval is obtained, members
of any other class of shareholders or creditors will be bound by the restructuring plan if they will not as a result be worse off
than if the plan were not approved and the court grants its approval.
The Companies Act also contains certain
provisions relating to transactions between a director and the company, including transactions involving the acquisition of substantial
non-cash assets from a director or the sale of substantial noncash assets to a director, and loans between a company and a director
or certain connected persons of directors. If such transactions meet certain thresholds set out within the Companies Act the approval
of shareholders by ordinary resolution will be required.
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Delaware
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England
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Standard of Conduct for Directors
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Delaware law does not contain specific provisions setting forth the standard of conduct of a director. The scope of the fiduciary duties of directors is generally determined by the courts of the State of Delaware. In general, directors have a duty to act without self-interest, on a well-informed basis and in a manner they reasonably believe to be in the best interest of the shareholders. Directors of a Delaware corporation owe fiduciary duties of care and loyalty to the corporation and to its shareholders. The duty of care generally requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself or herself of all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director act in a manner he or she reasonably believes to be in the best interests of the corporation. The director must not use his or her corporate position for personal gain or advantage. In addition, under Delaware law, when the board of directors of a Delaware corporation approves the sale or break-up of a corporation, the board of directors may, in certain circumstances, have a duty to obtain the highest value reasonably available to the shareholders.
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Under English law, a director owes various
statutory and fiduciary duties to the company, including:
• to
act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of
its shareholders as a whole;
• to
avoid a situation in which he or she has, or can have, a direct or indirect interest that conflicts, or possibly may conflict,
with the interests of the company;
• to
act in accordance with the company’s constitution and only exercise his or her powers for the purposes for which they are
conferred;
• to
exercise independent judgment;
• to
exercise reasonable care, skill and diligence;
• not
to accept benefits from a third party conferred by reason of his or her being a director or doing (or not doing) anything as a
director; and
• to declare any interest that he or she has, whether directly or indirectly, in a proposed or existing transaction or arrangement
with the company.
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Shareholder Suits
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Under Delaware law, a shareholder may initiate
a derivative action to enforce a right of a corporation if the corporation fails to enforce the right itself. The complaint must:
• state
that the plaintiff was a shareholder at the time of the transaction of which the plaintiff complains or that the plaintiff’s
shares thereafter devolved on the plaintiff by operation of law; and
• allege
with particularity the efforts made by the plaintiff to obtain the action the plaintiff desires from the directors and the reasons
for the plaintiff’s failure to obtain the action; or
• state
the reasons for not making the effort. Additionally, the plaintiff must remain a shareholder through the duration of the derivative
suit.
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Under English law, generally, the company, rather than its shareholders, is the proper claimant in an action in respect of a wrong done to the company or where there is an irregularity in the company’s internal management. Notwithstanding this general position, the Companies Act provides that (i) a court may allow a shareholder to bring a derivative claim (that is, an action in respect of and on behalf of the company) in respect of a cause of action arising from a director’s negligence, default, breach of duty or breach of trust, subject to complying with the procedural requirements under the Companies Act and (ii) a shareholder may bring a claim for a court order where the company’s affairs have been or are being conducted in a manner that is unfairly prejudicial to some or all of its shareholders.
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Other U.K. Law Considerations
Squeeze-Out
Under the Companies
Act, if a takeover offer (as defined in Section 974 of the Companies Act) is made for the shares of a company and the offeror
were to acquire, or unconditionally contract to acquire: (i) not less than 90% in value of the shares to which the takeover
offer relates (the “Takeover Offer Shares”); and (ii) where those shares are voting shares, not less than 90%
of the voting rights attached to the Takeover Offer Shares, the offeror could acquire compulsorily the remaining 10% within three
months of the day after the last day on which its offer can be accepted. It would do so by sending a notice to outstanding shareholders
telling them that it will acquire compulsorily their Takeover Offer Shares and then, six weeks later, it would execute a transfer
of the outstanding Takeover Offer Shares in its favor and pay the consideration to the company, which would hold the consideration
on trust for outstanding shareholders. The consideration offered to the shareholders whose Takeover Offer Shares are acquired compulsorily
under the Companies Act must, in general, be the same as the consideration that was available under the takeover offer.
Sell-Out
The Companies Act also
gives minority shareholders a right to be bought out in certain circumstances by an offeror who has made a takeover offer (as defined
in Section 974 of the Companies Act). If a takeover offer related to all the shares of a company and, at any time before the
end of the period within which the offer could be accepted, the offeror held or had agreed to acquire not less than 90% of the
shares to which the offer relates, any holder of the shares to which the offer related who had not accepted the offer could by
a written communication to the offeror require it to acquire those shares. The offeror is required to give any shareholder notice
of his or her right to be bought out within one month of that right arising. The offeror may impose a time limit on the rights
of the minority shareholders to be bought out, but that period cannot end less than three months after the end of the acceptance
period. If a shareholder exercises his or her rights, the offeror is bound to acquire those shares on the terms of the offer or
on such other terms as may be agreed.
Disclosure of Interest in Shares
Pursuant to Part 22
of the Companies Act, a company is empowered by notice in writing to require any person whom the company knows to be, or has reasonable
cause to believe to be, interested in the company’s shares or at any time during the three years immediately preceding the
date on which the notice is issued to have been so interested, within a reasonable time to disclose to the company details of that
person’s interest and (so far as is within such person’s knowledge) details of any other interest that subsists or
subsisted in those shares. If a shareholder defaults in supplying the company with the required details in relation to the shares
in question (the “Default Shares”), the shareholder shall not be entitled to vote or exercise any other right conferred
by membership in relation to general meetings. Where the Default Shares represent 0.25% or more of the issued shares of the class
in question, in certain circumstances the directors may direct that:
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(i)
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any dividend or other money payable in respect of the Default Shares shall be retained by the company without any liability to pay interest on it when such dividend or other money is finally paid to the shareholder; and/or
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(ii)
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no transfer by the relevant shareholder of shares (other than a transfer approved in accordance with the provisions of the company’s articles of association) may be registered (unless such shareholder is not in default and the transfer does not relate to Default Shares).
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Dividends
Under English law,
before a company can lawfully make a distribution, it must ensure that it has sufficient distributable reserves. A company’s
distributable reserves are its accumulated, realized profits, so far as not previously utilized by distribution or capitalization,
less its accumulated, realized losses, so far as not previously written off in a reduction or reorganization of capital duly made.
In addition to having sufficient distributable reserves, a public company will not be permitted to make a distribution if, at the
time, the amount of its net assets (that is, the aggregate of the company’s assets less the aggregate of its liabilities)
is less than the aggregate of its issued and paid-up share capital and undistributable reserves, or if the distribution would result
in the amount of its net assets being less than that aggregate.
Purchase of Own Shares
Under English law,
a public limited company may purchase its own shares only out of the distributable profits of the company or the proceeds of a
new issue of shares made for the purpose of financing the purchase, provided that it is not restricted from doing so by its articles.
A public limited company may not purchase its own shares if as a result of the purchase there would no longer be any issued shares
of the company other than redeemable shares or shares held as treasury shares. Shares must be fully paid in order to be repurchased.
Subject to the foregoing,
because Nasdaq is not a “recognized investment exchange” under the Companies Act, a company may purchase its own fully
paid shares only pursuant to a purchase contract authorized by ordinary resolution of the holders of its ordinary shares before
the purchase takes place. Any authority will not be effective if any shareholder from whom the company proposes to purchase shares
votes on the resolution and the resolution would not have been passed if such shareholder had not done so. The resolution authorizing
the purchase must specify a date, not being later than five years after the passing of the resolution, on which the authority to
purchase is to expire.
A share buy-back by
a company of its ordinary shares will give rise to U.K. stamp duty at the rate of 0.5% of the amount or value of the consideration
payable by the company, and such stamp duty will be paid by the company. Our Articles of Association do not have conditions governing
changes in our capital which are more stringent than those required by law.
Statutory Pre-Emption Rights
Under English law,
a company must not allot equity securities to a person on any terms unless the following conditions are satisfied:
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it has made an offer to each person who holds ordinary shares in the company to allot to them on the same or more favorable terms a proportion of those securities that is as nearly as practicable equal to the proportion in nominal value held by them of the ordinary share capital of the company; and
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(ii)
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the period during which any such offer may be accepted has expired or the company has received notice of the acceptance or refusal of every offer so made.
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For these purposes
“equity securities” means ordinary shares in the company or rights to subscribe for, or to convert securities into,
ordinary shares in the company. “Ordinary shares” means shares other than shares that, with respect to dividends and
capital, carry a right to participate only up to a specified amount in a distribution. The statutory pre-emption rights are subject
to certain exceptions, including the issue of ordinary shares for non-cash consideration, an allotment of bonus shares and the
allotment of equity securities pursuant to an employees’ share scheme. The statutory pre-emption rights may also be disapplied
by a resolution approved by 75% of the shareholders who vote on it.
U.K. City Code on Takeovers and Mergers
The U.K. City Code
on Takeovers and Mergers, or the Takeover Code, applies, among other things, to an offer for a public company whose registered
office is in the United Kingdom and whose securities are not admitted to trading on a regulated market in the United Kingdom if
the company is considered by the Panel on Takeovers and Mergers, or the Takeover Panel, to have its place of central management
and control in the United Kingdom. This is known as the “residency test.” The test for central management and control
under the Takeover Code is different from that used by the U.K. tax authorities. Under the Takeover Code, the Takeover Panel will
determine whether we have our place of central management and control in the United Kingdom by looking at various factors, including
the structure of our board of directors, the functions of the directors and where they are resident. Whilst the Takeover Panel
has not informed us of any such determination, on account of the current constitution of our board, we believe that we are currently
subject to the Takeover Code.
If at the time of a
takeover offer the Takeover Panel determines that we have our place of central management and control in the United Kingdom, we
would be subject to a number of rules and restrictions, including but not limited to the following: (1) our ability to
enter into deal protection arrangements with a bidder would be extremely limited; (2) we may not, without the approval of
our shareholders, be able to perform certain actions that could have the effect of frustrating an offer, such as issuing shares
or carrying out acquisitions or disposals; and (3) we would be obliged to provide equality of information to all bona fide
competing bidders.
Further, the Takeover
Code contains certain rules in respect of mandatory offers. Under Rule 9 of the Takeover Code, if a person: (a) acquires
an interest in our shares which, when taken together with shares in which he or persons acting in concert with him are interested,
carry 30% or more of the voting rights of our shares; or (b) who, together with persons acting in concert with him, is interested
in shares that in the aggregate carry not less than 30% of the voting rights in us and does not hold shares carrying more than
50% of the voting rights in us, acquires additional interests in shares that increase the percentage of shares carrying voting
rights in which that person is interested, the acquirer and depending on the circumstances, its concert parties, would be required
(except with the consent of the Takeover Panel) to make a cash offer for our outstanding shares at a price not less than the highest
price paid for any interests in the shares by the acquirer or its concert parties during the previous 12 months.
DESCRIPTION OF AMERICAN DEPOSITARY SHARES
American Depositary Shares
Deutsche Bank Trust
Company Americas, as depositary, will register and deliver the ADSs. Each ADS will represent ownership of 100 ordinary shares deposited
with State Street Bank & Trust Company, having its principal office at 525 Ferry Road, Crewe Toll, Edinburgh, EH5 2AW
Scotland, as custodian for the depositary. Each ADS will also represent ownership of any other securities, cash or other property
which may be held by the depositary. The depositary’s corporate trust office at which the ADSs will be administered is located
at 60 Wall Street, New York, NY 10005, USA. The principal executive office of the depositary is located at 60 Wall Street, New
York, NY 10005, USA.
The Direct Registration
System, or DRS, is a system administered by The Depository Trust Company, or DTC, pursuant to which the depositary may register
the ownership of uncertificated ADSs, which ownership shall be evidenced by periodic statements issued by the depositary to the
ADS holders entitled thereto.
We will not treat ADS
holders as our shareholders and accordingly, you, as an ADS holder, will not have shareholder rights. English law governs shareholder
rights. The depositary or its custodian will be the holder of the ordinary shares underlying your ADSs. As a holder of ADSs, you
will have ADS holder rights. A deposit agreement among us, the depositary and you, as an ADS holder, and the beneficial owners
of ADSs sets out ADS holder rights as well as the rights and obligations of the depositary. The laws of the State of New York govern
the deposit agreement and the ADSs.
The following is a
summary of the material provisions of the deposit agreement. For more complete information, you should read the entire deposit
agreement and the form of American Depositary Receipt.
Holding the ADSs
How will you hold your ADSs?
You may hold ADSs either
(1) directly (a) by having an American Depositary Receipt, or ADR, which is a certificate evidencing a specific number
of ADSs, registered in your name, or (b) by holding ADSs in the DRS, or (2) indirectly through your broker or other financial
institution. If you hold ADSs directly, you are an ADS holder. This description assumes you hold your ADSs directly. If you hold
the ADSs indirectly, you must rely on the procedures of your broker or other financial institution to assert the rights of ADS
holders described in this section. You should consult with your broker or financial institution to find out what those procedures
are.
Dividends and Other Distributions
How will you receive dividends and
other distributions on the shares?
The depositary has
agreed to pay to ADS holders the cash dividends or other distributions it or the custodian receives on ordinary shares or other
deposited securities, after deducting its fees and expenses. The holder of ADSs will receive these distributions in proportion
to the number of ordinary shares their ADSs represent as of the record date (which will be as close as practicable to the record
date for our ordinary shares) set by the depositary with respect to the ADSs.
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Cash. The depositary will convert any cash dividend or other cash distribution we pay on the ordinary shares or any net proceeds from the sale of any ordinary shares, rights, securities or other entitlements into U.S. dollars if it can do so on a reasonable basis, and can transfer the U.S. dollars to the United States. If that is not possible or lawful or if any government approval is needed and cannot be obtained, the deposit agreement allows the depositary to distribute the foreign currency only to those ADS holders to whom it is possible to do so. It will hold the foreign currency it cannot convert for the account of the ADS holders who have not been paid. It will not invest the foreign currency and it will not be liable for any interest.
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Before making a distribution, any taxes or other governmental charges, together with fees and expenses of the depositary, that must be paid, will be deducted. See “Taxation.” It will distribute only whole U.S. dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when the depositary cannot convert the foreign currency, you may lose some or all of the value of the distribution.
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Shares. The depositary may distribute additional ADSs representing any ordinary shares we distribute as a dividend or free distribution to the extent reasonably practicable and permissible under law. The depositary will only distribute whole ADSs. It will try to sell ordinary shares which would require it to deliver a fractional ADS and distribute the net proceeds in the same way as it does with cash. If the depositary does not distribute additional ADSs, the outstanding ADSs will also represent the new ordinary shares. The depositary may sell a portion of the distributed ordinary shares sufficient to pay its fees and expenses in connection with that distribution.
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Elective Distributions in Cash or Shares. If we offer holders of our ordinary shares the option to receive dividends in either cash or shares, the depositary, after consultation with us and having received timely notice as described in the deposit agreement of such elective distribution by us, has discretion to determine to what extent such elective distribution will be made available to ADS holders. We must first instruct the depositary to make such elective distribution available to ADS holders and furnish it with satisfactory evidence that it is legal to do so. The depositary could decide it is not legal or reasonably practical to make such elective distribution available to ADS holders, or it could decide that it is only legal or reasonably practical to make such elective distribution available to some but not all holders of the ADSs. In such case, the depositary shall, on the basis of the same determination as is made in respect of the ordinary shares for which no election is made, distribute either cash in the same way as it does in a cash distribution, or additional ADSs representing ordinary shares in the same way as it does in a share distribution. The depositary is not obligated to make available to ADS holders a method to receive the elective dividend in shares rather than in ADSs. There can be no assurance that ADS holders will be given the opportunity to receive elective distributions on the same terms and conditions as the holders of ordinary shares.
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Rights to Purchase Additional Shares. If we offer holders of our ordinary shares any rights to subscribe for additional shares or any other rights, the depositary may after consultation with us and having received timely notice as described in the deposit agreement of such distribution by us, make these rights available to ADS holders. We must first instruct the depositary to make such rights available to ADS holders and furnish the depositary with satisfactory evidence that it is legal to do so. If the depositary decides it is not legal and practical to make the rights available but that it is practical to sell the rights, the depositary will use reasonable efforts to sell the rights and distribute the net proceeds in the same way as it does with cash. The depositary will allow rights that are not distributed or sold to lapse. In that case, ADS holders will receive no value for them. If the depositary makes rights available to ADS holders, it will exercise the rights and purchase the shares on ADS holders’ behalf. The depositary will then deposit the shares and deliver ADSs to ADS holders. It will only exercise rights if ADS holders pay it the exercise price and any other charges the rights require that ADS holders to pay. U.S. securities laws may restrict transfers and cancellation of the ADSs represented by shares purchased upon exercise of rights. For example, ADS holders may not be able to trade these ADSs freely in the United States. In this case, the depositary may deliver restricted depositary shares that have the same terms as the ADSs described in this section except for changes needed to put the necessary restrictions in place.
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Other Distributions. Subject to receipt of timely notice from us with the request to make any such distribution available to ADS holders, and provided the depositary has determined such distribution is lawful and reasonably practicable and feasible and in accordance with the terms of the deposit agreement, the depositary will send to ADS holders anything else we distribute on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, the depositary has a choice: it may decide to sell what we distributed and distribute the net proceeds in the same way as it does with cash; or, it may decide to hold what we distributed, in which case ADSs will also represent the newly distributed property. However, the depositary is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from us that it is legal to make that distribution. The depositary may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.
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The depositary is not responsible if it decides that it is unlawful or impractical to make a distribution available to any ADS holders. We have no obligation to register ADSs, shares, rights or other securities under the Securities Act. We also have no obligation to take any other action to permit the distribution of ADSs, shares, rights or anything else to ADS holders. This means that ADS holders may not receive the distributions we make on our ordinary shares or any value for them if it is illegal or impractical for us to make them available to ADS holders.
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Deposit, Withdrawal and Cancellation
How are ADSs issued?
The depositary will
deliver ADSs if an ADS holders or its broker deposit ordinary shares or evidence of rights to receive ordinary shares with the
custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees,
the depositary will register the appropriate number of ADSs in the names the ADS holder requests and will deliver the ADSs to or
upon the order of the person or persons entitled thereto.
How do ADS holders cancel an American
Depositary Share?
You may turn in your
ADSs at the depositary’s corporate trust office or by providing appropriate instructions to your broker. Upon payment of
its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will deliver
the ordinary shares and any other deposited securities underlying the ADSs to you or a person you designate at the office of the
custodian. Or, at your request, risk and expense, the depositary will deliver the deposited securities at its corporate trust office,
if feasible.
The depositary may
refuse to accept for surrender ADSs only in the case of (i) temporary delays caused by closing our transfer books or those
of the depositary or the deposit of our ordinary shares in connection with voting at a shareholders’ meeting or the payment
of dividends, (ii) the payment of fees, taxes and similar charges and (iii) compliance with any laws or governmental
regulations relating to depositary receipts or to the withdrawal of deposited securities. Subject thereto, in the case of surrender
of a number of ADSs representing other than a whole number of our ordinary shares, the depositary will cause ownership of the appropriate
whole number of our ordinary shares to be delivered in accordance with the terms of the deposit agreement and will, at the discretion
of the depositary, either (i) issue and deliver to the person surrendering such ADSs a new ADS representing any remaining
fractional ordinary share or (ii) sell or cause to be sold the fractional ordinary shares represented by the ADSs surrendered
and remit the proceeds of such sale (net of applicable fees and charges of, and expenses incurred by, the depositary and taxes
and/or governmental charges) to the person surrendering the ADS.
How do ADS holders interchange between
Certificated ADSs and Uncertificated ADSs?
You may surrender your
ADR to the depositary for the purpose of exchanging your ADR for uncertificated ADSs. The depositary will cancel that ADR and will
send you a statement confirming that you are the owner of uncertificated ADSs. Alternatively, upon receipt by the depositary of
a proper instruction from a holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs,
the depositary will execute and deliver to you an ADR evidencing those ADSs.
Voting Rights
How do you vote?
As an ADS holder, you
may instruct the depositary to vote the deposited securities. Otherwise, you could exercise your right to vote directly if you
withdraw the ordinary shares your ADSs represent. However, you may not know about the meeting enough in advance to withdraw the
ordinary shares.
If we ask for your
instructions and upon timely notice from us as described in the deposit agreement, the depositary will notify you of the upcoming
vote and arrange to deliver our voting materials to you. The materials will (1) describe the matters to be voted on and (2) explain
how you may instruct the depositary to vote the ordinary shares or other deposited securities underlying your ADSs as you direct.
Voting instructions may be given only by mail and in respect of a number of ADSs representing an integral number of our ordinary
shares or other deposited securities. For instructions to be valid, the depositary must receive them on or before the date specified.
The depositary will try, as far as practical, subject to the laws of the United Kingdom and the provisions of our constitutive
documents, to vote or to have its agents vote the ordinary shares or other deposited securities as you instruct. The depositary
will only vote or attempt to vote as you instruct.
We cannot assure you
that you will receive the voting materials in time to ensure that you can instruct the depositary to vote the ordinary shares underlying
your ADSs. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for the
manner of carrying out voting instructions. This means that you may not be able to exercise your right to vote and you may have
no recourse if the ordinary shares underlying your ADSs are not voted as you requested.
In order to give you
a reasonable opportunity to instruct the depositary as to the exercise of voting rights relating to deposited securities, if we
request the depositary to act, we are required to give the depositary 30 days’ advance notice of any such meeting and details
concerning the matters to be voted upon sufficiently in advance of the meeting date, and the depositary will mail you a notice.
Fees and Charges
As a holder of American
Depository Shares, or ADSs, you will be required to pay the following service fees to the depositary bank:
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Service:
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Fee:
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Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property
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Up to $0.05 per ADS issued
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Cancellation of ADSs, including in the case of termination of the deposit agreement
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Up to $0.05 per ADS cancelled
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Distribution of cash dividends or other cash distributions
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Up to $0.02 per ADS held
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Distribution of ADSs pursuant to share dividends, free share distributions or exercise of rights
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Up to $0.05 per ADS held
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Operation and maintenance costs in administering the ADSs
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An annual fee of $0.02 per ADS held
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Inspections of the relevant share register maintained by the local registrar and/or performing due diligence on the central securities depository for England and Wales
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An annual fee of $0.01 per ADS held (such fee to be assessed against holders of record as at the date or dates set by the depositary as it sees fit and collected at the sole discretion of the depositary by billing such holders for such fee or by deducting such fee from one or more cash dividends or other cash distributions)
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As an ADS holder, you
will also be responsible to pay certain fees and expenses incurred by the depositary bank and certain taxes and governmental charges
such as:
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Taxes (including applicable interest and penalties) and other governmental charges.
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Such registration fees as may from time to time be in effect for the registration of ordinary shares or other deposited securities with the foreign registrar and applicable to transfers of ordinary shares or other deposited securities to or from the name of the custodian, the depositary or any nominees upon the making of deposits and withdrawals, respectively.
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Expenses for cable, telex and fax transmissions and for delivery of securities.
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Expenses and charges incurred by the Depositary in the conversion of foreign currency.
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Fees and expenses incurred in connection with the delivery or servicing of ordinary shares on deposit, including any fees of a central depository for securities in the local market, where applicable.
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Fees and expenses incurred in connection with complying with exchange control regulations and any other regulatory requirements.
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Any applicable fees and penalties thereon.
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The depositary fees
payable upon the issuance and cancellation of ADSs are typically paid to the depositary bank by the brokers (on behalf of their
clients) receiving the newly issued ADSs from the depositary bank and by the brokers (on behalf of their clients) delivering the
ADSs to the depositary bank for cancellation. The brokers in turn charge these fees to their clients. Depositary fees payable in
connection with distributions of cash or securities to ADS holders and the depositary services fee are charged by the depositary
bank to the holders of record of ADSs as of the applicable ADS record date.
The depositary may
make payments to us or reimburse us for certain costs and expenses, by making available a portion of the ADS fees collected in
respect of the ADR program or otherwise, upon such terms and conditions as we and the depositary bank agree from time to time.
In the event of refusal
to pay the depositary fees, the depositary bank may, under the terms of the deposit agreement, refuse the requested service until
payment is received or may set off the amount of the depositary fees from any distribution to be made to the ADS holder.
The depositary has
agreed to reimburse us for a portion of certain expenses we incur that are related to establishment and maintenance of the American
Depository Receipt, or ADR, program, including investor relations expenses. There are limits on the amount of expenses for which
the depositary will reimburse us, but the amount of reimbursement available to us is not related to the amounts of fees the depositary
collects from investors. Further, the depositary has agreed to reimburse us certain fees payable to the depositary by holders of
ADSs. Neither the depositary nor we can determine the exact amount to be made available to us because (i) the number of ADSs
that will be issued and outstanding, (ii) the level of service fees to be charged to holders of ADSs and (iii) our reimbursable
expenses related to the program are not known at this time.
Payment of Taxes
As an ADS holder, you
will be responsible for any taxes or other governmental charges payable on your ADSs or on the deposited securities represented
by any of your ADSs. The depositary may refuse to register any transfer of your ADSs or allow you to withdraw the deposited securities
represented by your ADSs until such taxes or other charges are paid. It may apply payments owed to you or sell deposited securities
represented by your ADSs to pay any taxes owed and you will remain liable for any deficiency. If the depositary sells deposited
securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to you any net proceeds, or send to
you any property, remaining after it has paid the taxes. You agree to indemnify us, the depositary, the custodian and each of our
and their respective agents, directors, employees and affiliates for, and hold each of them harmless from, any claims with respect
to taxes (including applicable interest and penalties thereon) arising from any tax benefit obtained for you.
Reclassifications, Recapitalizations
and Mergers
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If we:
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Then:
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Change the nominal or par value of our ordinary shares
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The cash, shares or other securities received by the depositary will become deposited securities.
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Reclassify, split up or consolidate any of the deposited securities
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Each ADS will automatically represent its equal share of the new deposited securities.
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Distribute securities on the ordinary shares that are not distributed to you or recapitalize, reorganize, merge, liquidate, sell all or substantially all of our assets, or take any similar action
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The depositary may distribute some or all of the cash, shares or other securities it received. It may also deliver new ADSs or ask you to surrender your outstanding ADRs in exchange for new ADRs identifying the new deposited securities.
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Amendment and Termination
How may the deposit agreement be
amended?
We may agree with the
depositary to amend the deposit agreement and the form of ADR without your consent for any reason. If an amendment adds or increases
fees or charges, except for taxes and other governmental charges or expenses of the depositary for registration fees, facsimile
costs, delivery charges or similar items, including expenses incurred in connection with foreign exchange control regulations and
other charges specifically payable by ADS holders under the deposit agreement, or materially prejudices a substantial existing
right of ADS holders, it will not become effective for outstanding ADSs until 30 days after the depositary notifies ADS holders
of the amendment. At the time an amendment becomes effective, you are considered, by continuing to hold your ADSs, to agree to
the amendment and to be bound by the ADRs and the deposit agreement as amended.
How may the deposit agreement be
terminated?
The depositary will
terminate the deposit agreement if we ask it to do so, in which case the depositary will give notice to you at least 90 days prior
to termination. The depositary may also terminate the deposit agreement if the depositary has told us that it would like to resign
and we have not appointed a new depositary within 90 days. In such case, the depositary must notify you at least 30 days before
termination.
After termination,
the depositary and its agents will do the following under the deposit agreement but nothing else: collect distributions on the
deposited securities, sell rights and other property and deliver ordinary shares and other deposited securities upon cancellation
of ADSs after payment of any fees, charges, taxes or other governmental charges. Six months or more after termination, the depositary
may sell any remaining deposited securities by public or private sale. After that, the depositary will hold the money it received
on the sale, as well as any other cash it is holding under the deposit agreement, for the pro rata benefit of the ADS holders that
have not surrendered their ADSs. It will not invest the money and has no liability for interest. The depositary’s only obligations
will be to account for the money and other cash. After termination, our only obligations will be to indemnify the depositary and
to pay fees and expenses of the depositary that we agreed to pay.
Books of Depositary
The depositary will
maintain ADS holder records at its depositary office. You may inspect such records at such office during regular business hours
but solely for the purpose of communicating with other holders in the interest of business matters relating to the ADSs and the
deposit agreement.
The depositary will
maintain facilities in New York to record and process the issuance, cancellation, combination, split-up and transfer of ADRs.
These facilities may
be closed from time to time, to the extent not prohibited by law or if any such action is deemed necessary or advisable by the
depositary or us, in good faith, at any time or from time to time because of any requirement of law, any government or governmental
body or commission or any securities exchange on which the ADRs or ADSs are listed, or under any provision of the deposit agreement
or provisions of, or governing, the deposited securities, or any meeting of our shareholders or for any other reason.
Limitations on Obligations and Liability
Limits on our Obligations and the
Obligations of the Depositary; Limits on Liability to Holders of ADSs
The deposit agreement
expressly limits our obligations and the obligations of the depositary. It also limits our liability and the liability of the depositary.
We and the depositary:
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are only obligated to take the actions specifically set forth in the deposit agreement without gross negligence or willful misconduct;
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are not liable if either of us is prevented or delayed by law or circumstances beyond our control from performing our obligations under the deposit agreement, including, without limitation, requirements of any present or future law, regulation, governmental or regulatory authority or share exchange of any applicable jurisdiction, any present or future provisions of our memorandum and articles of association, on account of possible civil or criminal penalties or restraint, any provisions of or governing the deposited securities or any act of God, war or other circumstances beyond our control as set forth in the deposit agreement;
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are not liable if either of us exercises, or fails to exercise, discretion permitted under the deposit agreement;
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have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on your behalf or on behalf of any other party;
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may rely upon any documents we believe in good faith to be genuine and to have been signed or presented by the proper party;
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disclaim any liability for any action/inaction in reliance on the advice or information of legal counsel, accountants, any person presenting ordinary shares for deposit, holders and beneficial owners (or authorized representatives) of ADSs, or any person believed in good faith to be competent to give such advice or information;
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disclaim any liability for inability of any holder to benefit from any distribution, offering, right or other benefit made available to holders of deposited securities but not made available to holders of ADSs; and
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disclaim any liability for any indirect, special, punitive or consequential damages.
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The depositary and
any of its agents also disclaim any liability for any failure to carry out any instructions to vote, the manner in which any vote
is cast or the effect of any vote or failure to determine that any distribution or action may be lawful or reasonably practicable
or for allowing any rights to lapse in accordance with the provisions of the deposit agreement, the failure or timeliness of any
notice from us, the content of any information submitted to it by us for distribution to you or for any inaccuracy of any translation
thereof, any investment risk associated with the acquisition of an interest in the deposited securities, the validity or worth
of the deposited securities, the credit-worthiness of any third party, or for any tax consequences that may result from ownership
of ADSs, ordinary shares or deposited securities.
In the deposit agreement,
we and the depositary agree to indemnify each other under certain circumstances.
Requirements for Depositary Actions
Before the depositary
will issue, deliver or register a transfer of an ADS, make a distribution on an ADS, or permit withdrawal of ordinary shares, the
depositary may require:
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payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities and payment of the applicable fees, expenses and charges of the depositary;
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satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
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compliance with regulations it may establish, from time to time, consistent with the deposit agreement, including presentation of transfer documents.
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The depositary may
refuse to issue and deliver ADSs or register transfers of ADSs generally when the register of the depositary or our transfer books
are closed or at any time if the depositary or we think it is necessary or advisable to do so.
Your Right to Receive the Shares Underlying
Your ADSs
You have the right
to cancel your ADSs and withdraw the underlying ordinary shares at any time except:
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when temporary delays arise because: (1) the depositary has closed its transfer books or we have closed our transfer books; (2) the transfer of ordinary shares is blocked to permit voting at a shareholders’ meeting; or (3) we are paying a dividend on our ordinary shares;
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when you owe money to pay fees, taxes and similar charges; or
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when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of ordinary shares or other deposited securities.
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This right of withdrawal
may not be limited by any other provision of the deposit agreement.
Pre-release of ADSs
The deposit agreement
permits the depositary to deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADSs.
The depositary may also deliver ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the
pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying ordinary shares are delivered
to the depositary. The depositary may receive ADSs instead of ordinary shares to close out a pre-release. The depositary may pre-release
ADSs only under the following conditions: (1) before or at the time of the pre-release, the person to whom the pre-release
is being made represents to the depositary in writing that it or its customer (a) owns the ordinary shares or ADSs to be deposited,
(b) assigns all beneficial rights, title and interest in such ordinary shares or ADSs to the depositary for the benefit of
the owners, (c) will not take any action with respect to such ordinary shares or ADSs that is inconsistent with the transfer
of beneficial ownership, (d) indicates the depositary as owner of such ordinary shares or ADSs in its records, and (e) unconditionally
guarantees to deliver such ordinary shares or ADSs to the depositary or the custodian, as the case may be; (2) the pre-release
is fully collateralized with cash or other collateral that the depositary considers appropriate; and (3) the depositary must
be able to close out the pre-release on not more than five business days’ notice. Each pre-release is subject to further
indemnities and credit regulations as the depositary considers appropriate. In addition, the depositary will normally limit the
number of ADSs that may be outstanding at any time as a result of pre-release to 30% of the aggregate number of ADSs then outstanding,
although the depositary, in its sole discretion, may disregard the limit from time to time, if it thinks it is appropriate to do
so, including (1) due to a decrease in the aggregate number of ADSs outstanding that causes existing pre-release transactions
to temporarily exceed the limit stated above or (2) where otherwise required by market conditions. The depositary may also
set limits with respect to the number of ADSs and Shares involved in pre-release transactions with any one person on a case-by-case
basis as it deems appropriate.
Direct Registration System
In the deposit agreement,
all parties to the deposit agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated
ADSs upon acceptance thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the depositary may register
the ownership of uncertificated ADSs, which ownership shall be evidenced by periodic statements issued by the depositary to the
ADS holders entitled thereto. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of
an ADS holder, to direct the depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to
the DTC account of that DTC participant without receipt by the depositary of prior authorization from the ADS holder to register
such transfer.
In connection with
and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the deposit agreement understand
that the depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on
behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority
to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the deposit agreement,
the parties agree that the depositary’s reliance on, and compliance with, instructions received by the depositary through
the DRS/Profile System and in accordance with the deposit agreement, shall not constitute negligence or bad faith on the part of
the depositary.
DESCRIPTION
OF WARRANTS
We may issue and offer
warrants under the material terms and conditions described in this prospectus and any accompanying prospectus supplement. The accompanying
prospectus supplement may add, update or change the terms and conditions of the warrants as described in this prospectus.
We may issue warrants
to purchase our ordinary shares, including shares represented by ADSs, and/or debt securities. Warrants may be issued independently
or together with any securities and may be attached to or separate from those securities. The warrants may be issued under warrant
or subscription agreements to be entered into between us and a bank or trust company, as warrant agent, all of which will be described
in the prospectus supplement relating to the warrants we are offering. The warrant agent will act solely as our agent in connection
with the warrants and will not have any obligation or relationship of agency or trust for or with any holders or beneficial owners
of warrants.
The particular terms
of the warrants, the warrant or subscription agreements relating to the warrants and the warrant certificates representing the
warrants will be described in the applicable prospectus supplement, including, as applicable:
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the title of such warrants;
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the aggregate number of such warrants;
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the price or prices at which such warrants will be issued and exercised;
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the currency or currencies in which the price of such warrants will be payable;
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the securities purchasable upon exercise of such warrants;
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the date on which the right to exercise such warrants shall commence and the date on which such right shall expire;
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if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;
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if applicable, the designation and terms of the securities with which such warrants are issued and the number of such warrants issued with each such security;
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if applicable, the date on and after which such warrants and the related securities will be separately transferable;
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if applicable, any provisions for cashless exercise of the warrants;
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if applicable; any exercise limitations with respect to the ownership limitations by the holder exercising the warrant;
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information with respect to book-entry procedures, if any;
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any material United Kingdom and United States federal income tax consequences;
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the anti-dilution provisions of the warrants, if any; and
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any other terms of such warrants, including terms, procedures and limitations relating to the exchange and exercise of such warrants.
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Holders of warrants
will not be entitled, solely by virtue of being holders, to vote, to consent, to receive dividends, to receive notice as shareholders
with respect to any meeting of shareholders for the election of directors or any other matters, or to exercise any rights whatsoever
as a holder of the equity securities purchasable upon exercise of the warrants.
The description in
the applicable prospectus supplement of any warrants we offer will not necessarily be complete and will be qualified in its entirety
by reference to the applicable warrant agreement and warrant certificate, which will be filed with the SEC if we offer warrants. For
more information on how you can obtain copies of the applicable warrant agreement if we offer warrants, see “Where You Can
Find More Information” beginning on page 32 and “Incorporation of Information by Reference” beginning on
page 33. We urge you to read any applicable prospectus supplement and the applicable warrant agreement and form of warrant
certificate in their entirety.
DESCRIPTION OF SUBSCRIPTION RIGHTS
We may issue subscription
rights to purchase our ordinary shares and/or our ADSs. These subscription rights may be issued independently or together with
any other security offered hereby and may or may not be transferable by the shareholder receiving the subscription rights in such
offering. In connection with any offering of subscription rights, we may enter into a standby arrangement with one or more underwriters
or other purchasers pursuant to which the underwriters or other purchasers may be required to purchase any securities remaining
unsubscribed for after such offering.
The prospectus supplement
relating to any subscription rights we offer, if any, will, to the extent applicable, include specific terms relating to the offering,
including some or all of the following:
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the price, if any, for the subscription rights;
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the exercise price payable for each ordinary share and/or ADS upon the exercise of the subscription rights;
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the number of subscription rights to be issued to each shareholder;
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the number and terms of the ordinary shares and/or ADSs which may be purchased per each subscription right;
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the extent to which the subscription rights are transferable;
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any other terms of the subscription rights, including the terms, procedures and limitations relating to the exchange and exercise of the subscription rights;
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the date on which the right to exercise the subscription rights shall commence, and the date on which the subscription rights shall expire;
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the extent to which the subscription rights may include an over-subscription privilege with respect to unsubscribed securities; and
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if applicable, the material terms of any standby underwriting or purchase arrangement which may be entered into by us in connection with the offering of subscription rights.
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The description in
the applicable prospectus supplement of any subscription rights we offer will not necessarily be complete and will be qualified
in its entirety by reference to the applicable subscription right agreement, which will be filed with the SEC if we offer subscription
rights. For more information on how you can obtain copies of the applicable subscription right agreement if we offer subscription
rights, see “Where You Can Find More Information” beginning on page 32 and “Incorporation by Reference”
beginning on page 33. We urge you to read the applicable subscription right agreement and any applicable prospectus supplement
in their entirety.
DESCRIPTION OF DEBT SECURITIES
The following description,
together with the additional information we include in any applicable prospectus supplement, summarizes the material terms and
provisions of the debt securities that we may offer under this prospectus. The debt securities will be our direct general obligations
and may include debentures, notes, bonds or other evidences of indebtedness. The debt securities will be either senior debt securities
or subordinated debt securities. The debt securities will be issued under one or more separate indentures. Senior debt securities
will be issued under a senior debt indenture, and subordinated debt securities will be issued under a subordinated debt indenture.
We use the term “indentures” to refer to both the senior indenture and the subordinated indenture. A form of each of
the senior indenture and the subordinated indenture is filed as an exhibit to the registration statement of which this prospectus
is a part. The indentures will be qualified under the Trust Indenture Act. We use the term “indenture trustee” to refer
to either the senior trustee or the subordinated trustee, as applicable.
The following summaries
of material provisions of the debt securities and indentures are subject to, and qualified in their entirety by reference to, all
the provisions of the indenture applicable to a particular series of debt securities and the description thereof contained in the
prospectus supplement.
General
We will describe in
each prospectus supplement the following terms relating to a series of debt securities:
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the title or designation;
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any limit on the principal amount that may be issued;
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whether or not we will issue the series of debt securities in global form, the terms and the Depositary;
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the annual interest rate, which may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the dates interest will be payable and the regular record dates for interest payment dates or the method for determining such dates;
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whether or not the debt securities will be secured or unsecured, and the terms of any secured debt;
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the terms of the subordination of any series of subordinated debt;
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the place where payments will be payable;
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our right, if any, to defer payment of interest and the maximum length of any such deferral period;
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the date, if any, after which, and the price at which, we may, at our option, redeem the series of debt securities pursuant to any optional redemption provisions;
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the date, if any, on which, and the price at which we are obligated, pursuant to any mandatory sinking fund provisions or otherwise, to redeem, or at the holder’s option to purchase, the series of debt securities;
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whether the indenture will restrict our ability to pay dividends, or will require us to maintain any asset ratios or reserves;
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whether we will be restricted from incurring any additional indebtedness;
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a discussion on any material or special U.S. federal income tax considerations applicable to the debt securities;
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the denominations in which we will issue the series of debt securities, if other than denominations of $1,000 and any integral multiple thereof; and
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any other specific terms, preferences, rights or limitations of, or restrictions on, the debt securities.
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Conversion or Exchange Rights
We will set forth in
the prospectus supplement the terms on which a series of debt securities may be convertible into or exchangeable for ordinary
shares or other securities. We will include provisions as to whether conversion or exchange is mandatory, at the option of the
holder or at our option. We may include provisions pursuant to which the number of ordinary shares or other securities that the
holders of the series of debt securities receive would be subject to adjustment.
Consolidation, Merger or Sale
The indentures will
not contain any covenant which restricts our ability to merge or consolidate, or sell, convey, transfer or otherwise dispose of
all or substantially all of our assets. However, any successor to or acquirer of our assets must assume all of our obligations
under the indentures or the debt securities, as appropriate.
Events of Default Under the Indenture
The following may be
events of default under the indentures with respect to any series of debt securities that we may issue:
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if we fail to pay interest when due and our failure continues for a number of days to be stated in the indenture and the time for payment has not been extended or deferred;
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if we fail to pay the principal, or premium, if any, when due and the time for payment has not been extended or delayed;
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if we fail to observe or perform any other covenant contained in the debt securities or the indentures, other than a covenant specifically relating to another series of debt securities, and our failure continues for a number of days to be stated in the indenture after we receive notice from the indenture trustee or holders of at least 25% in aggregate principal amount of the outstanding debt securities of the applicable series; and
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if specified events of bankruptcy, insolvency or reorganization occur as to us.
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If an event of default
with respect to debt securities of any series occurs and is continuing, the indenture trustee or the holders of at least 25% in
aggregate principal amount of the outstanding debt securities of that series, by notice to us in writing, and to the indenture
trustee if notice is given by such holders, may declare the unpaid principal, premium, if any, and accrued interest, if any, due
and payable immediately; provided that if an event of bankruptcy, insolvency or reorganization occurs, such amounts shall automatically
become due and payable without any declaration or other action on the part of the trustee or any holder.
The holders of a majority
in principal amount of the outstanding debt securities of an affected series may waive any default or event of default with respect
to the series and its consequences, except defaults or events of default regarding payment of principal, premium, if any, or interest,
unless we have cured the default or event of default in accordance with the indenture. Any waiver will cure the default or event
of default.
Subject to the terms
of the indentures, if an event of default under an indenture occurs and is continuing, the indenture trustee will be under no obligation
to exercise any of its rights or powers under such indenture at the request or direction of any of the holders of the applicable
series of debt securities, unless such holders have offered the indenture trustee reasonable indemnity. The holders of a majority
in principal amount of the outstanding debt securities of any series will have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the indenture trustee, or exercising any trust or power conferred on the
indenture trustee, with respect to the debt securities of that series, provided that:
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the direction given by the holder is not in conflict with any law or the applicable indenture; and
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subject to its duties under the Trust Indenture Act, the indenture trustee need not take any action that might involve it in personal liability or might be unduly prejudicial to the holders not involved in the proceeding.
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A holder of the debt
securities of any series will only have the right to institute a proceeding under the indentures or to appoint a receiver or trustee,
or to seek other remedies if:
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the holder has given written notice to the indenture trustee of a continuing event of default with respect to that series;
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the holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series have made a written request, and such holders have offered reasonable indemnity to the indenture trustee to institute the proceeding as trustee; and
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the indenture trustee does not institute the proceeding, and does not receive from the holders of a majority in aggregate principal amount of the outstanding debt securities of that series other conflicting directions within 60 days after the notice, request and offer.
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These limitations do
not apply to a suit instituted by a holder of debt securities if we default in the payment of the principal, premium, if any, or
interest on, the debt securities.
We will periodically
file statements with the indenture trustee regarding our compliance with specified covenants in the indentures.
Modification of Indenture; Waiver
We and the indenture
trustee may change an indenture without the consent of any holders with respect to specific matters, including:
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to fix any ambiguity, defect or inconsistency in the indenture; and
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to change anything that does not materially adversely affect the interests of any holder of debt securities of any series.
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In addition, under
the indentures, the rights of holders of a series of debt securities may be changed by us and the indenture trustee with the written
consent of the holders of at least a majority in aggregate principal amount of the outstanding debt securities of each series that
is affected. However, we and the indenture trustee may only make the following changes with the consent of each holder of any outstanding
debt securities affected:
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changing the fixed maturity of the series of debt securities or any installment of principal of or interest on any series of debt securities;
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reducing the principal amount, reducing the rate of or extending the time of payment of interest, or any premium payable upon the redemption of any debt securities; or
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reducing the percentage of debt securities, the holders of which are required to consent to any amendment.
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Discharge
Each indenture provides
that we can elect to be discharged from our obligations with respect to one or more series of debt securities, except for obligations
to:
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register the transfer or exchange of debt securities of the series;
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replace stolen, lost or mutilated debt securities of the series;
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maintain paying agencies;
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hold monies for payment in trust;
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compensate and indemnify the indenture trustee; and
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appoint any successor indenture trustee.
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In order to exercise
our rights to be discharged, we must deposit with the indenture trustee money or government obligations sufficient to pay all the
principal of, any premium, if any, and interest on, the debt securities of the series on the dates payments are due.
Form, Exchange and Transfer
We will issue the debt
securities of each series only in fully registered form without coupons and, unless we otherwise specify in the applicable prospectus
supplement, in denominations of $1,000 and any integral multiple thereof. The indentures provide that we may issue debt securities
of a series in temporary or permanent global form and as book-entry securities that will be deposited with, or on behalf of, The
Depositary Trust Company or another Depositary named by us and identified in a prospectus supplement with respect to that series.
See “Book-Entry Issuance” for a further description of the terms relating to any book-entry securities.
Subject to the terms
of the indentures and the limitations applicable to global securities described in the applicable prospectus supplement, the holder
of the debt securities of any series, at its option, can exchange the debt securities for other debt securities of the same series,
in any authorized denomination and of like tenor and aggregate principal amount.
Subject to the terms
of the indentures and the limitations applicable to global securities set forth in the applicable prospectus supplement, holders
of the debt securities may present the debt securities for exchange or for registration of transfer, duly endorsed or with the
form of transfer endorsed thereon duly executed if so required by us or the security registrar, at the office of the security registrar
or at the office of any transfer agent designated by us for this purpose. Unless otherwise provided in the debt securities that
the holder presents for transfer or exchange, no service charge will be required for any registration of transfer or exchange,
but we may require payment of any taxes or other governmental charges.
We will name in the
applicable prospectus supplement the security registrar, and any transfer agent in addition to the security registrar, that we
initially designate for any debt securities. We may at any time designate additional transfer agents or rescind the designation
of any transfer agent or approve a change in the office through which any transfer agent acts, except that we will be required
to maintain a transfer agent in each place of payment for the debt securities of each series.
If we elect to redeem
the debt securities of any series, we will not be required to:
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issue, register the transfer of, or exchange any debt securities of that series during a period beginning at the opening of business 15 days before the day of mailing of a notice of redemption of any debt securities that may be selected for redemption and ending at the close of business on the day of the mailing; or
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register the transfer of or exchange any debt securities so selected for redemption, in whole or in part, except the unredeemed portion of any debt securities we are redeeming in part.
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Payment and Paying Agents
Unless we otherwise
indicate in the applicable prospectus supplement, we will make payment of the interest on any debt securities on any interest payment
date to the person in whose name the debt securities, or one or more predecessor securities, are registered at the close of business
on the regular record date for the interest.
We will pay principal
of and any premium and interest on the debt securities of a particular series at the office of the paying agents designated by
us, except that unless we otherwise indicate in the applicable prospectus supplement, we will make interest payments by check which
we will mail to the holder. Unless we otherwise indicate in a prospectus supplement, we will designate the corporate trust office
of the indenture trustee in the City of New York as our sole paying agent for payments with respect to debt securities of each
series. We will name in the applicable prospectus supplement any other paying agents that we initially designate for the debt securities
of a particular series. We will maintain a paying agent in each place of payment for the debt securities of a particular series.
All money we pay to
a paying agent or the indenture trustee for the payment of the principal of or any premium or interest on any debt securities which
remains unclaimed at the end of two years after such principal, premium or interest has become due and payable will be repaid to
us, and the holder of the security thereafter may look only to us for payment thereof.
Governing Law
The indentures and
the debt securities will be governed by and construed in accordance with the laws of the State of New York, except to the extent
that the Trust Indenture Act is applicable.
Subordination of Subordinated Notes
The subordinated notes
will be unsecured and will be subordinate and junior in priority of payment to certain of our other indebtedness to the extent
described in a prospectus supplement. The subordinated indenture does not limit the amount of subordinated notes which we may issue.
It also does not limit us from issuing any other secured or unsecured debt.
Regarding the Indenture Trustee
We will name the indenture
trustee for debt securities issued under the applicable indenture in the applicable supplement to this prospectus and, unless otherwise
indicated in a prospectus supplement, the indenture trustee will also act as Transfer Agent and Paying Agent with respect to the
debt securities. The indenture trustee may be removed at any time with respect to the debt securities of any series by act of the
holders of a majority in principal amount of the outstanding debt securities of such series delivered to the indenture trustee
and to us.
Global Securities
The debt securities
of a series may be issued in whole or in part in the form of one or more global securities that will be deposited with, or on behalf
of, a depository identified in an applicable subsequent filing and registered in the name of the depository or a nominee for the
depository. In such a case, one or more global securities will be issued in a denomination or aggregate denominations equal to
the portion of the aggregate principal amount of outstanding debt securities of the series to be represented by the global security
or securities. Unless and until it is exchanged in whole or in part for debt securities in definitive certificated form, a global
security may not be transferred except as a whole by the depository for the global security to a nominee of the depository or by
a nominee of the depository to the depository or another nominee of the depository or by the depository or any nominee to a successor
depository for that series or a nominee of the successor depository and except in the circumstances described in an applicable
subsequent filing.
We expect that the
following provisions will apply to depository arrangements for any portion of a series of debt securities to be represented by
a global security. Any additional or different terms of the depository arrangement will be described in an applicable subsequent
filing.
Upon the issuance of
any global security, and the deposit of that global security with or on behalf of the depository for the global security, the depository
will credit, on its book-entry registration and transfer system, the principal amounts of the debt securities represented by that
global security to the accounts of institutions that have accounts with the depository or its nominee. The accounts to be credited
will be designated by the underwriters or agents engaging in the distribution of the debt securities or by us, if the debt securities
are offered and sold directly by us. Ownership of beneficial interests in a global security will be limited to participating institutions
or persons that may hold interest through such participating institutions. Ownership of beneficial interests by participating institutions
in the global security will be shown on, and the transfer of the beneficial interests will be effected only through, records maintained
by the depository for the global security or by its nominee. Ownership of beneficial interests in the global security by persons
that hold through participating institutions will be shown on, and the transfer of the beneficial interests within the participating
institutions will be effected only through, records maintained by those participating institutions. The laws of some jurisdictions
may require that purchasers of securities take physical delivery of the securities in certificated form. The foregoing limitations
and such laws may impair the ability to transfer beneficial interests in the global securities.
So long as the depository
for a global security, or its nominee, is the registered owner of that global security, the depository or its nominee, as the case
may be, will be considered the sole owner or holder of the debt securities represented by the global security for all purposes
under the applicable Indenture. Unless otherwise specified in an applicable subsequent filing and except as specified below, owners
of beneficial interests in the global security will not be entitled to have debt securities of the series represented by the global
security registered in their names, will not receive or be entitled to receive physical delivery of debt securities of the series
in certificated form and will not be considered the holders thereof for any purposes under the Indenture. Accordingly, each
person owning a beneficial interest in the global security must rely on the procedures of the depository and, if such person is
not a participating institution, on the procedures of the participating institution through which the person owns its interest,
to exercise any rights of a holder under the Indenture.
The depository may
grant proxies and otherwise authorize participating institutions to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a holder is entitled to give or take under the applicable Indenture. We understand
that, under existing industry practices, if we request any action of holders or any owner of a beneficial interest in the global
security desires to give any notice or take any action a holder is entitled to give or take under the applicable Indenture, the
depository would authorize the participating institutions to give the notice or take the action, and participating institutions
would authorize beneficial owners owning through such participating institutions to give the notice or take the action or would
otherwise act upon the instructions of beneficial owners owning through them.
Unless otherwise specified
in applicable subsequent filings, payments of principal, premium and interest on debt securities represented by a global security
registered in the name of a depository or its nominee will be made by us to the depository or its nominee, as the case may be,
as the registered owner of the global security.
We expect that the
depository for any debt securities represented by a global security, upon receipt of any payment of principal, premium or interest,
will credit participating institutions’ accounts with payments in amounts proportionate to their respective beneficial interests
in the principal amount of the global security as shown on the records of the depository. We also expect that payments by participating
institutions to owners of beneficial interests in the global security held through those participating institutions will be governed
by standing instructions and customary practices, as is now the case with the securities held for the accounts of customers registered
in street names, and will be the responsibility of those participating institutions. None of us, the trustees or any agent of ours
or the trustees will have any responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial interests in a global security, or for maintaining, supervising or reviewing any records relating to those beneficial
interests.
Unless otherwise specified
in the applicable subsequent filings, a global security of any series will be exchangeable for certificated debt securities of
the same series only if:
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the depository for such global securities notifies us that it is unwilling or unable to continue as depository or such depository ceases to be a clearing agency registered under the Exchange Act and, in either case, a successor depository is not appointed by us within 90 days after we receive the notice or become aware of the ineligibility;
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we in our sole discretion determine that the global securities shall be exchangeable for certificated debt securities; or
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there shall have occurred and be continuing an event of default under the applicable Indenture with respect to the debt securities of that series.
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Upon any exchange,
owners of beneficial interests in the global security or securities will be entitled to physical delivery of individual debt securities
in certificated form of like tenor and terms equal in principal amount to their beneficial interests, and to have the debt securities
in certificated form registered in the names of the beneficial owners, which names are expected to be provided by the depository’s
relevant participating institutions to the applicable trustee.
In the event that the
Depository Trust Company, or “DTC,” acts as depository for the global securities of any series, the global securities
will be issued as fully registered securities registered in the name of Cede & Co., DTC’s partnership nominee.
DTC is a member of
the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency
with the Commission. Established in 1973, DTC was created to reduce costs and provide clearing and settlement efficiencies by immobilizing
securities and making “book-entry” changes to ownership of the securities. DTC provides securities movements for the
net settlements of the National Securities Clearing Corporation, or “NSCC,” and settlement for institutional trades
(which typically involve money and securities transfers between custodian banks and broker/dealers), as well as money market instruments.
DTC is a subsidiary
of The Depository Trust & Clearing Company, or “DTCC.” DTCC is a holding company established in 1999 to combine
DTC and NSCC. DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and
municipal bonds, government and mortgage backed securities, money market instruments and over the-counter derivatives. In addition,
DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks.
DTCC’s customer base extends to thousands of companies within the global financial services industry. DTCC serves brokers,
dealers, institutional investors, banks, trust companies, mutual fund companies, insurance carriers, hedge funds and other financial
intermediaries—either directly or through correspondent relationships.
DTCC is industry-owned
by its customers who are members of the financial community, such as banks, broker/dealers, mutual funds and other financial institutions.
DTCC operates on an at-cost basis, returning excess revenue from transaction fees to its member firms. All services provided by
DTC are regulated by the Commission.
The 2020 DTCC Board
of Directors is composed of 20 directors serving one-year terms. Twelve directors are representatives of clearing agency participants,
including broker/dealers, custodian and clearing banks, and investment institutions; two directors are designated by DTCC’s
preferred shareholders, which are NYSE Euronext and FINRA; four directors are from non-participants; and the remaining two are
the non-executive chairman and the chief executive officer and president of DTCC. All of the Board members except those designated
by the preferred shareholders are elected annually.
To facilitate subsequent
transfers, the debt securities may be registered in the name of DTC’s nominee, Cede & Co. The deposit of the debt
securities with DTC and their registration in the name of Cede & Co. will effect no change in beneficial ownership. DTC
has no knowledge of the actual beneficial owners of the debt securities. DTC’s records reflect only the identity of the direct
participating institutions to whose accounts debt securities are credited, which may or may not be the beneficial owners. The participating
institutions remain responsible for keeping account of their holdings on behalf of their customers.
Delivery of notices
and other communications by DTC to direct participating institutions, by direct participating institutions to indirect participating
institutions, and by direct participating institutions and indirect participating institutions to beneficial owners of debt securities
are governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect.
Neither DTC nor Cede &
Co. consents or votes with respect to the debt securities. Under its usual procedures, DTC mails a proxy to the issuer as soon
as possible after the record date. The proxy assigns Cede & Co.’s consenting or voting rights to those direct participating
institution to whose accounts the debt securities are credited on the record date.
If applicable, redemption
notices shall be sent to Cede & Co. If less than all of the debt securities of a series represented by global securities
are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each direct participating institutions
in that issue to be redeemed.
To the extent that
any debt securities provide for repayment or repurchase at the option of the holders thereof, a beneficial owner shall give notice
of any option to elect to have its interest in the global security repaid by us, through its participating institution, to the
applicable trustee, and shall effect delivery of the interest in a global security by causing the direct participating institution
to transfer the direct participating institution’s interest in the global security or securities representing the interest,
on DTC’s records, to the applicable trustee. The requirement for physical delivery of debt securities in connection with
a demand for repayment or repurchase will be deemed satisfied when the ownership rights in the global security or securities representing
the debt securities are transferred by direct participating institutions on DTC’s records.
DTC may discontinue
providing its services as securities depository for the debt securities at any time. Under such circumstances, in the event that
a successor securities depository is not appointed, debt security certificates are required to be printed and delivered as described
above.
We may decide to discontinue
use of the system of book-entry transfers through the securities depository. In that event, debt security certificates will be
printed and delivered as described above.
DESCRIPTION
OF UNITS
We may issue units
comprised of one or more of the other securities described in this prospectus in any combination. Each unit will be issued so that
the holder of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights
and obligations of a holder of each included security. The unit agreement under which a unit is issued may provide that the securities
included in the unit may not be held or transferred separately, at any time or at any time before a specified date.
The applicable prospectus
supplement will describe:
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the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;
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any unit agreement under which the units will be issued;
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any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; and
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whether the units will be issued in fully registered or global form.
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The applicable prospectus
supplement will describe the terms of any units. The preceding description and any description of units in the applicable prospectus
supplement does not purport to be complete and is subject to and is qualified in its entirety by reference to the unit agreement
and, if applicable, collateral arrangements and depositary arrangements relating to such units. For more information on how you
can obtain copies of the applicable unit agreement if we offer units, see “Where You Can Find More Information” beginning
on page 32 and “Incorporation by Reference” beginning on page 33. We urge you to read the applicable unit
agreement and any applicable prospectus supplement in their entirety.
TAXATION
The material United
Kingdom and U.S. federal income tax consequences relating to the purchase, ownership and disposition of any of the securities offered
by this prospectus will be set forth in the prospectus supplement offering those securities.
PLAN OF DISTRIBUTION
The securities being
offered by this prospectus may be sold:
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to or through one or more underwriters on a firm commitment or agency basis;
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through put or call option transactions relating to the securities;
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to or through dealers, who may act as agents or principals, including a block trade (which may involve crosses) in which a broker or dealer so engaged will attempt to sell as agent but may position and resell a portion of the block as principal to facilitate the transaction;
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through privately negotiated transactions;
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purchases by a broker or dealer as principal and resale by such broker or dealer for its own account pursuant to this prospectus;
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directly to purchasers, including our affiliates , through a specific bidding or auction process, on a negotiated basis or otherwise; to or through one or more underwriters on a firm commitment or best efforts basis;
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exchange distributions and/or secondary distributions;
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ordinary brokerage transactions and transactions in which the broker solicits purchasers;
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in “at-the-market” offerings, within the meaning of Rule 415(a)(4) of the Securities Act to or through a market maker or into an existing trading market, on an exchange or otherwise;
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transactions not involving market makers or established trading markets, including direct sales or privately negotiated transactions;
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transactions in options, swaps or other derivatives that may or may not be listed on an exchange or
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through any other method permitted pursuant to applicable law; or
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through a combination of any such methods of sale.
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At any time a particular
offer of the securities covered by this prospectus is made, a revised prospectus or prospectus supplement, if required, will be
distributed which will set forth the aggregate amount of securities covered by this prospectus being offered and the terms of the
offering, including the name or names of any underwriters, dealers, brokers or agents, any discounts, commissions, concessions
and other items constituting compensation from us and any discounts, commissions or concessions allowed or re-allowed or paid to
dealers. Such prospectus supplement, and, if necessary, a post-effective amendment to the registration statement of which this
prospectus is a part, will be filed with the SEC to reflect the disclosure of additional information with respect to the distribution
of the securities covered by this prospectus. In order to comply with the securities laws of certain states, if applicable, the
securities sold under this prospectus may only be sold through registered or licensed broker-dealers. In addition, in some states
the securities may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from
registration or qualification requirements is available and is complied with.
The distribution of
securities may be effected from time to time in one or more transactions, including block transactions and transactions on The
Nasdaq Capital Market or any other organized market where the securities may be traded. The securities may be sold at a fixed price
or prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to the prevailing market
prices or at negotiated prices. The consideration may be cash or another form negotiated by the parties. Agents, underwriters or
broker-dealers may be paid compensation for offering and selling the securities. That compensation may be in the form of discounts,
concessions or commissions to be received from us or from the purchasers of the securities. Any dealers and agents participating
in the distribution of the securities may be deemed to be underwriters, and compensation received by them on resale of the securities
may be deemed to be underwriting discounts. If any such dealers or agents were deemed to be underwriters, they may be subject to
statutory liabilities under the Securities Act.
Agents may from time
to time solicit offers to purchase the securities. If required, we will name in the applicable prospectus supplement any agent
involved in the offer or sale of the securities and set forth any compensation payable to the agent. Unless otherwise indicated
in the prospectus supplement, any agent will be acting on a best efforts basis for the period of its appointment. Any agent selling
the securities covered by this prospectus may be deemed to be an underwriter, as that term is defined in the Securities Act, of
the securities.
To the extent that
we make sales to or through one or more underwriters or agents in at-the-market offerings, we will do so pursuant to the terms
of a distribution agreement between us and the underwriters or agents. If we engage in at-the-market sales pursuant to a distribution
agreement, we will sell any of our listed securities to or through one or more underwriters or agents, which may act on an agency
basis or on a principal basis. During the term of any such agreement, we may sell any of our listed securities on a daily basis
in exchange transactions or otherwise as we agree with the underwriters or agents. The distribution agreement will provide that
any of our listed securities which are sold will be sold at prices related to the then prevailing market prices for our listed
securities. Therefore, exact figures regarding proceeds that will be raised or commissions to be paid cannot be determined at this
time and will be described in a prospectus supplement. Pursuant to the terms of the distribution agreement, we also may agree to
sell, and the relevant underwriters or agents may agree to solicit offers to purchase, blocks of our listed securities. The terms
of each such distribution agreement will be set forth in more detail in a prospectus supplement to this prospectus.
If underwriters are
used in a sale, securities will be acquired by the underwriters for their own account and may be resold from time to time in one
or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the
time of sale, or under delayed delivery contracts or other contractual commitments. Securities may be offered to the public either
through underwriting syndicates represented by one or more managing underwriters or directly by one or more firms acting as underwriters.
If an underwriter or underwriters are used in the sale of securities, an underwriting agreement will be executed with the underwriter
or underwriters, as well as any other underwriter or underwriters, with respect to a particular underwritten offering of securities,
and will set forth the terms of the transactions, including compensation of the underwriters and dealers and the public offering
price, if applicable. The prospectus and prospectus supplement will be used by the underwriters to resell the securities.
If a dealer is used
in the sale of the securities, we or an underwriter will sell the securities to the dealer, as principal. The dealer may then resell
the securities to the public at varying prices to be determined by the dealer at the time of resale. To the extent required, we
will set forth in the prospectus supplement the name of the dealer and the terms of the transactions.
We may directly solicit
offers to purchase the securities and may make sales of securities directly to institutional investors or others. These persons
may be deemed to be underwriters within the meaning of the Securities Act with respect to any resale of the securities. To the
extent required, the prospectus supplement will describe the terms of any such sales, including the terms of any bidding or auction
process, if used.
Agents, underwriters
and dealers may be entitled under agreements which may be entered into with us to indemnification by us against specified liabilities,
including liabilities incurred under the Securities Act, or to contribution by us to payments they may be required to make in respect
of such liabilities. If required, the prospectus supplement will describe the terms and conditions of the indemnification or contribution.
Some of the agents, underwriters or dealers, or their affiliates may be customers of, engage in transactions with or perform services
for us or our subsidiaries.
Any person participating
in the distribution of securities registered under the registration statement that includes this prospectus will be subject to
applicable provisions of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the applicable SEC rules and
regulations, including, among others, Regulation M, which may limit the timing of purchases and sales of any of our securities
by that person. Furthermore, Regulation M may restrict the ability of any person engaged in the distribution of our securities
to engage in market-making activities with respect to our securities. These restrictions may affect the marketability of our securities
and the ability of any person or entity to engage in market-making activities with respect to our securities.
Certain persons participating
in an offering may engage in over-allotment, stabilizing transactions, short-covering transactions, penalty bids and other transactions
that stabilize, maintain or otherwise affect the price of the offered securities. These activities may maintain the price of the
offered securities at levels above those that might otherwise prevail in the open market, including by entering stabilizing bids,
effecting syndicate covering transactions or imposing penalty bids, each of which is described below:
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●
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a stabilizing bid means the placing of any bid, or the effecting of any purchase, for the purpose of pegging, fixing or maintaining the price of a security.
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●
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a syndicate covering transaction means the placing of any bid on behalf of the underwriting syndicate or the effecting of any purchase to reduce a short position created in connection with the offering.
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●
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a penalty bid means an arrangement that permits the managing underwriter to reclaim a selling concession from a syndicate member in connection with the offering when offered securities originally sold by the syndicate member are purchased in syndicate covering transactions.
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These transactions
may be effected on an exchange or automated quotation system, if the securities are listed on that exchange or admitted for trading
on that automated quotation system, or in the over-the-counter market or otherwise.
If so indicated in
the applicable prospectus supplement, we will authorize agents, underwriters or dealers to solicit offers from certain types of
institutions to purchase offered securities from us at the public offering price set forth in such prospectus supplement pursuant
to delayed delivery contracts providing for payment and delivery on a specified date in the future. Such contracts will be subject
only to those conditions set forth in the prospectus supplement and the prospectus supplement will set forth the commission payable
for solicitation of such contracts.
In addition, ordinary
shares, ADSs or warrants may be issued upon conversion of or in exchange for debt securities or other securities.
Any underwriters to
whom offered securities are sold for public offering and sale may make a market in such offered securities, but such underwriters
will not be obligated to do so and may discontinue any market making at any time without notice. The offered securities may or
may not be listed on a national securities exchange. No assurance can be given that there will be a market for the offered securities.
Any securities that
qualify for sale pursuant to Rule 144 or Regulation S under the Securities Act, may be sold under Rule 144 or Regulation
S rather than pursuant to this prospectus.
In connection with
offerings made through underwriters or agents, we may enter into agreements with such underwriters or agents pursuant to which
we receive our outstanding securities in consideration for the securities being offered to the public for cash. In connection with
these arrangements, the underwriters or agents may also sell securities covered by this prospectus to hedge their positions in
these outstanding securities, including in short sale transactions. If so, the underwriters or agents may use the securities received
from us under these arrangements to close out any related open borrowings of securities.
We may enter into derivative
transactions with third parties or sell securities not covered by this prospectus to third parties in privately negotiated transactions.
If the applicable prospectus supplement indicates, in connection with those derivatives, such third parties (or affiliates of such
third parties) may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale
transactions. If so, such third parties (or affiliates of such third parties) may use securities pledged by us or borrowed from
us or others to settle those sales or to close out any related open borrowings of shares, and may use securities received from
us in settlement of those derivatives to close out any related open borrowings of shares. The third parties (or affiliates of such
third parties) in such sale transactions will be underwriters and will be identified in the applicable prospectus supplement (or
a post-effective amendment).
We may loan or pledge
securities to a financial institution or other third party that in turn may sell the securities using this prospectus. Such financial
institution or third party may transfer its short position to investors in our securities or in connection with a simultaneous
offering of other securities offered by this prospectus or in connection with a simultaneous offering of other securities offered
by this prospectus.
EXPERTS
The financial statements
as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 incorporated by
reference in this prospectus have been so incorporated in reliance on the report of BDO USA, LLP, an independent registered public
accounting firm (the report on the financial statements contains an explanatory paragraph regarding the Company’s ability
to continue as a going concern) incorporated by reference herein, given on the authority of said firm as experts in auditing and
accounting.
LEGAL MATTERS
McDermott Will &
Emery LLP has passed upon certain legal matters regarding the securities offered hereby. If the securities are distributed in an
underwritten offering, certain legal matters will be passed upon for the underwriters by counsel identified in the applicable prospectus
supplement.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with
the SEC a registration statement on Form F-3, including amendments and relevant exhibits and schedules, under the Securities
Act covering the ordinary shares represented by ADSs to be sold in this offering. This prospectus, which constitutes a part of
the registration statement, summarizes material provisions of contracts and other documents that we refer to in the prospectus.
Since this prospectus does not contain all of the information contained in the registration statement, you should read the registration
statement and its exhibits and schedules for further information with respect to us and our ordinary shares and the ADSs. Our SEC
filings, including the registration statement, are also available to you on the SEC's Web site at http://www.sec.gov.
We are subject to the
information reporting requirements of the Exchange Act that are applicable to foreign private issuers, and under those requirements
we file reports with the SEC. Those other reports or other information may be inspected without charge at the locations described
above. As a foreign private issuer, we are exempt from the rules under the Exchange Act related to the furnishing and content
of proxy statements, and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit
recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required under the Exchange Act to
file annual, quarterly and current reports and financial statements with the SEC as frequently or as promptly as United States
companies whose securities are registered under the Exchange Act. However, we file with the SEC, within four months after the end
of each fiscal year, or such applicable time as required by the SEC, an annual report on Form 20-F containing financial statements
audited by an independent registered public accounting firm, and submit to the SEC, on Form 6-K, unaudited quarterly financial
information for the first three quarters of each fiscal year within 60 days after the end of each such quarter, or such applicable
time as required by the SEC.
INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE
We file annual and
special reports and other information with the SEC (File Number 001-36288). These filings contain important information that does
not appear in this prospectus. The SEC allows us to “incorporate by reference” information into this prospectus, which
means that we can disclose important information to you by referring you to other documents which we have filed or will file with
the SEC. We are incorporating by reference in this prospectus the documents listed below and all amendments or supplements we may
file to such documents, as well as any future filings we may make with the SEC on Form 20-F under the Exchange Act before
the time that all of the securities offered by this prospectus have been sold or de-registered:
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·
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Our Form 6-Ks filed with the SEC on March 31, 2020, May 1, 2020, May 21, 2020, May 29, 2020, June 1, 2020, July 1, 2020 (two 6-Ks filed), August 31, 2020, September 1, 2020, October 1, 2020, October 6, 2020, November 16, 2020, December 3, 2020, December 9, 2020 and December 11, 2020 (two 6-Ks filed) (to the extent expressly incorporated by reference into our effective registration statements filed by us under the Securities Act);
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The information relating
to us contained in this prospectus does not purport to be comprehensive and should be read together with the information contained
in the documents incorporated or deemed to be incorporated by reference in this prospectus.
As you read the above
documents, you may find inconsistencies in information from one document to another. If you find inconsistencies between the documents
and this prospectus, you should rely on the statements made in the most recent document. All information appearing in this prospectus
is qualified in its entirety by the information and financial statements, including the notes thereto, contained in the documents
incorporated by reference herein.
We will provide to
each person, including any beneficial owner, to whom this prospectus is delivered, a copy of these filings, at No cost, upon
written or oral request to us at the following address:
Akari Therapeutics, Plc
75/76 Wimpole Street
London W1G 9RT
+44 20 8004 0270
Attention: Clive Richardson
You also may access
the incorporated reports and other documents referenced above on our website at www.akaritx.com. The information contained on,
or that can be accessed through, our website is not part of this prospectus.
You should rely only
on the information contained or incorporated by reference in this prospectus or a prospectus supplement. We have not authorized
any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not
permitted. You should assume that the information appearing in this prospectus is accurate only as of the date on the front cover
of this prospectus, or such earlier date, that is indicated in this prospectus. Our business, financial condition, results of operations
and prospects may have changed since that date.
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to
the foregoing provisions, or otherwise, we have been informed that in the opinion of the SEC such indemnification is against public
policy as expressed in the Securities Act and is, therefore, unenforceable.
ENFORCEMENT OF FOREIGN JUDGMENTS
We are incorporated
under the laws of England and Wales. Several of our directors and officers reside outside the United States, and a portion of our
assets and all or a substantial portion of the assets of such persons are located outside the United States. As a result, it may
be difficult for you to serve legal process on us or certain of our directors and executive officers or have any of them appear
in a U.S. court.
It may be difficult
for U.S. investors to bring and/or effectively enforce suits against our company in England. Although English courts do recognize
U.S. judgments unless there is an overriding jurisdictional or public policy reason not to do so, if a judgment is obtained in
the U.S. courts based on the civil liability provisions of U.S. federal securities laws against us, difficulties may arise in enforcing
the judgment against us in the English courts. The enforceability of any U.S. judgment in the United Kingdom will depend on the
particular facts of the case as well as the laws and treaties in effect at the time. The United States and the United Kingdom do
not currently have a treaty providing for reciprocal recognition and enforcement of judgments (other than arbitration awards) in
civil and commercial matters. It may similarly be difficult for U.S. investors to bring an original action in the English courts
to enforce liabilities based on U.S. federal securities laws.
EXPENSES
We are paying all of
the expenses of the registration of our securities under the Securities Act, including, to the extent applicable, registration
and filing fees, printing and duplication expenses, administrative expenses, accounting fees and the legal fees of our counsel.
The following is a statement of estimated expenses at the present time in connection with the distribution of the securities registered
hereby. All amounts shown are estimates except the SEC registration fee. The estimates do not include expenses related to offerings
of particular securities. Each prospectus supplement describing an offering of securities will reflect the estimated expenses related
to the offering of securities under that prospectus supplement.
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SEC registration fees
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$
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490.94
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Legal fees and expenses
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$
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*
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Accountants fees and expenses
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$
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*
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Printing Fees
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$
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*
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Miscellaneous
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$
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*
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Total
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$
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*
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* These fees and expenses depend on the securities offered
and the number of issuances and accordingly cannot be estimated at this time.
$100,000,000
Ordinary Shares
American Depositary Shares representing
Ordinary Shares
Warrants
Subscription Rights
Debt Securities
Units
PROSPECTUS
, 2021
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 8. Indemnification of Directors, Officers
and Employees
The Registrant’s
articles of association provide that, subject to the Companies Act, every director or other officer (excluding an auditor) of the
Registrant may be indemnified out of the assets of the Registrant against all costs, charges, expenses, losses or liabilities incurred
by him in performing his duties or the exercise of his powers or otherwise in relation to or in connection with his duties, powers
or office.
The Registrant also
maintains directors and officers insurance to insure such persons against certain liabilities.
Item 9. Exhibits and Financial Statement Schedules
The following
exhibits are attached hereto:
Exhibit
No.
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Exhibit Description
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1.1*
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Form of Underwriting Agreement
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3.1
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Articles of Association of Akari Therapeutics, Plc
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4.1
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Form of Deposit Agreement among the Registrant, Deutsche Bank Trust Company Americas, as Depositary, and all Owners and Holders from time to time of American Depositary Shares issued thereunder (incorporated by reference to the exhibit previously filed with the Registrant’s Registration Statement on Form F-6 (No. 333-185197) filed on November 30, 2012)
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4.2
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Amendment to Deposit Agreement among the Registrant, Deutsche Bank Trust Company Americas, as Depositary, and all Owners and Holders from time to time of American Depositary Shares issued thereunder (incorporated by reference to the registrant’s Post-Effective Amendment No. 1 to Registration Statement on Form F-6 (No. 333-185197) filed on December 24, 2013)
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4.3
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Form of Amendment No. 2 to Deposit Agreement (incorporated by reference to the exhibit previously filed with the Registrant’s Post-Effective Amendment on Registration Statement Form F-6 (File No. 333-185197) filed on September 9, 2015).
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4.4
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Form of American Depositary Receipt; the Form is Exhibit A of the Form of Amendment to the Deposit Agreement (incorporated by reference to the exhibit previously filed with the Registrant’s Post-Effective Amendment on Registration Statement Form F-6 (File No. 333-185197) filed on September 9, 2015).
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4.5*
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Form of Warrant Agreement (including Warrant Certificate)
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4.6*
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Form of Subscription Right Agreement (including form of Right Certificate)
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4.7
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Form of Indenture for Senior Indebtedness
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4.8
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Form of Indenture for Subordinated Indebtedness
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4.9*
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Form of Unit Agreement (including form of Unit Certificate)
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4.10*
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Form of Debt Security
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5.1
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Opinion of McDermott Will & Emery UK LLP, counsel to Registrant
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5.2
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Opinion of McDermott Will & Emery LLP, counsel to Registrant
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23.1
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Consent of BDO USA, LLP
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23.3
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Consent of McDermott Will & Emery UK LLP (included in Exhibit 5.1)
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23.4
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Consent of McDermott Will & Emery LLP (included in Exhibit 5.2)
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24.1
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Power of Attorney (included in signature page)
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25.1**
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Statement of Eligibility of Trustee on Form T-1 with respect to the Indentures for Senior Debt Securities and Subordinated Debt Securities
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+
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To be filed by amendment.
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*
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To be filed, if applicable, by amendment, or as an exhibit to a report on Form 6-K and incorporated herein by reference.
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**
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To be filed separately under the electronic form type 305B2, if applicable.
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The agreements included as exhibits to
this registration statement contain representations and warranties by each of the parties to the applicable agreement. These representations
and warranties were made solely for the benefit of the other parties to the applicable agreement and (i) were not intended
to be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements
prove to be inaccurate; (ii) may have been qualified in such agreement by disclosures that were made to the other party in
connection with the negotiation of the applicable agreement; (iii) may apply contract standards of “materiality”
that are different from “materiality” under the applicable securities laws; and (iv) were made only as of the
date of the applicable agreement or such other date or dates as may be specified in the agreement.
The Registrant acknowledges that, notwithstanding
the inclusion of the foregoing cautionary statements, the registrant is responsible for considering whether additional specific
disclosures of material information regarding material contractual provisions are required to make the statements in this registration
statement not misleading.
Item 10. Undertakings
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(a)
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The undersigned Registrant hereby undertakes:
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(1)
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To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
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i. To
include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
ii. To
reflect in the prospectus any facts or events arising after the effective date of the 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 the 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 20% 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 plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
provided, however, that paragraphs
(a)(1)(i), (a)(1)(ii) and a(l)(iii) do not apply if the registration statement is on Form S-3 or Form F-3 and
the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or
furnished to the SEC 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 registration statement, or is contained in a form of prospectus filed pursuant to
Rule 424(b) that is part of the registration statement.
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(2)
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That for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and this offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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(3)
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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.
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(4)
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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.
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(5)
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That, for the purpose of determining liability under the Securities Act to any purchaser:
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i.
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If the Registrant is relying on Rule 430B:
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(A)
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Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
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(B)
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Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which the prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
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ii.
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If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
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(6)
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That, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
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The undersigned Registrant undertakes
that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means
of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to
offer or sell such securities to such purchaser:
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i.
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Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;
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ii.
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Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned Registrant;
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iii.
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The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned Registrant; and
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iv.
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Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.
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(b)
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The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the 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.
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(c)
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The undersigned registrant hereby undertakes to supplement the prospectus, after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of such offering.
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(d)
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The undersigned Registrant hereby undertakes to deliver or cause to be delivered with the prospectus, to each person to whom the prospectus is sent or given, the latest annual report to security holders that is incorporated by reference in the prospectus and furnished pursuant to and meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities Exchange Act of 1934; and, where interim financial information required to be presented by Article 3 of Regulation S-X are not set forth in the prospectus, to deliver, or cause to be delivered to each person to whom the prospectus is sent or given, the latest quarterly report that is specifically incorporated by reference in the prospectus to provide such interim financial information.
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(e)
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Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions described in Item 6 hereof, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the 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 Act and will be governed by the final adjudication of such issue.
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(f)
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The undersigned Registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act in accordance with the rules and regulations prescribed by the SEC under Section 305(b)(2) of the Trust Indenture Act.
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(g)
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The undersigned Registrant hereby undertakes that:
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i.
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For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this Registration Statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act of 1933 shall be deemed to be part of this Registration Statement as of the time it was declared effective.
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ii.
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For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus 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.
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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 on Form F-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in London, England on this 23rd day of December, 2020.
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AKARI THERAPEUTICS, PLC
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By:
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/s/ Clive Richardson
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Name:
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Clive Richardson
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Title:
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Chief Executive Officer and Chief Operating Officer
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POWER OF ATTORNEY
KNOW ALL MEN BY THESE
PRESENTED, that each director and officer of AKARI THERAPEUTICS, PLC whose signature appears below hereby appoints Messrs. Ray
Prudo and Clive Richardson and each of them, the individual’s true and lawful attorneys-in-fact and agents, with full power
to act separately and full power of substitution and resubstitution, for such person and in such person’s name, place and
stead, in any and all capacities, to sign on such person’s behalf, individually and in each capacity stated below, any and
all amendments, including post-effective -amendments to this Registration Statement, and to sign any and all additional registration
statements relating to the same offering of securities of the Registration Statement that are filed pursuant to Rule 462(b) of
the Securities Act of 1933, and to file the same, with all exhibits thereto, and other documents in connection therewith, with
the Securities and Exchange Commission, granting unto said attorneys-in-fact, full power and authority to do and perform each and
every act and thing requisite or necessary to be done in and about the premises, as fully to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact, 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, this registration statement has been signed below by the following persons in the capacities and
on December 23, 2020.
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Name
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Title
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Date
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/s/ Clive Richardson
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Chief Executive Officer, Chief Operating Officer and Director
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Clive Richardson
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(principal executive officer)
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December 23, 2020
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/s/ Dr. Torsten Hombeck
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Chief Financial Officer
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Dr. Torsten Hombeck
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(principal financial officer and principal accounting officer)
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December 23, 2020
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/s/ Dr. Ray Prudo
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Executive Chairman
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Dr. Ray Prudo
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December 23, 2020
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/s/ Dr. James Hill
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Director
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Dr. James Hill
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December 23, 2020
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/s/ Dr. Stuart Ungar
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Director
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Dr. Stuart Ungar
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December 23, 2020
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/s/ David Byrne
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Director
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David Byrne
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December 23, 2020
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/s/ Donald Williams
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Director
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Donald Williams
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December 23, 2020
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/s/ Michael Grissinger
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Director
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Michael Grissinger
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December 23, 2020
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/s/ Dr. Peter Feldschreiber
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Director
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Dr. Peter Feldschreiber
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December 23, 2020
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AUTHORIZED REPRESENTATIVE
Pursuant to the Securities
Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of Akari Therapeutics Plc has
signed this registration statement in the city of Monsey, the State of New York, on December 23, 2020
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Puglisi & Associates
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By:
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/s/ Donald J. Puglisi
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Name: Donald J. Puglisi
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Title: Managing Director
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Exhibit 3.1
AKARI THERAPEUTICS, PLC
Company No. 5252842
ARTICLES OF ASSOCIATION
The Companies Act 2006
Public Company Limited by Shares
(proposed for adoption at the general meeting
of the company on 8 December 2020)
CONTENTS
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1. Preliminary
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1
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2. Liability of members
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3
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3. Share capital and variation of rights
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3
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4. Certificates and shares
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5
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5. Uncertificated Shares
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6
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6. Calls on shares
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7
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7. Transfer of shares
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9
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8. Forfeiture of shares
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10
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9. Transmission of shares
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11
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10. Disclosure of interests in shares
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12
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11. Increase of capital
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14
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12. Alteration of capital
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14
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13. General meetings
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15
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14. Notice of general meetings
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16
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15. Proceedings at general meetings
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16
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16. Votes of members
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16
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17. Corporations acting by representatives
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16
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18. Directors
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16
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19. Alternate Directors
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16
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20. Powers and duties of Directors
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16
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21. Borrowing powers
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16
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22. Proceedings of committees
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16
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23. Appointment and retirement of Directors
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16
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24. Disqualification and removal of Directors
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16
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25. Executive and other directors
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16
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26. Directors’ interests
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16
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27. Conflicts of interest requiring Board authorisation
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16
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28. Proceedings of Directors
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16
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29. Secretary
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16
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30. Minutes
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16
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31. Seal and authentication of documents
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16
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32. Dividends
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16
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33. Reserves
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16
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34. Capitalisation of profits
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16
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35. Accounts
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16
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36. Record dates
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16
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37. Audit
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16
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38. Notices
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16
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39. Untraced shareholders
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16
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40. Destruction of documents
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16
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41. Winding up
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16
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42. Indemnity
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16
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43. Indemnity against claims in respect of shares
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16
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44. Derivative actions
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16
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45. Deferred shares
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16
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1.1
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In these articles of association, the following words and expressions have the following meanings
if not inconsistent with the subject or context:
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Auditors
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the auditors of the company from time to time;
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Board
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the board of directors present at a duly convened and quorate meeting or Directors at a duly authorised committee of Directors as the context requires;
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Business Day
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a day between Monday and Friday (excluding public holidays), inclusive, on which clearing banks are open in the City of London and New York;
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CA 2006
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Companies Act 2006 as amended or re-enacted from time to time;
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Default Shares
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has the meaning as ascribed to it regulation 10.1;
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Director
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a director from time to time of the company;
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Disenfranchisement Notice
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a notice served by the company on the holder of Default Shares in accordance with regulation 10.1;
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Dividend
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a dividend or bonus;
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elected ordinary shares
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has the meaning as ascribed to it in regulation 32.12.6;
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electronic facility
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a website, conference-call system or other device, system, procedure, method or facility providing an electronic means of attendance at and/or participation in a general meeting;
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excepted transfer
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has the meaning as ascribed to it in regulation 10.7.3;
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executed
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any mode of execution including signed, sealed or authenticated in some other way;
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holder
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in relation to shares in the company, a member whose name is entered in the register of members as the holder of those shares;
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Listing Rules
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the rules of the Nasdaq Stock Market or any other market or exchange to which shares of the company are admitted to trading with the company’s consent and any relevant listing authority, as applicable;
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member
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any holder for the time being of shares in the capital of the company of whatever class;
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month
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calendar month;
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Office
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the registered office for the time being and from time to time of the company;
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Operator
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Euroclear UK & Ireland Limited or such other person as may for the time being be approved by HM Treasury as Operator under the Uncertificated Securities Regulations;
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Ordinary Shares
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the ordinary shares of USD0.0001 each in the capital of the company;
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paid up
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includes credited as paid up;
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principal place
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the place specified as such in the notice of any general meeting of the company or, if only one place is given in the notice, that place;
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Relevant Director
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has the meaning ascribed to it in regulation 27.1;
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relevant value
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has the meaning ascribed to it in regulation 32.12.2;
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seal
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the common seal of the company;
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Secretary
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the secretary of the company and, subject to the provisions of the Statutes, includes an assistant or deputy secretary and any person appointed by the Directors to perform any of the duties of the secretary;
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Section 793 Notice
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a notice served by the company under section 793, CA 2006;
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Statutes
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CA 2006, and all other statutes and secondary legislation for the time being in force relating to companies to the extent that they apply to the company; and
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Uncertificated Securities Regulations
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the Uncertificated Securities Regulations 2001 (SI 2001/3755).
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1.2
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Where the context so requires, words denoting the singular include the plural and vice versa, words
denoting the masculine gender include the feminine, and persons include corporations, partnerships, other incorporated bodies and
all other legal entities, with the necessary adaptation.
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1.3
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Words and expressions defined in CA 2006 have the same meanings in these articles, unless the context
otherwise requires.
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1.4
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Where these articles refer to a relevant system in relation to any share, the reference is to the
system in which that share is a participating security at the relevant time.
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1.5
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Any reference to a provision of any statute, statutory instrument, note, order or regulation is
construed as a reference to such provision as amended, modified, consolidated or re-enacted from time to time. References to applicable
law shall include references to Listing Rules and the securities laws of the United States and subdivisions thereof as far as they
apply to the company under their provisions or these articles.
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1.6
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References in these articles to a share being in uncertificated form are references to that share
being an uncertificated unit of a security.
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1.7
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The headings are inserted for convenience and do not affect the construction of these articles.
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1.8
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Subject to the Statutes and other applicable laws and Listing Rules, unless the context requires
otherwise:
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1.8.1
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a place (for the holding of a meeting, the conduct of a poll, or any other purpose) may
be a physical place or an electronic facility;
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1.8.2
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any reference to a meeting refers to a meeting convened and held in any manner permitted
by these articles, including a general meeting of the company at which some or all persons participate in more than one physical
places; and
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1.8.3
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the words participate, attend and present, their cognates and similar words
shall be construed in accordance with the above provisions and regulation 13.4.
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The liability of members of the
company is limited to the amount, if any, unpaid on the shares held by them.
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3.
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Share capital and variation of rights
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|
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3.1
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Subject to the provisions of the Statutes and to the authority of the company in general meeting,
the Board has unconditional authority to allot, grant options over, issue warrants to subscribe, offer or otherwise deal with or
dispose of any shares of the company to such persons, at such times and generally on such terms and conditions as they may determine,
including issuing shares with such preferred or deferred rights as resolved by the company in general meeting.
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3.2
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Subject to the provisions of the Statutes and to the authority of the company in general meeting,
the company has power to purchase its own shares, including any redeemable shares.
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3.3
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When any shares are to be issued, the Board may vary the amount of calls to be paid and the time
of payment of such calls as between the allottees of such shares.
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3.4
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If by the conditions of allotment of any share the whole or part of its issue price is payable
by instalments, every such instalment will, when due, be paid to the company by the person who for the time being is the registered
holder of the share.
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3.5
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The company may issue shares which are to be redeemed or are liable to be redeemed at the option
of the company or the shareholders.
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3.6
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In addition to all other powers of paying commissions, the company may exercise the powers conferred
by the Statutes of paying commissions to persons subscribing or procuring subscriptions for shares of the company, or agreeing
so to do, whether absolutely or conditionally. Subject to the provisions of the Statutes and to any Listing Rules, any such commissions
may be satisfied by the payment of cash or, by the allotment of fully or partly paid shares of the company or by any such combination.
The company may also, on any issue of shares, pay such brokerage as may be lawful.
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3.7
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Except as required by law, no person will be recognised by the company as holding any share upon
any trust, and except only as otherwise provided by these articles or as required by law or under an order of a court of competent
jurisdiction, the company will not be bound by or recognise any equitable, contingent, future or partial interest in any share,
or any interest in any fraction or part of a share, or any other right in respect of any share, except an absolute right to the
entirety of it in the registered holder.
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|
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3.8
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Subject to the Statutes and to regulation 3.1, if at any time the capital of the company is divided
into different classes of shares, all or any of the rights or privileges attached to any class may be varied or abrogated either
in such manner, if any, as may be provided by such rights, or in the absence of any such provision, with the consent in writing
of the holders of at least three fourths of the nominal value of the issued shares of that class (excluding any shares of that
class held as treasury shares), or with the sanction of a special resolution passed at a separate meeting of the holders of the
shares of that class, but not otherwise.
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|
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3.9
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All the provisions of these articles relating to general meetings of the company, or to the proceedings
at them, and the provisions of sections 284, 307 and 310, CA 2006 apply to every such separate meeting referred to in regulation
3.8, with any necessary modifications. The quorum at an adjourned meeting will be one person holding shares of the class in question
or his proxy. Any holder of shares of the class in question present in person or by proxy may demand a poll.
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3.10
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The creation or issue of shares ranking equally with or subsequent to the shares of any class will
not, unless otherwise expressly provided by these articles or the rights attached to such shares as a class, be deemed to be a
variation of the rights of such shares.
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4.
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Certificates and shares
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4.1
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Every person whose name is entered as a member in the Register, other than a person in respect
of whom the company is not required by law to complete and have ready for delivery a certificate (by virtue of the conditions of
issue of such shares or section 778, CA 2006 or otherwise) is entitled, without payment, to one certificate for all the shares
of each class for the time being held by him or, upon payment of such reasonable out-of-pocket expenses as the Board may from time
to time determine for every certificate after the first, to several certificates, each for one or more of his shares.
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4.2
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Every certificate will:
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|
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4.2.1
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be issued within two months after allotment or the lodgement with the company of the transfer of
the shares, not being a transfer which the company is for any reason entitled to refuse to register and does not register, unless
the conditions of issue of such shares otherwise provide and except as exempted by virtue of section 778, CA 2006;
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|
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4.2.2
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be issued under the official seal kept by the company by virtue of section 50, CA 2006 or otherwise
in accordance with the Statutes and as the Board may, by resolution decide, either generally or in relation to any specific case
or cases; and
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4.2.3
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specify the number and class and distinguishing numbers, if any, of the shares to which it relates,
and the amount paid up on them.
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4.3
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The company is not bound to register more than four persons as the joint holders of any share or
shares, except in the case of executors or trustees of a deceased member. In the case of a share held jointly by several persons,
the company is not bound to issue more than one certificate for it. Delivery of a certificate for a share to one of several joint
holders will be sufficient delivery to all.
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4.4
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Where a member transfers part of his holding of shares, he will be entitled to a certificate for
the balance of his holding without charge.
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4.5
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Share certificates and certificates for debentures and, subject to the provisions of any instrument
constituting or securing them, certificates issued under the official seal kept by the company by virtue of section 50, CA 2006,
need not be signed or countersigned, or the signatures may be affixed to them by such mechanical means as may be determined by
the Board.
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4.6
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If a share certificate is lost, destroyed, defaced or worn out, it will be renewed and, in case
of loss or destruction, on such terms, if any, as to evidence an indemnity as the Board thinks fit, and, in case of defacement
or wearing out, on delivery to the company of the old certificate.
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4.7
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The company will not make any charge for any certificate issued under regulation 4.6 but will be
entitled to charge for any exceptional out-of-pocket expenses it incurred relating to the issue of any new certificate.
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5.1
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Under and subject to the Uncertificated Securities Regulations, the Board may permit title to shares
of any class to be evidenced otherwise than by certificate and title to shares of such a class to be transferred by means of a
relevant system and may make arrangements for a class of shares (if all shares of that class are in all respects identical) to
become a participating class. Title to shares of a particular class may only be evidenced otherwise than by a certificate where
that class of shares is at the relevant time a participating class. The Board may also, subject to compliance with the Uncertificated
Securities Regulations, determine at any time that title to any class of shares may from a date specified by the Board no longer
be evidenced otherwise than by a certificate or that title to such a class shall cease to be transferred by means of any particular
relevant system.
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5.2
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In relation to a class of shares which is a participating class and for so long as it remains a
participating class, no provision of these articles shall apply or have effect to the extent that it is inconsistent in any respect
with:
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|
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5.2.1
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the holding of shares of that class in uncertificated form;
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5.2.2
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the transfer of title to shares of that class by means of a relevant system; or
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5.2.3
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any provision of the Uncertificated Securities Regulations; and, without prejudice to the generality
of this article, no provision of these articles shall apply or have effect to the extent that it is in any respect inconsistent
with the maintenance, keeping or entering up by the Operator so long as that is permitted or required by the Uncertificated Securities
Regulations, of an Operator register of securities in respect of that class of shares in uncertificated form.
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5.3
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Shares of a class which is at the relevant time a participating class may be changed from uncertificated
to certificated form, and from certificated to uncertificated form, in accordance with and subject as provided in the Uncertificated
Securities Regulations.
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5.4
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If, under these articles or the Statutes, the company is entitled to sell, transfer or otherwise
dispose of, forfeit, re-allot, accept the surrender of or otherwise enforce a lien over an uncertificated share, then, subject
to these articles and the Statute, such entitlement shall include the right of the Board to:
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|
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5.4.1
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require the holder of the uncertificated share by notice in writing to change that share from uncertificated
to certificated form within such period as may be specified in the notice and keep it as a certificated share for as long as the
Board requires;
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5.4.2
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appoint any person to take such other steps, by instruction given by means of a relevant system
or otherwise, in the name of the holder of such share as may be required to effect the transfer of such share and such steps shall
be as effective as if they had been taken by the registered holder of that share; and
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5.4.3
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take such other action that the Board considers appropriate to achieve the sale, transfer, disposal,
forfeiture, re-allotment or surrender of that share or otherwise to enforce a lien in respect of that share.
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5.5
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Unless the Board determines otherwise, shares which a member holds in uncertificated form shall
be treated as separate holdings from any shares which that member holds in certificated form but a class of shares shall not be
treated as two classes simply because some shares of that class are held in certificated form and others in uncertificated form.
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5.6
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Unless the Board determines otherwise or the Uncertificated Securities Regulations require otherwise,
any shares issued or created out of or in respect of any uncertificated shares shall be uncertificated shares and any shares issued
or created out of or in respect of any certificated shares shall be certificated shares.
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5.7
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The company shall be entitled to assume that the entries on any record of securities maintained
by it in accordance with the Uncertificated Securities Regulations and regularly reconciled with the relevant Operator register
of securities are a complete and accurate reproduction of the particulars entered in the Operator register of securities and shall
accordingly not be liable in respect of any act or thing done or omitted to be done by or on behalf of the company in reliance
on such assumption. Any provision of these articles which requires or envisages that action will be taken in reliance on information
contained in the register of members shall be construed to permit that action to be taken in reliance on information contained
in any relevant record of securities (as so maintained and reconciled).
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6.1
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The Board may, subject to the provisions of these articles and to any conditions of allotment,
from time to time make calls upon the members in respect of any money unpaid on their shares, whether on account of the nominal
value of the shares or by way of premium. Each member will, subject to being given at least 14 days’ notice specifying the
time or times and place of payment, pay to the company at the time or times and place so specified the amount called on his shares.
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6.2
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A call may be payable by instalments and may be postponed or wholly revoked or in part revoked,
as the Board may determine.
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6.3
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A call will be deemed to have been made at the time when the resolution of the Board authorising
the call was passed.
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6.4
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The joint holders of a share are jointly and severally liable to pay all calls in respect of it
and any one of such persons may give effective receipts for any return of capital payable in respect of such shares.
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6.5
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If by the terms of any admission document, prospectus, listing particulars or any other document
relating to an issue of shares in the company or by the conditions of allotment, any amount is payable in respect of any shares
by instalments, every such instalment will be payable as if it were a call duly made by the Board of which due notice had been
given.
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6.6
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If a sum called in respect of a share is not paid before or on the day appointed for its payment,
the person from whom the sum is due must pay interest on the sum at such rate as may be fixed by the terms of allotment of the
share or, if no rate is fixed, at the appropriate rate, as defined by section 592, CA 2006, from the day appointed for its payment
to the time of actual payment. The Board is at liberty to waive payment of such interest wholly or in part.
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6.7
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Any sum which by or pursuant to the terms of issue of a share becomes payable upon allotment or
at any fixed date, whether on account of the amount of the share or by way of premium, will for all the purposes of these articles
be deemed to be a call duly made and payable on the date on which, by or pursuant to the terms of issue, it becomes payable. In
case of non-payment, all the relevant provisions of these articles as to payment of interest, forfeiture or otherwise apply as
if such sum had become payable by virtue of a call duly made and notified.
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6.8
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The Board may make arrangements on the issue of shares for a difference between the holders in
the amount of calls to be paid and in the times of payment.
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6.9
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The Board may receive from any member willing to advance it all or any part of the money unpaid
upon the shares held by him, beyond the sums actually called up on them, as a payment in advance of calls, and such payment in
advance of calls will extinguish, so far as they extend, the liability upon the shares in respect of which it is advanced. The
company may pay interest upon the money so received, or so much of it as from time to time exceeds the amount of the calls then
made upon the shares in respect of which it has been received, at such rate as the member paying such sum and the Board agree.
Any such payment in advance will not entitle the holder of the shares in question to participate in any dividend in respect of
the amount advanced.
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7.1
|
Any member may (subject to the terms of issue of the relevant shares) transfer any of his certificated
shares by instrument of transfer in any usual form or in such other form as the Board approves. The instrument must be executed
by or on behalf of the transferor and (except in the case of a share which is fully paid up) by or on behalf of the transferee
but need not be under seal. The transferor is deemed to remain the holder of the share until the name of the transferee is entered
in the Register in respect of it. Transfers of shares in uncertificated form will be effected by means of the relevant system in
accordance with the Statutes, these articles and any resolution of the Board taken in compliance with the relevant Listing Rules
applicable to the company’s shares.
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7.2
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Subject to regulation 4, the Board may refuse to register a transfer or a certified share unless
the instrument of transfer:
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|
|
7.2.1
|
is in respect of only one class of shares;
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7.2.2
|
is in favour of not more than four joint transferees;
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7.2.3
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is duly stamped (if required);
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7.2.4
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is in compliance with all applicable rules and regulations; and
|
|
|
7.2.5
|
is lodged at the Office or such other place as the Board may decide accompanied by the certificate
for the shares to which it relates (except in the case of a transfer by a person to whom no certificate was issued) and such other
evidence (if any) as the Board may reasonably require to prove the title of the transferor and the due execution by him of the
transfer or, if the transfer is executed by some other person on his behalf, the authority of that person to do so.
|
|
|
7.3
|
The Board may in its absolute discretion and without giving any reasons, refuse to register any
transfer of a certificated share which is not fully paid, but this discretion may not be exercised in such a way as to prevent
dealings in the shares from taking place on an open and proper basis.
|
|
|
7.4
|
The Board may, in circumstances permitted by the Listing Rules, disapprove the transfer of a certificated
share if the exercise of such power does not disturb the market in the shares.
|
|
|
7.5
|
The Board may refuse to register the transfer of an uncertificated share in any circumstances permitted
by law if the exercise of such power does not disturb the market in the shares. Where the Listing Rules do not authorise the Board
to refuse to register a transfer, than the Board shall have no such authority.
|
|
|
7.6
|
If the Board refuses to register a transfer of any share it must send to the transferee a notice
of such refusal within whichever of the following periods is the shorter:
|
|
|
7.6.1
|
the time required by the Listing Rules; and
|
|
|
7.6.2
|
two months after the date on which the transfer was lodged with the company.
|
|
|
7.7
|
No fee will be charged for the registration of a transfer or other document relating to or affecting
the title to any share or for making any entry in the Register affecting the title to any share.
|
|
|
7.8
|
Subject to regulation 40, all instruments of transfer which are registered may be retained by the
company but any instrument of transfer which the Board refuses to register will (except in the case of suspected fraud) be returned
to the person depositing it when notice of the refusal is given.
|
|
|
8.1
|
If a member fails to pay any call or instalment of a call before or on the date appointed for its
payment the Board may, at any time after that date, serve a notice on him requiring payment of so much of the call or instalment
as is unpaid, together with any interest which may have accrued on it and all expenses incurred by the company by reason of such
non-payment.
|
|
|
8.2
|
The notice will name a further date, not earlier than 14 days from the date of its service, on
or before which, and the place where, the payment required by the notice is to be made, and will state that, in the event of non-payment
on or before the date, and at the place appointed, the shares on which the call was made will be liable to be forfeited.
|
|
|
8.3
|
If the requirements of any such notice are not complied with, any share in respect of which it
has been given may at any time before payment of all calls, interest and expenses due in respect of it has been made, be forfeited
by a resolution of the Board. Such forfeiture will include all dividends which have been declared on the forfeited shares and not
actually paid before the forfeiture.
|
|
|
8.4
|
When any share has been forfeited, notice of the forfeiture will be served upon the person who
was before forfeiture the holder of it, but no forfeiture will be in any manner invalidated by any omission to give such notice.
Subject to the provisions of the Statutes, any share so forfeited will become the property of the company, no voting rights may
be exercised in respect of it and the Board may within three years of such forfeiture sell, re-allot, or otherwise dispose of it
in such manner as they think fit, either to the person who was before the forfeiture its holder, or to any other person, and either
with or without any past or accruing dividends, and in the case of re-allotment, with or without any money paid on it by the former
holder being credited as paid up on it. Any share not so disposed of within a period of three years from the date of its forfeiture
will be cancelled in accordance with the provisions of the Statutes.
|
|
|
8.5
|
The Board may at any time, before any share so forfeited has been cancelled or sold, re-allotted
or otherwise disposed of, annul the forfeiture upon such conditions as they think fit.
|
|
|
8.6
|
A person whose shares have been forfeited ceases to be a member in respect of the forfeited shares
and must, if the shares are certificated shares, surrender to the company the certificate for them. That person remains liable
to pay to the company all money which at the date of forfeiture was payable by him to the company in respect of the shares and
interest on them in accordance with regulation 6.6, and the Board may enforce payment without any allowance for the value of the
shares at the time of forfeiture.
|
|
|
8.7
|
A statutory declaration by a Director or the Secretary that a share has been duly forfeited on
a date stated in the declaration, is conclusive evidence of the facts stated in it as against all persons claiming to be entitled
to the share. Such declaration and the receipt by the company of the consideration, if any, given for the share on its sale, re-allotment
or disposal, together with the certificate, if any, for the share delivered to a purchaser or allottee of it, subject to the execution
of a transfer if so required, constitutes a good title to the share. Where a forfeited share held in uncertificated form is to
be transferred to any person, the Board may exercise any of the company’s powers to effect the transfer of the share to that
person. The company may receive any consideration for the share on its disposal. The person to whom the share is sold, re-allotted
or disposed of will be registered as its holder and will not be bound to see to the application of any consideration, nor will
his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale, re-allotment
or disposal of the share.
|
|
|
8.8
|
The Board may accept the surrender of any share liable to be forfeited under these articles and
in any such case any reference in these articles to forfeiture includes surrender.
|
|
|
9.
|
Transmission of shares
|
|
|
9.1
|
If a member dies, the survivors or survivor (where the deceased was a joint holder) and the executors
or administrators of the deceased (where he was a sole or only surviving holder) are the only persons recognised by the company
as having any title to his interest in the shares. Nothing in this regulation will release the estate of a deceased joint holder
from any liability in respect of any share jointly held by him.
|
|
|
9.2
|
Except as provided in these regulations, any person becoming entitled to a share in consequence
of the death or bankruptcy of a member may, upon producing such evidence as to his title as may be required by the Board and subject
to any provisions contained within the Listing Rules, elect either to be registered himself as the holder of the share or to have
some person nominated by him registered as its holder.
|
|
|
9.3
|
If the person becoming entitled by transmission to a certificated share elects to be registered
himself, he must deliver or send to the company a notice in writing signed by him stating that he so elects. If he elects to have
another person registered, and the share is a certificated share, he must signify his election by signing a transfer of the share
in favour of that person. If the person elects to be registered or have another person registered, and the share is an uncertificated
share, he must take any action as the Board may require including, without limitations, the execution of any document and the giving
of any instruction by means of a relevant system to enable himself or that other person to be registered as the holder of the share.
All the limitations, restrictions and provisions of these regulations relating to the right to transfer and the registration of
transfers of shares apply to any such notice or transfer as if the death or bankruptcy of the member had not occurred and the notice
or transfer were a transfer signed by such member.
|
|
|
9.4
|
A person becoming entitled to a share in consequence of the death or bankruptcy of a member will,
upon supply to the company of such evidence as the Board may reasonably require as to his title to the share, be entitled to receive
and may give a discharge for all benefits arising or accruing on or in respect of the share, but he will not be entitled in respect
of that share to receive notices of or to attend or vote at meetings of the company, or, except as previously stated, to any of
the rights or privileges of a member until he has become a member in respect of the share. The Board may at any time give notice
requiring any such person who is the holder of a fully paid up share to elect either to be registered himself or to transfer the
share and, if within 60 days the notice is not complied with, such person will be deemed to have elected to be registered as a
member in respect of the share and may be registered accordingly.
|
|
|
10.
|
Disclosure of interests in shares
|
|
|
10.1
|
Where the company serves a Section 793 Notice on a member, or another person whom the company knows
or has reasonable cause to believe to be interested in shares held by that member, and the member or other person fails in relation
to any such shares including any shares issued to such member after the date of the Section 793 Notice in respect of those shares
(Default Shares) to give the company the information required within 14 days following the date of service of the Section
793 Notice, the Board may serve a Disenfranchisement Notice on the holder of such Default Shares.
|
|
|
10.2
|
Upon service of a Disenfranchisement Notice on a holder the sanctions set out in regulations 10.3
and 10.4 apply, unless the Board otherwise determines.
|
|
|
10.3
|
The Member is not entitled in respect of the Default Shares to be present or to vote (either in
person or by proxy) at a general meeting or at a separate meeting of the holders of a class of shares or on a poll or to exercise
other rights conferred by membership in relation to the meeting or poll.
|
|
|
10.4
|
Where the Default Shares represent at least 0.25 per cent. in nominal value of the issued shares
of their class (calculated exclusive of any shares held as treasury shares):
|
|
|
10.4.1
|
a dividend (or any part of a dividend) or other amount payable in respect of the Default Shares
will be withheld by the company and no interest will be payable on it, and the member is not entitled to elect, under regulation
32.12, to receive shares instead of a dividend; and
|
|
|
10.4.2
|
no transfer of any of the Default Shares will be registered unless:
|
|
|
10.4.2.1
|
the transfer is an excepted transfer; or
|
|
|
10.4.2.2
|
the member is not himself in default in supplying the information required and proves to the satisfaction
of the Board that no person in default in supplying the information required is interested in any of the relevant shares;
|
|
|
10.4.3
|
the registration of the Transfer is regulated by any regulations binding on the company in respect
of uncertificated shares.
|
|
|
10.5
|
The sanctions under regulations 10.1 to 10.4 cease to apply seven days after the earlier of receipt
by the company of:
|
|
|
10.5.1
|
notice of registration of an excepted transfer, in relation to the Default Shares; and
|
|
|
10.5.2
|
all information required by the Section 793 Notice, in a form satisfactory to the Board, in relation
to any Default Shares.
|
|
|
10.6
|
Where the company issued a Section 793 Notice to another person on the basis of information obtained
from a member in respect of a share held by the member, it must at the same time send a copy of the Section 793 Notice to the member,
but the accidental omission to do so, or the non-receipt by the member of the copy, does not invalidate or otherwise affect the
application of regulations 10.1 to 10.4.
|
|
|
10.7
|
For the purpose of regulations 10.1 to 10.6:
|
|
|
10.7.1
|
interested has the meaning given to it in sections 820 to 825, CA 2006;
|
|
|
10.7.2
|
reference to a person having failed or defaulted to give the company the information required by
a Section 793 Notice, includes:
|
|
|
10.7.2.1
|
reference to his having failed or refused to give all or any part of it; and
|
|
|
10.7.2.2
|
reference to his having given information which he knows to be false in a material particular or
having recklessly given information which is false in a material particular;
|
|
|
10.7.3
|
excepted transfer means, in relation to shares held by a member:
|
|
|
10.7.3.1
|
a transfer pursuant to acceptance of a takeover bid for the company as defined in regulation 2
of the Takeovers Directive (no. 2004/25/EC);
|
|
|
10.7.3.2
|
a transfer in consequence of a sale made through a recognised investment exchange (as defined in
the Financial Services and Markets Act 2000) or another stock exchange outside the United Kingdom on which shares in the capital
of the company are normally traded; or
|
|
|
10.7.3.3
|
a transfer which is shown to the satisfaction of the Board to be made in consequence of a bona
fide sale of the whole of the beneficial interest in the shares to a person who is unconnected with the member and with any other
person appearing to be interested in the shares.
|
|
|
10.8
|
Regulations 10.1 to 10.7 are in addition to and without prejudice to the Statutes.
|
|
|
11.1
|
The company may from time to time by ordinary resolution increase its capital by such sum, to be
divided into shares of such amounts and carrying such rights, as the resolution may prescribe.
|
|
|
11.2
|
All new shares are subject to the provisions of these articles with reference to payment of calls,
transfer, transmission and otherwise. Unless otherwise provided by these articles, by the resolution creating the new shares or
by the conditions of issue, the new shares will upon issue be Ordinary Shares.
|
|
|
12.
|
Alteration of capital
|
|
|
12.1
|
The company may by ordinary resolution:
|
|
|
12.1.1
|
consolidate and divide all or any of its share capital into shares of larger nominal value than
its existing shares; or
|
|
|
12.1.2
|
subdivide its shares, or any of them, into shares of smaller nominal value subject nevertheless
to the Statutes, and reclassify them, and so that the resolution by which any share is subdivided may determine that, as between
the holders of the shares resulting from such subdivision, one or more of the shares may have any such preferred or other special
rights over or may have such deferred rights or be subject to any such restrictions as compared with the others as the company
has power to attach to new shares.
|
|
|
12.2
|
The company may from time to time by special resolution reduce its share capital, any redenomination
reserve, capital redemption reserve or share premium account, and (if permitted by the Statutes) any other non-distributable reserves
in any manner authorised by the Statutes and diminish the amount of its share capital by the amount of the shares so cancelled.
|
|
|
12.3
|
If any shares are consolidated or consolidated and then divided, the Board has power to deal with
any fractions of shares which result. If the Board decides to sell any shares representing fractions, it may do so for the best
price reasonably obtainable and distribute the net proceeds of sale among members in proportion to their fractional entitlements
or, subject to the applicable law, retain those proceeds for the benefit of the company. The Board may arrange for any shares representing
fractions to be entered in the register of members as certificated shares if they consider that this makes it easier to sell them.
The Board may sell those shares to anyone, including the company if the Statutes allow, and may authorise any person to transfer
or deliver the shares to the buyer or in accordance with the buyer’s instructions. The buyer shall not be bound to see to
the application of the purchase money, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings
in reference to the sale.
|
|
|
13.1
|
Subject to the provisions of the Statutes, the annual general meeting will be held at such time
and place or places as the Board may determine, any of which may be electronic facilities, and the Board may determine that the
meeting will be hold solely by means of one or more such electronic facilities, with no physical place.
|
|
|
13.2
|
The Board may call a general meeting whenever they think fit, and must do so when required under
Chapter 3, CA 2006 or under the Listing Rules and in accordance thereof. General meetings must also be convened on such requisition,
or in default may be convened by such requisitionists or by court order, as provided by section 305, CA 2006 or under the Listing
Rules, and in accordance thereof.
|
|
|
13.3
|
In the case of any general meeting the Board or the chairman of the meeting may (in the notice
of the meeting or subsequently, notwithstanding the specification in the notice of the general meeting) make arrangements for simultaneous
attendance and participation at other places by members and proxies entitled to attend the general meeting, whether for convenience
or because any such persons are excluded from the principal place due to lack of space. Such arrangements for simultaneous attendance
at the meeting may include arrangements regarding the level of attendance at the other places but they must operate so that any
members and proxies excluded from attendance at the principal place are able to attend at one of the other places. So as to facilitate
the organisation and administration of any general meeting to which such arrangements apply, the Board may arrange for the issue
of tickets, on a basis intended to afford to all members and proxies entitled to attend the meeting an equal opportunity of being
admitted to the principal place, or impose some other random means of selection or otherwise as it, in its absolute discretion,
considers appropriate. The Board may from time to time vary any such arrangements or make new arrangements in their place and the
entitlement of any member or proxy to attend a general meeting at the principal place will be subject to such arrangements as are,
for the time being, in force whether stated in the notice of the meeting to apply to that meeting or notified to the members concerned
subsequent to the despatch of the notice of the meeting.
|
|
|
13.4
|
Any general meeting will be duly constituted and its proceedings valid for so long as the chairman
is satisfied that facilities are available, at each of the places at which persons are permitted by the Board in accordance with
these articles to be present, to enable each member attending the meeting (by whatever means) to:
|
|
|
13.4.1
|
participate in the business of the meeting;
|
|
|
13.4.2
|
hear all the people who speak at the meeting;
|
|
|
13.4.3
|
be heard by all other people attending and participating in the meeting; and
|
|
|
13.4.4
|
exercise any right to vote on any resolution at the meeting so that his vote can be taken into
account in deciding whether or not that resolution is passed.
|
A person who
participates at any of those places shall be deemed for all purposes of the Statutes and these articles to be present or in attendance
at, counted in the quorum for, and entitled to participate in the business of, the general meeting to the same extent as he would
have been had he been physically present in the same location as the chairman of the meeting.
|
|
13.5
|
All persons seeking to attend or participate in a general meeting by way of an electronic facility
shall be responsible for maintaining adequate facilities to enable them to do so. Subject only to the right for the chairman to
adjourn a meeting in accordance with regulation 15.6, any inability of any number of persons to attend or participate in a general
meeting shall not invalidate the proceedings of that meeting.
|
|
|
13.6
|
For the purpose of these articles, any general meeting will be treated as being held and taking
place at the principal place unless the notice of meeting says otherwise or the chairman of the meeting decides otherwise.
|
|
|
14.
|
Notice of general meetings
|
|
|
14.1
|
Subject to the provisions of section 307, CA 2006, an annual general meeting must be called by
at least 21 days’ notice, and all other general meetings must be called by at least 14 days’ notice. The notice is
exclusive of the day on which it is served, or deemed to be served, and of the day for which it is given.
|
|
|
14.2
|
Every notice must specify the principal place, any other place at which members or proxies are
to be permitted to be present, the day and the time of meeting, the general nature of the business to be conducted and such other
information as is required by law, and in the case of an annual general meeting, must specify the meeting as such. For any of those
places that is an electronic facility, the notice shall specify the means of attendance and participation and any known access,
identification and security requirements in accordance with regulation 15.1.
|
|
|
14.3
|
Notices must be given in the manner stated in these articles to all the members holding legal title
to shares, other than those who under the provisions of these articles or under the rights attached to the shares held by them
are not entitled to receive the notice, to each of the Directors and to the auditors.
|
|
|
14.4
|
Notwithstanding that it is called by shorter notice than that specified in regulation 14.1, a meeting
of the company is deemed to have been duly called if it is so agreed:
|
|
|
14.4.1
|
in the case of a meeting called as an annual general meeting, by all the members entitled to attend
and vote at it; or
|
|
|
14.4.2
|
in the case of any other meeting, by a majority in number of the members having a right to attend
and vote at the meeting, being a majority together holding not less than 95 per cent. in nominal value of the shares giving that
right (excluding any shares held as treasury shares).
|
|
|
14.5
|
If the Board, in its absolute discretion, considers that it is impractical or unreasonable for
any reason to hold a general meeting on the date or at the time or place (or places) specified in the notice calling the general
meeting, it may postpone the general meeting to another date, time and/or place (or places).
|
|
|
14.6
|
The accidental omission to give notice of a meeting or resolution or to send any notification when
required by the Statutes or these articles relating to the publication of a notice of meeting on a website or (in cases where proxies
are sent out with the notice) the accidental omission to send a proxy to, or the non-receipt of any such notice, resolution, notification
or proxy by, any person entitled to receive it will not invalidate the proceedings at that meeting.
|
|
|
14.7
|
In every notice calling a meeting of the company or any class of the members of the company, there
will appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint one or more
proxies to exercise all the member’s rights and to attend, speak and vote instead of him, and that a proxy need not also
be a member.
|
|
|
14.8
|
Where special notice of a resolution is required by any provision contained in CA 2006, the resolution
is not effective unless notice of the intention to move it has been given to the company not fewer than 28 days, or such shorter
period as CA 2006 permits, before the meeting at which it is moved, and the company must give to its members notice of any such
resolution as required by and in accordance with the provisions of CA 2006.
|
|
|
14.9
|
It is the duty of the company, subject to the provisions of CA 2006, on the requisition in writing
of such number of members as is specified in CA 2006 and, unless the company otherwise resolves, at the expense of the requisitionists:
|
|
|
14.9.1
|
to give to members entitled to receive notice of the next annual general meeting notice of any
resolution which may properly be moved and is intended to be moved at that meeting; and
|
|
|
14.9.2
|
to circulate to members entitled to have notice of any general meeting sent to them, a statement
of not more than 1,000 words with respect to the matter referred to in any proposed resolution or the business to be dealt with
at that meeting.
|
|
|
15.
|
Proceedings at general meetings
|
|
|
15.1
|
The Board or the chairman of the meeting may direct that members or proxies wishing to attend any
general meeting must comply with such requirements as they or he consider appropriate in the circumstances for the purpose of ensuring
the security and orderly operation of the meeting, including (a) in the case of physical attendance at the meeting, identification
and searches and (b) in the case of attendance by means of an electronic facility, measures to identify those taking part and ensure
the integrity and stability of the electronic facility (including any voting facility). The Board or the chairman may, in their
or his absolute discretion, refuse entry to, or eject from, a general meeting any person who fails to comply with these requirements.
|
|
|
15.2
|
No business may be transacted at any general meeting unless a quorum is present. Except as otherwise
provided in these articles, two persons entitled to vote at the meeting, each being a member or a proxy for a member or a representative
of a corporation which is a member, duly appointed as such in accordance with the Statutes, representing in the aggregate at least
15 per cent. of the total voting rights of all the members having the right to vote at the meeting, shall constitute a quorum.
If at any time the company only has one member, such member in person, by proxy or if a corporation by its representative, shall
constitute a quorum.
|
|
|
15.3
|
If within half an hour from the time appointed for the meeting a quorum is not present, the meeting,
if convened on the requisition of, or by, members, will be dissolved. In any other case, it will stand adjourned to the same day
in the next week at the same time and place (or places), or to such other day and at such other time and place (or places) as the
Board may determine.
|
|
|
15.4
|
If, at such adjourned meeting, a quorum is not present within 15 minutes from the time appointed
for holding the meeting, the member or members present in person or by proxy and entitled to vote will have power to decide upon
all matters which could properly have been disposed of at the meeting as originally convened. When a meeting is adjourned for 30
days or more, the company must give at least seven clear days’ notice, specifying the place (or places), the day and the
time of the adjourned meeting and that the member or members present will form a quorum, but, subject to the Statutes, it will
not be necessary for the notice to give any details of the business to be transacted at the adjourned meeting. Except as stated,
it will not be necessary to give any notice of an adjournment.
|
|
|
15.5
|
The chairman, if any, of the Board, or in his absence some other Director nominated by the chairman
in writing, will preside as chairman at every general meeting of the company, but if at any meeting neither the chairman nor such
other Director is present within 15 minutes after the time appointed for holding the meeting, or if neither of them is willing
to act as chairman, the Directors present may choose some Director present to be chairman, or if no Director is present, or if
all the Directors present decline to take the chair, the members present may choose some member present to be chairman.
|
|
|
15.6
|
The chairman may, with the consent of any meeting at which a quorum is present, and must if so
directed by the meeting, adjourn the meeting from time to time and from place to place, but no business may be transacted at any
adjourned meeting except business which might lawfully have been transacted at the meeting as originally convened. If it appears
to the chairman that the facilities or security at any place at which persons are permitted by the Board in accordance with these
articles to be present at the meeting are inadequate for the purposes referred to in regulation 13.4, or that an adjournment is
otherwise necessary so that the business of the meeting may be properly conducted, the chairman may, without the consent of the
meeting, interrupt or adjourn the general meeting.
|
|
|
15.7
|
At any general meeting, a resolution put to the vote of the meeting is decided on a show of hands,
unless before or upon the declaration of the result of the show of hands a poll is demanded:
|
|
|
15.7.1
|
by the chairman; or
|
|
|
15.7.2
|
by not fewer than five members present in person or by proxy and entitled to vote at the meeting;
or
|
|
|
15.7.3
|
by a member or members representing not less than one tenth of the total voting rights of all the
members having the right to vote at the meeting; or
|
|
|
15.7.4
|
by a member or members holding shares of the company conferring a right to vote at the meeting,
being shares on which an aggregate sum has been paid up equal to not less than one tenth of the total sum paid up on all the shares
conferring that right.
|
|
|
15.8
|
Unless a poll is so demanded, a declaration by the chairman that a resolution has been carried,
or carried unanimously or by a particular majority, or lost, or not carried by a particular majority, and an entry to that effect
in the book containing the minutes of the proceedings of general meetings of the company is conclusive evidence of the fact without
proof of the number or proportion of the votes recorded in favour of or against such resolution.
|
|
|
15.9
|
The instrument appointing a proxy to vote at a meeting is deemed also to confer authority to demand
or join in demanding a poll and to vote on a poll on the election of a chairman and on a motion to adjourn a meeting. For the purposes
of regulation 15.7, a demand by a person as proxy for a member is the same as a demand by the member.
|
|
|
15.10
|
If any votes are counted which ought not to have been counted or might have been rejected, or if
any votes are not counted which ought to have been counted, the error will not vitiate the result of the voting unless it is pointed
out at the same meeting, or at any adjournment of it, and it is in the opinion of the chairman of the meeting of sufficient magnitude
to vitiate the result of the voting.
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15.11
|
In the case of a resolution duly proposed as a special resolution no amendment, other than an amendment
to correct a patent error, may be considered or voted upon. In the case of a resolution duly proposed as an ordinary resolution,
no amendment, other than an amendment to correct a patent error, may be considered or voted upon unless, either at least 48 hours
prior to the time appointed for holding the meeting or adjourned meeting at which such ordinary resolution is to be proposed notice
in writing of the terms of the amendment and intention to move it is lodged at the Office, or the chairman, in his absolute discretion,
decides that it may be considered or voted upon. If an amendment is proposed to any resolution under consideration but is ruled
out of order by the chairman of the meeting the proceedings on the substantive resolution will not be invalidated by any error
in such ruling.
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15.12
|
Subject to the provisions of regulation 15.13, if a poll is duly demanded, it will be taken in
such manner as the chairman may direct, including the use of ballot or voting papers or tickets, and the result of a poll will
be deemed to be the resolution of the meeting at which the poll was demanded. The chairman may, in the event of a poll, appoint
scrutineers, who need not be members, and may fix some place (or places) and time for the purpose of declaring the result of the
poll.
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15.13
|
A poll demanded on the election of a chairman or on a question of adjournment must be taken immediately.
A poll demanded on any other question must be taken immediately or at such time and place (or places) as the chairman directs,
not being more than 30 days from the date of the meeting or the adjourned meeting at which the poll was demanded. No notice need
be given of a poll not taken immediately if the time and place (or places) at which it is to be taken are announced at the meeting
at which it is demanded. In any other case, at least seven days’ notice must be given specifying the time and place (or places)
at which the poll is to be taken.
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15.14
|
In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the
meeting at which the show of hands takes place or at which the poll is demanded is entitled to a further or casting vote.
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|
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15.15
|
The demand for a poll will not prevent the continuance of a meeting for the transaction of any
business other than the question on which the poll has been demanded.
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15.16
|
A demand for a poll may, before the poll is taken, be withdrawn but only with the consent of the
chairman, and a demand so withdrawn will not be taken to have invalidated the result of a show of hands declared before the demand
was made. If a poll is demanded before the declaration of the result of a show of hands and the demand is duly withdrawn with the
consent of the chairman, the meeting will continue as if the demand had not been made.
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16.1
|
Subject to any special rights or restrictions as to voting attached to any share by or in accordance
with these articles, every member entitled to vote, whether personally present at a meeting or represented by one or more duly
appointed proxies or one or more duly authorised corporate representatives, has one vote on both a show of hands and on a vote
by poll for each share of which he is the holder. Voting shall be on a count of votes. The Board may determine the right to vote
at a meeting by reference to the register of members as at a time determined by the Board that is not more than 48 hours (or such
longer period as may be allowed by the Statutes) before the time for the holding of the meeting.
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16.2
|
In the case of joint holders of a share, the person whose name appears first in the Register is
entitled, to the exclusion of the other joint holders, to vote, whether in person or by proxy, in respect of the share.
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|
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16.3
|
A member who is a patient within the meaning of the Mental Health Act 1983 may vote, whether on
a show of hands or on a poll, by his receiver, curator bonis, or other person appointed by such court (who may on a poll vote by
proxy) provided that such evidence as the Board may require of the authority of the person claiming to vote has been deposited
at the Office not fewer than 48 hours before the time for holding the meeting or adjourned meeting at which such person claims
to vote.
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16.4
|
No member is entitled to be present or to be counted in the quorum or vote, either in person or
by proxy, at any general meeting or at any separate meeting of the holders of a class of shares or on a poll or to exercise other
rights conferred by membership in relation to the meeting or poll, unless all calls or other monies due and payable in respect
of the member’s share or shares have been paid. This restriction ceases on payment of the amount outstanding and all costs,
charges and expenses incurred by the company by reason of non-payment.
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16.5
|
The company shall not be obliged to ascertain whether a proxy or representative of a corporation
has voted in accordance with a member’s instructions and the failure of a proxy or representative so to do shall not vitiate
the decision of the meeting on any resolution. No objection may be raised to the qualification of any voter except at the meeting
or adjourned meeting at which the vote objected to is given or cast, and every vote not disallowed at such meeting will be valid
for all purposes. Any such objection made in due time will be referred to the chairman of the meeting, whose decision is final,
binding and conclusive.
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16.6
|
On a poll, votes may be given either in person or by proxy and a member entitled to more than one
vote need not, if he votes, use all his votes or cast all the votes he uses in the same way.
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|
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16.7
|
Any person, whether a member or not, may be appointed to act as a proxy. A member may appoint more
than one proxy to attend the same meeting so long as each proxy is appointed to exercise the rights attached to a different share
or shares held by that member. Deposit of an instrument of proxy does not preclude a member from attending and voting in person
at the meeting or any adjournment of it.
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16.8
|
The appointment of a proxy must be in any usual form, or such other form as may be approved by
the Board, and must be signed by the appointor or by his agent duly authorised in writing or if the appointor is a corporation,
must be either under its common seal or signed by an officer or agent so authorised. If the appointment is in electronic form,
it must be executed on behalf of the appointor. The Board may, but will not be bound to, require evidence of authority of such
officer or agent. An instrument of proxy need not be witnessed.
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|
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16.9
|
The appointment of a proxy and (if required by the Board) any power of attorney or other authority
under which it is executed, or a certified copy of such authority, must be delivered to the Office, or such other place (or places)
specified for that purpose in the notice calling the meeting, or in any such proxy (or, where the appointment of the proxy was
contained in an electronic communication, at the electronic address of the company), not fewer than 48 hours before the time appointed
for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote (or such other time as
may be specified for that purpose in the notice calling the meeting or in any such proxy in accordance with the Statutes). In default,
the proxy will not be valid, but the Board may decide in any particular case to treat a proxy appointment as valid notwithstanding
the default. The appointment of a proxy to vote at any meeting and deposited as set out in this regulation will authorise the proxy
so appointed to vote on any poll taken or demanded at such meeting or at any adjournment of such meeting.
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16.10
|
In relation to any shares which are held in uncertificated form, the Board may from time to time
permit appointments of a proxy to be made by means of an electronic communication in the form of an uncertificated proxy instruction
(that is, a properly authenticated dematerialised instruction, or other instruction or notification, which is sent by means of
the relevant system concerned and received by such participant in that system acting on behalf of the company as the Board may
prescribe, in such form and subject to such terms and conditions as may from time to time be prescribed by the Board and subject
always to the facilities and requirements of the relevant system concerned). The Board may in a similar manner permit supplements
to, or amendments or revocations of, any such uncertificated proxy instruction to be made by like means. The Board may in addition,
subject to the Uncertificated Securities Regulations, prescribe the method of determining the time at which any such properly authenticated
dematerialised instruction or other instruction or notification is to be treated as received by the company or such participant.
The Board may treat any such uncertificated proxy instruction which purports to be or is expressed to be sent on behalf of a holder
of a share as sufficient evidence of the authority of the person sending that instruction to send it on behalf of that holder.
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16.11
|
No appointment of a proxy will be valid after the expiry of 12 months from the date of its execution,
or its receipt by the participant in the relevant system concerned acting on behalf of the company, except at an adjourned meeting
or on a poll demanded at a meeting or an adjourned meeting in cases where the meeting was originally held within 12 months from
such date.
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16.12
|
A vote given in accordance with the terms of a proxy or by the duly authorised representative of
a corporate member or a poll demanded by proxy or by the duly authorised representative of a corporate member will be valid, notwithstanding,
in the case of a proxy, the previous death or insanity of the principal, or the revocation of the instrument of proxy or of the
authority under which the instrument of proxy was executed, provided that no notice in writing (including by electronic communication)
of such death, insanity or revocation has been received by the company at the Office at least two hours before the commencement
of the meeting or adjourned meeting at which the proxy is used.
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|
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16.13
|
For the purposes of regulations 16.9 to 16.12 electronic address includes in the case of any uncertificated
proxy instructions an identification number of a participant in the relevant system concerned.
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|
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16.14
|
The Board may at the expense of the company send, by post or otherwise, to the members proxies,
with or without provision for their return prepaid, for use at any general meeting or at any separate meeting of the holders of
any class of shares of the company either in blank or nominating in the alternative any one or more of the Directors or any other
persons. If, for the purpose of any meeting, invitations to appoint as proxy a person, or one of a number of persons, specified
in the invitations are issued at the company’s expense, they will be issued to all, and not to some only, of the members
entitled to be sent a notice of the meeting and to vote at it by proxy.
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|
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16.15
|
In calculating any periods mentioned in this regulation 16 no account will be taken of any part
of a day that is not a working day (within the meaning of section 1173, CA 2006).
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17.
|
Corporations acting by representatives
|
Any corporation which is a member
of the company may by resolution of its directors or other governing body authorise any person or persons as it thinks fit to act
as its representative or representatives at any meeting of the company or of any class of members of the company. The person or
persons so authorised will be entitled to exercise the same powers on behalf of the corporation which he or they represent as the
corporation could exercise if it were an individual member of the company and the corporation will, for the purposes of these articles,
be deemed to be present in person at any such meeting if any person so authorised is present at it.
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18.1
|
Unless otherwise determined by the company in general meeting, the number of Directors is not subject
to a maximum but must not be fewer than three.
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|
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18.2
|
The Directors from time to time will be categorised into three classes, as follows:
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|
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18.2.1
|
Class A Directors, appointed as Director of the company for a one-year term (subject to reappointment
in accordance with these articles);
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18.2.2
|
Class B Directors, appointed as Director of the company for a two-year term (subject to reappointment
in accordance with these articles); and
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|
18.2.3
|
Class C Directors, appointed as Director of the company for a three- year term (subject to reappointment
in accordance with these articles).
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|
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18.3
|
Upon appointment a Director will be categorised into a specific class of Directors. A Director
of any class can at the end of his term be re-appointed as a director in accordance with regulation 23, and at the time of such
reappointment will be categorised into the appropriate class (which can be a different class from the one in which such director
was previously categorised).
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18.4
|
A Director is not required to hold any share qualification but is nevertheless entitled to attend
and speak at any general meeting or at any separate meeting of the holders of any class of shares of the company.
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18.5
|
The chairman of the Board shall be elected by the shareholders in general meeting.
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18.6
|
Without derogating from the rights of the other Directors, the chairman shall schedule the Board
meetings and set their agenda.
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|
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18.7
|
Unless determined otherwise by the Board or by law, the chairman shall appoint the chairpersons
and members of committees of the Board.
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|
|
18.8
|
Subject to the other provisions in these articles each Director shall be elected for a term of
not more than three years. At the end of such term, each such Director may stand for re-election.
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|
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19.1
|
Any Director, other than an alternate Director, may at any time appoint any other Director, or
any person approved by resolution of the Board, to be an alternate Director of the company, and may at any time remove any alternate
Director so appointed by him from office and, subject to such approval by the Board, appoint another person in his place. An alternate
Director so appointed is not required to hold any share qualification.
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19.2
|
Subject to his giving to the company an address at which notices may be served upon him, an alternate
Director is entitled to receive notices of all meetings of the Board and to attend and vote as a Director at any such meeting at
which the Director appointing him is not personally present, and generally to perform all the functions of his appointor as a Director
in the absence of such appointor.
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19.3
|
An alternate Director will cease to be an alternate Director on the happening of any event which,
if he were a Director, would cause him to vacate such office or if his appointor ceases for any reason to be a Director. If, however,
any Director retires whether by rotation or otherwise but is reappointed by the meeting at which such retirement took effect, any
appointment made by him pursuant to regulation 19.1 which was in force immediately prior to his retirement will continue to operate
after his re-appointment as if he had not so retired.
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19.4
|
All appointments and removals of alternate Directors must be effected by notice in writing signed
by the Director making or revoking such appointment sent to or left at the Office.
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|
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19.5
|
Except as otherwise provided in these articles, an alternate Director is deemed for all purposes
to be an officer of the company and is alone responsible to the company for his own acts and defaults, and he is not deemed to
be the agent of or for the Director appointing him. An alternate Director is not entitled to receive any remuneration from the
company for his services as such but his remuneration is payable out of the remuneration payable to the Director appointing him,
and will consist of such part, if any, of the latter’s remuneration as is agreed between them.
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20.
|
Powers and duties of Directors
|
|
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20.1
|
The business of the company is managed by the Board who may exercise all such powers of the company
as are not by the Statutes or by these articles required to be exercised by the company in general meeting, subject nevertheless
to the provisions of these articles and of the Statutes, and to such directions, whether or not inconsistent with these articles,
as may be prescribed by the company by special resolution. No such direction and no alteration of these articles will invalidate
any prior act of the Board which would have been valid if such direction or alteration had not been given or made. The general
powers given by this regulation are not limited or restricted by any special authority or power given to the Board by any other
regulation.
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|
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20.2
|
The Board may from time to time provide for the management and transaction of the affairs of the
company in any specified locality, including abroad, in such manner as they think fit, and the provisions contained in regulations
20.3 to 20.5 are without prejudice to the general powers conferred by this regulation.
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|
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20.3
|
The Board may establish, hire or contract any councils, committees, local boards or agencies for
managing any of the affairs of the company, either in the United Kingdom or elsewhere, and (subject to regulation 18.7) may
appoint any persons to be members of such local boards, or managers or agents, and may fix their remuneration, and may delegate
to any council, committee, local board, manager or agent any of the powers, duties, authorities and discretions vested in the Board,
with power to sub-delegate, and may authorise the members of any local board, or any of them, to fill any vacancies in it, and
to act notwithstanding vacancies. Any such appointment or delegation may be made upon such terms and subject to such conditions
as the Board think fit, and (subject to regulation 18.7) the Board may remove any person so appointed, and may annul or vary
any such delegation, but no person dealing in good faith and without notice of any such annulment or variation will be affected
by it.
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20.4
|
The Board may from time to time, and at any time, appoint, whether by power of attorney or otherwise,
any corporation, firm or person, or any fluctuating body of persons, whether nominated directly or indirectly by the Board, to
be the agent of the company for such purposes and with such powers, authorities and discretions, not exceeding those vested in
or exercisable by the Board under these articles, and for such period and subject to such conditions as they may think fit. Any
such appointment may contain such provisions for the protection and convenience of persons dealing with any such agent as the Board
may think fit, and may also authorise any such agent to sub-delegate all or any of the powers, authorities and discretions vested
in him.
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|
|
20.5
|
The Board may exercise the powers conferred upon the company by section 129, CA 2006 with regard
to the keeping of an overseas branch register and the Board may, subject to the provisions of the Statutes, make and vary such
regulations as they may think fit respecting the keeping of any such register.
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|
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20.6
|
The Board may establish and maintain, or procure the establishment and maintenance of, any pension,
annuity or superannuation funds, whether contributory or otherwise, for the benefit of, and give or procure the giving of donations,
gratuities, pensions, allowances and emoluments to, any persons who are or were at any time Directors of or in the employment or
service of the company, or of any company which is a subsidiary of the company or is allied to or associated with the company or
any such subsidiary or of any of the predecessors in business of the company or any such other company, or who may be or have been
Directors or officers of the company, or of any such other company, and to the wives, widows, families and dependants of any such
persons.
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|
|
20.7
|
Subject to particulars with respect to the proposed payment being disclosed to the members of the
company and to the proposal being approved by the company by ordinary resolution, if the Statutes so require, any Director who
holds or has held any executive position or agreement for services is entitled to participate in and retain for his own benefit
any such donation, gratuity, pension, allowance or emolument.
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|
|
20.8
|
The Board may also establish, subsidise and subscribe to any institutions, associations, societies,
clubs or funds calculated to be for the benefit of, or to advance the interests and well-being of, the company or of any person
or any other company mentioned in regulation 20.6, and make payments for or towards the insurance of any such person and subscribe
or guarantee money for charitable or benevolent objects, or for any exhibition or for any political, public, general or useful
object, and do any of such matters, either alone or in conjunction with any company mentioned in regulation 20.6.
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|
|
20.9
|
The Board may exercise the voting power conferred by the shares in any other company held or owned
by the company or exercisable by members of the Board as directors of such other company in such manner in all respects as they
think fit, including its exercise in favour of any resolution appointing themselves or any of them directors or other officers
or employees of such company or voting or providing for the payment of remuneration to such officers or employees.
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|
|
20.10
|
All cheques, promissory notes, drafts, bills of exchange and other negotiable or transferable instruments
and all receipts for money paid to the company, must be signed, drawn, accepted, endorsed or otherwise executed, as the case may
be, in such manner as the Board may from time to time determine by resolution.
|
|
|
21.1
|
The Board may exercise all the powers of the company to borrow money and to mortgage or charge
its undertaking, property and uncalled capital, or any part of it, and subject to the provisions of the Statutes, to issue debentures
and other securities whether outright or as collateral security for any debt, liability or obligation of the company or of any
third party.
|
|
|
21.2
|
The Board may secure or provide for the payment of any money to be borrowed or raised by a mortgage
of or charge upon all or any part of the undertaking or property of the company, both present and future, and upon any capital
remaining unpaid upon the shares of the company whether called up or not, or by any other security. The Board may confer upon any
mortgagees or persons in whom any debenture or security is vested such rights and powers as they think necessary or expedient.
They may vest any property of the company in trustees for the purpose of securing any money so borrowed or raised and confer upon
the trustees, or any receiver to be appointed by them, or by any debenture holder, such rights and powers as the Board may think
necessary or expedient in relation to the undertaking or property of the company or its management or realisation, or the making,
receiving, or enforcing of calls upon the members in respect of unpaid capital, and otherwise. The Board may make and issue debentures
to trustees for the purpose of further security and the company may remunerate any such trustees.
|
|
|
21.3
|
The Board may give security for the payment of any money payable by the company in same manner
as for the payment of money borrowed or raised.
|
|
|
21.4
|
The Board must keep a register of charges in accordance with the Statutes and the fee to be paid
by any person, other than a creditor or member of the company for each inspection of the register of charges to be kept under CA
2006 is five pence.
|
|
|
22.
|
Proceedings of committees
|
|
|
22.1
|
Any committee formed pursuant to regulation 20.3 must, in the exercise of the powers, duties,
discretions and authorities so delegated, conform to any regulations that may be imposed on it by the Board.
|
|
|
22.2
|
The meetings and proceedings of any such committee consisting of two or more members are governed
by the provisions of these articles regulating the meetings and proceedings of the Board so far as they are applicable and are
not superseded by any regulations made by the Board under regulation 22.1. No resolution of a committee is effective unless a majority
of its members voting are Directors.
|
|
|
23.
|
Appointment and retirement of Directors
|
|
|
23.1
|
Subject to regulation 23.3, each Director shall retire at the next general meeting after the term
of his office ends in accordance with regulation 18.2. A Director retiring at a general meeting, if he is not re-appointed, retains
office until the meeting appoints someone in his place or, if it does not do so, until the end of that meeting.
|
|
|
23.2
|
Subject to the provisions of the Statutes and of these articles, the Directors to retire in every
year include, so far as necessary to obtain the required number, any Director who wishes to retire and not to offer himself for
re-election. Any further Directors so to retire are those who have been longest in office since their last appointment or re-appointment
but, as between persons who became or were last re-appointed Directors on the same day, those to retire are determined by the Board
at the recommendation of the chairman of the Board. A retiring Director is eligible for re-appointment, subject as set out in these
articles.
|
|
|
23.3
|
In any two year period, a majority of the Directors must stand for re-election or replacement.
In the event that this majority has not been met and the number of Directors eligible for retirement by rotation under the provisions
of these articles are not met, any further Directors so to retire are those who have been longest in office since their last appointment
or re-appointment but, as between persons who became or were last re-appointed Directors on the same day, those to retire are determined
by the Board at the recommendation of the chairman of the Board. A retiring Director is eligible for re-appointment, subject as
set out in these articles.
|
|
|
23.4
|
The company at the meeting at which a Director retires in the manner set out in regulation 23.1
may fill the vacated office and, in default, the retiring Director, if willing to act, is deemed to have been re-appointed, unless
at such meeting it is expressly resolved not to fill the vacancy, or a resolution for the re-appointment of such Director is put
to the meeting and lost.
|
|
|
23.5
|
No person other than a Director retiring at the meeting, unless recommended by the Directors for
appointment, is eligible for appointment to the office of a Director at any general meeting unless, not fewer than seven more than
42 clear days before the day appointed for the meeting, there is given to the company notice in writing by some member duly qualified
to be present and vote at the meeting for which such notice is given of his intention to propose such person for appointment stating
the required particulars and, also, notice in writing signed by the person to be proposed of his willingness to be appointed.
|
|
|
23.6
|
At a general meeting, a motion for the appointment of two or more persons as Directors by a single
resolution will be void, unless a resolution that it is so made has been first agreed to by the meeting without any vote being
given against it and, for the purpose of this regulation, a motion for approving a person’s appointment or for nominating
a person for appointment is treated as a motion for his appointment.
|
|
|
23.7
|
The company may from time to time by ordinary resolution increase or reduce the number of Directors
and may also determine in what rotation such increased or reduced number is to go out of office. Without prejudice to the provisions
of regulation 23.8, the company may by ordinary resolution appoint any person to be a Director, either to fill a casual vacancy
or as an additional Director.
|
|
|
23.8
|
The Board and the company in general meeting each have power at any time, and from time to time,
to appoint any person to be a Director, either to fill a casual vacancy or as an additional Director, but so that the total number
of Directors does not at any time exceed the maximum number, if any, fixed by or in accordance with these articles. Subject to
the provisions of the Statutes and of these articles, any Director so appointed by the Directors holds office only until the conclusion
of the next following annual general meeting and is eligible for reappointment at that meeting. Any Director who retires under
this regulation is not taken into account in determining the Directors who are to retire by rotation at such meeting.
|
|
|
23.9
|
Any contract of employment entered into by a Director with the company may not include a term that
it is to continue or may be continued, otherwise than at the instance of the company, for a period exceeding two years during which
the employment either cannot be terminated by the company by notice or can be so terminated only in specified circumstances, unless
such term is first approved by ordinary resolution of the company.
|
|
|
23.10
|
There is no restriction as to the age of Directors except as required by the Statutes.
|
|
|
23.11
|
Only such persons who are nominated in accordance with the procedures set forth in this regulation
shall be eligible to serve as directors.
|
|
|
24.
|
Disqualification and removal of Directors
|
|
|
24.1
|
The office of a Director must be vacated in any of the following events:
|
|
|
24.1.1
|
if, not being a Director who has agreed to serve as a Director for a fixed term, he resigns his
office by notice in writing signed by him and authorised in such manner as the other Directors may require, sent to or left at
the Office;
|
|
|
24.1.2
|
if he becomes bankrupt or makes any arrangement or composition with his creditors generally or
applies to the court for an interim order under section 253, Insolvency Act 1986 in connection with a voluntary arrangement under
that Act;
|
|
|
24.1.3
|
an order is made by any court having jurisdiction on the ground, however formulated, of mental
disorder for his detention or for the appointment of a guardian or receiver or other person, by whatever name called, to exercise
powers with respect to his property or affairs;
|
|
|
24.1.4
|
if he is absent from meetings of the Directors for six successive months without leave, and his
alternate Director, if any, has not during such period attended in his place, and the Directors resolve that his office be vacated;
|
|
|
24.1.5
|
if he ceases to be a Director by virtue of any provision of the Statutes or pursuant to these articles;
or
|
|
|
24.1.6
|
if he becomes prohibited by law from being a Director (after taking into account any grace period
provisions or exceptions that may apply).
|
|
|
24.2
|
The company may in accordance with, and subject to the provisions of, the Statutes, by ordinary
resolution of which special notice has been given, remove a Director before the expiry of his period of office and may appoint
another person in his place. Such removal is without prejudice to any claim such Director may have for breach of any contract of
service between him and the company. The person so appointed is subject to retirement at the same time as if he had become a Director
on the day on which the Director in whose place he is appointed was last appointed or reappointed a Director.
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25.
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Executive and other directors
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25.1
|
Subject to the provisions of the Statutes, the Board may from time to time and at any time appoint
one or more of their body to hold any executive office in relation to the management of the business of the company on such terms,
for such period and with or without such title(s) as they may decide. The Board may, from time to time, subject to the provisions
of any service contract between the appointee(s) and the company, remove or dismiss him or them from such office and appoint another
or others in his or their place or places.
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25.2
|
A Director who holds any such executive office is, while he continues to hold that office, subject
to retirement by rotation in accordance with the provisions of regulation 23, and he is taken into account in determining the retirement
by rotation of Directors. He is also, subject to the provisions of regulation 24.1 and of any service contract between him and
the company, subject to the same provisions as to removal and as to vacation of office as the other Directors of the company. If
he ceases to hold the office of Director for any cause, his appointment as the holder of an executive office will also terminate,
unless otherwise determined by the Board.
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25.3
|
Subject to the Statutes, any Director may be paid by the company such remuneration for holding
office as may be determined by the Board, which may consist of salary, commission, profit participation, share options, pension
or insurance benefit or any combination of them, or otherwise.
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25.4
|
The Board may entrust to and confer upon any Director appointed to any such executive office any
of the powers exercisable by them, other than the power to make calls, upon such terms and conditions and with such restrictions
as the Board think fit, and either collaterally with or to the exclusion of their own powers, and may from time to time revoke,
withdraw, alter or vary all or any of such powers.
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25.5
|
Subject to the provisions of the Statutes, the Board may from time to time, and at any time, pursuant
to this regulation appoint any person to any post with such descriptive title including that of Director, whether as executive,
group, divisional, departmental, deputy, assistant, local, advisory director or otherwise, as they may determine. They may define,
limit, vary and restrict the powers, authorities and discretions of any person so appointed and may fix and determine his remuneration
and duties, and subject to any contract between him and the company, may remove from such post any person so appointed. A person
so appointed is not a Director for any of the purposes of these articles or of the Statutes, and accordingly is not a member of
the Board or of any committee of the Board, nor is he entitled to be present at any meeting of the Board or of any such committee,
except at the request of the Board or of such committee. If present at such request, he is not entitled to vote at such meeting.
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26.1
|
A Director, including an alternate Director, may hold any other office or place of profit under
the company, other than the office of auditor, in conjunction with his office of Director and may act in a professional capacity
to the company, on such terms as to tenure of office, remuneration and otherwise as the Board may determine.
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26.2
|
Subject to the Statutes and to the provisions of these articles, no Director or intending Director,
including an alternate Director, is disqualified by his office from contracting with the company either with regard to his tenure
of any other office or place of profit, or as seller, purchaser or otherwise. No such contract, or any contract or arrangement
entered into by or on behalf of the company in which any Director is in any way, whether directly or indirectly, interested, is
liable to be avoided, nor is any Director so contracting or being so interested obliged to account to the company for any profit
realised by any such contract or arrangement by reason of the Director holding that office or of his fiduciary relationship with
the company.
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26.3
|
Any Director, including an alternate Director, may continue to be or become a director or other
officer or member of or otherwise interested in any other company promoted by the company or in which the company may be interested,
as a member or otherwise, or which is a holding company of the company or a subsidiary of any such holding company. No such Director
is accountable for any remuneration or other benefits received by him as a director or other officer or member of, or from his
interest in, any such other company. The Board may exercise the voting power conferred by the shares in any other company held
or owned by the company, or exercisable by the directors of such other company, in such manner in all respects as they think fit,
subject to the restrictions contained in regulation 26.14.
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26.4
|
If a Director is in any way, directly or indirectly, interested in a proposed transaction or arrangement
with the company, he must declare the nature and extent of his interest to the other Directors before the transaction or arrangement
is entered into. This may (but need not) be done in any of the ways set out in regulation 26.5.
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26.5
|
If a Director is in any way, directly or indirectly, interested in a transaction or arrangement
that has been entered into by the company (before or after he became a Director), he must declare the nature and extent of his
interest to the other Directors (to the extent that he has not already declared it under regulation 26.4) as soon as is reasonably
practicable. The declaration must be made at a meeting of the Board, by notice in writing under regulation 26.7 or by general
notice under regulation 26.8.
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26.6
|
For the purposes of regulation 26.4 and regulation 26.5, subject to the Statutes:
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26.6.1
|
an alternate Director must declare any interest in a transaction or arrangement to which his appointment
relates, but need not declare any other interest; and
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26.6.2
|
an interest of his appointor of which an alternate Director is aware (or ought reasonably to be
aware) is treated as the interest of the alternate Director in addition to any interest which the alternate Director otherwise
has, but need not be declared if the appointor has already declared it (or would not be required to declare it) in accordance with
the relevant regulation.
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26.7
|
A Director may make a declaration of interest under regulation 26.4 or regulation 26.5
by sending notice in writing to the other directors in hard copy (by hand or post) or, if the recipient has agreed to receive it
in electronic form, in an agreed electronic form by agreed electronic means. The making of a declaration under this regulation 26.7
is deemed to form part of the proceedings at the next meeting of the Board after the notice is given and must be recorded in the
minutes of that meeting in accordance with regulation 30.
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26.8
|
A Director may satisfy his duty to make a declaration of interest under regulation 26.4 or
regulation 26.5 by giving general notice to the other Directors to the effect that the Director has an interest (as member,
officer, employee or otherwise) in a specified body corporate or firm, or is connected (for the purposes of the Statutes) with
a specified person (other than a body corporate or firm), and is to be regarded as interested in any transaction or arrangement
that may, after the date of the notice, be made with that body corporate, firm or person. The notice must state the nature and
extent of the relevant interest or connection. The notice is not effective unless it is given at a meeting of the Board or the
Director takes reasonable steps to secure that it is brought up and read at the next such meeting after it is given.
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26.9
|
If a declaration of interest under regulation 26.4 or regulation 26.5 proves to be, or
becomes, inaccurate or incomplete, the Director must make a further declaration.
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26.10
|
A Director need not declare an interest under regulation 26.4 or regulation 26.5:
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26.10.1
|
unless the Director is aware (or ought reasonably to be aware) of the interest and of the transaction
or arrangement in question;
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26.10.2
|
if it cannot reasonably be regarded as likely to give rise to a conflict of interest;
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26.10.3
|
if, or to the extent that, the other Directors are already aware of it (and for this purpose the
other Directors are treated as aware of anything of which they ought reasonably to be aware); or
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26.10.4
|
if, or to the extent that, it concerns terms of his service contract that have been or are to be
considered by a meeting of the Board or by a committee of the Board appointed for the purpose.
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26.11
|
A Director may continue or become a director or other officer, employee or member of any company
promoted by the company or in which it may be interested as a seller, shareholder, or otherwise, and no such Director is accountable
for any remuneration or other benefits derived as director or other officer, employee or member of such company.
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26.12
|
Except as provided in regulation 26.14 or regulation 27 or elsewhere in these articles, a
Director may not vote at a meeting of the Board or of a committee of the Board on any resolution concerning a matter in which he
has, directly or indirectly, a material interest (other than an interest in shares or debentures or other securities of or in (or
through) the company) which conflicts or may conflict with the interests of the company. For this purpose, a Director shall be
deemed to have such a material interest in any contract, arrangement, transaction or other proposal concerning any other company
in which he (either alone or together with any person connected with him, as provided in section 252, CA 2006) holds an interest
representing one per cent. or more of any class of the equity share capital (calculated exclusive of any shares of that class held
as treasury shares) of such company or of the voting rights available to members of the relevant company.
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26.13
|
A Director is not counted in the quorum at a meeting in relation to any resolution on which he
is debarred from voting.
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26.14
|
Notwithstanding the provisions of regulations 26.12, 26.13 and 27, a Director is entitled to vote
and be counted in the quorum in respect of any resolution concerning any of the following matters:
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26.14.1
|
the giving of any security, guarantee or indemnity to him in respect of money lent or obligations
incurred by him or by any other person at the request of or for the benefit of the company or any of its subsidiaries;
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26.14.2
|
the giving of any security, guarantee or indemnity to a third party in respect of a debt or obligation
of the company or any of its subsidiaries for which he himself has assumed responsibility in whole or in part under a guarantee
or indemnity or by the giving of security;
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26.14.3
|
any proposal concerning an offer of shares or debentures or other securities of or by the company
or any of its subsidiaries for subscription or purchase in which offer he is or is to be interested as a participant as the holder
of such shares, debentures or other securities or in its underwriting or sub-underwriting;
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26.14.4
|
any contract, arrangement, transaction or other proposal concerning any other company in which
he (together with any person connected with him, as provided in section 252, CA 2006) is interested (directly or indirectly) whether
as an officer, shareholder, creditor or otherwise, unless he (together with any person so connected with him) holds an interest
representing one per cent. or more of any class of the equity share capital (calculated exclusive of any shares of that class held
as treasury shares) of such company or of the voting rights available to members of the relevant company;
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26.14.5
|
any contract, arrangement, transaction or other proposal concerning the adoption, modification
or operation of a superannuation fund or retirement, death or disability benefits scheme under which he may benefit and which has
been approved by or is subject to and conditional upon approval by HM Revenue & Customs;
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26.14.6
|
any contract, arrangement, transaction or proposal concerning the adoption, modification or operation
of any scheme for enabling employees including full time executive Directors of the company and/or any subsidiary to acquire shares
of the company or any arrangement for the benefit of employees of the company or any of its subsidiaries, which does not award
him any privilege or benefit not awarded to the employees to whom such scheme relates; or
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26.14.7
|
any contract, arrangement, transaction or proposal concerning insurance which the company proposes
to maintain or purchase for the benefit of Directors or for the benefit of persons including Directors.
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26.15
|
A Director may not vote or be counted in the quorum on any resolution concerning his own appointment
as the holder of any office or place of profit with the company or any company in which the company is interested, including fixing
or varying the terms of his appointment or its termination.
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26.16
|
Where proposals are under consideration concerning the appointment, including fixing or varying
the terms of appointment, of two or more Directors to offices or employments with the company or any company in which the company
is interested, such proposals may be divided and considered in relation to each Director separately. In such cases, each of the
Directors concerned, if not debarred from voting under regulation 26.14.4, is entitled to vote and be counted in the quorum in
respect of each resolution except that concerning his own appointment.
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26.17
|
If any question arises at any meeting as to the materiality of a Director’s interest or as
to the entitlement of any Director to vote and such question is not resolved by his voluntarily agreeing to abstain from voting,
such question must be referred to the chairman of the meeting and his ruling in relation to any other Director will be final and
conclusive, except in a case where the nature or extent of the interests of the Director concerned have not been fairly disclosed.
If the question concerns the chairman, it must be referred to such other Director present at the meeting, other than the chairman,
as the Directors present appoint.
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26.18
|
Subject to the Statutes, the company may by ordinary resolution suspend or relax the provisions
of regulations 26.4 to 26.17 to any extent or ratify any transaction not duly authorised by reason of a contravention of these
articles.
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27.
|
Conflicts of interest requiring Board authorisation
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|
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27.1
|
The Board may, if the quorum and voting requirements set out in this regulation 27 are satisfied,
authorise any matter that would otherwise involve a Director (Relevant Director) breaching his duty under chapters 2 and
3 of part 10, CA 2006 to avoid conflicts of interest.
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27.2
|
Any Director (including the Relevant Director) may propose that the Relevant Director be authorised
in relation to any matter which is the subject of such a conflict. The proposal and any authority given by the Board will be determined
in the same way as any other matter proposed to and resolved by the Board under these articles, except that the Relevant Director
and any other Director with a similar interest:
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27.2.1
|
will not count towards the quorum at the meeting at which the conflict is considered;
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27.2.2
|
may, if the Board so decides, be excluded from any Board meeting while the conflict is under consideration;
and
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27.2.3
|
may not vote on any resolution authorising the conflict, but except that, if he or they in fact
vote, the resolution will be valid if it would have been passed even if the vote or votes had not been counted.
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27.3
|
Where the Board gives authority in relation to such a conflict:
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27.3.1
|
the Board may (whether at the time of giving the authority or at any time or times subsequently)
impose such terms upon the Relevant Director and any other Director with a similar interest as it deems appropriate, including,
without limitation, the exclusion of the Relevant Director and any other Director with a similar interest from the receipt of information,
or participation in discussion (whether at meetings of the Board or otherwise) or voting relating to the conflict;
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27.3.2
|
the Relevant Director and any other Director with a similar interest will be obliged to comply
with any terms imposed by the Board from time to time in relation to the conflict;
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27.3.3
|
the authority may also provide that where the Relevant Director, and any other Director with a
similar interest, obtains information that is confidential to a third party, the Relevant Director or such other Director, as the
case may be, will not be obliged to disclose that information to the company, or to use the information in relation to the company’s
affairs, where to do so would amount to a breach of that confidence;
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27.3.4
|
the terms of the authority must be recorded in writing; and
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27.3.5
|
the authority may be withdrawn by the Board at any time.
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28.
|
Proceedings of Directors
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28.1
|
The Board may meet together for the despatch of business, adjourn and otherwise regulate their
meetings as they think fit. Questions arising at any meeting are determined by a majority of votes. In case of an equality of votes,
the chairman shall have a casting vote. A Director who is also an alternate Director is entitled, in the absence of the Director
whom he is representing, to a separate vote on behalf of such Director in addition to his own vote. A Director may, and the Secretary
on the requisition of a Director must, at any time call a meeting of the Board.
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28.2
|
Notice of meetings of the Board is deemed to be duly given to a Director if it is given to him
personally or by word of mouth or sent in writing or other means to him at his last known address or any other address (including
an electronic address) given by him from time to time to the company for this purpose. A Director may request the Board that notices
of Board meetings will be sent in writing to him at an electronic address given by him to the company.
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28.3
|
The quorum necessary for the transaction of the business of the Board may be fixed by the Board,
and unless so fixed at any other number, is a majority of the Board of Directors, to include (except in respect of any matter on
which he is not eligible to vote) the Chairman of the Board. If a Board meeting is attended by a Director who is acting as an alternate
for one or more other Directors, the Director or Directors for whom he is the alternate will be counted in the quorum despite their
absence, and if on this basis there is a quorum the meeting may be held despite the fact that only one Director is physically present.
A meeting of Directors for the time being at which a quorum is present is competent to exercise all powers and discretions for
the time being exercisable by the Board.
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28.4
|
All or any of the Directors, including alternates, or members of any committee of the Board may
participate in a meeting of the Board or that committee by means of a conference telephone or any communication equipment which
allows all persons participating in the meeting to hear each other. A person so participating is deemed to be present in person
at the meeting and may vote or be counted in a quorum. Accordingly, a meeting of the Board or a committee of the Board may be held
where each of those present or deemed to be present is in communication with the others only by telephone or other communication
equipment. A meeting where those present or deemed to be present are in different locations is deemed to take place where the largest
group of those participating is assembled, or, if there is no such group, where the chairman of the meeting then is.
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28.5
|
The continuing Directors may act notwithstanding any vacancy in their body. If the number of the
Directors is less than the prescribed minimum, the remaining Director or Directors must immediately appoint an additional Director
or additional Directors to make up such minimum or convene a general meeting of the company for the purpose of making such appointment.
If there is no Director or Directors able or willing to act, any two members may summon a general meeting for the purpose of appointing
Directors. Any additional Director so appointed holds office, subject to the provisions of the Statutes and these articles, only
until the end of the annual general meeting of the company next following such appointment, unless he is re-elected during such
meeting. He is eligible for re-election at such meeting and does not retire by rotation at such meeting nor is taken into account
in determining the rotation or retirement of Directors at such meeting.
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28.6
|
The Board may from time to time elect from their number, and remove, one or more deputy chairmen
or vice chairmen and determine the period for which any such person is to hold office. The chairman of the Board or, if he is not
eligible and willing to act, a deputy chairman or vice chairman (to be chosen, if in each case there are more than one, by agreement
amongst them or, failing agreement, by lot) or in the absence of any of them, some other Director nominated by a majority of the
other Directors in writing, presides at all meetings of the Board. If no such chairman, deputy chairman or vice chairman is elected,
or if at any meeting the chairman or the deputy chairman or the vice chairman or such other Director is not present within five
minutes after the time appointed for holding it, or if none of them is willing to act as chairman, the Directors present may choose
one of their number to be chairman of the meeting. If at any time there is no chairman of the Board or he is prevented by incapacity
from doing anything (including forming part of a quorum) reserved to the chairman by these articles, that thing may be done by
a deputy chairman or vice chairman or, if there is none of these who is not incapacitated, any other Director.
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28.7
|
A resolution in writing, agreed to by all the Directors for the time being entitled to vote on
the relevant matter at a meeting of the Board or of a committee of the Board (if that number is sufficient to constitute a quorum),
is as effective as a resolution passed at a Board meeting or of a committee of the Board, duly convened and held. For this purpose
a Director signifies his consent to a proposed resolution in writing when the company receives from him or his alternate a document
or an electronic communication at such address (including an electronic address) as may be specified by the company indicating
his agreement to the resolution, authenticated in the manner required by section 1146, CA 2006.
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|
|
28.8
|
A meeting of the Directors for the time being at which a quorum is present is competent to exercise
all powers and discretions for the time being exercisable by the Board.
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|
|
28.9
|
All acts done bona fide by any meeting of Directors, or of a committee of the Board, or by any
person acting as Director, are as valid as if every such person had been duly appointed, was qualified, had continued to be a Director
and had been entitled to vote, notwithstanding that it is afterwards discovered that there was some defect in the appointment of
any such director or person acting as a Director, or that they or any of them were disqualified, or had vacated office, or were
not entitled to vote.
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|
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29.1
|
Subject to the Statutes, the Secretary of the company is appointed by the Board on such terms and
for such periods as they may think fit, and the Board may so appoint one or more assistant or deputy Secretary. Any Secretary or
assistant or deputy Secretary so appointed may at any time be removed from office by the Board, without prejudice to any claim
for damages for breach of any contract of service between him and the company.
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29.2
|
Anything by CA 2006 required or authorised to be done by the Secretary may, if the office is vacant
or there is for any other reason no Secretary capable of acting, be done by any assistant or deputy Secretary or, if there is no
assistant or deputy Secretary capable of acting, by any officer of the company authorised generally or specifically in that behalf
by the Board. Any provision of the Statutes or of these articles requiring or authorising a thing to be done by a Director and
Secretary is not satisfied by its being done by the same person acting both as Director and as, or in the place of, the Secretary.
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|
|
30.1
|
The Board must ensure that minutes are made of:
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|
|
30.1.1
|
all appointments of officers and committees made by the Board;
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|
|
30.1.2
|
all declarations of Directors’ interests pursuant to regulation 26.7;
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|
|
30.1.3
|
the names of the Directors present at each meeting of Board and of any committee of the Board and
all business transacted at such meetings; and
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|
|
30.1.4
|
all orders, resolutions and proceedings at all meetings of the company, of the holders of any class
of shares in the company and of the Board and of committees of the Board.
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|
|
30.2
|
Any such minute, if purporting to be signed by the chairman of the meeting at which the proceedings
were held, or by the chairman of the next succeeding meeting, is prima facie evidence of the matters stated in such minutes without
any further proof.
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|
|
31.
|
Seal and authentication of documents
|
|
|
31.1
|
The Board may provide a common seal for the company and have power from time to time to destroy
it and to substitute a new seal for it.
|
|
|
31.2
|
A document expressed to be executed by the company signed as provided by section 44(2), CA 2006
has effect as if executed under seal.
|
|
|
31.3
|
The Board may exercise the powers conferred on the company by section 50, CA 2006 with regard to
having an official seal solely for sealing documents creating or evidencing securities of the company. Any such documents to which
such official seal is affixed need not be signed by any person.
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|
|
31.4
|
The Board must provide for the safe custody of the seal and the seal may never be used except by
the authority of a resolution of the Board or of a committee of the Board authorised for that purpose by the Board. The Board may
from time to time make such regulations as it thinks fit, subject to the provisions of these articles in relation to share and
debenture certificates, determining the persons and the number of such persons who may sign every instrument to which the seal
is affixed and, until otherwise so determined, every such instrument must be signed by one Director and must be countersigned by
a second Director or by the Secretary.
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|
|
31.5
|
The company may have official seals under the provisions of section 49, CA 2006 for use abroad.
Wherever reference is made in these articles to the seal, the reference, when and so far as may be applicable, is deemed to include
any such official seal.
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|
|
31.6
|
Any Director or the Secretary or any person appointed by the Board for the purpose has power to
authenticate any documents affecting the constitution of the company and any resolutions passed by the company or the Board or
any committee of the Board, and any books, records, documents and accounts relating to the business of the company, and to certify
copies of them or extracts from them as true copies or extracts. A document purporting to be a copy of a resolution, or a copy
of or an extract from the minutes of a meeting of the company or of the Board or any committee of the Board, which is certified
as stated, is conclusive evidence in favour of all persons dealing with the company upon the faith of any such copy that such resolution
has been duly passed or, as the case may be, that such copy or extract is a true and accurate record of proceedings at a duly constituted
meeting.
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|
|
32.1
|
The profits of the company available for distribution and resolved to be distributed are applied
in the payment of dividends to the members in accordance with their respective rights and priorities. The company in general meeting
may declare dividends accordingly.
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|
|
32.2
|
No dividend or interim dividend is payable otherwise than in accordance with the provisions of
the Statutes and no dividend may exceed the amount recommended by the Board.
|
|
|
32.3
|
Subject to the rights of persons, if any, entitled to shares with preferential or other special
rights as to dividends, all dividends must be declared and paid according to the amounts paid up on the shares in respect of which
the dividend is paid. No amount paid up on a share in advance of the date on which a call is payable may be treated as paid up
for this purposes. All dividends will be apportioned and paid pro rata according to the amounts paid up on the shares during any
portion or portions of the period in respect of which the dividend is paid, except that if any share is issued on terms providing
that it carries any particular rights as to dividend, such share will rank for dividend accordingly.
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|
|
32.4
|
Subject to the provisions of the Statutes and of these articles, the Board may, if they think fit,
from time to time pay to the members such interim dividends as appear to the Board to be justified by the distributable profits
of the company. If at any time the share capital of the company is divided into different classes, the Board may pay such interim
dividends in respect of those shares in the capital of the company which confer on their holders deferred or non-preferred rights,
as well as in respect of those shares which confer on their holders preferential rights with regard to dividend. No dividend, whether
interim, final or otherwise, may be paid on shares carrying deferred or non-preferred rights if, at the time of payment, any preferential
dividend is in arrear. The Board may also pay half-yearly, or at other suitable intervals to be settled by them, any dividend which
may be payable at a fixed rate if they are of the opinion that the distributable profits justify the payment and if and to the
extent that such payment is permitted by the Statutes. So long as the Board act in good faith, they will not incur any responsibility
to the holders of shares conferring a preference for any damage that they may suffer by reason of the payment of an interim dividend
on any shares having deferred or non-preferred rights.
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|
|
32.5
|
Subject to the provisions of the Statutes or as otherwise required by law, where any asset, business
or property is bought by the company as from a past date, whether such date is before or after the incorporation of the company,
the profits or losses attributable to it as from such date may at the discretion of the Board in whole or in part be carried to
revenue account and treated for all purposes as profits or losses of the company. Except as stated, if any shares or securities
are purchased cum dividend or interest, such dividend or interest may at the discretion of the Board be treated as revenue and
it will not be obligatory to capitalise it or any part of it.
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|
|
32.6
|
The Board may deduct from any dividend or other money payable to any member on or in respect of
a share all sums of money, if any, presently payable by him to the company on account of calls or otherwise in relation to the
shares of the company. The company may cease to send any cheque or warrant through the post for any dividend payable on any shares
in the company which is normally paid in that manner on those shares if, in respect of at least two consecutive dividends payable
on those shares, the cheques or warrants have been returned undelivered or remain uncashed or, if following one such occasion,
reasonable enquiries have failed to establish any new address of the registered holder. Subject to the provisions of these articles,
the company must recommence sending cheques or warrants in respect of dividends payable on those shares if the holder or person
entitled by transmission claims the arrears of dividend and does not instruct the company to pay future dividends in some other
way.
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32.7
|
The Board may retain the dividends payable upon shares in respect of which any person is, under
the provisions as to the transmission of shares contained in these articles, entitled to become a member, or which any person is
under those provisions entitled to transfer, until such person becomes a member in respect of such shares or transfers them.
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32.8
|
All dividends, interest or other sums payable and unclaimed for one year, after having been declared,
may be invested or otherwise made use of by the Board for the benefit of the company until claimed and the company is not constituted
a trustee in respect of them. No dividend will bear interest as against the company.
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32.9
|
Any dividend which has remained unclaimed for a period of 12 years from the date on which it becomes
due for payment will, if the Board so resolve, be forfeited and cease to remain owing by the company and will from then on belong
to the company absolutely.
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32.10
|
Any dividend or other money payable on or in respect of a share may be paid by cheque or warrant
sent through the post to the registered address of the member or person entitled to it and, in the case of joint holders, to any
one of such joint holders or, to such person and such address as the holder or joint holders may in writing direct. Every such
cheque or warrant will be made payable to the order of the person to whom it is sent or to such other person as the holder or joint
holders may in writing direct and payment of the cheque or warrant is a good discharge to the company. Every such cheque or warrant
will be sent at the risk of the person entitled to the money.
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32.11
|
If several persons are registered as joint holders of any share any one of them may give effectual
receipts for any dividend or other money payable on or in respect of the share.
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32.12
|
The Board may, if authorised by an ordinary resolution of the company, offer any holders of Ordinary
Shares the right to elect to receive Ordinary Shares, credited as fully paid, instead of cash in respect of the whole, or some
part, to be determined by the Board, of any dividend specified by the ordinary resolution. The following provisions will apply:
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32.12.1
|
an ordinary resolution may specify a particular dividend or may specify all or any dividends declared
within a specified period but such period may not end later than the beginning of the annual general meeting next following the
date of the meeting at which the ordinary resolution is passed;
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32.12.2
|
the entitlement of each holder of Ordinary Shares to new Ordinary Shares is such that the relevant
value of the entitlement is as nearly as possible equal to, but not greater than, the cash amount, disregarding any tax credit
of the dividend that such holder elects to forgo. For this purpose, relevant value is calculated by reference to the average
of the middle market quotations for the company’s Ordinary Shares on the relevant stock exchange, on the day on which the
Ordinary Shares are first quoted “ex” the relevant dividend and the four subsequent dealing days or in such other manner
as may be determined by or in accordance with the ordinary resolution. A certificate or report by the auditors as to the amount
of the relevant value in respect of any dividend is conclusive evidence of that amount;
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32.12.3
|
on or as soon as practicable after announcing that they are to declare or recommend any dividend,
the Board, if they intend to offer an election in respect of that dividend, must also announce that intention, and, after determining
the basis of allotment, if the Board decide to proceed with the offer, must notify the holders of Ordinary Shares in writing of
the right of election and specify the procedure to be followed and the place (or places) at which, and the latest time by which,
elections must be lodged in order to be effective;
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32.12.4
|
the Board may not proceed with any election unless it has authority to allot sufficient shares
and the company has sufficient reserves or funds that may be capitalised to give effect to the election after the basis of allotment
is determined;
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32.12.5
|
the Board may exclude from any offer any holders of Ordinary Shares where the Board believes that
the making of the offer to them would or might involve the contravention of the laws of any territory or that for any other reason
the offer should not be made to them;
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32.12.6
|
the dividends, or that part of the dividend in respect of which a right of election has been offered,
will not be payable on Ordinary Shares other which an election has been made (Elected Ordinary Shares) and, instead, additional
Ordinary Shares will be allotted to the holders of the Elected Ordinary Shares on the basis of the allotment calculated as stated.
For such purpose, the Board will capitalise, out of any amount for the time being standing to the credit of any reserve or fund,
including the profit and loss account, whether or not it is available for distribution as the Board may determine, a sum equal
to the aggregate nominal amount of the additional Ordinary Shares to be allotted on that basis and apply it in paying up in full
the appropriate number of Ordinary Shares for allotment and distribution to the holders of the Elected Ordinary Shares on that
basis; and
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32.12.7
|
the additional Ordinary Shares when allotted will rank equally in all respects with the fully paid
Ordinary Shares then in issue except that they will not be entitled to participate in the relevant dividend.
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32.13
|
A general meeting declaring a dividend may, upon the recommendation of the Board, direct payment
of such dividend wholly or in part by the distribution of specific assets, and in particular of paid up shares or debentures of
the company or any other company, and the Board must give effect to such resolution. Where any difficulty arises in regard to the
distribution, they may settle it as they think expedient and, in particular but without limitation, may issue fractional certificates
and may fix the value for distribution of such specific assets or any part of them, and may determine that cash payments will be
made to any members upon the basis of the value so fixed, in order to adjust the rights of members. They may vest any specific
assets in trustees upon trust for the persons entitled to the dividend as may seem expedient to the Board, and generally may make
such arrangements for the allotment, acceptance and sale of such specific assets or fractional certificates, or any part of them,
and otherwise as they think fit.
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33.1
|
Subject to the provisions of the Statutes, the Board may before recommending any dividend, whether
preferential or otherwise, carry to reserve out of the profits of the company, including any premiums received upon the issue of
debentures or other securities of the company, such sums as they think proper as a reserve or reserves.
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33.2
|
All sums standing to reserve may be applied from time to time at the discretion of the Board for
meeting depreciation or contingencies or for special dividends or bonuses or for equalising dividends or for repairing, improving
or maintaining any of the property of the company or for such other purposes as the Board may decide are conducive to the objects
of the company or any of them. Pending their application such sums may either be employed in the business of the company or be
invested in such investments as the Board think fit.
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33.3
|
The Board may divide the reserve into such special funds as they think fit, and may consolidate
into one fund any special funds or any parts of any special funds into which the reserve has been divided, as they think fit. Any
sum which the Board may carry to reserve out of the unrealised profits of the company will not be mixed with any reserve to which
profits available for distribution have been carried. The Board may also without placing them to reserve carry forward any profits
which they may think it not prudent to divide.
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34.
|
Capitalisation of profits
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34.1
|
Subject as set out in regulations 34.2 and 34.3 the Board may with the authority of an ordinary
resolution of the company:
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34.1.1
|
resolve to capitalise any undivided profits (including profits standing to the credit of any reserve)
of the company, whether or not they are available for distribution, or any sum standing to the credit of the company’s share
premium account, redenomination reserve or capital redemption reserve;
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34.1.2
|
appropriate the profits or sum resolved to be capitalised to the members in proportion to the nominal
amount of Ordinary Shares, whether or not fully paid, held by them respectively, and apply such profits or sum on their behalf,
either in or towards paying up the amounts, if any, for the time being unpaid on any shares held by such members respectively,
or in paying up in full shares or debentures of the company of a nominal amount equal to such profits or sum, and allot and distribute
such shares or debentures credited as fully paid up, to and amongst such members, or as they may direct, in due proportion, or
partly in one way and partly in the other;
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34.1.3
|
resolve that any shares allotted under this regulation to any member in respect of a holding by
him of any partly paid Ordinary Shares will, so long as such Ordinary Shares remain partly paid, rank for dividends only to the
extent that such partly paid Ordinary Shares rank for dividend;
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34.1.4
|
make such provisions by the issue of fractional certificates or by payment in cash or otherwise
as the Board think fit for the case of shares or debentures becoming distributable under this regulation in fractions;
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34.1.5
|
authorise any person to enter on behalf of all the members concerned into an agreement with the
company providing for the allotment to them respectively, credited as fully paid up, of any shares or debentures to which they
may be entitled upon such capitalisation and any agreement made under such authority being effective and binding on all such members;
and
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34.1.6
|
generally do all acts and things required to give effect to such resolution.
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34.2
|
The share premium account, redenomination reserve and capital redemption reserve and any such profits
which are not available for distribution may, for the purposes of regulation 34.1, only be applied in the paying up of unissued
shares to be allotted to members credited as fully paid.
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34.3
|
In the case where any sum is applied in paying amounts for the time being unpaid on any shares
of the company or in paying up in full debentures of the company, the amount of the net assets of the company at that time must
be not less than the aggregate of the called up share capital of the company and its undistributable reserves and must not be reduced
below that aggregate by the payment of those amounts as shown in the latest audited accounts of the company, or such other accounts
as may be relevant.
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35.1
|
The Board must ensure that proper accounting records are kept in accordance with the Statutes.
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35.2
|
The accounting records must be kept at the office, or, subject to the provisions of the Statutes,
at such other place as the Board think fit, and must always be open to inspection by the officers of the company. No member, other
than a Director, has any right of inspecting any account or book or document of the company, except as conferred by the Statutes
or authorised by the Board or by the company in general meetings.
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35.3
|
The Board must from time to time, in accordance with the provisions of the Statutes, ensure that
there are prepared and laid before the company in general meeting such profit and loss accounts balance sheets, group accounts,
if any, and reports as are specified in the Statutes.
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35.4
|
Subject to the Statutes, a copy of every Directors’ report and Auditors’ report accompanied
by the company’s annual accounts and every other document required by law to be attached to them or a summary financial statement
derived from the company’s annual accounts, prepared in accordance with the Statutes, must, not less than 21 clear days before
the date of the meeting at which copies of those documents are to be laid, be sent to every member (whether or not entitled to
receive notices of general meetings) and to every holder of debentures of the company (whether nor not entitled to receive notices
of general meetings) and to the Auditors and to every other person who is entitled to receive notices of general meetings from
the company. This regulation 35.4 does not require such documents to be sent to any member or holder of debentures of whose address
the company is not aware nor to more than one of the joint holders of any shares or debentures.
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35.5
|
The accidental omission to send any document required to be sent to any person under regulation
35.4 or the non-receipt of any document by any person entitled to receive it does not invalidate any such document or the proceedings
at the general meeting.
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35.6
|
The required number of such documents must, at the same time, be filed or published as required
by the Listing Rules.
|
Notwithstanding any other provision
of these articles, the company or the Board may fix any date as the record date for any dividend, distribution, allotment or issue
and such record date may be on or at any time before any date on which such dividend, distribution, allotment or issue is paid
or made and on or at any time before or after any date on which such dividend, distribution, allotment or issue is declared.
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37.1
|
Auditors must be appointed and their duties, powers, rights and remuneration regulated in accordance
with the provisions of CA 2006.
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37.2
|
Once at least in every year the accounts of the company must be examined and the correctness of
the balance sheet, profit and loss account and group accounts, if any, ascertained by the Auditors.
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38.1
|
A notice or other document or information to be sent to or by any person under these articles (other
than a notice calling a meeting of the Board or of a committee of the Board) must be in writing or sent using electronic communication
to an electronic address notified for that purpose to the person sending the notice or other document or information.
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38.2
|
A notice or other document or information may be delivered or sent to a member or another person
by the company personally or by letter. Any letter must be sent by first class post and addressed to such member or other person
at the postal address in the Register (or at another address notified for the purpose) or left at that address in any envelope
addressed to that member or other person. Electronic communications may be used for sending a notice or other document or information
to a member or other person where that member or other person has agreed, or is deemed to have agreed, to the use of electronic
communication and has specified an electronic address for this purpose. A notice or other document or information may be sent to
a member or other person by the company by placing it on a website and sending the member or other person concerned notification
of the availability of the notice, document or information on the website, where the member or other person has agreed, or is deemed,
as provided by the Statutes, to have agreed to having such notices, documents or information sent to him in that manner.
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38.3
|
Without prejudice to regulation 38.2, the company may send or supply a notice or any other document
or information that is required or authorised to be sent or supplied to a member or any other person by the company by any provision
of the Statutes, or pursuant to these articles or to any other rule or regulation to which the company may be subject, in electronic
form or by making it available on a website, and the provisions of schedule 5 CA 2006 will apply whether or not any such notice,
document or information is required or authorised by the Statutes to be sent or supplied.
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38.4
|
Any notice or other document or information to be sent to a member or other person may be sent
by reference to the Register or the company’s other records as they stand at any time within the period of 15 days before
the notice or other document or information is sent and no change in the Register or the company’s other records after that
time will invalidate the sending of the notice or other document or information.
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38.5
|
In the case of joint holders of a share, a notice or other document or information will be sent
to whichever of them is named first in the Register and a notice or other document or information sent in this way is sufficiently
sent to all the joint holders.
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38.6
|
If, on three consecutive occasions, a notice or other document or information sent to a member
or other person is returned undelivered, such member or other person will not thereafter be entitled to receive notices or other
documents or information from the company until he has communicated with the company and supplied in writing to it a new address
for the service of notices or other documents or information or has informed the company, in such manner as may be specified by
the company, of an electronic address for the service of notices or other documents or information by electronic communication.
For these purposes, a notice or other document or information sent by post will be treated as returned undelivered if it is sent
back to the company or its agents and a notice or other document or information sent by electronic communication will be treated
as returned undelivered if the company or its agents receive notification that it was not delivered to the address to which it
was sent.
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38.7
|
Any notice or other document or information sent addressed to a member or another person at his
registered address (or another address or an electronic address notified for the purpose) is deemed to be served, if personally
delivered, at the time of delivery or, if sent by first class post, 48 hours after the letter is posted or, in the case of a notice
or other document or information contained in an electronic communication, on the same day it is sent. A notice or other document
or information left at such an address is deemed to be received on the day it is left. In proving service it is sufficient to establish
that the letter was properly addressed and, if sent by post, prepaid or stamped and posted. Proof that a notice or other document
or information contained in an electronic communication was sent in accordance with guidance issued by the Institute of Chartered
Secretaries and Administrators will be conclusive evidence that the notice or other document or information was received.
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38.8
|
Any member present, either personally or by proxy, at any general meeting of the company or of
the holders of any class of shares in the company will for all purposes be deemed to have received due notice of such meeting and,
where requisite, of the purposes for which such meeting was called.
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38.9
|
A person who becomes entitled by transmission, transfer or otherwise to a share is bound by a notice
in respect of that share (other than a notice served by the company under a Section 793 Notice (“Notice by company requiring
information about interests in its shares”)) which, before his name is entered in the Register, has been properly sent to
a person from whom he derives his title.
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38.10
|
Where a person is entitled by transmission to a share, the company may send a notice or other document
or information to that person as if he were the holder of a share by addressing it to him or to the representative of the deceased
or trustee of the bankrupt member at an address or electronic address supplied for that purpose by the person claiming or be entitled
by transmission. Until an address has been supplied, a notice or other document or information may be sent in any manner in which
it might have been sent if the death or bankruptcy or other event had not occurred. The giving of notice in accordance with this
regulation 38.10 is sufficient notice to all other persons interested in the share.
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|
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38.11
|
If, by reason of the suspension or curtailment of postal or electronic communication services in
the country where the head office of the company is located, the company is unable effectively to convene a general meeting by
notice sent through the post or by electronic communication, or to send any other document or information by post or by electronic
communication.
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|
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38.12
|
The Board may at any time and in its sole discretion choose (a) to serve, send or supply notices,
documents or other information in hard copy form alone to some or all members and (b) except as required by law, not to serve,
send or supply a notice, document or other information to a particular member or other person otherwise entitled to receive it
where the Board believes this necessary or appropriate to deal with legal, regulatory or practical problems in, or under the laws
of, any territory.
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|
|
38.13
|
Any requirement to put a document on display or make it available for inspection by any persons
may be satisfied by making it available to the persons entitled to inspect it for the required period on a website or by other
electronic means.
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|
|
39.
|
Untraced shareholders
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|
|
39.1
|
The company is entitled to sell at the best price reasonably obtainable any share of a member or
any share to which a person is entitled by transmission if:
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|
|
39.1.1
|
during a period of 12 years the company has paid at least three dividends, whether interim or final
in respect of the share in question and all cheques and warrants in respect of any such dividend sent in the manner authorised
by these articles by the company have been returned undelivered or remained uncashed and no communication has been received by
the company from the member or the person entitled by transmission;
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|
39.1.2
|
the company has, after the expiry of the period of 12 years, used such efforts as it considers
reasonable to trace the relevant person and sent notice of its intention to sell the shares to the last known address of that person
at which service of notices may be effected under these articles;
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|
|
39.1.3
|
the company has not, during the further period of three months after the date of the advertisement
and prior to the exercise of the power of sale, received any communication from the member or person entitled by transmission;
and
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|
|
39.1.4
|
the company has first complied with any applicable requirements (including in respect of giving
notice or other information) of the Listing Rules.
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|
|
39.2
|
To give effect to any such sale, the Board may, in relation to certificates shares, appoint any
person to execute as transferor an instrument of transfer of such share and such instrument of transfer will be as effective as
if it had been executed by the registered holder of or person entitled by the transmission to such share. In relation to uncertificated
shares the Board may, in accordance with the Statutes, issue a written notification to the Operator of the relevant system requiring
conversion of the shares into certificated form and exercise any of the company’s powers to effect the transfer of the shares
to, or in accordance with the directions of, the purchaser and the exercise of such powers will be as effective as if exercised
by the registered holder of, or person entitled by shares the transferee is not bound to see to the application of the purchase
money and the title of the transferee is not affected by any irregularity or invalidity in the proceedings relating to the sale.
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39.3
|
The company must account to the member or other person entitled to such share for the net proceeds
of such sale by crediting all money in respect of those proceeds to a separate account, which are a permanent debt of the company,
and the company will be deemed to be a debtor and not a trustee in respect of it for such member or other person. Money carried
to such separate account may either be employed in the business of the company or invested in such investments, other than shares
of the company or its holding company if any, as the Board may from time to time think fit.
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40.
|
Destruction of documents
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|
|
40.1
|
The company may destroy:
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|
|
40.1.1
|
any share certificate which has been cancelled at any time after the expiry of one year from the
date of such cancellation;
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|
40.1.2
|
any dividend mandate or any variation or cancellation of it or any notification of change of name
or address (including an electronic address) at any time after the expiry of two years from the date such mandate, variation, cancellation
or notification was recorded by the company; or
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|
|
40.1.3
|
any other document on the basis of which any entry in the Register is made at any time after the
expiry of six years from the date an entry in the Register was first made in respect of it.
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|
|
40.2
|
It will be conclusively presumed in favour of the company that every share certificate so destroyed
was a valid certificate duly and properly cancelled, that every instrument of transfer so destroyed was a valid and effective instrument
duly and properly registered and that every other document destroyed under regulation 40.1 was a valid and effective document,
in accordance with its recorded particulars in the books or records of the company.
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40.3
|
The provisions of regulation 40.2 apply only to the destruction of a document in good faith and
without express notice to the company that the preservation of such document was relevant to a claim.
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|
40.4
|
Nothing contained in regulation 40.1 is construed as imposing upon the company any liability in
respect of the destruction of any such document earlier than as set out in regulation 40.1 or in any case where the conditions
of regulation 40.3 are not fulfilled.
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40.5
|
References in this regulation 40 to the destruction of any document include references to its disposal
in any manner.
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|
|
41.1
|
If the company is wound up, whether the liquidation is voluntary, under supervision or by the court,
the liquidator may, with the authority of a special resolution, divide among the members (excluding any holding shares or treasury
shares) in specie the whole or part of the assets of the company, whether or not the assets consist of property of one kind or
of different kinds. For those purposes the liquidator may set such value as he deems fair upon any one or more class or classes
of property and may determine how such division will be effected as between the members or different classes of members. If any
such division is carried out otherwise than in accordance with the existing rights of the members, every member will have the same
right of dissent and other ancillary rights as if such resolution were a special resolution passed in accordance with section 110,
Insolvency Act 1986. The liquidator may, with the same authority, vest any part of the assets in trustees upon such trusts for
the benefit of members as the liquidator, with the same authority, thinks fit and the liquidation of the company may be closed
and the company dissolved. No member will be compelled to accept any shares in respect of which there is a liability.
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|
41.2
|
The Board must exercise the power conferred upon them by section 247, CA 2006 only with the prior
sanction of a special resolution. If at any time the capital of the company is divided into different classes of shares, subject
to the terms of issue of the relevant shares the exercise of such power is deemed to be a variation of the rights attached to each
class of shares and, accordingly, requires the prior consent in writing of the holders of three fourths in nominal value of the
issued shares of each class (excluding treasury shares) or the prior sanction of a special resolution passed at a separate meeting
of the holders of the shares of each class (excluding any shares of a class held as treasury shares) convened and held in accordance
with the provisions of regulation 3.9.
|
Subject to the provisions of
the Statutes, every Director or other officer (except the Auditors) of the company will be indemnified out of the assets of the
company, against all costs, charges, expenses, losses and liabilities which he may sustain or incur in connection with the execution
of his duties and powers or otherwise in relation to them. Without prejudice to the generality of the previous sentence, any such
person will be indemnified out of the assets of the company against any liability incurred by him in defending any proceedings,
whether civil or criminal, in relation to anything done or omitted or alleged to have been done or omitted by him as an officer
of the company and in which judgment is given in his favour (or the proceedings are otherwise disposed of without any finding or
admission of any breach of duty by him) or in which he is acquitted or in connection with any application in which relief is granted
to him by the court from liability for negligence, default, breach of duty or breach of trust in relation to the affairs of the
company. Subject to the Statutes, the company may purchase and maintain for the company and for any Director, Secretary or other
officer of the company insurance against any liability which by virtue of any rule of law would otherwise attach to him in respect
of any negligence, default, breach of duty or breach of trust of which he may be liable for or guilty in relation to the company.
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|
43.
|
Indemnity against claims in respect of shares
|
|
|
43.1
|
The provisions of regulation 43.2 will apply whenever any law for the time being of any country,
state or place imposes or purports to impose any immediate or future or possible liability on the company to make any payment,
or empowers any government or taxing authority or government official to require the company to make any payment, in respect of
any shares held either jointly or solely by a member or in respect of any dividends or other money due or payable or accruing due
or which may become due or payable to such members by the company or in respect of any such shares or for or on account or in respect
of any member in consequence of:
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|
|
43.1.1
|
the death or bankruptcy of such member;
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|
|
43.1.2
|
the non-payment of any income tax or other tax by such member; or
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|
|
43.1.3
|
the non-payment of any inheritance tax or any estate, probate, succession, death, stamp or other
duty by the executors or administrators or other legal personal representatives of such member or by or out of his estate.
|
|
|
43.2
|
In the circumstances described in regulation 43.1 the company:
|
|
|
43.2.1
|
will be fully indemnified by such member or his executors or administrators or his other legal
personal representatives from all liability arising by virtue of such law; and
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|
|
43.2.2
|
may recover as a debt due from such member or his executors or administrators or his other legal
personal representatives wherever constituted or residing, any money paid by the company under or in consequence of any such law,
together with interest on it at the rate of 15 per cent. per annum from the date of payment to the date of repayment.
|
|
|
43.3
|
Nothing contained in regulations 43.1 and 43.2 prejudices or affects any right or remedy which
any law may confer or purport to confer on the company and, as between the company and every such member as is referred to in regulation
43.1, his executors, administrators or other legal personal representatives, and estate wherever constituted or situated, any right
or remedy which such law confers or purports to confer on the company will be enforceable by the company.
|
The rights
provided under CA 2006 as are provided to shareholders in respect of derivative suits, shall apply to the company and to the rights
of the members of the company to bring suits or claims against the company.
|
|
45.1
|
Any deferred shares of the company from time to time in issue will have the rights and be subject
to the limitations and restrictions set out in this regulation 45 as well as such further rights, limitations and restrictions
(not being inconsistent with those set out in this regulation) as may be determined by the Board before their allotment. The deferred
shares will rank pari passu with each other.
|
|
|
45.2
|
On a return of capital on a winding up, there shall be paid to the holders of the deferred shares
only an amount equal to the amount credited as paid up on them, which will be paid only after the holders of all Ordinary Shares
then in issue have received in cash or specie USD10,000,000 for every USD1 credited as paid up on the Ordinary Shares. The holders
of the deferred shares will not be entitled to receive any other return of capital or any dividend or distribution declared, made
or paid and will have no further right of participation in the assets of the company.
|
|
|
45.3
|
Except as required by law, the holders of the deferred shares will not be entitled to receive notice
of, nor attend or speak or vote at, any general meeting of the company. The company will have the irrevocable authority to appoint
a single holder or any other person on behalf of all holders of deferred shares to exercise any vote to which holders of deferred
shares may be entitled in any circumstances or for any other matter connected to the deferred shares.
|
|
|
45.4
|
No deferred share will be transferable at any time other than pursuant to regulation 45.6
or with the prior written consent of the directors. The directors will have the right to refuse to register any transfer undertaken
without their prior written consent. A holder will not be entitled to receive a share certificate (or recognition in a CREST account)
in respect of any deferred share, except as required by law.
|
|
|
45.5
|
The rights attached to the deferred shares will not be deemed to be varied or abrogated by: the
creation, allotment or issue of any new shares ranking in priority to, pari passu with or subsequent to them; any amendment or
variation of the rights of any other class of shares of the company; the company reducing its share capital; or the surrender,
purchase or cancellation of any share, whether or not a deferred share.
|
|
|
45.6
|
The company has the irrevocable authority to authorize and instruct any person appointed for the
purpose by the company as agent for all the holders of deferred shares to execute on behalf of those holders a transfer of the
deferred shares and/or an agreement to transfer and/or sell them to the company or any other person and such other documents as
the company may consider necessary or desirable in connection with such a transfer and/or purchase, in each case without obtaining
the sanction of any of those holders, and for no consideration or such consideration as the directors may determine (which may
be an aggregate payment of USD0.01 in respect of the aggregate number of deferred shares being transferred or purchased by all
holders). The company has the irrevocable authority to cancel any deferred share in accordance with the Statutes without making
any payment to the holder.
|
Exhibit 4.7
AKARI THERAPEUTICS, PLC
INDENTURE
Dated as of , 20
[ ]
Trustee
Senior Debt Securities
Table
of Contents
|
|
|
Page
|
|
|
|
|
|
ARTICLE I
|
DEFINITIONS AND INCORPORATION BY REFERENCE
|
1
|
|
|
|
|
|
Section 1.1
|
Definitions
|
1
|
|
Section 1.2
|
Other Definitions
|
4
|
|
Section 1.3
|
Incorporation by Reference of Trust Indenture Act
|
5
|
|
Section 1.4
|
Rules of Construction
|
5
|
|
|
|
|
|
ARTICLE II
|
THE SECURITIES
|
6
|
|
|
|
|
|
Section 2.1
|
Issuable in Series
|
6
|
|
Section 2.2
|
Establishment of Terms of Series of Securities
|
6
|
|
Section 2.3
|
Denominations; Provision for Payment
|
8
|
|
Section 2.4
|
Execution and Authentication
|
8
|
|
Section 2.5
|
Registrar and Paying Agent
|
9
|
|
Section 2.6
|
Paying Agent to Hold Money in Trust
|
10
|
|
Section 2.7
|
Securityholder Lists
|
10
|
|
Section 2.8
|
Transfer and Exchange
|
10
|
|
Section 2.9
|
Mutilated, Destroyed, Lost and Stolen Securities
|
11
|
|
Section 2.10
|
Outstanding Securities
|
12
|
|
Section 2.11
|
Treasury Securities
|
12
|
|
Section 2.12
|
Temporary Securities
|
12
|
|
Section 2.13
|
Cancellation
|
13
|
|
Section 2.14
|
Defaulted Interest
|
13
|
|
Section 2.15
|
Global Securities
|
13
|
|
Section 2.16
|
CUSIP Numbers
|
14
|
|
|
|
|
|
ARTICLE III
|
REDEMPTION
|
15
|
|
|
|
|
|
Section 3.1
|
Notice to Trustee
|
15
|
|
Section 3.2
|
Selection of Securities to be Redeemed
|
15
|
|
Section 3.3
|
Notice of Redemption
|
15
|
|
Section 3.4
|
Effect of Notice of Redemption
|
16
|
|
Section 3.5
|
Deposit of Redemption Price
|
17
|
|
Section 3.6
|
Securities Redeemed in Part
|
17
|
|
|
|
|
|
ARTICLE IV
|
COVENANTS
|
17
|
|
|
|
|
|
Section 4.1
|
Payment of Principal and Interest
|
17
|
|
Section 4.2
|
Reports by Company
|
17
|
|
Section 4.3
|
Compliance Certificate
|
18
|
|
Section 4.4
|
Stay, Extension and Usury Laws
|
18
|
|
Section 4.5
|
Corporate Existence
|
18
|
|
|
|
|
Table
of Contents
(continued)
|
|
|
Page
|
|
|
|
|
|
ARTICLE V
|
SUCCESSORS
|
19
|
|
|
|
|
|
Section 5.1
|
Consolidation, Merger and Sale of Assets
|
19
|
|
Section 5.2
|
Successor Person Substituted
|
19
|
|
|
|
|
|
ARTICLE VI
|
DEFAULTS AND REMEDIES
|
19
|
|
|
|
|
|
Section 6.1
|
Events of Default
|
19
|
|
Section 6.2
|
Acceleration of Maturity; Rescission and Annulment
|
21
|
|
Section 6.3
|
Collection of Indebtedness and Suits for Enforcement by Trustee
|
21
|
|
Section 6.4
|
Trustee May File Proofs of Claim
|
22
|
|
Section 6.5
|
Trustee May Enforce Claims Without Possession of Securities
|
23
|
|
Section 6.6
|
Application of Money Collected
|
23
|
|
Section 6.7
|
Limitation on Suits
|
23
|
|
Section 6.8
|
Unconditional Right of Holders to Receive Principal and Interest
|
24
|
|
Section 6.9
|
Restoration of Rights and Remedies
|
24
|
|
Section 6.10
|
Rights and Remedies Cumulative
|
24
|
|
Section 6.11
|
Delay or Omission Not Waiver
|
25
|
|
Section 6.12
|
Control by Holders
|
25
|
|
Section 6.13
|
Waiver of Past Defaults
|
25
|
|
Section 6.14
|
Undertaking for Costs
|
26
|
|
|
|
|
|
ARTICLE VII
|
TRUSTEE
|
26
|
|
|
|
|
|
Section 7.1
|
Duties of Trustee
|
26
|
|
Section 7.2
|
Rights of Trustee
|
27
|
|
Section 7.3
|
Individual Rights of Trustee
|
29
|
|
Section 7.4
|
Trustee’s Disclaimer
|
29
|
|
Section 7.5
|
Notice of Defaults
|
29
|
|
Section 7.6
|
Reports by Trustee to Holders
|
29
|
|
Section 7.7
|
Compensation and Indemnity
|
29
|
|
Section 7.8
|
Replacement of Trustee
|
30
|
|
Section 7.9
|
Successor Trustee by Merger, Etc
|
31
|
|
Section 7.10
|
Eligibility; Disqualification
|
31
|
|
Section 7.11
|
Preferential Collection of Claims Against Company
|
31
|
|
|
|
|
|
ARTICLE VIII
|
SATISFACTION AND DISCHARGE; DEFEASANCE
|
32
|
|
|
|
|
|
Section 8.1
|
Satisfaction and Discharge of Indenture
|
32
|
|
Section 8.2
|
Application of Trust Funds; Indemnification
|
33
|
|
Section 8.3
|
Legal Defeasance of Securities of any Series
|
33
|
|
Section 8.4
|
Covenant Defeasance
|
35
|
|
Section 8.5
|
Repayment to Company
|
36
|
|
Section 8.6
|
Reinstatement
|
36
|
Table
of Contents
(continued)
|
|
|
page
|
|
|
|
|
|
ARTICLE IX
|
AMENDMENTS AND WAIVERS
|
36
|
|
|
|
|
|
Section 9.1
|
Without Consent of Holders
|
36
|
|
Section 9.2
|
With Consent of Holders
|
37
|
|
Section 9.3
|
Limitations
|
38
|
|
Section 9.4
|
Compliance with Trust Indenture Act
|
38
|
|
Section 9.5
|
Revocation and Effect of Consents
|
38
|
|
Section 9.6
|
Notation on or Exchange of Securities
|
39
|
|
Section 9.7
|
Trustee Protected
|
39
|
|
|
|
|
|
ARTICLE X
|
MISCELLANEOUS
|
39
|
|
|
|
|
|
Section 10.1
|
Trust Indenture Act Controls
|
39
|
|
Section 10.2
|
Notices
|
39
|
|
Section 10.3
|
Communication by Holders with Other Holders
|
40
|
|
Section 10.4
|
Certificate and Opinion as to Conditions Precedent
|
40
|
|
Section 10.5
|
Statements Required in Certificate or Opinion
|
41
|
|
Section 10.6
|
Rules by Trustee and Agents
|
41
|
|
Section 10.7
|
Legal Holidays
|
41
|
|
Section 10.8
|
No Recourse Against Others
|
41
|
|
Section 10.9
|
Counterparts
|
42
|
|
Section 10.10
|
Governing Law; Jury Trial Waiver
|
42
|
|
Section 10.11
|
No Adverse Interpretation of Other Agreements
|
42
|
|
Section 10.12
|
Successors
|
42
|
|
Section 10.13
|
Severability
|
42
|
|
Section 10.14
|
Table of Contents, Headings, Etc
|
42
|
|
Section 10.15
|
Securities in a Foreign Currency
|
43
|
|
Section 10.16
|
Judgment Currency
|
43
|
|
Section 10.17
|
Force Majeure
|
44
|
|
|
|
|
|
ARTICLE XI
|
SINKING FUNDS
|
44
|
|
|
|
|
|
Section 11.1
|
Applicability of Article
|
44
|
|
Section 11.2
|
Satisfaction of Sinking Fund Payments with Securities
|
44
|
|
Section 11.3
|
Redemption of Securities for Sinking Fund
|
45
|
AKARI THERAPEUTICS, PLC
Reconciliation and tie between Trust Indenture
Act of 1939 and Indenture
dated as of ____________, 20
|
§ 310(a)(1)
|
7.10
|
|
(a)(2)
|
7.10
|
|
(a)(3)
|
Not Applicable
|
|
(a)(4)
|
Not Applicable
|
|
(a)(5)
|
7.10
|
|
(b)
|
7.10
|
|
§ 311(a)
|
7.11
|
|
(b)
|
7.11
|
|
§ 312(a)
|
2.7
|
|
(b)
|
10.3
|
|
(c)
|
10.3
|
|
§ 313(a)
|
7.6
|
|
(b)(1)
|
7.6
|
|
(b)(2)
|
7.6
|
|
(c)(1)
|
7.6
|
|
(d)
|
7.6
|
|
§ 314(a)
|
4.2, 10.5
|
|
(b)
|
Not Applicable
|
|
(c)(1)
|
10.4
|
|
(c)(2)
|
10.4
|
|
(c)(3)
|
Not Applicable
|
|
(d)
|
Not Applicable
|
|
(e)
|
10.5
|
|
(f)
|
Not Applicable
|
|
§ 315(a)
|
7.1
|
|
(b)
|
7.5
|
|
(c)
|
7.1
|
|
(d)
|
7.1
|
|
(e)
|
6.14
|
|
§ 316(a)
|
2.11
|
|
(a)(1)(A)
|
6.12
|
|
(a)(1)(B)
|
6.13
|
|
(b)
|
6.8
|
|
§ 317(a)(1)
|
6.3
|
|
(a)(2)
|
6.4
|
|
(b)
|
2.6
|
|
§ 318(a)
|
10.1
|
Note: This reconciliation and tie shall
not, for any purpose, be deemed to be part of the Indenture.
Indenture dated as of __________, 20__,
between AKARI THERAPEUTICS, PLC, a company organized under the laws of England and Wales (“Company”), and _______________,
as trustee (“Trustee”).
Each party agrees as follows for the benefit
of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
Section 1.1 Definitions.
“Affiliate”
of any specified person means any other person directly or indirectly controlling or controlled by or under common control with
such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”), as used with respect to any person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through
the ownership of voting securities or by agreement or otherwise.
“Agent”
means any Registrar or Paying Agent.
“Board of
Directors” means the board of directors of the Company or any duly authorized committee thereof.
“Board Resolution”
means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board
of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certification
and delivered to the Trustee.
“Business
Day” means, for a particular Series, any day except a Saturday, Sunday or any day, including a legal holiday, on which
banking institutions are authorized or required by law, regulation or executive order to close in The City of New York (or in connection
with any payment, the place of payment).
“Capital Stock”
of any person means any and all shares, interests, participations, rights or other equivalents (however designated) of the equity
of such person.
“Certificated
Securities” means definitive Securities in registered non-global certificated form.
“Company”
means the party named as such above until a successor, which duly assumes the obligations under this Indenture, replaces it and
thereafter means the successor.
“Company Order”
means a written order signed in the name of the Company by an Officer.
“Corporate
Trust Office” means the office of the Trustee at which at any particular time its corporate trust business related to
this Indenture shall be principally administered, which office at the date hereof is located at __________________,; Attention:
_______________, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company,
or the corporate trust office of any successor Trustee at which this Indenture shall be administered (or such other address as
a successor Trustee may designate from time to time by notice to the Holders of the Company).
“Default”
means any event which is, or after notice or passage of time or both would be, an Event of Default.
“Depositary”
means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities,
the person designated as Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under
the Exchange Act; and if at any time there is more than one such person, “Depositary” as used with respect to the Securities
of any Series shall mean the Depositary with respect to the Securities of such Series.
“Discount
Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.
“Dollars”
and “$” means the currency of The United States of America.
“Exchange
Act” means the Securities Exchange Act of 1934, as amended.
“Foreign Currency”
means any currency or currency unit issued by a government other than the government of The United States of America.
“Foreign Government
Obligations” means, with respect to Securities of any Series that are denominated in a Foreign Currency, direct obligations
of, or obligations guaranteed by, the government that issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof.
“GAAP”
means accounting principles generally accepted in The United States of America set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant
segment of the accounting profession, which are in effect as of the date of determination.
“Global Security”
or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant
to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depositary for such Series or its nominee, and registered
in the name of such Depositary or nominee.
“Holder”
or “Securityholder” means a person in whose name a Security is registered on the books of the Registrar.
“Indenture”
means this Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of
Securities established as contemplated hereunder.
“interest”
means, with respect to any Security, any interest on such Security, and with respect to any Discount Security which by its terms
bears interest only after Maturity, interest payable after Maturity.
“Maturity,”
when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein
or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.
“Officer”
means the Chairman of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the President, any Senior
Vice President or Vice President, the Treasurer, Assistant Treasurer, Secretary or Assistant Secretary of the Company.
“Officer’s
Certificate” means a certificate signed by any Officer (or any person designated in writing by an Officer of the Company
as authorized to execute and deliver Officer’s Certificates) and delivered to the Trustee.
“Opinion of
Counsel” means a written opinion of legal counsel. The counsel may be an employee of or counsel to the Company. Opinions
of Counsel required to be delivered under this Indenture may have qualifications customary for opinions of the type required.
“person”
means any individual, corporation, company, voluntary association, partnership, trust, joint venture, limited liability company,
unincorporated organization or government or any agency, instrumentality or political subdivision thereof.
“principal”
of a Security means the principal of the Security plus, when appropriate, the premium, if any, on the Security.
“Responsible
Officer” means any officer of the Trustee in its Corporate Trust Office having direct responsibility for administration
of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with a particular subject and who shall have direct
responsibility for the administration of this Indenture.
“SEC”
means the Securities and Exchange Commission.
“Securities”
means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.
“Series”
or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created
pursuant to Sections 2.1 and 2.2 hereof.
“Stated Maturity”
when used with respect to any Security, means the date specified in such Security as the fixed date on which the principal of such
Security is due and payable.
“Subsidiary”
means, with respect to any person, any corporation, partnership, joint venture, limited liability company or other business entity
of which a majority of the outstanding shares of Capital Stock or other interests having the power to vote in the election of directors,
managers or trustees thereof is at the time directly or indirectly owned or controlled by such person or one or more of the other
Subsidiaries of such person, or a combination thereof.
“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required
by any such amendment, the Trust Indenture Act as so amended.
“Trustee”
means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include
each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used
with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.
“United States”
or “U.S.” means The United States of America (including the states thereof and the District of Columbia), its
territories and possessions and other areas subject to its jurisdiction.
“U.S.
Government Obligations” means securities which are direct obligations of, or guaranteed by, The United States of America
for the payment of which its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S.
Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian
for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian
in respect of the U.S. Government Obligation evidenced by such depository receipt.
Section 1.2 Other
Definitions.
|
TERM
|
DEFINED IN SECTION
|
|
“Bankruptcy Law”
|
6.1
|
|
“Custodian”
|
6.1
|
|
“Event of Default”
|
6.1
|
|
“Judgment Currency”
|
10.16
|
|
“Legal Holiday”
|
10.7
|
|
“mandatory sinking fund payment”
|
11.1
|
|
“optional sinking fund payment”
|
11.1
|
|
“Paying Agent”
|
2.5
|
|
“Registrar”
|
2.5
|
|
“Required Currency”
|
10.16
|
|
“successor person”
|
5.1
|
|
|
|
Section 1.3 Incorporation
by Reference of Trust Indenture Act.
Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:
“Commission”
means the SEC.
“indenture
securities” means the Securities.
“indenture
security holder” means a Securityholder.
“indenture
to be qualified” means this Indenture.
“indenture
trustee” or “institutional trustee” means the Trustee.
“obligor”
on the indenture securities means the Company and any successor obligor upon the Securities.
All other terms used
in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA
and not otherwise defined herein are used herein as so defined.
Section 1.4 Rules
of Construction.
Unless the context
otherwise requires:
(a) a
term has the meaning assigned to it;
(b) an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;
(c) “or”
is not exclusive;
(d) words
in the singular include the plural, and in the plural include the singular; and
(e) provisions
apply to successive events and transactions.
ARTICLE II
THE SECURITIES
Section 2.1 Issuable
in Series.
The aggregate principal
amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in
one or more Series. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided
in a Board Resolution, supplemental indenture hereto or Officer’s Certificate establishing the terms of such Series. In the
case of Securities of a Series to be issued from time to time, the Board Resolution, Officer’s Certificate or supplemental
indenture establishing the terms thereof may provide for the method by which specified terms (such as interest rate, maturity date,
record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of
any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of this Indenture.
Section 2.2 Establishment
of Terms of Series of Securities.
At or prior to the
issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection
2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through
2.2.23) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental
indenture hereto or Officer’s Certificate:
2.2.1 the
title (which shall distinguish the Securities of that particular Series from the Securities of any other Series) of the Series;
2.2.2 the
price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;
2.2.3 any
limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities
of the Series pursuant to Section 2.8, 2.9, 2.12, 3.6 or 9.6);
2.2.4 the
date or dates on which the principal of the Securities of the Series is payable;
2.2.5 the
rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including,
but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series
shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such
interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;
2.2.6 the
place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities
of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company
in respect of the Securities of such Series and this Indenture may be delivered, and the method of such payment, if by wire transfer,
mail or other means;
2.2.7 if
applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities
of the Series must be redeemed or may be redeemed, in whole or in part, at the option of the Company;
2.2.8 the
obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms
and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;
2.2.9 the
dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the
option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;
2.2.10 if
other than denominations of $1,000 and integral multiples of $1,000 in excess thereof, the denominations in which the Securities
of the Series shall be issuable;
2.2.11 the
forms of the Securities of the Series and whether the Securities will be issuable as Global Securities;
2.2.12 if
other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable
upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;
2.2.13 the
currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and if such currency of
denomination is a composite currency, the agency or organization, if any, responsible for overseeing such composite currency;
2.2.14 the
designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities
of the Series will be made;
2.2.15 if
payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency
units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to
such payments will be determined;
2.2.16 the
manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined,
if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity
index, stock exchange index or financial index;
2.2.17 the
provisions, if any, relating to any security provided for the Securities of the Series;
2.2.18 any
addition to, deletion of or change in the Events of Default which applies to any Securities of the Series and any change in the
right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant
to Section 6.2;
2.2.19 any
addition to, deletion of or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;
2.2.20 any
Depositaries, trustees, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities
of such Series if other than those appointed herein;
2.2.21 the
provisions, if any, relating to conversion or exchange of any Securities of such Series, including if applicable, the conversion
or exchange price, the conversion or exchange period, the securities or other property into which the Securities will be convertible,
provisions as to whether conversion or exchange will be mandatory, at the option of the Holders thereof or at the option of the
Company, the events requiring an adjustment of the conversion price or exchange price and provisions affecting conversion or exchange
if such Series of Securities are redeemed;
2.2.22 whether
any of the Company’s direct or indirect Subsidiaries will guarantee the Securities of that Series, including the terms of
subordination, if any, of such guarantees; and
2.2.23 any
other terms of the Series (which may supplement, modify or delete any provision of this Indenture insofar as it applies to such
Series), including any terms that may be required under applicable law or regulations or advisable in connection with the marketing
of Securities of that Series.
All Securities of any
one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture,
if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officer’s Certificate referred to
above.
Section 2.3 Denominations;
Provision for Payment.
The Securities of any
Series shall be issuable, except as otherwise provided with respect to Securities of any Series pursuant to Section 2.2, as registered
Securities in the denominations of one thousand Dollars ($1,000) or any integral multiples of $1,000 in excess thereof. Unless
otherwise provided with respect to Securities of any Series pursuant to Section 2.2, the principal of and the interest on the Securities
of any Series, if any, thereon, shall by payable in Dollars at the Corporate Trust Office of the Trustee. Unless otherwise specified
pursuant to Section 2.2 with respect to any Securities of any Series, interest on the Securities of any Series shall be computed
on the basis of a 360-day year consisting of twelve 30-day months.
Section 2.4 Execution
and Authentication.
Two Officers shall
sign the Securities for the Company by manual or facsimile signature.
If an Officer whose
signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless
be valid.
A Security shall not
be valid until authenticated by the manual signature of the Trustee or an authenticating agent. The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.
The Trustee shall at
any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officer’s Certificate, upon receipt by the Trustee of a Company Order. Each Security shall
be dated the date of its authentication.
The aggregate principal
amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section
2.2, except as provided in Section 2.9.
Prior to the issuance
of Securities of any Series, the Trustee shall have received and (subject to Section 7.1) shall be fully protected in conclusively
relying on: (a) the Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section
2.2 establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities
of that Series or of Securities within that Series, (b) an Officer’s Certificate complying with Section 9.7 (with respect
to the execution of supplemental indentures) and Section 10.4, and (c) an Opinion of Counsel complying with Section 9.7 (with respect
to the execution of supplemental indentures) and Section 10.4.
The Trustee shall have
the right, but not the obligation, to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being
advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith determines that
such action would expose the Trustee to personal liability.
The Trustee may appoint
an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.
Section 2.5 Registrar
and Paying Agent.
The Company shall maintain,
with respect to each Series of Securities, at the place or places specified with respect to such Series, an office or agency where
Securities of such Series may be presented or surrendered for payment (“Paying Agent”) and where Securities of such
Series may be surrendered for registration of transfer or exchange (“Registrar”). The Registrar shall keep a register
with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the
Trustee of the name and address, and any change in the name or address, of each Registrar or Paying Agent. If at any time the Company
shall fail to maintain any such required Registrar or Paying Agent or shall fail to furnish the Trustee with the name and address
thereof, such presentations and surrenders may be made or served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations and surrenders.
The Company may also
from time to time designate one or more co-registrars or additional paying agents and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain
a Registrar or Paying Agent in each place so specified for Securities of any Series for such purposes. The Company will give prompt
written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar
or additional paying agent. The term “Registrar” includes any co-registrar; and the term “Paying Agent”
includes any additional paying agent. The Company or any of its Affiliates may serve as Registrar or Paying Agent.
The Company hereby
appoints the Trustee as the initial Registrar and Paying Agent for each Series unless another Registrar or Paying Agent, as the
case may be, is appointed prior to the time Securities of that Series are first issued.
Section 2.6 Paying
Agent to Hold Money in Trust.
The Company shall require
each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders
of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on
the Securities of that Series, and will notify the Trustee in writing of any default by the Company in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money. If the Company
or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders
of any Series of Securities all money held by it as Paying Agent. Upon any bankruptcy, reorganization or similar proceeding with
respect to the Company, the Trustee shall serve as Paying Agent for the Securities.
Section 2.7 Securityholder
Lists.
The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company
shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request
in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders
of each Series of Securities.
Section 2.8 Transfer
and Exchange.
Where Securities of
a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements
for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at
the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges
pursuant to Sections 2.12, 3.6 or 9.6).
Neither the Company
nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of
that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer
of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.
Section 2.9 Mutilated,
Destroyed, Lost and Stolen Securities.
If any mutilated Security
is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered
to the Company and the Trustee (a) evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such
security or indemnity bond as may be required by each of them to hold itself and any of its agents harmless, then, in the absence
of written notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall
execute and upon receipt of a Company Order the Trustee shall authenticate and make available for delivery, in lieu of any such
destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.
In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, pay such Security.
Upon the issuance of
any new Security under this Section 2.9, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security
of any Series issued pursuant to this Section 2.9 in lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities
of that Series duly issued hereunder.
The provisions of this
Section 2.9 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.
Section 2.10 Outstanding
Securities.
The Securities outstanding
at any time are all the Securities authenticated by the Trustee except for those canceled by the Registrar and those described
in this Section 2.10 as not outstanding.
If a Security is replaced
pursuant to Section 2.9, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security
is held by a bona fide purchaser.
If the Paying Agent
(other than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series
money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to
be outstanding and interest on them ceases to accrue.
The Company may purchase
or otherwise acquire the Securities, whether by open market purchases, negotiated transactions or otherwise. A Security does not
cease to be outstanding because the Company or an Affiliate of the Company holds the Security.
In determining whether
the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such
purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a
declaration of acceleration of the Maturity thereof pursuant to Section 6.2.
Section 2.11 Treasury
Securities.
In determining whether
the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be disregarded, except
that for the purposes of determining whether the Trustee shall be protected in conclusively relying on any such request, demand,
authorization, direction, notice, consent or waiver, only Securities of a Series that a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith shall not be disregarded
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right to deliver any such request, demand, authorization,
direction, notice, consent or waiver with respect to the Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.
Section 2.12 Temporary
Securities.
Until definitive Securities
are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary
Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate
for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon receipt of a Company Order
shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so
exchanged, temporary Securities shall have the same rights under this Indenture as the definitive Securities.
Section 2.13 Cancellation.
The Company at any
time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent, if not the Trustee, shall forward
to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all
Securities surrendered for transfer, exchange, payment, replacement, conversion or cancellation and shall dispose of such canceled
Securities (subject to the record retention requirement of the Exchange Act and the Trustee) in accordance with its customary procedures
and deliver a certificate of such cancellation to the Company upon written request of the Company. The Company may not issue new
Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.
Section 2.14 Defaulted
Interest.
If the Company defaults
in a payment of interest on a Series of Securities, it may pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record
date. The Company shall fix the record date and payment date. At least 10 days before the special record date, the Company shall
mail to the Trustee and to each Securityholder of the Series a notice that states the special record date, the payment date and
the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.
Section 2.15 Global
Securities.
2.15.1 Terms
of Securities. A Board Resolution, a supplemental indenture hereto or an Officer’s Certificate shall establish whether
the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary
for such Global Security or Securities.
2.15.2 Transfer
and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.8 of this Indenture and in addition thereto,
any Global Security shall be exchangeable pursuant to Section 2.8 of this Indenture for Securities registered in the names of Holders
other than the Depositary for such Security or its nominee only if (a) such Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered
under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered as a clearing agency
under the Exchange Act within 90 days of such event or (b) the Company determines in its sole discretion not to have such Securities
represented by one or more Global Securities and executes and delivers to the Trustee an Officer’s Certificate to the effect
that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence
shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal
amount equal to the principal amount of the Global Security with like tenor and terms.
Except as provided
in this Section 2.15.2, a Global Security may not be transferred except as a whole by the Depositary with respect to such Global
Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary
or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.
2.15.3 Legend.
Any Global Security issued hereunder shall bear a legend in substantially the following form:
“THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY
OR A NOMINEE OF THE DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.”
2.15.4 Acts
of Holders. The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under this
Indenture.
2.15.5 Payments.
Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the
principal of and interest, if any, on any Global Security shall be made to the Holder thereof, which in the case of a Depositary
therefor will be made in accordance with its applicable procedures.
2.15.6 Consents,
Declaration and Directions. The Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary
or by the applicable procedures of such Depositary with respect to such Global Security, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.
Section 2.16 CUSIP
Numbers.
The Company in issuing
the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and
that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Trustee shall have no liability for any defect in the “CUSIP”
numbers as they appear on any Security, notice or elsewhere. The Company will promptly notify the Trustee in writing of any change
in the “CUSIP” numbers.
ARTICLE III
REDEMPTION
Section 3.1 Notice
to Trustee.
The Company may, with
respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided
for in such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated
Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee
in writing of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice
to the Trustee at least 45 days before the redemption date, unless a shorter period is satisfactory to the Trustee.
Section 3.2 Selection
of Securities to be Redeemed.
Unless otherwise indicated
for a particular Series by a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any
manner that the Trustee deems fair and appropriate, including selecting by lot or other method, unless otherwise required by law
or applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable rules and procedures of
the Depositary; provided that the unredeemed portion of the principal amount of any Security shall be in an authorized denomination
(which shall not be less than the minimum authorized denomination) for such Security. The Trustee shall make the selection from
Securities of the Series outstanding not previously called for redemption. Provisions of this Indenture that apply to Securities
of a Series called for redemption also apply to portions of Securities of that Series called for redemption.
Section 3.3 Notice
of Redemption.
Unless otherwise indicated
for a particular Series by Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, at least 30 days
but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder
whose Securities are to be redeemed.
The notice shall identify
the Securities of the Series to be redeemed and shall state:
(a) the
redemption date;
(b) the
redemption price and the amount of accrued interest, if any, to be paid;
(c) the
name and address of the Paying Agent and, if applicable, the conversion Agent;
(d) for
convertible Securities, the conversion price;
(e) if
any Global Security is being redeemed in part, the portion of the principal amount of such Global Security to be redeemed and that,
after the redemption date upon surrender of such Global Security, the principal amount thereof will be decreased by the portion
thereof redeemed pursuant thereto;
(f) if
any Certificated Security is being redeemed in part, the portion of the principal amount of such Security to be redeemed, and that,
after the redemption date, upon surrender of such Security, a new Certificated Security in principal amount equal to the unredeemed
portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Certificated Security;
(g) that
Securities of the Series (or portion thereof) called for redemption must be surrendered to the Paying Agent to collect the redemption
price;
(h) that
interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date unless the Company
defaults in the deposit of the redemption price;
(i) the
CUSIP number, if any, and state that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed
in the SEC’s notice or printed on the Securities; and
(j) any
other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.
At the Company’s
request, the Trustee shall give the notice of redemption in the Company’s name and at its expense, provided, however, that
the Company has delivered to the Trustee, at least 15 days (unless a shorter time shall be acceptable to the Trustee) prior to
the notice date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information
to be stated in such notice.
Section 3.4 Effect
of Notice of Redemption.
Once notice of redemption
is mailed as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date
and at the redemption price. Except as otherwise provided in the supplemental indenture, Board Resolution or Officer’s Certificate
for a Series, a notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid
at the redemption price plus accrued interest to the redemption date other than Securities or portions of Securities called for
redemption which have been delivered by the Company to the Registrar for cancellation. The Paying Agent shall return to the Company
any money not required for that purpose.
Unless the Company
shall default in the payment of Securities (and accrued interest) called for redemption, interest on such Securities shall cease
to accrue after the redemption date. Convertible Securities called for redemption shall cease to be convertible after the close
of business on the Business Day immediately preceding the redemption date, unless the Company shall default in the payment of such
Securities on the redemption date, in which event the Securities shall remain convertible until paid (together with accrued interest).
Failure to give notice
of redemption, or any defect in such notice to the Holder of any Security of a Series designated for redemption, in whole or in
part, shall not affect the sufficiency of any notice of redemption with respect to the Holder of any other Security of such Series.
Section 3.5 Deposit
of Redemption Price.
On or before 10:00
a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption
price of and accrued interest, if any, on all Securities to be redeemed on that date.
Section 3.6 Securities
Redeemed in Part.
Upon surrender of a
Certificated Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Certificated Security of the
same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered and concurrently
cancel the surrendered Certificated Security.
ARTICLE IV
COVENANTS
Section 4.1 Payment
of Principal and Interest.
The Company covenants
and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and
interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture. On or before
10:00 a.m., New York City time, on the applicable payment date, the Company shall deposit with the Paying Agent money sufficient
to pay the principal of and interest, if any, on the Securities of each Series in accordance with the terms of such Securities
and this Indenture. Principal and interest shall be considered paid on the date due if the Paying Agent holds in accordance with
this Indenture on that date money sufficient to pay all principal and interest then due and the Paying Agent is not prohibited
from paying such money to the Holders on such date pursuant to the terms of this Indenture.
Section 4.2 Reports
by Company.
(a) As
long as any Securities are outstanding, the Company shall file with the Trustee, and transmit to the Holders, such information,
documents and other reports, and such summaries thereof, as may be required pursuant to TIA § 314(a). All reports, information
and documents referred to in this Section 4.2 will be deemed to be filed with the Trustee and transmitted to the Holders at the
time such reports, information or documents are publicly filed with the SEC via the SEC’s EDGAR filing system (or any successor
system), it being understood that the Trustee shall have no responsibility whatsoever to determine if such filings have been made.
(b) Delivery
of reports, information and documents to the Trustee under this Section 4.2 are for informational purposes only and shall not constitute
a representation or warranty as to the accuracy or completeness of the reports, information and documents. The Trustee’s
receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled
to rely exclusively on Officer’s Certificates).
Section 4.3 Compliance
Certificate.
To the extent any Securities
of a Series are outstanding, the Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officer’s Certificate (which need not contain the statements provided for in Section 10.4) from its principal
executive officer, principal financial officer or principal accounting officer stating that a review of the activities of the Company
and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer with a view to
determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating,
as to such Officer signing such certificate, that to his or her knowledge the Company is not in default in the performance or observance
of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which the Officer has knowledge). Such Officer’s Certificate need not include a reference
to any non-compliance that has been fully cured prior to the date as of which such certificate speaks.
Section 4.4 Stay,
Extension and Usury Laws.
The Company covenants
(to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture or the Securities; and the Company (to the extent it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law has been enacted.
Section 4.5 Corporate
Existence.
Subject to Article
V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence
and rights (charter and statutory); provided, however, that the Company shall not be required to preserve any such right if the
Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.
ARTICLE V
SUCCESSORS
Section 5.1 Consolidation,
Merger and Sale of Assets.
The Company may not
consolidate with or merge with or into, sell, convey, transfer or dispose of all or substantially all of its assets to any other
person (a “successor person”), whether in one transaction or a series of related transactions, unless:
(a) (i)
the Company is the surviving corporation or (ii) the successor person (if other than the Company) (A) is a corporation, limited
liability corporation, partnership or trust organized under the laws of the United States; and (B) expressly assumes, by an indenture
supplemental hereto, the Company’s obligations on the Securities and under this Indenture; and
(b) immediately
after giving effect to the transaction, no Default or Event of Default shall have happened and be continuing.
The Company shall deliver
to the Trustee prior to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with Section 5.1 of this Indenture.
Notwithstanding the
above, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company.
Neither an Officer’s Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith.
Section 5.2 Successor
Person Substituted.
Upon any consolidation
or merger, or any sale, conveyance, transfer, or lease of all or substantially all of the assets of the Company and its Subsidiaries
in accordance with Section 5.1, the successor person formed by such consolidation or into or with which the Company is merged or
to which such sale, conveyance, transfer, or lease is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture and the Securities with the same effect as if such successor person has been named
as the Company herein; and, thereafter, the predecessor Company, in the case of a sale, conveyance or transfer (other than a lease),
shall be released from all obligations and covenants under this Indenture and the Securities.
ARTICLE VI
DEFAULTS AND REMEDIES
Section 6.1 Events
of Default.
“Event of
Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless
in the establishing Board Resolution, supplemental indenture or Officer’s Certificate, it is provided that such Series shall
not have the benefit of said Event of Default:
(a) failure
to pay any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period
of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior
to 10:00 a.m., New York City time, on the 30th day of such period);
(b) failure
to pay principal of any Security of that Series at its Maturity;
(c) default
in the performance or breach of any covenant of the Company in this Indenture (other than defaults pursuant to sub-clauses (a)
through (c) above or defaults related to a covenant that has been included in this Indenture solely for the benefit of a Series
of Securities other than that Series), which default continues uncured for a period of 90 days after there has been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a “Notice of Default” hereunder;
(d) the
Company pursuant to or within the meaning of any Bankruptcy Law:
(i) commences
a voluntary case,
(ii) consents
to the entry of an order for relief against it in an involuntary case,
(iii) consents
to the appointment of a Custodian of it or for all or substantially all of its property, or
(iv) makes
a general assignment for the benefit of its creditors;
(e) a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(i) is
for relief against the Company in an involuntary case,
(ii) appoints
a Custodian of the Company or for all or substantially all of its property, or
(iii) orders
the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or
(f) any
other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental
indenture hereto or an Officer’s Certificate, in accordance with Section 2.2.18.
The term “Bankruptcy
Law” means title 11, U.S. Code or any similar federal or state law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
A Default under one
Series of Securities issued under this Indenture will not necessarily be a default under another Series of Securities under this
Indenture.
The Company will, so
long as any of the Securities are outstanding, deliver to the Trustee, within 30 days of becoming aware of any Default or Event
of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.
Section 6.2 Acceleration
of Maturity; Rescission and Annulment.
If an Event of Default
with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred
to in Section 6.1(d) or (e)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the
outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities,
such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if
any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid
interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 6.1(d) or (e) shall occur,
the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso
facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.
At any time after such
a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal
and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 6.13.
No such rescission
shall affect any subsequent Default.
Section 6.3 Collection
of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants
that if
(a) default
is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for
a period of 30 days, or
(b) default
is made in the payment of principal of any Security at the Maturity thereof, or
(c) default
is made in the deposit of any sinking fund payment, if any, when and as due by the terms of a Security,
then, the Company will, upon demand
of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities
for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue
principal and any overdue interest at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.
If the Company fails
to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute
a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree
and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed
to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever
situated.
If an Event of Default
with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.
Section 6.4 Trustee
May File Proofs of Claim.
In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial
proceeding relating to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor
or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for
the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,
(a) to
file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file
such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders
allowed in such judicial proceeding, and
(b) to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.
Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding.
Section 6.5 Trustee
May Enforce Claims Without Possession of Securities.
All rights of action
and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment
of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the Holders of the Securities in respect of which such judgment has been recovered.
Section 6.6 Application
of Money Collected.
Any money or property
collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money or property on account of principal or interest, upon presentation of the Securities
and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:
First: To the payment
of all amounts due to the Trustee under this Indenture; and
Second: To the payment
of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on
such Securities for principal and interest, respectively; and
Third: To the Company.
Section 6.7 Limitation
on Suits.
No Holder of any Security
of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:
(a) such
Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that
Series;
(b) the
Holders of not less than 25% in principal amount of the outstanding Securities of that Series have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;
(c) such
Holder or Holders have offered to the Trustee indemnity or security satisfactory to the Trustee against the costs, expenses and
liabilities which might be incurred by the Trustee in compliance with such request;
(d) the
Trustee has failed to institute any such proceeding for 60 days after its receipt of such notice, request and offer of indemnity;
and
(e) no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority
in principal amount of the outstanding Securities of that Series;
it being understood, intended and expressly
covenanted by the Holder of every Security with every other Holder and the Trustee that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders
or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all
such Holders of the applicable Series; provided, however, that the Trustee does not have an affirmative duty to ascertain
whether or not such actions or forbearances are unduly prejudicial to such Holders.
Section 6.8 Unconditional
Right of Holders to Receive Principal and Interest.
Notwithstanding any
other provision in this Indenture, the Holder of any Security has the right, which is absolute and unconditional, to receive payment
of the principal of and interest, if any, on such Security on the Maturity of such Security, including the Stated Maturity expressed
in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such Holder.
Section 6.9 Restoration
of Rights and Remedies.
If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively
to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
Section 6.10 Rights
and Remedies Cumulative.
Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.9, no right
or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of
any other appropriate right or remedy.
Section 6.11 Delay
or Omission Not Waiver.
No delay or omission
of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy
given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.
Section 6.12 Control
by Holders.
The Holders of a majority
in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such Series, provided that:
(a) such
direction shall not be in conflict with any rule of law or with this Indenture;
(b) the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction;
(c) subject
to the provisions of Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal
liability; and
(d) prior
to taking any action as directed under this Section 6.12, the Trustee shall be entitled to indemnity satisfactory to it against
the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
Section 6.13 Waiver
of Past Defaults.
The Holders of not
less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities
of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment
of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority
in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any
related payment default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Default.
Section 6.14 Undertaking
for Costs.
All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the
Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking
to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section 6.14 shall not apply to any suit instituted by the Company, to
any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than
10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement
of the payment of the principal of or interest on any Security on or after the Maturity of such Security, including the Stated
Maturity expressed in such Security (or, in the case of redemption, on the redemption date).
ARTICLE VII
TRUSTEE
Section 7.1 Duties
of Trustee.
(a) If
an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture
and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs.
(b) Except
during the continuance of an Event of Default:
(i) The
Trustee need perform only those duties that are specifically set forth in this Indenture and no others.
(ii) In
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon Officer’s Certificates or Opinions of Counsel furnished to the Trustee and conforming
to the requirements of this Indenture; however, in the case of any such Officer’s Certificates or Opinions of Counsel which
by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officer’s
Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts stated therein).
(c) The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct,
except that:
(i) This
sub-clause (c) does not limit the effect of sub-clause (b) of this Section 7.1.
(ii) The
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts.
(iii) The
Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities
of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding
Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series
in accordance with Section 6.12.
(d) Every
provision of this Indenture that in any way relates to the Trustee is subject to sub-clauses (a), (b) and (c) of this Section 7.1.
(e) The
Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in performing such duty or exercising such right or power.
(f) The
Trustee shall not be liable for interest on any money received by it. Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.
(g) No
provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance
of any of its duties, or in the exercise of any of its rights or powers, if adequate indemnity against such risk is not assured
to the Trustee in its satisfaction.
(h) The
Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections and immunities as are set forth in
sub-clauses (e), (f) and (g) of this Section 7.1 and in Section 7.2, each with respect to the Trustee.
Section 7.2 Rights
of Trustee.
(a) The
Trustee may conclusively rely on and shall be protected in acting or refraining from acting upon any document (whether in its original
or facsimile form) believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document.
(b) Before
the Trustee acts or refrains from acting, it shall be entitled to receive an Officer’s Certificate or an Opinion of Counsel
or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in conclusive reliance on such
Officer’s Certificate or Opinion of Counsel.
(c) The
Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.
No Depositary shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depositary.
(d) The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers, provided that the Trustee’s conduct does not constitute willful misconduct or negligence.
(e) The
Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.
(f) The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders of Securities unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
(g) The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.
(h) The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a default is received by a Responsible Officer of
the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities
of a particular Series and this Indenture.
(i) In
no event shall the Trustee be liable to any person for special, punitive, indirect, consequential or incidental loss or damage
of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such
loss or damage.
(j) The
permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty
to do so.
(k) The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other
Person employed to act hereunder.
(l) The
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.
(m) The
Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized
at such time to take specified actions pursuant to this Indenture.
Section 7.3 Individual
Rights of Trustee.
The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate
of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee is also subject to Sections 7.10 and 7.11 hereof.
Section 7.4 Trustee’s
Disclaimer.
The Trustee makes no
representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s
use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.
Section 7.5 Notice
of Defaults.
If a Default or Event
of Default occurs and is continuing with respect to the Securities of any Series and if it is actually known to a Responsible Officer
of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series notice of a Default or Event of
Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or
Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of
any Series, the Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in
the interests of Securityholders of that Series.
Section 7.6 Reports
by Trustee to Holders.
Within 60 days after
each anniversary of the date of this Indenture, the Trustee shall transmit by mail to all Securityholders, as their names and addresses
appear on the register kept by the Registrar, a brief report dated as of such reporting date, in accordance with, and to the extent
required under, TIA § 313.
A copy of each report
at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each national securities exchange on
which the Securities of that Series are listed. The Company shall promptly notify the Trustee in writing when Securities of any
Series are listed on any national securities exchange or of any delisting thereof.
Section 7.7 Compensation
and Indemnity.
The Company shall pay
to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon
in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.
The Company shall reimburse the Trustee upon request for all reasonable out of pocket expenses incurred by it. Such expenses shall
include the reasonable compensation and expenses of the Trustee’s agents and counsel.
The Company shall indemnify
each of the Trustee and any predecessor Trustee against any cost, expense, claim (whether asserted by the Company, a Holder or
any other person) or liability (including the cost of defending itself), including taxes (other than taxes based upon, measured
by or determined by the income of the Trustee), incurred by it except as set forth in the next paragraph in the performance of
its duties under this Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of any claim for which it may
seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder, unless
and to the extent that the Company is materially prejudiced thereby. The Company shall defend the claim and the Trustee shall cooperate
in the defense. The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.
The Company need not pay for any settlement made without its consent, which consent will not be unreasonably withheld. This indemnification
shall apply to officers, directors, employees, shareholders and agents of the Trustee.
The Company need not
reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee
or shareholder of the Trustee through willful misconduct or negligence.
To secure the Company’s
payment obligations in this Section 7.7, the Trustee shall have a lien prior to the Securities of any Series on all money or property
held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.
When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.1(f) or (g) occurs, the expenses and the compensation
for the services are intended to constitute expenses of administration under any Bankruptcy Law.
The provisions of this
Section 7.7 shall survive the termination of this Indenture or the resignation or removal of the Trustee.
Section 7.8 Replacement
of Trustee.
A resignation or removal
of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance
of appointment as provided in this Section 7.8.
The Trustee may resign
at any time with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date
of the proposed resignation. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee
with respect to that Series by so notifying the Trustee and the Company in writing. The Company may remove the Trustee with respect
to Securities of one or more Series if:
(a) the
Trustee fails to comply with Section 7.10;
(b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;
(c) a
Custodian or public officer takes charge of the Trustee or its property; or
(d) the
Trustee becomes incapable of acting.
If the Trustee resigns
or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.
Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding
Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.
If a successor Trustee
with respect to the Securities of any one or more Series does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of
the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee at the expense
of the Company.
A successor Trustee
shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring
Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section
7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.
A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series. Notwithstanding replacement
of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit
of the retiring Trustee with respect to expenses and liabilities incurred by it for actions taken or omitted to be taken in accordance
with its rights, powers and duties under this Indenture prior to such replacement.
Section 7.9 Successor
Trustee by Merger, Etc.
If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee, if such successor corporation is eligible and qualified
under Section 7.10.
Section 7.10 Eligibility;
Disqualification.
This Indenture shall
always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA § 310(b).
Section 7.11 Preferential
Collection of Claims Against Company.
The Trustee is subject
to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated.
ARTICLE VIII
SATISFACTION AND DISCHARGE; DEFEASANCE
Section 8.1 Satisfaction
and Discharge of Indenture.
This Indenture shall
upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the
expense of the Company, shall execute instruments acknowledging satisfaction and discharge of this Indenture, when
(a) either
(i) all
Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have
been replaced or paid as provided in Section 2.9) have been delivered to the Trustee for cancellation; or
(ii) all
such Securities not theretofore delivered to the Trustee for cancellation:
(1) have
become due and payable, or
(2) will
become due and payable at their Stated Maturity within one year, or
(3) have
been called for redemption or are to be called for redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company;
and the Company, in the
case of (1), (2) or (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an
amount of money or U.S. Government Obligations sufficient for the purpose of paying and discharging the entire indebtedness on
such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit
(in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity
or redemption date, as the case may be;
(b) the
Company has paid or caused to be paid all other sums payable hereunder by the Company; and
(c) the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.
Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall
have been deposited with the Trustee pursuant to sub-clause (a) of this Section 8.1, the provisions of Sections 2.5, 2.8, 2.9,
8.2 and 8.5 shall survive.
Section 8.2 Application
of Trust Funds; Indemnification.
(a) Subject
to the provisions of Section 8.5, all money or U.S. Government Obligations deposited with the Trustee pursuant to Section 8.1,
all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3
or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited
with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of
the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment
such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments
as contemplated by Sections 8.3 or 8.4.
(b) The
Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government
Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received
in respect of such obligations other than any payable by or on behalf of Holders.
(c) The
Trustee shall deliver or pay to the Company from time to time upon Company Order any U.S. Government Obligations or Foreign Government
Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent
certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, are then
in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government
Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the sale
by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.
Section 8.3 Legal
Defeasance of Securities of any Series.
Unless this Section
8.3 is otherwise specified, pursuant to Section 2.2, to be inapplicable to Securities of any Series, the Company shall be deemed
to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date
of the deposit referred to in sub-clause (d) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities
of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, upon receipt of a Company
Order, execute instruments acknowledging the same), except as to:
(a) the
rights of Holders of Securities of such Series to receive, from the trust funds described in sub-clause (d) hereof, (i) payment
of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Maturity
of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture
and the Securities of such Series;
(b) the
provisions of Sections 2.5, 2.8, 2.9, 8.2, 8.3 and 8.5; and
(c) the
rights, powers, trust and immunities of the Trustee hereunder and the Company’s obligations in connection therewith;
provided that, the following conditions
shall have been satisfied:
(d) the
Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust
funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities: (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars
and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than
a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect
thereof in accordance with their terms (and without reinvestment), will provide, not later than one day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants
or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment
of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series
on the dates such installments of interest or principal and such sinking fund payments are due;
(e) such
deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;
(f) no
Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of
such deposit or during the period ending on the 91st day after such date;
(g) the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (i) the
Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution
of this Indenture, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to
U.S. federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred;
(h) the
Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company
with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and
(i) the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the defeasance contemplated by this Section 8.3 have been complied with.
Section 8.4 Covenant
Defeasance.
Unless this Section
8.4 is otherwise specified pursuant to Section 2.2 to be inapplicable to Securities of any Series, the Company may omit to comply
with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2 and 4.3, 4.4 and
5.1as well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution
or an Officer’s Certificate delivered pursuant to Section 2.2 (and the failure to comply with any such covenants shall not
constitute a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event specified
in a supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant
to Section 2.2.18 and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect
to the Securities of such Series, provided that the following conditions shall have been satisfied:
(a) With
reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c))
with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities: (i) in the case of Securities of such Series denominated
in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in
a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of
interest and principal in respect thereof in accordance with their terms (and without reinvestment), will provide, not later than
one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm
of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee,
to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect
of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;
(b) Such
deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;
(c) No
Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of
such deposit;
(d) The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will
not recognize income, gain or loss for U.S. federal income tax purposes as a result of such deposit and covenant defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the
case if such deposit and covenant defeasance had not occurred;
(e) The
Company shall have delivered to the Trustee an Officer’s Certificate stating the deposit was not made by the Company with
the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and
(f) The
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the covenant defeasance contemplated by this Section 8.4 have been complied with.
Section 8.5 Repayment
to Company.
Subject to applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment
of principal or interest that remains unclaimed for two years after such principal or interest has become due and payable. After
that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another person.
Section 8.6 Reinstatement.
If the Trustee or the
Paying Agent is unable to apply any money deposited with respect to Securities of any Series in accordance with Section 8.1 by
reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, the obligations of the Company under this Indenture with respect to the Securities of
such Series and under the Securities of such Series shall be revived and reinstated as though no deposit had occurred pursuant
to Section 8.1 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section
8.1; provided, however, that if the Company has made any payment of principal of or interest on any Securities because of the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from
the money or U.S. Government Obligations held by the Trustee or Paying Agent after payment in full to the Holders.
ARTICLE IX
AMENDMENTS AND WAIVERS
Section 9.1 Without
Consent of Holders.
The Company and the
Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:
(a) to
add guarantees with respect to any Series of Securities or secure any Series of Securities;
(b) to
surrender any of the Company’s rights or powers under this Indenture;
(c) to
add covenants or Events of Default for the benefit of the Securityholders of any Series of Securities;
(d) to
comply with the applicable rules or procedures of the Depositary;
(e) to
cure any ambiguity, defect or inconsistency, as described in the Officer’s Certificate delivered pursuant to Section 10.4;
(f) to
comply with Article V;
(g) to
provide for uncertificated Securities in addition to or in place of certificated Securities;
(h) to
make any change that does not materially adversely affect the rights of any Securityholder;
(i) to
provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;
(j) to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or
more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee;
(k) to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA;
(l) to
comply with the rules or regulations of any securities exchange or automated quotation system on which any of the Securities may
be listed or traded; and
(m) to
change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall not be effective
with respect to any outstanding Securities of any Series created prior to the execution of such supplemental indenture which is
entitled to the benefit of such provision.
Section 9.2 With
Consent of Holders.
The Company and the
Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount
of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection
with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner
the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least a majority in
principal amount of the outstanding Securities of any Series by written notice to the Trustee (including consents obtained in connection
with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision
of this Indenture or the Securities with respect to such Series.
It shall not be necessary
for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental
indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture
or waiver under this Section 9.2 becomes effective, the Company shall mail to the Holders of Securities affected thereby, a notice
briefly describing the supplemental indenture or waiver. Any failure by the Company to mail or publish such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.
Section 9.3 Limitations.
Without the consent
of each Securityholder affected, an amendment or waiver may not:
(a) reduce
the principal amount of Securities whose Holders must consent to an amendment, supplement or waiver;
(b) reduce
the rate of or extend the time for payment of interest (including default interest) on any Security or that Series;
(c) reduce
the principal of, or change the Stated Maturity of, any Security or reduce the amount of, or postpone the date fixed for, the payment
of any sinking fund or analogous obligation;
(d) reduce
the principal amount of Discount Securities payable upon acceleration of the maturity thereof;
(e) waive
a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration
of the Securities of any Series by the Holders of at least a majority in principal amount of the then outstanding Securities of
such Series and a waiver of the payment default that resulted from such acceleration);
(f) make
the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;
(g) make
any change in Sections 6.8 or 6.13 or this Section 9.3; or
(h) waive
a redemption payment with respect to any Security.
Section 9.4 Compliance
with Trust Indenture Act.
Every amendment to
this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with
the TIA as then in effect.
Section 9.5 Revocation
and Effect of Consents.
Until an amendment
is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing
consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting
Holder’s Security, even if notation of the consent is not made on any Security.
Any amendment or waiver
once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described
in any of sub-clauses (a) through (h) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security
who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security.
The Company may, but
shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take
any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated
proxies), and only those persons, shall be entitled to give such consent or to revoke any consent previously given or take any
such action, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective
for more than 120 days after such record date.
Section 9.6 Notation
on or Exchange of Securities.
The Company or the
Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated.
The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities
of that Series that reflect the amendment or waiver.
Section 9.7 Trustee
Protected.
In executing, or accepting
the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall receive, and (subject to Section 7.1) shall be fully protected in conclusively relying
upon, an Officer’s Certificate or an Opinion of Counsel or both complying with Section 10.4 and stating that the supplemental
indenture is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms,
subject to customary exceptions. The Trustee shall sign all supplemental indentures upon delivery of such an Officer’s Certificate
or Opinion of Counsel or both, except that the Trustee need not sign any supplemental indenture that, in its sole discretion, adversely
affects its rights.
ARTICLE X
MISCELLANEOUS
Section 10.1 Trust
Indenture Act Controls.
If any provision of
this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture
by the TIA, such required or deemed provision shall control.
Section 10.2 Notices.
Any request, demand,
notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given
if in writing and delivered in person or mailed by first-class mail:
if to the Company:
AKARI THERAPEUTICS, PLC
if to the Trustee:
Attention:
The Company or the
Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.
Any notice or communication
to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar. Failure to
mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect
to other Securityholders of that or any other Series.
If a notice or communication
is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder
receives it.
If the Company mails
a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time.
Notwithstanding any
other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including
any notice of redemption) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given
to the Depositary for such Security (or its designee) pursuant to the customary procedures of such Depositary.
Section 10.3 Communication
by Holders with Other Holders.
Securityholders of
any Series may communicate pursuant to TIA § 312(b) with other Securityholders of that Series or any other Series with respect
to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and
anyone else shall have the protection of TIA § 312(c).
Section 10.4 Certificate
and Opinion as to Conditions Precedent.
Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:
(a) an
Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and
(b) an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.
Section 10.5 Statements
Required in Certificate or Opinion.
Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include:
(a) a
statement that the person making such certificate or opinion has read such covenant or condition;
(b) a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;
(c) a
statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been complied with; and
(d) a
statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.
Section 10.6 Rules
by Trustee and Agents.
The Trustee may make
reasonable rules for action by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and set
reasonable requirements for its functions.
Section 10.7 Legal
Holidays.
Unless otherwise provided
by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday”
is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.
Section 10.8 No
Recourse Against Others.
A director, officer,
employee or stockholder (past or present), as such, of the Company shall not have any liability for any obligations of the Company
under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.
Each Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration
for the issue of the Securities.
Section 10.9 Counterparts.
This Indenture may
be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same agreement. The exchange of copies
of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of
this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties
hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 10.10 Governing
Law; Jury Trial Waiver.
THIS INDENTURE AND
THE SECURITIES, INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE SECURITIES, SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW).
EACH OF THE COMPANY
AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.
Section 10.11 No
Adverse Interpretation of Other Agreements.
This Indenture may
not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.
Section 10.12 Successors.
All agreements of the
Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind
its successor.
Section 10.13 Severability.
In case any provision
in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
Section 10.14 Table
of Contents, Headings, Etc.
The Table of Contents,
Cross Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.
Section 10.15 Securities
in a Foreign Currency.
Unless otherwise specified
in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.2 of this
Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in more
than one currency, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose
of taking such action shall be determined by converting any such other currency into a currency that is designated upon issuance
of any particular Series of Securities. Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities,
such conversion shall be at the spot rate for the purchase of the designated currency as published in The Financial Times in the
“Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available
in The Financial Times, such source as may be selected in good faith by the Company) on any date of determination. The provisions
of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in
currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.
All decisions and determinations
provided for in the preceding paragraph shall, in the absence of manifest error, to the extent permitted by law, be conclusive
for all purposes and irrevocably binding upon the Trustee and all Holders.
Section 10.16 Judgment
Currency.
The Company agrees,
to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of
any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a Business Day, then the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency
on the Business Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture
to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to
the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency
expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action
for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the
full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for
any other sum due under this Indenture.
Section 10.17 Force
Majeure.
In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware) services, it being understood that the Trustee shall
use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.
Section 10.18 U.S.A. Patriot Act.
The parties hereto
acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies
each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture
agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements
of the U.S.A. Patriot Act.
ARTICLE XI
SINKING FUNDS
Section 11.1 Applicability
of Article.
The provisions of this
Article shall be applicable to any sinking fund for the retirement of the Securities of a Series if so provided by the terms of
such Securities pursuant to Section 2.2 and except as otherwise permitted or required by any form of Security of such Series issued
pursuant to this Indenture.
The minimum amount
of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory
sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred
to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash
amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be
applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.
Section 11.2 Satisfaction
of Sinking Fund Payments with Securities.
The Company may, in
satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to
the terms of such Securities (a) deliver outstanding Securities of such Series to which such sinking fund payment is applicable
(other than any of such Securities previously called for mandatory sinking fund redemption) and (b) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either
at the election of the Company pursuant to the terms of the Securities of such Series (except pursuant to any mandatory sinking
fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms
of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received by the
Trustee, together with an Officer’s Certificate with respect thereto, not later than 15 days prior to the date on which the
Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the
price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment
shall be reduced accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this
Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall
be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order
that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding
sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt
of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon
delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount
equal to the cash payment required to be released to the Company.
Section 11.3 Redemption
of Securities for Sinking Fund.
Not less than 45 days
(unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officer’s Certificate in respect of
a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver
to the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that
Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and
the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon
be obligated to pay the amount therein specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officer’s
Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2
and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided
in Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in
the manner stated in Sections 3.4, 3.5 and 3.6.
[Signature page follows]
IN WITNESS WHEREOF,
the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.
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AKARI THERAPEUTICS, PLC, as Issuer
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By:
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Name:
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Its:
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Director
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In the presence of:
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Witness signature:
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Witness name:
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Witness address:
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, as Trustee
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By:
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Name:
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Its:
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Exhibit 4.8
AKARI THERAPEUTICS, PLC
INDENTURE
Dated as of , 20
[ ]
Trustee
Subordinated Debt Securities
Table
of Contents
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Page
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ARTICLE I
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DEFINITIONS AND INCORPORATION BY REFERENCE
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1
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Section 1.1
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Definitions
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1
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Section 1.2
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Other Definitions
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4
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Section 1.3
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Incorporation by Reference of Trust Indenture Act
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5
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Section 1.4
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Rules of Construction
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5
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ARTICLE II
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THE SECURITIES
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6
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Section 2.1
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Issuable in Series
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6
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Section 2.2
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Establishment of Terms of Series of Securities
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6
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Section 2.3
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Denominations; Provision for Payment
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8
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Section 2.4
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Execution and Authentication
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9
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Section 2.5
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Registrar and Paying Agent
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9
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Section 2.6
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Paying Agent to Hold Money in Trust
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10
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Section 2.7
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Securityholder Lists
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10
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Section 2.8
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Transfer and Exchange
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11
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Section 2.9
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Mutilated, Destroyed, Lost and Stolen Securities
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11
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Section 2.10
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Outstanding Securities
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12
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Section 2.11
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Treasury Securities
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12
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Section 2.12
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Temporary Securities
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13
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Section 2.13
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Cancellation
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13
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Section 2.14
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Defaulted Interest
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13
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Section 2.15
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Global Securities
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13
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Section 2.16
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CUSIP Numbers
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15
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ARTICLE III
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REDEMPTION
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15
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Section 3.1
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Notice to Trustee
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15
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Section 3.2
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Selection of Securities to be Redeemed
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15
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Section 3.3
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Notice of Redemption
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15
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Section 3.4
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Effect of Notice of Redemption
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16
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Section 3.5
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Deposit of Redemption Price
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17
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Section 3.6
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Securities Redeemed in Part
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17
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ARTICLE IV
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COVENANTS
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17
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Section 4.1
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Payment of Principal and Interest
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17
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Section 4.2
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Reports by Company
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18
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Section 4.3
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Compliance Certificate
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18
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Section 4.4
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Stay, Extension and Usury Laws
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18
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Section 4.5
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Corporate Existence
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19
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ARTICLE V
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SUCCESSORS
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19
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Section 5.1
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Consolidation, Merger and Sale of Assets
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19
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Section 5.2
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Successor Person Substituted
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19
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Table
of Contents
(continued)
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Page
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ARTICLE VI
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DEFAULTS AND REMEDIES
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20
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Section 6.1
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Events of Default
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20
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Section 6.2
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Acceleration of Maturity; Rescission and Annulment
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21
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Section 6.3
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Collection of Indebtedness and Suits for Enforcement by Trustee
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22
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Section 6.4
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Trustee May File Proofs of Claim
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22
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Section 6.5
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Trustee May Enforce Claims Without Possession of Securities
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23
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Section 6.6
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Application of Money Collected
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23
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Section 6.7
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Limitation on Suits
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24
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Section 6.8
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Unconditional Right of Holders to Receive Principal and Interest
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24
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Section 6.9
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Restoration of Rights and Remedies
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24
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Section 6.10
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Rights and Remedies Cumulative
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25
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Section 6.11
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Delay or Omission Not Waiver
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25
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Section 6.12
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Control by Holders
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25
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Section 6.13
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Waiver of Past Defaults
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26
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Section 6.14
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Undertaking for Costs
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26
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ARTICLE VII
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TRUSTEE
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26
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Section 7.1
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Duties of Trustee
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26
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Section 7.2
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Rights of Trustee
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27
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Section 7.3
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Individual Rights of Trustee
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29
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Section 7.4
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Trustee’s Disclaimer
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29
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Section 7.5
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Notice of Defaults
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29
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Section 7.6
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Reports by Trustee to Holders
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29
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Section 7.7
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Compensation and Indemnity
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30
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Section 7.8
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Replacement of Trustee
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30
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Section 7.9
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Successor Trustee by Merger, Etc
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31
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Section 7.10
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Eligibility; Disqualification
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31
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Section 7.11
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Preferential Collection of Claims Against Company
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32
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ARTICLE VIII
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SATISFACTION AND DISCHARGE; DEFEASANCE
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32
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Section 8.1
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Satisfaction and Discharge of Indenture
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32
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Section 8.2
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Application of Trust Funds; Indemnification
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33
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Section 8.3
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Legal Defeasance of Securities of any Series
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33
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Section 8.4
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Covenant Defeasance
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35
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Section 8.5
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Repayment to Company
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36
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Section 8.6
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Reinstatement
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36
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Table
of Contents
(continued)
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Page
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ARTICLE IX
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AMENDMENTS AND WAIVERS
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36
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Section 9.1
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Without Consent of Holders
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36
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Section 9.2
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With Consent of Holders
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37
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Section 9.3
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Limitations
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38
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Section 9.4
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Compliance with Trust Indenture Act
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38
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Section 9.5
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Revocation and Effect of Consents
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38
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Section 9.6
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Notation on or Exchange of Securities
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39
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Section 9.7
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Trustee Protected
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39
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ARTICLE X
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MISCELLANEOUS
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39
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Section 10.1
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Trust Indenture Act Controls
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39
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Section 10.2
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Notices
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40
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Section 10.3
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Communication by Holders with Other Holders
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40
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Section 10.4
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Certificate and Opinion as to Conditions Precedent
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41
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Section 10.5
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Statements Required in Certificate or Opinion
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41
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Section 10.6
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Rules by Trustee and Agents
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41
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Section 10.7
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Legal Holidays
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41
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Section 10.8
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No Recourse Against Others
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42
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Section 10.9
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Counterparts
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42
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Section 10.10
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Governing Law; Jury Trial Waiver
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42
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Section 10.11
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No Adverse Interpretation of Other Agreements
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42
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Section 10.12
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Successors
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42
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Section 10.13
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Severability
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43
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Section 10.14
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Table of Contents, Headings, Etc
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43
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Section 10.15
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Securities in a Foreign Currency
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43
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Section 10.16
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Judgment Currency
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43
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Section 10.17
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Force Majeure
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44
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Section 10.18
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U.S.A. Patriot Act
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44
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ARTICLE XI
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SINKING FUNDS
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44
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Section 11.1
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Applicability of Article
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44
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Section 11.2
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Satisfaction of Sinking Fund Payments with Securities
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45
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Section 11.3
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Redemption of Securities for Sinking Fund
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45
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ARTICLE XII
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SUBORDINATION OF SECURITIES
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46
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Section 12.1
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Subordination of Terms
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46
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AKARI THERAPEUTICS, PLC
Reconciliation and tie between Trust Indenture
Act of 1939 and
Indenture, dated as of , 20
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§ 310(a)(1)
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7.10
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(a)(2)
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7.10
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(a)(3)
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Not Applicable
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(a)(4)
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Not Applicable
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(a)(5)
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7.10
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(b)
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7.10
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§ 311(a)
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7.11
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(b)
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7.11
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§ 312(a)
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2.7
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(b)
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10.3
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(c)
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10.3
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§ 313(a)
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7.6
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(b)(1)
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7.6
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(b)(2)
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7.6
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(c)(1)
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7.6
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(d)
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7.6
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§ 314(a)
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4.2, 10.5
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(b)
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Not Applicable
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(c)(1)
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10.4
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(c)(2)
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10.4
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(c)(3)
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Not Applicable
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(d)
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Not Applicable
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(e)
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10.5
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(f)
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Not Applicable
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§ 315(a)
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7.1
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(b)
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7.5
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(c)
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7.1
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(d)
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7.1
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(e)
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6.14
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§ 316(a)
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2.11
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(a)(1)(A)
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6.12
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(a)(1)(B)
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6.13
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(b)
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6.8
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§ 317(a)(1)
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6.3
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(a)(2)
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6.4
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(b)
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2.6
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§ 318(a)
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10.1
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Note: This reconciliation and tie shall not,
for any purpose, be deemed to be part of the Indenture.
Indenture dated as of , 20 , between AKARI
THERAPEUTICS, PLC, a company organized under the laws of England and Wales (“Company”), and , as trustee (“Trustee”).
Each party agrees as follows for the benefit
of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.
ARTICLE I
DEFINITIONS AND INCORPORATION
BY REFERENCE
Section 1.1 Definitions.
“Affiliate”
of any specified person means any other person directly or indirectly controlling or controlled by or under common control with
such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”), as used with respect to any person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through
the ownership of voting securities or by agreement or otherwise.
“Agent”
means any Registrar or Paying Agent.
“Board of Directors”
means the board of directors of the Company or any duly authorized committee thereof.
“Board Resolution”
means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board
of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certification
and delivered to the Trustee.
“Business Day”
means, for a particular Series, any day except a Saturday, Sunday or any day, including a legal holiday, on which banking institutions
are authorized or required by law, regulation or executive order to close in The City of New York (or in connection with any payment,
the place of payment).
“Capital Stock”
of any person means any and all shares, interests, participations, rights or other equivalents (however designated) of the equity
of such person.
“Certificated
Securities” means definitive Securities in registered non-global certificated form.
“Company”
means the party named as such above until a successor, which duly assumes the obligations under this Indenture, replaces it and
thereafter means the successor.
“Company Order”
means a written order signed in the name of the Company by an Officer.
“Corporate Trust
Office” means the office of the Trustee at which at any particular time its corporate trust business related to this
Indenture shall be principally administered, which office at the date hereof is located at , Attention: , or such other address
as the Trustee may designate from time to time by notice to the Holders and the Company, or the corporate trust office of any successor
Trustee at which this Indenture shall be administered (or such other address as a successor Trustee may designate from time to
time by notice to the Holders of the Company).
“Default”
means any event which is, or after notice or passage of time or both would be, an Event of Default.
“Depositary”
means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities,
the person designated as Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under
the Exchange Act; and if at any time there is more than one such person, “Depositary” as used with respect to
the Securities of any Series shall mean the Depositary with respect to the Securities of such Series.
“Discount Security”
means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the maturity thereof pursuant to Section 6.2.
“Dollars”
and “$” means the currency of The United States of America.
“Exchange Act”
means the Securities Exchange Act of 1934, as amended.
“Foreign Currency”
means any currency or currency unit issued by a government other than the government of The United States of America.
“Foreign Government
Obligations” means, with respect to Securities of any Series that are denominated in a Foreign Currency, direct obligations
of, or obligations guaranteed by, the government that issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof.
“GAAP”
means accounting principles generally accepted in The United States of America set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant
segment of the accounting profession, which are in effect as of the date of determination.
“Global Security”
or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant
to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depositary for such Series or its nominee, and registered
in the name of such Depositary or nominee.
“Holder”
or “Securityholder” means a person in whose name a Security is registered on the books of the Registrar.
“Indenture”
means this Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of
Securities established as contemplated hereunder.
“interest”
means, with respect to any Security, any interest on such Security, and with respect to any Discount Security which by its terms
bears interest only after Maturity, interest payable after Maturity.
“Maturity,”
when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein
or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.
“Officer”
means the Chairman of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the President, any Senior
Vice President or Vice President, the Treasurer, Assistant Treasurer, Secretary or Assistant Secretary of the Company.
“Officer’s
Certificate” means a certificate signed by any Officer (or any person designated in writing by an Officer of the Company
as authorized to execute and deliver Officer’s Certificates) and delivered to the Trustee.
“Opinion of Counsel”
means a written opinion of legal counsel. The counsel may be an employee of or counsel to the Company. Opinions of Counsel required
to be delivered under this Indenture may have qualifications customary for opinions of the type required.
“person”
means any individual, corporation, company, voluntary association, partnership, trust, joint venture, limited liability company,
unincorporated organization or government or any agency, instrumentality or political subdivision thereof.
“principal”
of a Security means the principal of the Security plus, when appropriate, the premium, if any, on the Security.
“Responsible Officer”
means any officer of the Trustee in its Corporate Trust Office having direct responsibility for administration of this Indenture
and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with a particular subject and who shall have direct responsibility for the administration
of this Indenture.
“SEC”
means the Securities and Exchange Commission.
“Securities”
means the subordinated debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under
this Indenture.
“Series”
or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created
pursuant to Sections 2.1 and 2.2 hereof.
“Stated Maturity”
when used with respect to any Security, means the date specified in such Security as the fixed date on which the principal of such
Security is due and payable.
“Subsidiary”
means, with respect to any person, any corporation, partnership, joint venture, limited liability company or other business entity
of which a majority of the outstanding shares of Capital Stock or other interests having the power to vote in the election of directors,
managers or trustees thereof is at the time directly or indirectly owned or controlled by such person or one or more of the other
Subsidiaries of such person, or a combination thereof.
“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required
by any such amendment, the Trust Indenture Act as so amended.
“Trustee”
means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include
each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used
with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.
“United States”
or “U.S.” means The United States of America (including the states thereof and the District of Columbia), its
territories and possessions and other areas subject to its jurisdiction.
“U.S. Government
Obligations” means securities which are direct obligations of, or guaranteed by, The United States of America for the
payment of which its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof,
and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government
Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for
the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation evidenced by such depository receipt.
Section 1.2 Other
Definitions.
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TERM
|
DEFINED IN SECTION
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“Bankruptcy Law”
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6.1
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“Custodian”
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6.1
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|
“Event of Default”
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6.1
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“Judgment Currency”
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10.16
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“Legal Holiday”
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10.7
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“mandatory sinking fund payment”
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11.1
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“optional sinking fund payment”
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11.1
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“Paying Agent”
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2.5
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“Registrar”
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2.5
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“Required Currency”
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10.16
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“successor person”
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5.1
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Section 1.3 Incorporation
by Reference of Trust Indenture Act.
Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:
“Commission”
means the SEC.
“indenture securities”
means the Securities.
“indenture security
holder” means a Securityholder.
“indenture to
be qualified” means this Indenture.
“indenture trustee”
or “institutional trustee” means the Trustee.
“obligor”
on the indenture securities means the Company and any successor obligor upon the Securities.
All other terms used in
this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and
not otherwise defined herein are used herein as so defined.
Section 1.4 Rules
of Construction.
Unless the context otherwise
requires:
(a) a
term has the meaning assigned to it;
(b) an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;
(c) “or”
is not exclusive;
(d) words
in the singular include the plural, and in the plural include the singular; and
(e) provisions
apply to successive events and transactions.
ARTICLE II
THE SECURITIES
Section 2.1 Issuable
in Series.
The aggregate principal
amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in
one or more Series. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided
in a Board Resolution, supplemental indenture hereto or Officer’s Certificate establishing the terms of such Series. In the
case of Securities of a Series to be issued from time to time, the Board Resolution, Officer’s Certificate or supplemental
indenture establishing the terms thereof may provide for the method by which specified terms (such as interest rate, maturity date,
record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of
any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of this Indenture.
Section 2.2 Establishment
of Terms of Series of Securities.
At or prior to the issuance
of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1
and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.24)
by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture
hereto or Officer’s Certificate:
2.2.1 the
title (which shall distinguish the Securities of that particular Series from the Securities of any other Series) of the Series;
2.2.2 the
price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;
2.2.3 any
limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities
of the Series pursuant to Section 2.8, 2.9, 2.12, 3.6 or 9.6);
2.2.4 the
date or dates on which the principal of the Securities of the Series is payable;
2.2.5 the
rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including,
but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series
shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such
interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;
2.2.6 the
place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities
of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company
in respect of the Securities of such Series and this Indenture may be delivered, and the method of such payment, if by wire transfer,
mail or other means;
2.2.7 if
applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities
of the Series must be redeemed or may be redeemed, in whole or in part, at the option of the Company;
2.2.8 the
obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms
and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;
2.2.9 the
dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the
option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;
2.2.10 if
other than denominations of $1,000 and integral multiples of $1,000 in excess thereof, the denominations in which the Securities
of the Series shall be issuable;
2.2.11 the
forms of the Securities of the Series and whether the Securities will be issuable as Global Securities;
2.2.12 if
other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable
upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;
2.2.13 the
currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and if such currency of
denomination is a composite currency, the agency or organization, if any, responsible for overseeing such composite currency;
2.2.14 the
designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities
of the Series will be made;
2.2.15 if
payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency
units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to
such payments will be determined;
2.2.16 the
manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined,
if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity
index, stock exchange index or financial index;
2.2.17 the
provisions, if any, relating to any security provided for the Securities of the Series;
2.2.18 any
addition to, deletion of or change in the Events of Default which applies to any Securities of the Series and any change in the
right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant
to Section 6.2;
2.2.19 any
addition to, deletion of or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;
2.2.20 any
Depositaries, trustees, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities
of such Series if other than those appointed herein;
2.2.21 the
provisions, if any, relating to conversion or exchange of any Securities of such Series, including if applicable, the conversion
or exchange price, the conversion or exchange period, the securities or other property into which the Securities will be convertible,
provisions as to whether conversion or exchange will be mandatory, at the option of the Holders thereof or at the option of the
Company, the events requiring an adjustment of the conversion price or exchange price and provisions affecting conversion or exchange
if such Series of Securities are redeemed;
2.2.22 whether
any of the Company’s direct or indirect Subsidiaries will guarantee the Securities of that Series, including the terms of
subordination, if any, of such guarantees;
2.2.23 the
subordination terms of the Securities of the Series; and
2.2.24 any
other terms of the Series (which may supplement, modify or delete any provision of this Indenture insofar as it applies to such
Series), including any terms that may be required under applicable law or regulations or advisable in connection with the marketing
of Securities of that Series.
All Securities of any one
Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if
so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officer’s Certificate referred to above.
Section 2.3 Denominations;
Provision for Payment.
The Securities of any Series
shall be issuable, except as otherwise provided with respect to Securities of any Series pursuant to Section 2.2, as registered
Securities in the denominations of one thousand Dollars ($1,000) or any integral multiples of $1,000 in excess thereof. Unless
otherwise provided with respect to Securities of any Series pursuant to Section 2.2, the principal of and the interest on the Securities
of any Series, if any, thereon, shall by payable in Dollars at the Corporate Trust Office of the Trustee. Unless otherwise specified
pursuant to Section 2.2 with respect to any Securities of any Series, interest on the Securities of any Series shall be computed
on the basis of a 360-day year consisting of twelve 30-day months.
Section 2.4 Execution
and Authentication.
Two Officers shall sign
the Securities for the Company by manual or facsimile signature.
If an Officer whose signature
is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.
A Security shall not be
valid until authenticated by the manual signature of the Trustee or an authenticating agent. The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.
The Trustee shall at any
time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officer’s Certificate, upon receipt by the Trustee of a Company Order. Each Security shall
be dated the date of its authentication.
The aggregate principal
amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section
2.2, except as provided in Section 2.9.
Prior to the issuance of
Securities of any Series, the Trustee shall have received and (subject to Section 7.1) shall be fully protected in conclusively
relying on: (a) the Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section
2.2 establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities
of that Series or of Securities within that Series, (b) an Officer’s Certificate complying with Section 9.7 (with respect
to the execution of supplemental indentures) and Section 10.4, and (c) an Opinion of Counsel complying with Section 9.7 (with respect
to the execution of supplemental indentures) and Section 10.4.
The Trustee shall have
the right, but not the obligation, to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being
advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith determines that
such action would expose the Trustee to personal liability.
The Trustee may appoint
an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.
Section 2.5 Registrar
and Paying Agent.
The Company shall maintain,
with respect to each Series of Securities, at the place or places specified with respect to such Series, an office or agency where
Securities of such Series may be presented or surrendered for payment (“Paying Agent”) and where Securities
of such Series may be surrendered for registration of transfer or exchange (“Registrar”). The Registrar shall
keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written
notice to the Trustee of the name and address, and any change in the name or address, of each Registrar or Paying Agent. If at
any time the Company shall fail to maintain any such required Registrar or Paying Agent or shall fail to furnish the Trustee with
the name and address thereof, such presentations and surrenders may be made or served at the Corporate Trust Office of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such presentations and surrenders.
The Company may also from
time to time designate one or more co-registrars or additional paying agents and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations
to maintain a Registrar or Paying Agent in each place so specified for Securities of any Series for such purposes. The Company
will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of
any such co-registrar or additional paying agent. The term “Registrar” includes any co-registrar; and the term
“Paying Agent” includes any additional paying agent. The Company or any of its Affiliates may serve as Registrar
or Paying Agent.
The Company hereby appoints
the Trustee as the initial Registrar and Paying Agent for each Series unless another Registrar or Paying Agent, as the case may
be, is appointed prior to the time Securities of that Series are first issued.
Section 2.6 Paying
Agent to Hold Money in Trust.
The Company shall require
each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders
of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on
the Securities of that Series, and will notify the Trustee in writing of any default by the Company in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money. If the Company
or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders
of any Series of Securities all money held by it as Paying Agent. Upon any bankruptcy, reorganization or similar proceeding with
respect to the Company, the Trustee shall serve as Paying Agent for the Securities.
Section 2.7 Securityholder
Lists.
The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company
shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request
in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders
of each Series of Securities.
Section 2.8 Transfer
and Exchange.
Where Securities of a Series
are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal
amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for
such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the
Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly
permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant
to Sections 2.12, 3.6 or 9.6).
Neither the Company nor
the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning
at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of that Series
selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange
Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities
selected, called or being called for redemption in part.
Section 2.9 Mutilated,
Destroyed, Lost and Stolen Securities.
If any mutilated Security
is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered
to the Company and the Trustee (a) evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such
security or indemnity bond as may be required by each of them to hold itself and any of its agents harmless, then, in the absence
of written notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall
execute and upon receipt of a Company Order the Trustee shall authenticate and make available for delivery, in lieu of any such
destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.
In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, pay such Security.
Upon the issuance of any
new Security under this Section 2.9, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any
Series issued pursuant to this Section 2.9 in lieu of any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities
of that Series duly issued hereunder.
The provisions of this
Section 2.9 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.
Section 2.10 Outstanding
Securities.
The Securities outstanding
at any time are all the Securities authenticated by the Trustee except for those canceled by the Registrar and those described
in this Section 2.10 as not outstanding.
If a Security is replaced
pursuant to Section 2.9, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security
is held by a bona fide purchaser.
If the Paying Agent (other
than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding
and interest on them ceases to accrue.
The Company may purchase
or otherwise acquire the Securities, whether by open market purchases, negotiated transactions or otherwise. A Security does not
cease to be outstanding because the Company or an Affiliate of the Company holds the Security.
In determining whether
the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such
purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a
declaration of acceleration of the Maturity thereof pursuant to Section 6.2.
Section 2.11 Treasury
Securities.
In determining whether
the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be disregarded, except
that for the purposes of determining whether the Trustee shall be protected in conclusively relying on any such request, demand,
authorization, direction, notice, consent or waiver, only Securities of a Series that a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith shall not be disregarded
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right to deliver any such request, demand, authorization,
direction, notice, consent or waiver with respect to the Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.
Section 2.12 Temporary
Securities.
Until definitive Securities
are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary
Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate
for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon receipt of a Company Order
shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so
exchanged, temporary Securities shall have the same rights under this Indenture as the definitive Securities.
Section 2.13 Cancellation.
The Company at any time
may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent, if not the Trustee, shall forward to
the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all
Securities surrendered for transfer, exchange, payment, replacement, conversion or cancellation and shall dispose of such canceled
Securities (subject to the record retention requirement of the Exchange Act and the Trustee) in accordance with its customary procedures
and deliver a certificate of such cancellation to the Company upon written request of the Company. The Company may not issue new
Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.
Section 2.14 Defaulted
Interest.
If the Company defaults
in a payment of interest on a Series of Securities, it may pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record
date. The Company shall fix the record date and payment date. At least 10 days before the special record date, the Company shall
mail to the Trustee and to each Securityholder of the Series a notice that states the special record date, the payment date and
the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.
Section 2.15 Global
Securities.
2.15.1 Terms
of Securities. A Board Resolution, a supplemental indenture hereto or an Officer’s Certificate shall establish whether
the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary
for such Global Security or Securities.
2.15.2 Transfer
and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.8 of this Indenture and in addition thereto,
any Global Security shall be exchangeable pursuant to Section 2.8 of this Indenture for Securities registered in the names of Holders
other than the Depositary for such Security or its nominee only if (a) such Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered
under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered as a clearing agency
under the Exchange Act within 90 days of such event or (b) the Company determines in its sole discretion not to have such Securities
represented by one or more Global Securities and executes and delivers to the Trustee an Officer’s Certificate to the effect
that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence
shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal
amount equal to the principal amount of the Global Security with like tenor and terms.
Except as provided in this
Section 2.15.2, a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security
to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by
the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.
2.15.3 Legend.
Any Global Security issued hereunder shall bear a legend in substantially the following form:
“THIS SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR
A NOMINEE OF THE DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY
OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY,
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.”
2.15.4 Acts
of Holders. The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under this
Indenture.
2.15.5 Payments.
Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the
principal of and interest, if any, on any Global Security shall be made to the Holder thereof, which in the case of a Depositary
therefor will be made in accordance with its applicable procedures.
2.15.6 Consents,
Declaration and Directions. The Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary
or by the applicable procedures of such Depositary with respect to such Global Security, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.
Section 2.16 CUSIP
Numbers.
The Company in issuing
the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and
that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Trustee shall have no liability for any defect in the “CUSIP”
numbers as they appear on any Security, notice or elsewhere. The Company will promptly notify the Trustee in writing of any change
in the “CUSIP” numbers.
ARTICLE III
REDEMPTION
Section 3.1 Notice
to Trustee.
The Company may, with respect
to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in
such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity
thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing
of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice to the
Trustee at least 45 days before the redemption date, unless a shorter period is satisfactory to the Trustee.
Section 3.2 Selection
of Securities to be Redeemed.
Unless otherwise indicated
for a particular Series by a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any
manner that the Trustee deems fair and appropriate, including selecting by lot or other method, unless otherwise required by law
or applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable rules and procedures of
the Depositary; provided that the unredeemed portion of the principal amount of any Security shall be in an authorized denomination
(which shall not be less than the minimum authorized denomination) for such Security. The Trustee shall make the selection from
Securities of the Series outstanding not previously called for redemption. Provisions of this Indenture that apply to Securities
of a Series called for redemption also apply to portions of Securities of that Series called for redemption.
Section 3.3 Notice
of Redemption.
Unless otherwise indicated
for a particular Series by Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, at least 30 days
but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder
whose Securities are to be redeemed.
The notice shall identify
the Securities of the Series to be redeemed and shall state:
(a) the
redemption date;
(b) the
redemption price and the amount of accrued interest, if any, to be paid;
(c) the
name and address of the Paying Agent and, if applicable, the conversion Agent;
(d) for
convertible Securities, the conversion price;
(e) if
any Global Security is being redeemed in part, the portion of the principal amount of such Global Security to be redeemed and that,
after the redemption date upon surrender of such Global Security, the principal amount thereof will be decreased by the portion
thereof redeemed pursuant thereto;
(f) if
any Certificated Security is being redeemed in part, the portion of the principal amount of such Security to be redeemed, and that,
after the redemption date, upon surrender of such Security, a new Certificated Security in principal amount equal to the unredeemed
portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Certificated Security;
(g) that
Securities of the Series (or portion thereof) called for redemption must be surrendered to the Paying Agent to collect the redemption
price;
(h) that
interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date unless the Company
defaults in the deposit of the redemption price;
(i) the
CUSIP number, if any, and state that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed
in the SEC’s notice or printed on the Securities; and
(j) any
other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.
At the Company’s
request, the Trustee shall give the notice of redemption in the Company’s name and at its expense, provided, however, that
the Company has delivered to the Trustee, at least 15 days (unless a shorter time shall be acceptable to the Trustee) prior to
the notice date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information
to be stated in such notice.
Section 3.4 Effect
of Notice of Redemption.
Once notice of redemption
is mailed as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date
and at the redemption price. Except as otherwise provided in the supplemental indenture, Board Resolution or Officer’s Certificate
for a Series, a notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid
at the redemption price plus accrued interest to the redemption date other than Securities or portions of Securities called for
redemption which have been delivered by the Company to the Registrar for cancellation. The Paying Agent shall return to the Company
any money not required for that purpose.
Unless the Company shall
default in the payment of Securities (and accrued interest) called for redemption, interest on such Securities shall cease to accrue
after the redemption date. Convertible Securities called for redemption shall cease to be convertible after the close of business
on the Business Day immediately preceding the redemption date, unless the Company shall default in the payment of such Securities
on the redemption date, in which event the Securities shall remain convertible until paid (together with accrued interest).
Failure to give notice
of redemption, or any defect in such notice to the Holder of any Security of a Series designated for redemption, in whole or in
part, shall not affect the sufficiency of any notice of redemption with respect to the Holder of any other Security of such Series.
Section 3.5 Deposit
of Redemption Price.
On or before 10:00 a.m.,
New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption
price of and accrued interest, if any, on all Securities to be redeemed on that date.
Section 3.6 Securities
Redeemed in Part.
Upon surrender of a Certificated
Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Certificated Security of the same Series
and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered and concurrently cancel the
surrendered Certificated Security.
ARTICLE IV
COVENANTS
Section 4.1 Payment
of Principal and Interest.
The Company covenants and
agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest,
if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture. On or before 10:00
a.m., New York City time, on the applicable payment date, the Company shall deposit with the Paying Agent money sufficient to pay
the principal of and interest, if any, on the Securities of each Series in accordance with the terms of such Securities and this
Indenture. Principal and interest shall be considered paid on the date due if the Paying Agent holds in accordance with this Indenture
on that date money sufficient to pay all principal and interest then due and the Paying Agent is not prohibited from paying such
money to the Holders on such date pursuant to the terms of this Indenture.
Section 4.2 Reports
by Company.
(a) As
long as any Securities are outstanding, the Company shall file with the Trustee, and transmit to the Holders, such information,
documents and other reports, and such summaries thereof, as may be required pursuant to TIA § 314(a). All reports, information
and documents referred to in this Section 4.2 will be deemed to be filed with the Trustee and transmitted to the Holders at the
time such reports, information or documents are publicly filed with the SEC via the SEC’s EDGAR filing system (or any successor
system), it being understood that the Trustee shall have no responsibility whatsoever to determine if such filings have been made.
(b) Delivery
of reports, information and documents to the Trustee under this Section 4.2 are for informational purposes only and shall not constitute
a representation or warranty as to the accuracy or completeness of the reports, information and documents. The Trustee’s
receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled
to rely exclusively on Officer’s Certificates).
Section 4.3 Compliance
Certificate.
To the extent any Securities
of a Series are outstanding, the Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officer’s Certificate (which need not contain the statements provided for in Section 10.4) from its principal
executive officer, principal financial officer or principal accounting officer stating that a review of the activities of the Company
and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer with a view to
determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating,
as to such Officer signing such certificate, that to his or her knowledge the Company is not in default in the performance or observance
of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which the Officer has knowledge). Such Officer’s Certificate need not include a reference
to any non-compliance that has been fully cured prior to the date as of which such certificate speaks.
Section 4.4 Stay,
Extension and Usury Laws.
The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture or the Securities; and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law has been enacted.
Section 4.5 Corporate
Existence.
Subject to Article V, the
Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence
and rights (charter and statutory); provided, however, that the Company shall not be required to preserve any such
right if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.
ARTICLE V
SUCCESSORS
Section 5.1 Consolidation,
Merger and Sale of Assets.
The Company may not consolidate
with or merge with or into, sell, convey, transfer or dispose of all or substantially all of its assets to any other person (a
“successor person”), whether in one transaction or a series of related transactions, unless:
(a) (i)
the Company is the surviving corporation or (ii) the successor person (if other than the Company) (A) is a corporation, limited
liability corporation, partnership or trust organized under the laws of the United States; and (B) expressly assumes, by an indenture
supplemental hereto, the Company’s obligations on the Securities and under this Indenture; and
(b) immediately
after giving effect to the transaction, no Default or Event of Default shall have happened and be continuing.
The Company shall deliver
to the Trustee prior to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with Section 5.1 of this Indenture.
Notwithstanding the above,
any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company. Neither
an Officer’s Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith.
Section 5.2 Successor
Person Substituted.
Upon any consolidation
or merger, or any sale, conveyance, transfer, or lease of all or substantially all of the assets of the Company and its Subsidiaries
in accordance with Section 5.1, the successor person formed by such consolidation or into or with which the Company is merged or
to which such sale, conveyance, transfer, or lease is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture and the Securities with the same effect as if such successor person has been named
as the Company herein; and, thereafter, the predecessor Company, in the case of a sale, conveyance or transfer (other than a lease),
shall be released from all obligations and covenants under this Indenture and the Securities.
ARTICLE VI
DEFAULTS AND REMEDIES
Section 6.1 Events
of Default.
“Event of Default,”
wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing
Board Resolution, supplemental indenture or Officer’s Certificate, it is provided that such Series shall not have the benefit
of said Event of Default:
(a) failure
to pay any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period
of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior
to 10:00 a.m., New York City time, on the 30th day of such period);
(b) failure
to pay principal of any Security of that Series at its Maturity;
(c) default
in the performance or breach of any covenant of the Company in this Indenture (other than defaults pursuant to sub-clauses (a)
through (c) above or defaults related to a covenant that has been included in this Indenture solely for the benefit of a Series
of Securities other than that Series), which default continues uncured for a period of 90 days after there has been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a “Notice of Default” hereunder;
(d) the
Company pursuant to or within the meaning of any Bankruptcy Law:
(i) commences
a voluntary case,
(ii) consents
to the entry of an order for relief against it in an involuntary case,
(iii) consents
to the appointment of a Custodian of it or for all or substantially all of its property, or
(iv) makes
a general assignment for the benefit of its creditors;
(e) a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(i) is
for relief against the Company in an involuntary case,
(ii) appoints
a Custodian of the Company or for all or substantially all of its property, or
(iii) orders
the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or
(f) any
other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental
indenture hereto or an Officer’s Certificate, in accordance with Section 2.2.18.
The term “Bankruptcy
Law” means title 11, U.S. Code or any similar federal or state law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
A Default under one Series
of Securities issued under this Indenture will not necessarily be a default under another Series of Securities under this Indenture.
The Company will, so long
as any of the Securities are outstanding, deliver to the Trustee, within 30 days of becoming aware of any Default or Event of Default,
an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.
Section 6.2 Acceleration
of Maturity; Rescission and Annulment.
If an Event of Default
with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred
to in Section 6.1(d) or (e)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the
outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities,
such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if
any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid
interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 6.1(d) or (e) shall occur,
the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso
facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.
At any time after such
a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal
and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 6.13.
No such rescission shall
affect any subsequent Default.
Section 6.3 Collection
of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that
if
(a) default
is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for
a period of 30 days, or
(b) default
is made in the payment of principal of any Security at the Maturity thereof, or
(c) default
is made in the deposit of any sinking fund payment, if any, when and as due by the terms of a Security,
then, the Company
will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable
on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest
on any overdue principal and any overdue interest at the rate or rates prescribed therefor in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.
If the Company fails to
pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be
payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.
If an Event of Default
with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.
Section 6.4 Trustee
May File Proofs of Claim.
In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial
proceeding relating to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor
or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for
the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,
(a) to
file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file
such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders
allowed in such judicial proceeding, and
(b) to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same,
and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.
Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding.
Section 6.5 Trustee
May Enforce Claims Without Possession of Securities.
All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall
be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment
of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the Holders of the Securities in respect of which such judgment has been recovered.
Section 6.6 Application
of Money Collected.
Any money or property collected
by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money or property on account of principal or interest, upon presentation of the Securities
and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:
First: To the payment
of all amounts due to the Trustee under this Indenture; and
Second: To the payment
of all indebtedness of the Company to which such Series of Securities is subordinated to the extent required by Article 12 of this
Indenture; and
Third: To the payment
of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on
such Securities for principal and interest, respectively; and
Fourth: To the Company.
Section 6.7 Limitation
on Suits.
No Holder of any Security
of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:
(a) such
Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that
Series;
(b) the
Holders of not less than 25% in principal amount of the outstanding Securities of that Series have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;
(c) such
Holder or Holders have offered to the Trustee indemnity or security satisfactory to the Trustee against the costs, expenses and
liabilities which might be incurred by the Trustee in compliance with such request;
(d) the
Trustee has failed to institute any such proceeding for 60 days after its receipt of such notice, request and offer of indemnity;
and
(e) no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority
in principal amount of the outstanding Securities of that Series;
it being understood, intended
and expressly covenanted by the Holder of every Security with every other Holder and the Trustee that no one or more of such Holders
shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of
such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit
of all such Holders of the applicable Series; provided, however, that the Trustee does not have an affirmative duty to ascertain
whether or not such actions or forbearances are unduly prejudicial to such Holders.
Section 6.8 Unconditional
Right of Holders to Receive Principal and Interest.
Notwithstanding any other
provision in this Indenture, the Holder of any Security has the right, which is absolute and unconditional, to receive payment
of the principal of and interest, if any, on such Security on the Maturity of such Security, including the Stated Maturity expressed
in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such Holder.
Section 6.9 Restoration
of Rights and Remedies.
If the Trustee or any Holder
has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively
to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
Section 6.10 Rights
and Remedies Cumulative.
Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.9, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate
right or remedy.
Section 6.11 Delay
or Omission Not Waiver.
No delay or omission of
the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy
given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.
Section 6.12 Control
by Holders.
The Holders of a majority
in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such Series, provided that:
(a) such
direction shall not be in conflict with any rule of law or with this Indenture;
(b) the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction;
(c) subject
to the provisions of Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal
liability; and
(d) prior
to taking any action as directed under this Section 6.12, the Trustee shall be entitled to indemnity satisfactory to it against
the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
Section 6.13 Waiver
of Past Defaults.
The Holders of not less
than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities
of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment
of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal
amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default.
Section 6.14 Undertaking
for Costs.
All parties to this Indenture
agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees
and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section 6.14 shall not apply to any suit instituted by the Company, to
any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than
10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement
of the payment of the principal of or interest on any Security on or after the Maturity of such Security, including the Stated
Maturity expressed in such Security (or, in the case of redemption, on the redemption date).
ARTICLE VII
TRUSTEE
Section 7.1 Duties
of Trustee.
(a) If
an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture
and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs.
(b) Except
during the continuance of an Event of Default:
(i) The
Trustee need perform only those duties that are specifically set forth in this Indenture and no others.
(ii) In
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon Officer’s Certificates or Opinions of Counsel furnished to the Trustee and conforming
to the requirements of this Indenture; however, in the case of any such Officer’s Certificates or Opinions of Counsel which
by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officer’s
Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts stated therein).
(c) The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct,
except that:
(i) This
sub-clause (c) does not limit the effect of sub-clause (b) of this Section 7.1.
(ii) The
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts.
(iii) The
Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities
of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding
Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series
in accordance with Section 6.12.
(d) Every
provision of this Indenture that in any way relates to the Trustee is subject to sub-clauses (a), (b) and (c) of this Section 7.1.
(e) The
Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in performing such duty or exercising such right or power.
(f) The
Trustee shall not be liable for interest on any money received by it. Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.
(g) No
provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance
of any of its duties, or in the exercise of any of its rights or powers, if adequate indemnity against such risk is not assured
to the Trustee in its satisfaction.
(h) The
Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections and immunities as are set forth in
sub-clauses (e), (f) and (g) of this Section 7.1 and in Section 7.2, each with respect to the Trustee.
Section 7.2 Rights
of Trustee.
(a) The
Trustee may conclusively rely on and shall be protected in acting or refraining from acting upon any document (whether in its original
or facsimile form) believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document.
(b) Before
the Trustee acts or refrains from acting, it shall be entitled to receive an Officer’s Certificate or an Opinion of Counsel
or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in conclusive reliance on such
Officer’s Certificate or Opinion of Counsel.
(c) The
Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.
No Depositary shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depositary.
(d) The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers, provided that the Trustee’s conduct does not constitute willful misconduct or negligence.
(e) The
Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.
(f) The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders of Securities unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
(g) The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.
(h) The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a default is received by a Responsible Officer of
the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities
of a particular Series and this Indenture.
(i) In
no event shall the Trustee be liable to any person for special, punitive, indirect, consequential or incidental loss or damage
of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such
loss or damage.
(j) The
permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty
to do so.
(k) The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other
Person employed to act hereunder.
(l) The
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.
(m) The
Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized
at such time to take specified actions pursuant to this Indenture.
Section 7.3 Individual
Rights of Trustee.
The Trustee in its individual
or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of
the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the
Trustee is also subject to Sections 7.10 and 7.11 hereof.
Section 7.4 Trustee’s
Disclaimer.
The Trustee makes no representation
as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of
the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.
Section 7.5 Notice
of Defaults.
If a Default or Event of
Default occurs and is continuing with respect to the Securities of any Series and if it is actually known to a Responsible Officer
of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series notice of a Default or Event of
Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or
Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of
any Series, the Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in
the interests of Securityholders of that Series.
Section 7.6 Reports
by Trustee to Holders.
Within 60 days after each
anniversary of the date of this Indenture, the Trustee shall transmit by mail to all Securityholders, as their names and addresses
appear on the register kept by the Registrar, a brief report dated as of such reporting date, in accordance with, and to the extent
required under, TIA § 313.
A copy of each report at
the time of its mailing to Securityholders of any Series shall be filed with the SEC and each national securities exchange on which
the Securities of that Series are listed. The Company shall promptly notify the Trustee in writing when Securities of any Series
are listed on any national securities exchange or of any delisting thereof.
Section 7.7 Compensation
and Indemnity.
The Company shall pay to
the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in
writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable out of pocket expenses incurred by it. Such expenses shall
include the reasonable compensation and expenses of the Trustee’s agents and counsel.
The Company shall indemnify
each of the Trustee and any predecessor Trustee against any cost, expense, claim (whether asserted by the Company, a Holder or
any other person) or liability (including the cost of defending itself), including taxes (other than taxes based upon, measured
by or determined by the income of the Trustee), incurred by it except as set forth in the next paragraph in the performance of
its duties under this Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of any claim for which it may
seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder, unless
and to the extent that the Company is materially prejudiced thereby. The Company shall defend the claim and the Trustee shall cooperate
in the defense. The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.
The Company need not pay for any settlement made without its consent, which consent will not be unreasonably withheld. This indemnification
shall apply to officers, directors, employees, shareholders and agents of the Trustee.
The Company need not reimburse
any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee or shareholder
of the Trustee through willful misconduct or negligence.
To secure the Company’s
payment obligations in this Section 7.7, the Trustee shall have a lien prior to the Securities of any Series on all money or property
held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.
When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.1(f) or (g) occurs, the expenses and the compensation
for the services are intended to constitute expenses of administration under any Bankruptcy Law.
The provisions of this
Section 7.7 shall survive the termination of this Indenture or the resignation or removal of the Trustee.
Section 7.8 Replacement
of Trustee.
A resignation or removal
of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance
of appointment as provided in this Section 7.8.
The Trustee may resign
at any time with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date
of the proposed resignation. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee
with respect to that Series by so notifying the Trustee and the Company in writing. The Company may remove the Trustee with respect
to Securities of one or more Series if:
(a) the
Trustee fails to comply with Section 7.10;
(b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;
(c) a
Custodian or public officer takes charge of the Trustee or its property; or
(d) the
Trustee becomes incapable of acting.
If the Trustee resigns
or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.
Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding
Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.
If a successor Trustee
with respect to the Securities of any one or more Series does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of
the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee at the expense
of the Company.
A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring
Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section
7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.
A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series. Notwithstanding replacement
of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit
of the retiring Trustee with respect to expenses and liabilities incurred by it for actions taken or omitted to be taken in accordance
with its rights, powers and duties under this Indenture prior to such replacement.
Section 7.9 Successor
Trustee by Merger, Etc.
If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee, if such successor corporation is eligible and qualified
under Section 7.10.
Section 7.10 Eligibility;
Disqualification.
This Indenture shall always
have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee shall always have a combined capital
and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply
with TIA § 310(b).
Section 7.11 Preferential
Collection of Claims Against Company.
The Trustee is subject
to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated.
ARTICLE VIII
SATISFACTION AND DISCHARGE;
DEFEASANCE
Section 8.1 Satisfaction
and Discharge of Indenture.
This Indenture shall upon
Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense
of the Company, shall execute instruments acknowledging satisfaction and discharge of this Indenture, when
(a) either
(i) all
Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have
been replaced or paid as provided in Section 2.9) have been delivered to the Trustee for cancellation; or
(ii) all
such Securities not theretofore delivered to the Trustee for cancellation:
(1) have
become due and payable, or
(2) will
become due and payable at their Stated Maturity within one year, or
(3) have
been called for redemption or are to be called for redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company;
and the Company, in the
case of (1), (2) or (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an
amount of money or U.S. Government Obligations sufficient for the purpose of paying and discharging the entire indebtedness on
such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit
(in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity
or redemption date, as the case may be;
(b) the
Company has paid or caused to be paid all other sums payable hereunder by the Company; and
(c) the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.
Notwithstanding the satisfaction
and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been
deposited with the Trustee pursuant to sub-clause (a) of this Section 8.1, the provisions of Sections 2.5, 2.8, 2.9, 8.2 and 8.5
shall survive.
Section 8.2 Application
of Trust Funds; Indemnification.
(a) Subject
to the provisions of Section 8.5, all money or U.S. Government Obligations deposited with the Trustee pursuant to Section 8.1,
all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3
or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited
with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of
the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment
such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments
as contemplated by Sections 8.3 or 8.4.
(b) The
Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government
Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received
in respect of such obligations other than any payable by or on behalf of Holders.
(c) The
Trustee shall deliver or pay to the Company from time to time upon Company Order any U.S. Government Obligations or Foreign Government
Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent
certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, are then
in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government
Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the sale
by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.
Section 8.3 Legal
Defeasance of Securities of any Series.
Unless this Section 8.3
is otherwise specified, pursuant to Section 2.2, to be inapplicable to Securities of any Series, the Company shall be deemed to
have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date
of the deposit referred to in sub-clause (d) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities
of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, upon receipt of a Company
Order, execute instruments acknowledging the same), except as to:
(a) the
rights of Holders of Securities of such Series to receive, from the trust funds described in sub-clause (d) hereof, (i) payment
of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Maturity
of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture
and the Securities of such Series;
(b) the
provisions of Sections 2.5, 2.8, 2.9, 8.2, 8.3 and 8.5; and
(c) the
rights, powers, trust and immunities of the Trustee hereunder and the Company’s obligations in connection therewith;
provided that, the following
conditions shall have been satisfied:
(d) the
Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust
funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities: (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars
and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than
a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect
thereof in accordance with their terms (and without reinvestment), will provide, not later than one day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants
or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment
of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series
on the dates such installments of interest or principal and such sinking fund payments are due;
(e) such
deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;
(f) no
Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of
such deposit or during the period ending on the 91st day after such date;
(g) the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (i) the
Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution
of this Indenture, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to
U.S. federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred;
(h) the
Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company
with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and
(i) the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the defeasance contemplated by this Section 8.3 have been complied with.
Section 8.4 Covenant
Defeasance.
Unless this Section 8.4
is otherwise specified pursuant to Section 2.2 to be inapplicable to Securities of any Series, the Company may omit to comply with
respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2 and 4.3, 4.4 and 5.1as
well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an
Officer’s Certificate delivered pursuant to Section 2.2 (and the failure to comply with any such covenants shall not constitute
a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event specified in a supplemental
indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.2.18
and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities
of such Series, provided that the following conditions shall have been satisfied:
(a) With
reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c))
with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities: (i) in the case of Securities of such Series denominated
in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in
a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of
interest and principal in respect thereof in accordance with their terms (and without reinvestment), will provide, not later than
one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm
of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee,
to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect
of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;
(b) Such
deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;
(c) No
Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of
such deposit;
(d) The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will
not recognize income, gain or loss for U.S. federal income tax purposes as a result of such deposit and covenant defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the
case if such deposit and covenant defeasance had not occurred;
(e) The
Company shall have delivered to the Trustee an Officer’s Certificate stating the deposit was not made by the Company with
the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and
(f) The
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the covenant defeasance contemplated by this Section 8.4 have been complied with.
Section 8.5 Repayment
to Company.
Subject to applicable abandoned
property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of
principal or interest that remains unclaimed for two years after such principal or interest has become due and payable. After that,
Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another person.
Section 8.6 Reinstatement.
If the Trustee or the Paying
Agent is unable to apply any money deposited with respect to Securities of any Series in accordance with Section 8.1 by reason
of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the obligations of the Company under this Indenture with respect to the Securities of such
Series and under the Securities of such Series shall be revived and reinstated as though no deposit had occurred pursuant to Section
8.1 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.1; provided,
however, that if the Company has made any payment of principal of or interest on any Securities because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent after payment in full to the Holders.
ARTICLE IX
AMENDMENTS AND WAIVERS
Section 9.1 Without
Consent of Holders.
The Company and the Trustee
may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:
(a) to
add guarantees with respect to any Series of Securities or secure any Series of Securities;
(b) to
surrender any of the Company’s rights or powers under this Indenture;
(c) to
add covenants or Events of Default for the benefit of the Securityholders of any Series of Securities;
(d) to
comply with the applicable rules or procedures of the Depositary;
(e) to
cure any ambiguity, defect or inconsistency, as described in the Officer’s Certificate delivered pursuant to Section 10.4;
(f) to
comply with Article V;
(g) to
provide for uncertificated Securities in addition to or in place of certificated Securities;
(h) to
make any change that does not materially adversely affect the rights of any Securityholder;
(i) to
provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;
(j) to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or
more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee;
(k) to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA;
(l) to
comply with the rules or regulations of any securities exchange or automated quotation system on which any of the Securities may
be listed or traded; and
(m) to
change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall not be effective
with respect to any outstanding Securities of any Series created prior to the execution of such supplemental indenture which is
entitled to the benefit of such provision.
Section 9.2 With
Consent of Holders.
The Company and the Trustee
may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the
outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a
tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the
rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least a majority in principal
amount of the outstanding Securities of any Series by written notice to the Trustee (including consents obtained in connection
with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision
of this Indenture or the Securities with respect to such Series.
It shall not be necessary
for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental
indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture
or waiver under this Section 9.2 becomes effective, the Company shall mail to the Holders of Securities affected thereby, a notice
briefly describing the supplemental indenture or waiver. Any failure by the Company to mail or publish such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.
Section 9.3 Limitations.
Without the consent of
each Securityholder affected, an amendment or waiver may not:
(a) reduce
the principal amount of Securities whose Holders must consent to an amendment, supplement or waiver;
(b) reduce
the rate of or extend the time for payment of interest (including default interest) on any Security or that Series;
(c) reduce
the principal of, or change the Stated Maturity of, any Security or reduce the amount of, or postpone the date fixed for, the payment
of any sinking fund or analogous obligation;
(d) reduce
the principal amount of Discount Securities payable upon acceleration of the maturity thereof;
(e) waive
a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration
of the Securities of any Series by the Holders of at least a majority in principal amount of the then outstanding Securities of
such Series and a waiver of the payment default that resulted from such acceleration);
(f) make
the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;
(g) make
any change in Sections 6.8 or 6.13 or this Section 9.3; or
(h) waive
a redemption payment with respect to any Security.
Section 9.4 Compliance
with Trust Indenture Act.
Every amendment to this
Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the
TIA as then in effect.
Section 9.5 Revocation
and Effect of Consents.
Until an amendment is set
forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent
by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting
Holder’s Security, even if notation of the consent is not made on any Security.
Any amendment or waiver
once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described
in any of sub-clauses (a) through (h) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security
who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security.
The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other
action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding
the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and
only those persons, shall be entitled to give such consent or to revoke any consent previously given or take any such action, whether
or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 120
days after such record date.
Section 9.6 Notation
on or Exchange of Securities.
The Company or the Trustee
may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company
in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series
that reflect the amendment or waiver.
Section 9.7 Trustee
Protected.
In executing, or accepting
the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall receive, and (subject to Section 7.1) shall be fully protected in conclusively relying
upon, an Officer’s Certificate or an Opinion of Counsel or both complying with Section 10.4 and stating that the supplemental
indenture is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms,
subject to customary exceptions. The Trustee shall sign all supplemental indentures upon delivery of such an Officer’s Certificate
or Opinion of Counsel or both, except that the Trustee need not sign any supplemental indenture that, in its sole discretion, adversely
affects its rights.
ARTICLE X
MISCELLANEOUS
Section 10.1 Trust
Indenture Act Controls.
If any provision of this
Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by
the TIA, such required or deemed provision shall control.
Section 10.2 Notices.
Any request, demand, notice
or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in
writing and delivered in person or mailed by first-class mail:
if to the Company:
Akari Therapeutics, Plc
if to the Trustee:
Attention:
The Company or the Trustee
by notice to the other may designate additional or different addresses for subsequent notices or communications.
Any notice or communication
to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar. Failure to
mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect
to other Securityholders of that or any other Series.
If a notice or communication
is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder
receives it.
If the Company mails a
notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time.
Notwithstanding any other
provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including any
notice of redemption) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given
to the Depositary for such Security (or its designee) pursuant to the customary procedures of such Depositary.
Section 10.3 Communication
by Holders with Other Holders.
Securityholders of any
Series may communicate pursuant to TIA § 312(b) with other Securityholders of that Series or any other Series with respect
to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and
anyone else shall have the protection of TIA § 312(c).
Section 10.4 Certificate
and Opinion as to Conditions Precedent.
Upon any request or application
by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:
(a) an
Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and
(b) an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.
Section 10.5 Statements
Required in Certificate or Opinion.
Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant
to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include:
(a) a
statement that the person making such certificate or opinion has read such covenant or condition;
(b) a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;
(c) a
statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been complied with; and
(d) a
statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.
Section 10.6 Rules
by Trustee and Agents.
The Trustee may make reasonable
rules for action by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable
requirements for its functions.
Section 10.7 Legal
Holidays.
Unless otherwise provided
by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday”
is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.
Section 10.8 No
Recourse Against Others.
A director, officer, employee
or stockholder (past or present), as such, of the Company shall not have any liability for any obligations of the Company under
the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each
Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration
for the issue of the Securities.
Section 10.9 Counterparts.
This Indenture may be executed
in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement. The exchange of copies of this Indenture
and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as
to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted
by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 10.10 Governing
Law; Jury Trial Waiver.
THIS INDENTURE AND THE
SECURITIES, INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE SECURITIES, SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW).
EACH OF THE COMPANY
AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.
Section 10.11 No
Adverse Interpretation of Other Agreements.
This Indenture may not
be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.
Section 10.12 Successors.
All agreements of the Company
in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor.
Section 10.13 Severability.
In case any provision in
this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.
Section 10.14 Table
of Contents, Headings, Etc.
The Table of Contents,
Cross Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.
Section 10.15 Securities
in a Foreign Currency.
Unless otherwise specified
in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.2 of this
Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in more
than one currency, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose
of taking such action shall be determined by converting any such other currency into a currency that is designated upon issuance
of any particular Series of Securities. Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities,
such conversion shall be at the spot rate for the purchase of the designated currency as published in The Financial Times in the
“Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available
in The Financial Times, such source as may be selected in good faith by the Company) on any date of determination. The provisions
of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in
currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.
All decisions and determinations
provided for in the preceding paragraph shall, in the absence of manifest error, to the extent permitted by law, be conclusive
for all purposes and irrevocably binding upon the Trustee and all Holders.
Section 10.16 Judgment
Currency.
The Company agrees, to
the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any
Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a Business Day, then the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency
on the Business Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture
to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to
the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency
expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action
for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the
full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for
any other sum due under this Indenture.
Section 10.17 Force
Majeure.
In no event shall the Trustee
be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war
or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions
of utilities, communications or computer (software and hardware) services, it being understood that the Trustee shall use reasonable
best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable
under the circumstances.
Section 10.18 U.S.A.
Patriot Act.
The parties hereto acknowledge
that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help
fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each
person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree
that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements
of the U.S.A. Patriot Act.
ARTICLE XI
SINKING FUNDS
Section 11.1 Applicability
of Article.
The provisions of this
Article shall be applicable to any sinking fund for the retirement of the Securities of a Series if so provided by the terms of
such Securities pursuant to Section 2.2 and except as otherwise permitted or required by any form of Security of such Series issued
pursuant to this Indenture.
The minimum amount of any
sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking
fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an
“optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of
any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.
Section 11.2 Satisfaction
of Sinking Fund Payments with Securities.
The Company may, in satisfaction
of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of
such Securities (a) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than
any of such Securities previously called for mandatory sinking fund redemption) and (b) apply as credit Securities of such Series
to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election
of the Company pursuant to the terms of the Securities of such Series (except pursuant to any mandatory sinking fund) or through
the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities,
provided that such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together
with an Officer’s Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified
in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the
principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than
$100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such
action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking
fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a
Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery
by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to
the cash payment required to be released to the Company.
Section 11.3 Redemption
of Securities for Sinking Fund.
Not less than 45 days (unless
otherwise indicated in the Board Resolution, supplemental indenture hereto or Officer’s Certificate in respect of a particular
Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee
an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant
to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof,
if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional
amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated
to pay the amount therein specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officer’s
Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2
and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided
in Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 3.4, 3.5 and 3.6.
ARTICLE XII
SUBORDINATION OF SECURITIES
Section 12.1 Subordination
of Terms.
The payment by the Company
of the principal of, premium, if any, and interest on any Series of Securities issued under this Indenture shall be subordinated
to the extent set forth in a Board Resolution, supplemental indenture hereto or Officer’s Certificate relating to such Series
of Securities.
[Signature page follows]
IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed as of the day and year first above written.
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AKARI THERAPEUTICS, PLC, as Issuer
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By:
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Name:
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Its:
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Director
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In the presence of:
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Witness signature:
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Witness name:
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Witness address:
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, as Trustee
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By:
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Name:
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Its:
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Exhibit 5.1
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mwe.com
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Our Ref: NJA - 096717.0010
Akari Therapeutics, Plc
Elder House
St Georges Business Park
207 Brooklands Road
Weybridge
Surrey
KT13 0TS
23 December 2020
Dear Sirs
Akari Therapeutics, Plc – Registration Statement
on Form F-3 - Exhibit 5.1
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1.1
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We have acted for Akari Therapeutics, Plc, a public limited company incorporated under the laws
of England and Wales (the Company), as its legal advisers on English law in connection with its filing on or about the date
of this letter with the US Securities and Exchange Commission (the Commission) of a registration statement on Form F-3 (the
Registration Statement) under the Securities Act of 1933, as amended (the Securities Act). The Registration Statement
is being filed for the registration of the following securities which may subsequently be allotted and issued by the Company up
to an aggregate initial offer price of $100,000,000: (i) ordinary shares of USD0.0001 each (Ordinary Shares), (ii) American
Depositary Shares (ADSs) representing Ordinary Shares, (iii) debt securities of the Company (Debt Securities), warrants
to purchase Ordinary Shares and/or ADSs (Warrants), rights to purchase Ordinary Shares and/or ADSs (Subscription Rights)
and units consisting of Ordinary Shares, one or more Debt Securities, Warrants or Subscription Rights, in any combination (Units)
(together the Securities).
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1.2.1
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Debt Securities, either individually or in combination with other Securities, may be issued under
separate Indentures (as defined below) to be entered into between the Company and one or more trustees, if any;
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1.2.2
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Warrants, either individually or in combination with other Securities, may be issued under a separate
warrant agreement to be entered into between the Company and a bank or trust company, as warrant agent (a Warrant Agreement);
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110 Bishopsgate London
EC2N 4AY DX 131004 CDE Houndsditch Tel +44 20 7577 6900 Fax +44 20 7577 6950
McDermott
Will & Emery UK LLP is a limited liability partnership regulated by the Solicitors Regulation Authority and registered
in England and Wales, registered number OC311909. The members are solicitors or registered foreign lawyers. A list of
members’ names and their professional qualifications is available for inspection at the principal place of business
and registered office shown above.
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1.2.3
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Subscription Rights may be issued under a separate rights agreement to be entered into between
the Company and a bank or trust company, as rights agent (a Subscription Agreement); and
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1.2.4
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Units may be issued under a separate unit agreement to be entered into between the Company and
a unit agent to be specified therein (a Unit Agreement and, together with any Indentures, Warrant Agreement and Subscription
Agreement, the Governing Documents).
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1.3
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We have taken instructions solely from you and this opinion is delivered to you in connection only
with the filing of the Registration Statement and the issuance of the Securities in accordance with it.
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1.4
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In rendering this opinion, we have examined and relied upon originals or copies of such corporate
records, agreements, documents and instruments as we have deemed necessary or advisable for the purpose of this opinion, including
(i) the Registration Statement (including the forms of senior indenture and subordinated indenture filed as exhibits 4.7 and 4.8
thereto (the Indentures) but excluding all other documents exhibited thereto or incorporated by reference therein); (ii)
the latest certificates of incorporation and change of name and articles of association (the Articles) of the Company; and
(iii) searches against the Company’s name of the public registers of Companies House in the UK and the Central Registry of
Winding-up Petitions in England on or shortly before the date hereof.
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1.5
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As to matters of fact (including factual conclusions and characterizations and descriptions of
purpose, intention or other state of mind), we have relied, with your permission, entirely upon a certificate of an officer of
the Company and have assumed, without independent inquiry, the validity and accuracy of that certificate. We have not been responsible
for investigating or verifying the accuracy of any facts or the reasonableness of any statement of opinion or intention contained
in or relevant to any document.
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1.6
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The documents and searches set out in paragraphs 1.4 and 1.5 are the only documents or records
we have examined and the only searches and enquiries we have carried out for the purposes of this opinion. We have made no further
enquiries concerning the Company or any other matter in connection with the giving of this opinion.
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1.7
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This opinion is limited to English law as applied by the English courts as at the date of this
letter and is given on the basis that it will be governed by and construed in accordance with English law. We have not investigated
the laws of any country other than England and we assume that no foreign law affects any of the conclusions stated in this opinion.
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1.8
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This opinion applies only as at the date of this letter. We expressly disclaim any obligation to
update this opinion for changes in law or events occurring after that date.
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In giving this
opinion we have assumed that:
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2.1
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in respect of Securities to be registered on the Registration Statement, as at the date of each
allotment or issue of any Securities or grant of rights to subscribe for Securities:
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2.1.1
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the Company will validly exist under the laws of England and Wales and have the necessary corporate
power and authority to issue such Securities and to execute and deliver any applicable Governing Document;
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2.1.2
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the directors of the Company will have sufficient powers under the Companies Act 2006 to allot,
issue or grant rights to subscribe those Securities and will only allot, issue and/or grant such rights over those Securities in
accordance with such powers given to them;
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2.1.3
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each allotment and issue of any of the Securities or grant of any rights to subscribe for any of
the Securities will be undertaken in accordance with and pursuant to the Articles and in accordance with the duties of the directors
of the Company under all applicable laws and all statutory or other pre-emption rights will have been duly disapplied or observed;
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2.1.4
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no amendments will have been made to the Articles as at the date of any allotment or issue of,
or grant of a right to subscribe, any Securities;
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2.1.5
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the Company will have received in full in cash the subscription or purchase price payable for any
of the Securities; and
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2.1.6
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all consents, approvals, authorizations, notices, filings, recordations, publications and registrations,
and the payment of any stamp duties or documentary taxes, which are necessary under any applicable laws or regulations in order
to permit the allotment and issue of any of the Securities, will have been or will be duly made or obtained within the period permitted
by such laws or regulations;
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2.2
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the terms and conditions applicable to the Governing Documents and any other instrument or agreement
in relation to the allotment or issue of, or grant of rights to subscribe, any Securities will not be inconsistent with the Registration
Statement and nor will there be any material provision relating thereto which is not disclosed in the Registration Statement;
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2.3
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if any Securities are to be sold or issued pursuant to a definitive subscription, underwriting
or similar agreement, that agreement will have been duly authorized, executed and delivered by the Company and the other parties
thereto, be in force and be the binding obligation of the other parties;
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2.4
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no law outside England and Wales would be contravened by the execution, delivery, issue or performance
of the Governing Documents and any other instruments and documents in relation to the allotment or issue of any of the Securities
(and/or the grant of rights to subscribe for any of the Securities) and all such Governing Documents and other instruments and
documents will continue to be consistent with all such laws and regulations;
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2.5
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any allotment or issue of Securities or grant of rights to subscribe for Securities will be in
compliance with the Companies Act 2006 and all applicable company, takeover, securities, market abuse, insider dealing, money laundering
and bribery and corrupt practices laws and other rules and regulations;
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2.6
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the Securities and rights to subscribe for any of the Securities, and any communication made in
relation thereto, shall not have been offered to the public in the United Kingdom or made in breach of any laws (including but
not limited to the Financial Services and Markets Act 2000) and regulations concerning the offer of securities to the public in
the United Kingdom or communications made in relation thereto;
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2.7
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the Registration Statement shall have been declared effective and such effectiveness shall not
have been terminated or rescinded;
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2.8
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on the date hereof and as at the date of each allotment or issue of any Securities or grant of
rights to subscribe for Securities (a) the Company was not unable to pay its debts within the meaning of Section 123 of the Insolvency
Act 1986; and (b) it will not become unable to pay its debts within the meaning of that Section as a consequence of entering into
or performing the actions to be carried out pursuant to, or any other aspect of the transactions contemplated by, the Registration
Statement;
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2.9
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any relevant documents or agreements which are governed by the laws of any jurisdiction other than
England and Wales are legal, valid and binding under the laws by which they are (and are expressed to be) governed, there are no
provisions of the laws of any jurisdiction outside England and Wales that would have any implication for the opinions we express
and, insofar as the laws of any jurisdiction outside England and Wales may be relevant to this opinion letter, such laws have been
and will be complied with;
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2.10
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no agreement, document or obligation to or by which the Company (or its assets) is a party or bound
and no injunction or other court order against or affecting the Company would be breached or infringed by the matters contemplated
by the performance of the actions to be carried out pursuant to, or any other aspect of the transactions contemplated by, the Registration
Statement;
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2.11
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the term “non-assessable” in relation to the Ordinary Shares means that holders of
such shares, in respect of which all amounts due as to the nominal amount and any premium thereon have been fully paid, will be
under no obligation to contribute further to the liabilities of the Company solely on account of their status as holders of such
Ordinary Shares;
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2.12
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there will be no fact or matter (such as bad faith, coercion, duress, undue influence or a mistake
or misrepresentation before or at the time any agreement or instrument is entered into or performed, a subsequent breach, release,
waiver or variation of any right or provision, an entitlement to rectification or circumstances giving rise to an estoppel) which
might affect the allotment or issue of, or grant of rights to subscribe, any Securities and no additional document or arrangement
affecting any relevant parties which would or might affect this opinion and which was not revealed to us by the documents examined
or the searches and enquiries made by us in connection with the giving of this opinion;
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2.13
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the information in the Searches is true, complete and correct as at the date hereof; and
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2.14
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all documents reviewed by us were authenticity and complete, conformed with the originals (in the
case of copies) and will be duly executed in the same form (in the case of drafts, specimens or pro formas).
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On the basis
of, and subject to, the foregoing and the qualifications set out below and to any matters not disclosed to us and having regard
to such considerations of English law in force as at the date of this opinion as we consider relevant, we are of the opinion that:
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3.1
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the Ordinary Shares (whether underlying ADSs or not) will be validly issued, fully paid and non-assessable,
upon: (i) all necessary corporate actions having been taken to authorize and approve the allotment and issuance the Ordinary Shares,
the terms thereof and any related matters; (ii) the receipt by the Company of the full issue price in respect of the Ordinary Shares
(being not less than their nominal value) in accordance with, and compliance with the other terms of, any applicable definitive
agreement, subscription agreement and/or similar agreement; (iii) the names of the holders of the Ordinary Shares being entered
into the register of members of the Company; and (iv) completion of any formalities;
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3.2
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when the Indentures and any applicable underwriting or other agreement have been duly authorized,
executed and delivered by the parties thereto and are in force, the specific terms of a particular series of Debt Securities have
been duly authorized and established in accordance with the relevant Indenture and the Debt Securities have been duly authorized,
executed, issued, authenticated, registered and delivered in accordance with the relevant Indenture and any applicable underwriting
or other agreement, the Debt Securities will constitute valid and binding obligations of the Company to the extent that this is
governed by English law; and
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3.3
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when a Warrant Agreement, Subscription Agreement or Unit Agreement (as applicable) and any applicable
underwriting or other agreement have been duly authorized, executed and delivered by the Company and the other parties thereto
and are in force, the specific terms of a particular series of Warrants, Subscription Rights or Units (as applicable) have been
duly authorized and established in accordance with the relevant Governing Document and the Warrants, Subscription Rights or Units
(as applicable) have been duly authorized, executed, granted, issued, authenticated, registered and delivered (as applicable) in
accordance with the relevant Governing Document and any applicable underwriting or other agreement, the Warrants, Subscription
Rights or Units (as applicable) will constitute valid and binding obligations of the Company to the extent that this is governed
by English law.
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The qualifications
to which this opinion is subject are as follows:
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4.1
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the searches detailed in paragraph 1.4 are not conclusive as to whether or not insolvency proceedings
have been commenced in relation to the Company or any of its assets. For example, information required to be filed with the Registrar
of Companies or the Central Registry of Winding-Up Petitions is not in all cases required to be filed immediately (and may not
be filed at all or on time); once filed, the information may not be made publicly available immediately (or at all); information
filed with a District Registry or County Court may not, and in the case of administrations will not, become publicly available
at the Central Registry; and the Searches may not reveal whether insolvency proceedings or analogous procedures have been commenced
in jurisdictions outside England and Wales;
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4.2
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insofar as any obligation under the Governing Documents or any other instrument or agreement issued
or entered into by the Company is to be performed in any jurisdiction other than England and Wales, an English court may have to
have regard to the law of that jurisdiction in relation to the manner of performance and the steps to be taken in the event of
defective performance;
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4.3
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we express no opinion as to whether or not the chosen court will take jurisdiction, or whether
the English courts would grant a stay of any proceedings commenced in England, or whether the English courts would grant any relief
ancillary to proceedings commenced in a foreign court;
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4.4
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an English court will not necessarily grant any remedy the availability of which is subject to
equitable considerations or which is otherwise in the discretion of the court and, in particular, orders for specific performance
and injunctions are, in general, discretionary remedies under English law and specific performance is not available where damages
are considered by the court to be an adequate alternative remedy;
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4.5
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claims may become time-barred or may be or become subject to the defence of set-off or to counterclaim;
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4.6
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in appropriate cases, English courts will give judgment in a currency other than sterling, although
a judgment would have to be converted into sterling for the purposes of enforcement or for claiming in a liquidation;
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4.7
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the United States and the United Kingdom currently do not have a treaty providing for the reciprocal
recognition and enforcement of judgments (other than arbitration awards) in civil and commercial matters. Consequently, a final
judgment for payment rendered by a federal or state court in the United States based on civil liability would not automatically
be enforceable in England. In order to enforce any judgment in England, proceedings must be initiated by way of a common law action
before a court of competent jurisdiction in England. In a common law action, an English court generally will not (subject to the
following sentence) reinvestigate the merits of the original matter decided by a US court and will order summary judgment on the
basis that there is no defence to the claim for payment. The entry of an enforcement order by the English court is conditional
upon the following:
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4.7.1
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the US court having had jurisdiction over the original proceeding according to English conflicts
of laws principles;
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4.7.2
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the judgment being final and conclusive on the merits and being for a definite sum of money;
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4.7.3
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the judgment not contravening English public policy;
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4.7.4
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the judgment being not for a sum payable in respect of taxes or other charges of a like nature,
or in respect of a penalty or fine;
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4.7.5
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the judgment having not been arrived at by doubling, trebling or otherwise multiplying a sum assessed
as compensation for the loss or damage sustained; and
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4.7.6
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the judgment having not been obtained by fraud or in breach of the principles of natural justice;
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4.8
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where obligations are to be performed in a jurisdiction outside England, they may not be enforceable
in England to the extent that performance would be illegal under the laws of the other jurisdiction;
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4.9
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the enforcement of obligations may be limited by the provisions of English law applicable to agreements
held to have been frustrated by events happening after their execution;
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4.10
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if a party to any document or to any transfer of, or payment in respect of, any document is controlled
by or otherwise connected with a person (or is itself) resident in, incorporated in or constituted under the laws of a country
which is the subject of United Nations, European Union or United Kingdom sanctions, or is otherwise the target of any such sanctions,
then obligations to that party under the relevant document or in respect of the relevant transfer or payment may be unenforceable
or void; and
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4.11
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this opinion is subject to all applicable laws relating to insolvency, bankruptcy, moratorium,
administration, reorganization, fraudulent conveyance, liquidation and other laws of general application relating to or reflecting
the rights of creditors and the obligations of debtors.
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5.1
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This opinion is addressed to you solely for your benefit and may be relied upon solely by you with
respect to the filing of the Registration Statement. It is not to be used or relied on for any other purpose, or transmitted to
any other person, or relied upon by any other person, or quoted or referred to in any public document, or filed with any government
agency or other person, without our prior written consent or except as set out herein. You may disclose this opinion pursuant to
any legal or regulatory requirement applicable to you or pursuant to an order of the court applicable to you but no person to whom
such a disclosure is made may rely on the contents of this opinion. Except as permitted herein, you may not disclose the contents
or the existence of this opinion to others (other than to your legal advisers) without our prior written consent.
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5.2
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We hereby consent to the filing of this opinion as an exhibit to the Registration Statement; however
by giving such consent we do not admit that we are experts under the Securities Act or the rules or regulations of the Commission
issued thereunder with respect to any part of the Registration Statement, including this opinion.
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Yours faithfully
McDermott Will & Emery UK LLP
Exhibit 5.2
mwe.com
December 23, 2020
Akari Therapeutics PLC
75/76 Wimpole Street
London W1G 9RT
United Kingdom
Re: Akari Therapeutics PLC Registration Statement on Form
F-3 Exhibit 5.2
Ladies and Gentlemen:
We
have acted as U.S. special counsel to Akari Therapeutics PLC, a public company with limited liability incorporated under
the laws of England and Wales (the “Company”), in connection with the filing of a registration
statement on Form F-3 (the “Registration Statement”) under the Securities Act of 1933, as amended (the “Securities
Act”), with the U.S. Securities and Exchange Commission (the “Commission”). The Registration Statement is being
filed for the registration of the following securities which may subsequently be allotted and issued by the Company up to an aggregate
initial offer price of $100,000,000 of (i) ordinary shares of $0.0001 each (the “Ordinary Shares”), (ii) American Depositary
Shares (“ADSs”) representing Ordinary Shares, (iii) debt securities of the Company (“Debt Securities”),
(iv) warrants to purchase Ordinary Shares and/or ADSs (the “Warrants”), (v) rights to purchase Ordinary Shares and/or
ADSs (“Subscription Rights”) and (vi) units consisting of Ordinary Shares, one or more Debt Securities, Warrants or
Subscription Rights, in any combination (“Units”) (together the “Securities”). For purposes of this opinion
letter, we have assumed that the Debt Securities will be either senior debt securities or subordinate debt securities and will
be issued pursuant to a senior debt indenture or a subordinate debt indenture, respectively (collectively, the “Indentures”),
forms of which will be filed as exhibits to the Registration Statement. We have reviewed such documents and made such examination
of matters of fact and questions of law as we have considered appropriate for purposes of this letter.
We are opining herein
only as to the internal laws of the State of New York, and we express no opinion with respect to the applicability thereto, or
the effect thereon, of the laws of any other jurisdiction, or as to any matters of municipal law or the laws of any local agency
within any jurisdiction. With respect to the law of England and Wales, we understand that you are relying upon the opinion, dated
the date hereof, of McDermott Will & Emery UK LLP, counsel to the Company in England, and our opinion is subject to the same
assumptions, qualifications and limitations with respect to such law as contained in such opinion of McDermott Will & Emery
UK LLP. We express no opinion herein regarding the validity or issuance of the Ordinary Shares, ADSs, Warrants (other than the
warrants to purchase Debt Securities as to which we express our opinion in paragraph 2 below), or Subscription Rights, which matters
are being addressed in such opinion of McDermott Will & Emery UK LLP.
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340 Madison Avenue
New York NY 10173-1922 Tel +1 212 547 5400 Fax +1 212 547 5444
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US
practice conducted through McDermott Will & Emery LLP.
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Page 2
We have examined signed
copies of the Registration Statement and have also examined and relied upon minutes of meetings of the Board of Directors of the
Company as provided to us by the Company, the articles of association of the Company, as restated and/or amended to date (the “Articles”),
and such other documents as we have deemed necessary or appropriate for purposes of rendering the opinion hereinafter set forth.
In addition, we have examined and relied, to the extent we deemed proper, on certificates of officers of the Company as to factual
matters, and on originals or copies certified or otherwise identified to our satisfaction, of all such corporate records of the
Company and such other instruments and certificates of public officials and other persons as we have deemed appropriate. In our
examination, we have assumed the authenticity of all documents submitted to us as originals, the conformity to the original documents
of all documents submitted to us as copies, the genuineness of all signatures on documents reviewed by us and the legal capacity
of natural persons. Other than our examination of the documents indicated above, we have made no other examination in connection
with this opinion.
We have assumed (a)
that each of the Securities and each applicable agreement pursuant to which such Securities will be issued will be duly authorized,
executed and delivered by the parties thereto in accordance with applicable law, consistent with the procedures and terms described
in the Registration Statement and the applicable Prospectus Supplement and in accordance with the Company’s Articles, (b)
that each of the Securities will be validly issued, fully paid and nonassessable (to the extent applicable), (c) that the Debt
Securities, the Indentures, the Warrants, the Subscription Rights and the Units will constitute legally valid and binding obligations
of the parties thereto (other than the Company), enforceable against each of them in accordance with their respective terms, and
(d) that the status of each of the Debt Securities, the Indentures, the Warrants, the Subscription Rights and the Units as legally
valid and binding obligations of the parties will not be affected by any (i) breaches of, or defaults under, agreements or instruments,
(ii) violations of statutes, rules, regulations or court or governmental orders, or (iii) failures to obtain required consents,
approvals or authorizations from, or to make required registrations, declarations or filings with, governmental authorities.
Subject to the foregoing
and the other matters set forth herein, it is our opinion that as of the date hereof, when (i) the Registration Statement, as finally
amended, is declared or has otherwise become effective under the Securities Act, (ii) the Securities have been duly authorized,
executed and delivered by all necessary corporate action of the Company, (iii) the specific terms of any particular series of Debt
Securities have been duly established in accordance with the Indentures and applicable law and authorized by all necessary corporate
action of the Company (including, without limitation, by the adoption by the board of directors of the Company of resolutions duly
authorizing the issuance and delivery of such Debt Securities and, if applicable, the ADSs that such Debt Securities may be exchangeable
for and/or convertible into), and (iv) any such Debt Securities have been duly executed and issued by the Company, duly authenticated
by the applicable trustee in accordance with the Indentures and duly delivered by or on behalf of the Company against payment therefor
in the manner contemplated by the Registration Statement or the related prospectus and by such corporate action, (1) the Debt Securities
will be valid and binding obligations of the Company, enforceable against the Company in accordance with the terms of the Indentures,
(2) the Warrants to purchase Debt Securities will be valid and binding obligations of the Company, enforceable against the Company
in accordance with their terms to the extent governed by New York law, (3) the Subscription Rights will be valid and binding obligations
of the Company, enforceable against the Company in accordance with their terms to the extent governed by New York law, and (4)
the Units will be valid and binding obligations of the Company, enforceable against the Company in accordance with their terms
to the extent governed by New York law.
Page 3
To the extent that
the obligations of the Company under the applicable indenture governing the Debt Securities may be dependent upon such matters,
we have assumed for purposes of this opinion (i) that the Trustee is duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization and is duly qualified to engage in the activities contemplated by the indenture governing
such Debt Securities and (ii) that the indenture has been duly authorized, executed and delivered by and constitutes the legal,
valid and binding obligation of the Trustee, enforceable against the Trustee in accordance with its terms, except that the enforceability
thereof may be limited by or subject to bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other similar
laws now or hereafter existing that affect the rights and remedies of creditors generally and equitable principles of general applicability.
Our opinion set forth
above is subject to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether considered in a proceeding
in equity or at law), (iii) an implied covenant of good faith and fair dealing and (iv) the effects of the possible application
of foreign laws or foreign governmental or judicial action affecting creditors’ rights.
The opinion set forth
herein is rendered as of the date hereof, and we assume no obligation to update such opinion to reflect any facts or circumstances
which may hereafter come to our attention or any changes in the law which may hereafter occur (which may have retroactive effect).
This opinion is rendered to you in connection with the filing of the Registration Statement referenced above. This opinion may
not be relied upon for any other purpose, or furnished to, quoted or relied upon by any other person, firm or corporation for any
purpose, without our prior written consent.
We hereby consent to
the reference to our firm under the caption “Legal Opinions” in the Registration Statement and to the use of this opinion
as an exhibit to the Registration Statement. In giving this consent, we do not hereby admit that we come within the category of
persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.
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Very truly yours,
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/s/ McDermott Will & Emery LLP
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Exhibit 23.1
Consent of Independent Registered Public
Accounting Firm
Akari Therapeutics, Plc.
London, United Kingdom
We hereby consent to the
incorporation by reference in the Prospectus constituting a part of this Registration Statement of our report dated March 30,
2020, relating to the consolidated financial statements of Akari Therapeutics, Plc. which is incorporated by reference in that
Prospectus. Our report contains an explanatory paragraph regarding the Company’s ability to continue as a going concern.
We also consent to the reference to us
under the caption “Experts” in the Prospectus.
/s/ BDO USA, LLP
New York, New York
December 23, 2020