Pursuant to Article 10 of the Articles of Association, the
shareholders of Bavarian Nordic A/S are hereby convened to the
extraordinary General Meeting to be held:
Monday, 26 May 2008, at 12.00 hours
At the company's registered office at Hejreskovvej 10A, DK - 3490
Kvistgaard, Denmark with the following agenda:
1) Authorisation for Increase of the Company's Share Capital
The Board of Directors proposes that the current Article 5a of the
Articles of Association, according to which the Board of Directors is
authorised to increase the Company's share capital in the period
until 30 June 2008, is replaced with a similar authorisation for the
period until 30 June 2009. Such authorisation should be granted in
order to improve the Company's possibilities for contracting with
third parties, including contracting of acquisitions, engage in
strategic alliances, developing and strengthening the Company's
business, in return, in full or in part, for the issuing of new
shares. It is therefore proposed that the current Article 5a is
deleted and that the following authorisation is adopted into the
Company's Articles of Association as Article 5a, observing Article 37
of the Danish Public Companies Act:
"Article 5a
For the period ending on 30 June 2009, the Board of Directors shall
be authorised to increase the Company's share capital in one or more
issues with a total of nominally DKK 20,000,000 (20,000,000 shares of
DKK 1).
The share capital may be increased by cash payment or in other ways.
If the share capital is increased by a cash payment at a subscription
price below the value of the shares, the existing shareholders shall
have pre-emption right to subscribe for the amount by which the share
capital is increased, proportional to their shareholdings. If the
share capital is increased by a cash payment other than in the
situations mentioned in this Article 5a, subsection 2 or in other
ways, such as by conversion of debts or in payment of a contribution
in kind, the Company's existing shareholders shall not have
pre-emption right. If the share capital is increased in other ways,
the provisions of Article 33 of the Danish Public Companies Act shall
apply, and the subscription price or the value of the shares issued
shall be fixed by the Board of Directors within the framework of the
mandatory provisions under the Danish Public Companies Act, including
sections 79 and 80 of the Act.
The terms and conditions of the subscription for shares shall be
determined by the Board of Directors.
The new shares shall be negotiable instruments and shall be issued to
bearer but they may be registered in the bearer's name in the
company's register of shareholders. No restrictions shall apply to
the transferability of the new shares, and no shareholder shall be
obliged to have his shares redeemed - in whole or in part. The shares
shall carry the right to dividend as from the date fixed by the Board
of Directors but not later than the first financial year following
the capital increase."
2) Authorization for issuing warrants to the management and employees
et al.
It is proposed that the Board of Directors is authorized to issue
warrants to the management and employees of the Company and its
subsidiaries and for implementing capital increases in this respect.
Because the existing authorisation in article 5b of the Articles of
Association has been used, it is proposed that the following
authorization is adopted as Article 5f in the Company's Articles of
Association:
"Article 5f
During the period ending 1 May 2011, the Company may issue warrants,
in one or more portions by resolution of the Board of Directors. The
warrants may be issued to the management and employees of the Company
or its subsidiaries, including to consultants and the Company's Board
of Directors, for the subscription of shares of a nominal value of up
to DKK 2,000,000 by cash contribution at a subscription price and on
such other terms as the Board of Directors may determine.
Notwithstanding the foregoing, the issuances of warrants to members
of the Board of Directors may not exceed a nominal value of DKK
200,000. Any issuance of warrants to the Board of Directors or
management shall be made in accordance with the Company's policy for
incentive remuneration of the Board of Directors and the Management,
prepared in accordance with Article 69b of the Danish Public
Companies Act and approved by the general meeting, cf. Article 17a of
the Articles of Association.
Holders of warrants shall have pre-emption right to subscribe for the
shares, issued based on the warrants, meaning that the pre-emption
rights to subscribe to warrants and new shares for existing
shareholders' are deviated from.
As a consequence of the exercise of awarded warrants, the Board of
Directors is authorised during the period until 26 April 2013 to
increase the share capital by a nominal value of up to DKK 2,000,000
in one or more portions by resolution of the Board of Directors by
cash contribution at a subscription price and on such other terms as
the Board of Directors may determine without pre-emption right for
the existing shareholders.
The new shares issued based on warrants shall have the same rights as
existing shares according to the Articles of Association. The new
shares shall be negotiable instruments and shall be issued to the
bearer, but they may be registered in the bearer's name in the
Company's register of shareholders. No restrictions shall apply to
the transferability of the new shares and no shareholder shall be
obliged to have his shares to be redeemed - in whole or in part. The
new shares shall carry the right to dividend from the time of
subscription"
3) Resolution on amendment of Article 10, subsection 4 of the
Articles of Association (Publication of notice for convening)
Due to new rules for notice for convening the annual general meeting
the Board of Directors proposes that Article 10(4) of the Articles of
Association is amended to as follows:
"Article 10(4)
General meetings shall be convened by publication in one leading
newspaper and in the IT information system of the Danish Commerce and
Companies Agency. Furthermore, a written notice convening the annual
general meeting shall be sent to all registered shareholders who have
so requested."
The proposals were adopted at the company's ordinary General Meeting,
held on 29 April 2008, with a majority of at least two-thirds of the
votes cast and the votes represented at the General Meeting. However,
as 50 per cent (%) of the share capital was not represented at the
ordinary General Meeting the proposals could not be finally approved,
cf. Article 78 of the Danish Company's Act and Article 16 of the
Articles of Association. In accordance with Article 16 of the
Articles of Association the proposals may be adopted at this
extraordinary General Meeting, which is summoned no later than 14
days after the ordinary General Meeting, if the proposals are adopted
with two-thirds of the votes cast and the votes represented,
irrespective of the amount of share capital being represented at the
extraordinary General Meeting.
In accordance with Article 73, subsection 5 of the Danish Public
Companies Act it is informed that the Company's share capital amounts
to DKK 78.155.680 divided into shares in the denomination of DKK 1
and multiples thereof. Each share of a nominal value of DKK 10 gives
one vote.
Pursuant to Article 11 of the Articles of Association, shareholders
who wish to attend the General Meeting shall order admission cards no
later than 21 May 2008. Admission cards may be ordered from Bavarian
Nordic A/S (by tel: +45 3326 8383; by fax: +45 3326 8380).
Shareholders who are not registered in the Company's Stock Register
but wish to attend the General Meeting must prove their title to the
shares by presenting documentation from the shareholder's financial
institute. Such documentation must not have been issued earlier than
14 days before the General Meeting. The shareholder must furthermore
issue a statement in writing to the effect that the shares have not,
and will not, be transferred to any third parties before the General
Meeting is held.
Kvistgård, 8 May 2008
The Board of Directors
Bavarian Nordic A/S
Contact: Anders Hedegaard, President & CEO | +45 23 20 30 64
