Document:

ex_103185.htm

Exhibit 10.2

 

SETTLEMENT AGREEMENT AND RELEASE 

 

This Settlement Agreement and Release (the "AGREEMENT") is made and entered into as of January 12, 2018, by and among:

 

PEGASUS FUNDING, LLC, a Delaware limited liability company, and each and every one of its owners, members, officers, directors, managers, employees, agents, subsidiaries, affiliates, divisions, and their successors, assigns, beneficiaries, servants, legal representatives, insurers and heirs (herein referred to as “Pegasus" or the “Company”); 

 

ASFI PEGASUS HOLDINGS, LLC, a Delaware limited liability company, and each and every one of its owners, members, officers, directors, managers, employees, agents, subsidiaries, affiliates, divisions, and their successors, assigns, beneficiaries, servants, legal representatives, insurers and heirs (herein referred to as "ASFI"); 

 

ASTA FUNDING, INC., a Delaware corporation, and each and every one of its officers, directors, managers, employees, agents, subsidiaries (including but not limited to Simia Capital LLC), affiliates, divisions, and their successors, assigns, beneficiaries, servants, legal representatives, insurers and heirs (herein referred to as "ASTA"); 

 

FUND PEGASUS, LLC a Delaware limited liability company, and each and every one of its owners, members, officers, directors, managers, employees, agents, subsidiaries, affiliates, divisions, and their successors, assigns, beneficiaries, servants, legal representatives, insurers and heirs (herein referred to as "FUND''); 

 

PEGASUS LEGAL FUNDING, LLC, a Delaware limited liability company, and each and every one of its owners, members, officers, directors, managers, employees, agents, subsidiaries, affiliates, divisions, and their successors, assigns, beneficiaries, servants, legal representatives, insurers and heirs (herein referred to as "PLF"); 

 

MAX ALPEROVICH, on behalf of himself, his agents, representatives, attorneys, assigns, beneficiaries, heirs, executors, administrators, and anyone who has or obtains any legal rights or claims through him (herein referred to as "Alperovich");

 

ALEXANDER KHANAS, on behalf of himself, his agents, representatives, attorneys, assigns, beneficiaries, heirs, executors, administrators, and anyone who has or obtains any legal rights or claims through him (herein referred to as "Khanas"); 

 

LARRY STODDARD, III, improperly named as “Lawrence O. Stoddard, III, Esq.” on behalf of himself, his agents, representatives, attorneys, assigns, beneficiaries, heirs, executors, administrators, and anyone who has or obtains any legal rights or claims through him (herein referred to as “Stoddard”); 

 

LOUIS PICCOLO, on behalf of himself, his agents, representatives, attorneys, assigns, beneficiaries, heirs, executors, administrators, and anyone who has or obtains any legal rights or claims through him (herein referred to as “Piccolo”); 

 

 

 

 

A.L. PICCOLO & CO., INC. a New York domestic business corporation, and each and every one of its owners, officers, directors, managers, employees, agents, subsidiaries, affiliates, divisions, and their successors, assigns, beneficiaries, servants, legal representatives, insurers and heirs (herein referred to as "A.L. Piccolo"); 

 

ASFI, ASTA and FUND are referred to collectively as the “ASTA Parties”;

 

PLF, Alperovich, Khanas and Stoddard are referred to collectively as the “PLF Parties”;

 

The ASTA Parties, PLF Parties, A.L. Piccolo and Piccolo are referred to collectively as the “Parties”.

 

RECITALS

 

WHEREAS, Pegasus was formed as a limited liability company under the Delaware Limited Liability Company Act, upon the filing of a Certificate of Formation with the Department of State of the State of Delaware on September 19, 2011; and

 

WHEREAS, a Limited Liability Company Operating Agreement, effective December 28, 2011 and amended by a Term Sheet dated September 14, 2012, (hereinafter together, the “Operating Agreement”), was executed by and between, among others, PLF and ASFI, to define the rights and responsibilities in connection with the operations of Pegasus; and

 

WHEREAS, Alperovich, Khanas, ASTA, FUND, A.L. Piccolo and Piccolo entered into the Operating Agreement, joining solely for certain purposes specifically defined therein; and

 

WHEREAS, contemporaneously with the signing of the Operating Agreement, Alperovich and Khanas each entered into a Consulting Agreement, effective December 28, 2011 (hereinafter referred to as the “Consulting Agreements”) with Pegasus; and

 

WHEREAS, by way of the Operating Agreement, ASFI was granted 800 of the 1,000 ownership units of Pegasus, thereby providing it with an 80% ownership interest in Pegasus; and

 

WHEREAS, by way of the Operating Agreement, PLF was granted 200 of the 1,000 ownership units of Pegasus, thereby providing it with an 20% ownership interest in Pegasus; and

 

WHEREAS, by way of the Operating Agreement, a Board of Managers, consisting of Alperovich, Khanas, Gary Stern and Robert Michel (the latter who was later replaced by Bruce Foster) was created with each manager possessing one (1) vote; and

 

WHEREAS, by way of the Operating Agreement, the Board of Managers delegated certain day-to-day managerial duties to the “Initial Officers” who were defined as Alperovich and Khanas; and

 

WHEREAS, the purpose of Pegasus was to provide funding for holders of personal injury claims in consideration of which such funders assigned, on a non-recourse basis, to Pegasus a portion of any proceeds that may be realized upon the resolution of such claims (hereinafter referred to as “Claims”), pursuant to the terms of written purchase agreements; and

 

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WHEREAS, the term of the Operating Agreement was for a period of five (5) years commencing December 28, 2011; and

 

WHEREAS, by way of the Operating Agreement, Pegasus was required to pay A.L. Piccolo, which is owned and operated by Piccolo, a fee calculated at Three Hundred Fifty Thousand Dollars ($350,000) per Ten Million Dollars ($10,000,000) loaned to Pegasus by FUND up to a maximum of Seven Hundred Thousand Dollars ($700,000), which fee is payable over eight years from Pegasus’s operating expenses during the term of the Operating Agreement and thereafter by PLF and its affiliates; and

 

WHEREAS, on or about August 21, 2012, Pegasus entered into a five (5) year Lease (hereinafter referred to as the “Lease”) with Roza 14W LLC for certain office space located at 14 Wall Street, New York, New York; and

 

WHEREAS, anticipating the end of the term of the Operating Agreement, the Parties entered into a Term Sheet dated November 7, 2016 (hereinafter referred to as the “Liquidation Agreement”) to define the rights and responsibilities in connection with the liquidation of Pegasus’s portfolio of Claims (hereinafter referred to as the “Portfolio”); and

 

WHEREAS, pursuant to the terms of the Operating Agreement and Liquidation Agreement, funds collected by Pegasus and the PLF Parties in connection with the liquidation of the Portfolio were to be deposited into Pegasus’ account maintained at Chase Bank, NA (“Chase Bank”) ending in 9931 (hereinafter referred to as the “Collections Account”); and

 

WHEREAS, certain cases in the outstanding Portfolio were funded jointly (hereinafter “Jointly Funded Cases”) by Pegasus and outside investors (hereinafter “Non-ASTA Investors”); and 

 

WHEREAS, PLF collected certain funds in connection with funding agreements with Non-ASTA Investors which it also deposited into the Collections Account, said amount currently equaling $219,702.87 (hereinafter “Non-ASTA Investor Funds”); and

 

WHEREAS, on or about May 18, 2017, Alperovich and Khanas entered into a five (5) year First Lease Amendment Agreement (the “Amended Lease”) purportedly on behalf of Pegasus with Roza 14W LLC for certain office space located at 14 Wall Street, New York, New York; and

 

WHEREAS, on or about December 19, 2017, PLF entered into a Second Lease Amendment Agreement (the “Second Amended Lease”) with Roza 14W LLC whereby PLF was substituted in place of Pegasus as the tenant for certain office space located at 14 Wall Street, New York, New York; and

 

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WHEREAS, the ASTA Parties, individually and derivatively on behalf of Pegasus, instituted an arbitration proceeding through American Arbitration Association, Case No. 01-17-0001-9620 (hereinafter referred to as the “Arbitration”) against the PLF Parties alleging, among other things, breaches of the Operating Agreement, the Liquidation Agreement and the Consulting Agreements, entitlement to a writ of attachment, specific performance, fraud, gross negligence, intentional or criminal misconduct, civil conspiracy, breaches of fiduciary duty, aiding and abetting breaches of fiduciary duties, unjust enrichment and constructive trust; and

 

WHEREAS, in the Arbitration the PLF Parties asserted certain counter-claims against the ASTA Parties alleging, among other things, breaches of the Operating Agreement and the Liquidation Agreement, breaches of fiduciary duty, fraud, tortious interference with contract, trademark infringement, false designation of origin, unfair competition, deceptive trade practices and trademark dilution; and

 

WHEREAS, during the course of the Arbitration proceedings, an emergency arbitrator issued an order temporarily restraining (freezing) certain funds in the Collections Account; and

 

WHEREAS, during the course of the Arbitration proceedings, the Arbitration Panel issued an order amending the emergency arbitrator’s order although ordering the continued temporary restraining (freezing) of the Collections Account; and

 

WHEREAS, the Parties seek to resolve any and all claims and/or disputes against each other, whether or not arising out of, relating to, or in connection with Pegasus, including any claims and disputes asserted in the Arbitration against each other, except those claims that are expressly excepted from this Agreement as more fully described herein; and

 

WHEREAS, as part of the settlement of the Arbitration, Alperovich, Khanas and PLF wish to sell PLF’s twenty percent (20%) interest in Pegasus to ASFI for a one-time lump sum payment; and 

 

WHEREAS, as part of the sale of PLF’s interest in Pegasus, PLF will forgive and release any and all claims concerning Pegasus including, but not limited to, any monies collected from the Portfolio after January 12, 2018; and

 

WHEREAS, the ASTA Parties wish to purchase PLF’s twenty percent (20%) interest in Pegasus and oversee and handle on an exclusive basis the liquidation of the Portfolio and the winding down of Pegasus without having to pay any additional sums to the PLF Parties pursuant to the liquidation budget (the “Liquidation Budget”) in the Liquidation Agreement or otherwise; and

 

NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, and other good and valuable consideration, the Parties, intending to be legally bound, hereby agree as follows:

 

	 	
			1.

				
			Settlement Terms. 

			

 

	 	
			a.

				
			In consideration of the Parties’ mutual discontinuance of all claims and mutual release of any and all claims – except for those specifically excluded, as set forth herein below, PLF shall sell its 200 ownership units of Pegasus (20% interest) to ASFI for the sum of One Million Eight Hundred Thousand Dollars ($1,800,000.00) (hereinafter referred to as the “Purchase Amount”) to be paid at a closing (the “Closing”) pursuant to the terms and conditions contained in the Membership Interest Purchase Agreement being executed contemporaneously herewith and incorporated herein by reference.

			

 

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			b.

				
			The PLF Parties shall relinquish, release and discharge any and all claims that refer or relate to, or arise out of concern, Pegasus including, but not limited to, the Portfolio, the Operating Agreement and/or Liquidation Agreement, the liquidation of the Portfolio, the Liquidation Budget or the winding down of the Company.

			

 

	 	
			c.

				
			The ASTA Parties agree to pay the PLF the amount of $219,702.87 representing Non-ASTA Investor Funds. PLF shall then immediately pay said funds to the Non-ASTA investors. 

			

 

	 	
			d.

				
			The ASTA Parties agree that, upon their collection of funds in the outstanding Portfolio relating to Jointly Funded Cases, the ASTA Parties shall only retain their pro rata shares of principal and profit (as defined in the Operating Agreement and Liquidation Agreement) and shall immediately (within 48 hours of receipt, as long as check clears) pay PLF the Non-ASTA investor’s pro rata share of principal and interest which PLF, Alperovich and Khanas shall then immediately pay to the Non-ASTA investors. With respect to Jointly Funded Case with Golden Pear Funding II, LLC (“Golden Pear”) or any related Golden Pear company, PLF, Alperovich and Khanas agree to deposit all payments received on matters jointly funded with Golden Pear into a PLF bank account. The ASTA Parties agree to cooperate in all respects with the collection and payment to PLF of any funds payable to Non-ASTA investors on jointly funded cases. The ASTA Parties shall not be permitted to consent to accept a reduction (an amount less than the amount contractually due to the funding parties) on any Jointly Funded Case with Golden Pear without the express written consent of the PLF Parties acting in good faith. With respect to Jointly Funded Cases with any non-Golden Pear investor, the ASTA Parties, acting in good faith, shall use their best efforts to obtain the consent of the PLF Parties for any reduction. The ASTA Parties agree that their failure to pay PLF the non-ASTA Investor’s pro rata share on any Jointly Funded Case within forty-eight (48) hours of collection by the ASTA Parties shall be deemed a material breach of this Agreement. Attached hereto as Exhibit “A” is a list of all Jointly Funded Cases.

			

 

	 	
			e.

				
			On a mutually agreeable date and time no later than January 25, 2018, Alperovich, Khanas and the CFO of PLF, Stanley DiCicco (“DiCicco”), shall speak to the outside accountants for ASTA, Eisner Amper, concerning any relevant matters related to ASTA’s 2017 year and financial statements. The ASTA Parties agree to direct Eisner Amper to make its representatives available to speak to Alperovich, Khanas and DiCicco on or before January 25, 2018. The Parties agree that, in the event the settlement is not finalized and this matter proceeds further in the Arbitration, any conversations between Alperovich, Khanas and DiCicco and Eisner Amper’s representatives shall not be admissible or otherwise referred to or relied upon by the Parties for purposes of the Arbitration or any other legal proceeding.

			

 

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			f.

				
			PLF, Alperovich and Khanas agree to immediately turn over to the ASTA Parties, upon Closing, Pegasus property including, but not limited to, all client files in both electronic and hard copy, the master list, documents, files, records, and CSU Software (Track Cases) login and agreements pertaining to the Portfolio, including copies of PLF co-funded cases

			

 

	 	
			g.

				
			For a period of forty-five (45) days after the Closing PLF, Alperovich and Khanas shall cooperate (and use their best efforts to have the present PLF employees to cooperate) with the ASTA Parties and execute such instruments or documents and take such other actions as may reasonably be requested from time to time in order to carry out the transition of the liquidation of the Portfolio from PLF to the ASTA Parties.

			

 

	 	
			h.

				
			Within ten (10) days of the Closing the ASTA Parties shall formally change the Company’s name from Pegasus to another name without the word “Pegasus” included in such new name and shall forever cease and desist using the name “Pegasus” and the Pegasus/PLF logo, trademark, goodwill, phone number and website in connection with the Company or any other business whatsoever. Any license granted to the ASTA Parties previously by PLF, Alperovich and/or Khanas were revoked pursuant to paragraph 10 of the Liquidation Agreement. Any other licenses granted – actually or by implication - with respect to the Pegasus, name, marks, logos, websites, goodwill and phone number are fully revoked in their entirety as of ten (10) days after the Closing date. The ASTA Parties, Pegasus and their successors in interests agree to indemnify and hold harmless the PLF Parties, including legal fees, against any and all claims based upon, arising out of, or in any way connected with the ASTA Parties’ use of the Pegasus names, logo, trademark, goodwill, phone number and website at any time after the Closing.

			

 

	 	
			i.

				
			PLF, Alperovich and Khanas agree that all monies collected or received by them on or after January 12, 2018 related to the Portfolio belong to ASFI, and the PLF Parties hereby further agree to immediately turn over and pay to ASFI any and all of said monies. In the event PLF, Alperovich or Khanas collect monies related to the Portfolio on or after January 12, 2018 and such monies include funds from Jointly Funded Cases, upon the funds being turned over to ASFI pursuant to this paragraph, ASFI agrees to disburse said funds pursuant to paragraph 1(d) above. PLF, Alperovich and Khanas agree that their failure to pay ASFI said funds within ten (10) days of receipt shall be deemed to be a material breach of this Agreement.

			

 

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			j.

				
			PLF, Alperovich and Khanas shall be solely responsible for the payment of wages, compensation and benefits due to anyone employed or retained by PLF. This section shall not apply to any attorneys retained with respect to the collection of the Pegasus Portfolio. Pegasus, it successors and permitted assigns shall be responsible for all legal fees, including contingency fees, payable now, or in the future with respect to law firms retained in connection with the collection of the Portfolio, and/or day-to-day operations. Upon Closing Stoddard shall contact all retained law firms and advise them that Pegasus in now owned by ASFI and that ASFI or the ASTA Parties shall be contacted for all future inquires and decisions related to such representation and that any new work shall be approved by ASFI or the ASTA Parties. The PLF Parties also agree, if requested by the ASTA Parties, to sign any letters within three business days of receipt that the ASTA Parties believe may be needed to inform attorneys and/or litigants that, among other things, the ASTA Parties are authorized to receive collections on the Portfolio and/or to negotiate settlements. Should Alperovich and/or Khanas be asked by an attorney for a litigant, or by a litigant, about the ASTA Parties, they shall indicate that ASFI owns Pegasus, or its successor in name and/or interest (“Newco”) and that any money owed to Pegasus concerning the Portfolio shall be sent to Pegasus or Newco. Neither Alperovich nor Khanas shall negotiate with any attorney or litigant concerning any sums due Pegasus or Newco and shall not discuss whether the ASTA Parties will accept less that what may be due or owing by a litigant to Pegasus or Newco, unless requested by Pegasus, Newco or the ASTA Parties. 

			

 

	 	
			k.

				
			The ASTA Parties agree to pay A.L. Piccolo the remaining portion of the fee due and owing to it, which the PLF Parties represent to be $66,725.10.

			

 

	 	
			l.

				
			PLF, Alperovich and Khanas shall cooperate (and use their best efforts to have the present PLF employees to cooperate) with the ASTA Parties and Chase Bank to promptly effectuate the unfreezing of the Collections Account. This includes, but is not necessarily limited to, the PLF, Alperovich and Khanas’ execution of a letter to Chase Bank in the form annexed hereto as Exhibit “B”, authorizing the immediate release of all monies in the Collections Account (and all other Chase accounts on the name of Pegasus) to the ASTA Parties. All monies in the Collections Account and in any other Pegasus account as of the close of business on January 12, 2018 and thereafter, other than any Non-ASTA Investor Funds, shall belong to ASFI.

			

 

 

	 	
			m.

				
			Alperovich and Khanas agree to execute simultaneously herewith written resignations in the form as annexed hereto as Exhibit “C”, with respect to their positions with Pegasus including, but not limited to, their positions as Executive Vice Presidents and Board of Manager Members accounts and agree that they will not hold themselves out, directly or indirectly, as an agent of the ASTA Parties. The Parties agree to their removal as signatories from any Pegasus Funding, LLC bank account and, within ten (10) days after the Closing or as soon as Chase releases all funds in the Chase Collections Account to the ASTA Parties, the ASTA Parties shall transfer all funds out of and close all Pegasus Funding, LLC bank accounts and provide the PLF Parties with proof of such closures. The ASTA Parties are hereby permitted to use the name Pegasus Funding as “d/b/a” (doing business as) but only in connection with bank deposits required to be made in connection with the liquidation of the Portfolio. The ASTA Parties, their successors and assigns, agree to indemnify and hold harmless the PLF Parties post-closing, including legal fees, against any and all claims based upon, arising out of, or in any way connected with the post-closing use of the Pegasus name by the ASTA Parties or their successors or assigns.

			

 

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			n.

				
			This paragraph shall not apply to any account in the name of Pegasus Legal Funding, LLC. 

			

 

	 	
			o.

				
			The PLF, Alperovich and Khanas are responsible for the Lease and shall jointly, severally and individually, indemnify Pegasus and the ASTA Parties from any and all claims, demands, liabilities, obligations that are or may be asserted by Roza 14W LLC and/or any other party relating to the Lease and Amended Lease. 

			

 

	 	
			2.

				
			Performance under this Agreement.

			

 

	 	
			a.

				
			On or before 5:00 p.m. on January 12, 2018 the PLF Parties or their representative shall: 

			

 

	 	
			(i)

				
			Deliver to Mandelbaum Salsburg, P.C. (“MS”) a letter in the form as annexed hereto as Exhibit “B” directing Chase to the release of all of said funds;

			

 

	 	
			(ii)

				
			Deliver to MS the written resignations in the form as annexed hereto as Exhibit “C”;

			

 

	 	
			(iii)

				
			Execute and deliver to MS this Agreement;

			

 

	 	
			(iv)

				
			Execute and deliver to MS the Membership Interest Purchase Agreement;

			

 

	 	
			(v)

				
			Execute and deliver to MS a stipulation of dismissal discontinuing the Arbitration and all counterclaims asserted therein with prejudice and without costs.

			

 

 

	 	
			b.

				
			On or before 5:00 p.m. on January 12, 2018 the ASTA Parties or their representative shall: 

			

 

	 	
			(i)

				
			Pay the Purchase Amount in the sum of One Million Eight Hundred Thousand Dollars ($1,800,000.00) to PLF by wire transfer to PLF in accordance with the wire instructions attached hereto as Exhibit “D”;

			

 

	 	
			(ii)

				
			Pay Non-ASTA Investor Funds in the sum of Two-Hundred Nineteen Thousand Seven Hundred two ($219,702.87) Dollars and Eighty-Seven Cents to PLF by wire in accordance with the wire instructions attached hereto as Exhibit “D”;

			

 

	 	
			(iii)

				
			Execute and deliver to Cullen and Dykman, LLP (“C&D”) this Agreement;

			

 

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			(iv)

				
			Execute and deliver to C&D the Membership Interest Purchase Agreement;

			

 

	 	
			(v)

				
			Execute and deliver to C&D a stipulation of dismissal discontinuing the Arbitration and all claims asserted therein against the PLF Parties with prejudice and without costs.

			

 

 

	 	
			3.

				
			Mutual Releases.

			

 

	 	
			a.

				
			Release by Pegasus, the ASTA Parties and Piccolo. Subject to the conditions set forth in Paragraphs 1 and 2 hereof, Pegasus, ASFI, ASTA, FUND, A. L. Piccolo and Piccolo irrevocably and unconditionally waive, release and forever discharge PLF, Alperovich, Khanas and Stoddard and their affiliates, employees, officers, directors, members, agents, partners, sureties, shareholders and subsidiaries, from any and all causes of action, manner of promises, administrative, civil and/or criminal complaints, actions, suits, debts, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, judgments, extents, executions, grievances, liabilities, obligations, damages, claims and demands, in law, admiralty or equity including, but not limited to claims for breaches of the Operating Agreement, the Liquidation Agreement and/or the Consulting Agreements, writ of attachment, specific performance, fraud, gross negligence, intentional or criminal misconduct, civil conspiracy, breaches of fiduciary duty, aiding and abetting breaches of fiduciary duties, unjust enrichment, constructive trust, failure to pay overhead advances, failure to write down or write off funded cases, improperly entering into lease agreements, misappropriation of funds, improper loans taken, and failure to pay notes or debts payable, whether known or unknown, suspected or unsuspected, fixed or contingent, apparent or concealed, accrued or unaccrued, which Pegasus, ASFI, ASTA and FUND, their successors and/or assigns ever had, now have or hereafter can, shall or may have, for, upon, or by reason of any matter, cause or thing from the beginning of the world to the date of this Release; provided, however, that notwithstanding the foregoing, this Release does not apply to enforcement of any claims of any terms and/or conditions of this Agreement. Notwithstanding the above, in the event the ASTA Parties, Simia and/or their successors in interest are required by a judge, jury and/or arbitrator to pay damages in any legal proceeding for the acts, omissions and/or negligence of any of the PLF Parties occurring prior to the Closing date in connection with the Portfolio, the PLF Parties shall be responsible for their proportionate share of any such damages found specifically to be related to the acts, omissions or negligence of the PLF Parties occurring prior to the Closing date. 

			

 

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			b.

				
			Release by the PLF Parties. Subject to the conditions set forth in Paragraphs 1 and 2 hereof, PLF, Alperovich, Khanas and Stoddard irrevocably and unconditionally waive, release and forever discharge Pegasus, ASFI, ASTA, FUND , A.L. Piccolo and Piccolo and their affiliates, employees, officers, directors, members, agents, partners, sureties, shareholders and subsidiaries, from any and all causes of action, manner of promises, administrative, civil and/or criminal complaints, actions, suits, debts, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, judgments, extents, executions, grievances, liabilities, obligations, damages, claims and demands, in law, admiralty or equity, including, but not limited to, claims for breach of the Operating Agreement, Liquidation Agreement and/or the Consulting Agreements, breach of fiduciary duty, unjust enrichment, malicious prosecution, abuse of process, tortious interference with contract or prospective economic advantage, trademark infringement, false designation of origin, unfair competition, trade libel, defamation, deceptive trade practices, trademark dilution whether known or unknown, suspected or unsuspected, fixed or contingent, apparent or concealed, accrued or unaccrued, which PLF, Alperovich, Khanas and Stoddard, their successors and/or assigns ever had, now have or hereafter can, shall or may have, for, upon, or by reason of any matter, cause or thing from the beginning of the world to the date of this Release; provided, however, that notwithstanding the foregoing, this Release does not apply to enforcement of any claims regarding breach of any terms and/or conditions of this Agreement.

			

 

	 	
			4.

				
			Confidentiality. Each Party shall keep all of the terms of this Agreement confidential and shall not disclose such terms to or discuss them with any third party (other than on a confidential and need to know basis with such party’s counsel, governing board, insurers or financial advisors) without the prior written consent of the other Parties, except as required by applicable law, applicable financing agreements, including applicable securities laws, or court order or subpoena or except as necessary to enforce such Party’s rights under this Agreement. The parties agree to provide written notice to the other Parties of any court order or subpoena compelling the production of this Agreement within two (2) business days of said subpoena or court order being received. In the event either party receives notice of a requirement or request of a governmental agency or court of competent jurisdiction for disclosure, then the party receiving such notice shall provide sufficient notice to the other to permit such other party to seek an appropriate protective order or exemption from such requirement or request at its expense.

			

 

	 	
			5.

				
			Non-Disparagement/Non-Solicitation. At all times after the date hereof, each Party agrees that he or it: (a) shall not (and shall not encourage or induce others to), in any manner, directly or indirectly, disparage or criticize any other Party; (b) will not engage in any conduct or communication (whether oral or written, and whether or not such communications would constitute legal slander or libel) that is, or is intended to be, negative or derogatory about any other Party; and (c) will not otherwise do or say anything that could damage or cause to discredit in any way any Party or disparage or defame any Party or their management, operations, or practices. The ASTA Parties, their agents, officers, servants, employees shall not (and shall not encourage or induce others to) employ, attempt to employ or solicit any current or former employee of any PLF Party on behalf of the ASTA Parties or any other business enterprise. The ASTA Parties, their agents, officers, servants, and employees shall not (and shall not encourage or induce others to) to induce any employee or independent contractor associated with the PLF Parties to terminate or breach an employment, contractual or other relationship with the PLF Parties.

			

 

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			6.

				
			Attorneys’ Fees/Costs. Each Party shall pay its or his own attorneys’ fees and costs (including, but not limited to the fees of any Arbitrator and the AAA Arbitration costs and fees) in connection with but not limited to the Arbitration, the action brought under index number 652435/17 before the New York Supreme Court, New York County, the action brought under docket number C-94-17 before the New Jersey Superior Court, Chancery Division, Bergen County, the action brought under index number 652355/14 before the New York Supreme Court, New York County, a previous AAA Arbitration filed but not pursued by the ASTA Parties, or any other action or arbitration filed by or against the Parties by another Party, or the negotiation of this Agreement and the preparation, review and revision of any documents necessary to effectuate this settlement.

			

 

	 	
			7.

				
			Ownership of Claims. Each Party represents and warrants to the other Party that they have not transferred or assigned, or purported to transfer or assign, any claim to any person or entity. Each Party further agrees to indemnify and hold harmless the other Parties, including legal fees, against any and all claims based upon, arising out of, or in any way connected with a breach of the foregoing representation.

			

 

	 	
			8.

				
			Dismissal of the Arbitration. Each Party hereto shall promptly file with the American Arbitration Association a Stipulation of Dismissal with prejudice and shall take all necessary steps to cause the Arbitration to be dismissed with prejudice and agrees not to refile either the Arbitration or otherwise pursue any of the claims asserted therein against any Party without costs.

			

 

	 	
			9.

				
			Other Proceedings. The Parties represent and warrant that, other than this Arbitration, there are no pending claims against any other Party and know of no claims filed by their affiliates, subsidiaries, shareholders, employees, officers, directors, members, contractors, subcontractors or on their behalf against another Party hereto in any court, arbitration, or in any other forum. Should there be any other pending claims, the Party asserting those claims promptly shall take all necessary steps to dismiss those claims with prejudice.

			

 

	 	
			10.

				
			Authority. The execution, delivery and performance of this Agreement by each Party hereto is within its corporate or partnership, as applicable, powers, have been duly authorized by all necessary corporate or partnership action, and do not and will not (a) require any governing or governmental consent or approval, which has not been obtained, (b) contravene its organizational documents, or (c) violate applicable law.

			

 

	 	
			11.

				
			Further Assurances. The Parties hereto agree to execute such other documents and to take such other action as may be reasonably necessary to further the purposes of this Agreement.

			

 

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			12.

				
			Tax Consequences/Tax Indemnity. The Parties acknowledge that they are solely responsible for the payment of any and all federal, state, city or local taxes which might be due and owing by them as a result of any term contained in this Agreement. The Parties acknowledge that no tax advice has been offered or given by any Party, their attorneys, agents, or any other representatives, in the course of these negotiations, and each Party is relying upon the advice of its own tax consultant with regard to any tax consequences that may arise as a result of the execution of this Agreement. The ASTA Parties shall indemnify and hold the PLF Parties harmless from any and all financial responsibility or sums found to be due as a result of collection on funded cases previously written-off, written-down or booked as a loss by the PLF Parties prior to the Closing.

			

 

	 	
			13.

				
			Governing Law and Jurisdiction. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of New York without giving effect to doctrines relating to conflicts of laws. Any action seeking enforcement of this Agreement and any claims alleging the breach of any terms and/or conditions of this Agreement or arising out of or relating to this Agreement shall be commenced in the Supreme Court of the State of New York, New York County.

			

 

	 	
			14.

				
			Amendments; Waivers. This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by each of the Parties affected thereby. No failure to exercise, and no delay in exercising, any right, remedy, or power under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, or power under this Agreement preclude any other or further exercise thereof, or the exercise of any other right, remedy, or power provided herein or by law or in equity.

			

 

	 	
			15.

				
			Headings. The titles of paragraphs in this Agreement are for convenience only, are not definitive, and shall not be considered or referred to in resolving questions of interpretation or construction.

			

 

	 	
			16.

				
			Remedies. The Parties acknowledge and agree that a breach of this Agreement may not be adequately compensable by money damages alone and that a breach may cause the non-breaching Party or Parties irreparable injury for which the non-breaching Party or Parties shall be entitled to all equitable remedies, including a temporary restraining order, preliminary injunction and permanent injunction, without the necessity of posting a bond, in addition to an award of monetary damages upon a finding of a breach by a judge or jury. 

			

 

	 	
			17.

				
			Construction. This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors (whether by consolidation, merger or otherwise) and permitted assigns. This Agreement shall be construed without regard to any presumption or other rule requiring construction against the Party causing this Agreement to be drafted. All terms and words used in this Agreement, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require.

			

 

12

 

 

	 	
			18.

				
			Non-Admission of Liability. By execution of this Agreement, each Party specifically denies any wrongdoing as to the other Party, and specifically disclaims any violation of any law, contract, agreement, public policy, or the commission of any tort.

			

 

	 	
			19.

				
			Voluntary Agreement. The Parties further represent and declare that they have carefully read this Agreement and know the contents hereof and that they sign the Agreement freely and voluntarily.

			

 

	 	
			20.

				
			Representation by Counsel. Each Party acknowledges and warrants that he or it has been represented by counsel of his or its own choice throughout all negotiations which preceded the execution of this Agreement. Each Party has read this entire Agreement and, to the extent necessary, had it explained by his or its attorney.

			

 

	 	
			21.

				
			Counterparts. If this Agreement is executed in counterparts, each counterpart shall be deemed an original and all counterparts so executed shall constitute one Agreement binding on all of the Parties hereto, notwithstanding that all of the Parties are not signatory to the same counterpart. This Agreement may be executed by original or facsimile signature, each of which shall be equally binding.

			

 

	 	
			22.

				
			Entire Agreement. All agreements, covenants, representations and warranties, express or implied, oral or written, of the Parties hereto concerning the subject matter hereof are contained herein or in the Member Interest Purchase Agreement executed simultaneously herewith. No other agreements, covenants, representations or warranties, express or implied, oral or written, have been made by any Party hereto to any other Party concerning the subject matter hereof. All other prior and contemporaneous conversations, negotiations, possible and alleged agreements, representations, covenants and warranties concerning the subject matter hereof are merged herein. 

			

 

 

THE NEXT PAGE IS THE SIGNATURE PAGE

 

13

 

 

IN WITNESS WHEREOF, each of the Parties hereto has executed this Settlement Agreement and Release as of the day and year first above written.

 

 

PEGASUS FUNDING, LLC

 

	By: 	/s/ Bruce R. Foster 	 
	 	Name: 	Bruce R. Foster   	 
	 	Title: 	CFO 	 

 

 

 

 

On this 12th day of January , 2018, before me personally came Bruce Foster, to me known, being by me duly sworn did depose and say that he resides at New Jersey, he is one of the members of PEGASUS FUNDING, LLC, described in and who executed the foregoing instrument; that he knows the seal of said LLC; that one of the seals affixed to said instrument is such seal; that it was so affixed by order of the Board of Managers of said LLC; and that he signed his name thereto by like order. 

 

 

	
			 

				
			 

				
			/s/ Susan Kohn

				
			 

			
	
			 

				
			 

				
			Notary

				
			 

			

 

14

 

 

ASFI PEGASUS HOLDINGS, LLC

 

 

 

	
			By: 

				/s/ Gary Stern	 
	 	
			Name:

				
			Gary Stern

				 
	 	
			Title:

				
			President & CEO

				 

 

 

 

On this 12th day of January , 2018 before me personally came Gary Stern, to me known, being by me duly sworn did depose and say that he resides at ________________________, he is one of the members of ASFI PEGASUS HOLDINGS, LLC,  described in and who executed the foregoing instrument; that he knows the seal of said LLC; that one of the seals affixed to said instrument is such seal; that it was so affixed by order of the Board of Managers of said LLC; and that he signed his name thereto by like order.

 

	
			 

				
			 

				
			/s/ Arline Glover

				
			 

			
	
			 

				
			 

				
			Notary

				
			 

			

 

 

15

 

 

ASTA FUNDING, INC.

 

 

 

	
			By: 

				
			/s/ Gary Stern

				 
	 	
			Name:

				
			Gary Stern

				 
	 	
			Title:

				Chairman, President & CEO	 

 

 

 

 

On this 12th day of January , 2018, before me personally came Gary Stern, to me known, being by me duly sworn did depose and say that he resides at ________________________, he is one of the members of ASTA FUNDING, INC., described in and who executed the foregoing instrument; that he knows the seal of said corporation; that one of the seals affixed to said instrument is such seal; that it was so affixed by order of the directors of said corporation; and that he signed his name thereto by like order.

 

	
			 

				
			 

				
			/s/ Arline Glover

				
			 

			
	
			 

				
			 

				
			Notary

				
			 

			

 

 

16

 

 

FUND PEGASUS, LLC

 

 

 

	
			By: 

				
			/s/ Gary Stern

				 
	 	
			Name:

				
			Gary Stern

				 
	 	
			Title:

				
			President & CEO

				 
	 	 	 	 
	 	 	 	 

 

 

 

On this 12th day of January , 2018, before me personally came Gary Stern, to me known, being by me duly sworn did depose and say that he resides at ________________________, he is one of the members of FUND PEGASUS, LLC, described in and who executed the foregoing instrument; that he knows the seal of said LLC; that one of the seals affixed to said instrument is such seal; that it was so affixed by order of the Board of Managers of said LLC; and that he signed his name thereto by like order.

 

	
			 

				
			 

				
			/s/ Arline Glover 

				
			 

			
	
			 

				
			 

				
			Notary

				
			 

			

 

17

 

 

PEGASUS LEGAL FUNDING, LLC

 

 

 

	
			By: 

				
			/s/ Alexander Khanas  

				 
	 	
			Name:

				
			Alexander Khanas

				 
	 	
			Title:

				
			Member

				 

 

 

 

 

On this 12th day of January , 2018, before me personally came Alexander Khanas, to me known, being by me duly sworn did depose and say that he resides at New York, he is one of the members of PEGASUS LEGAL FUNDING, LLC, described in and who executed the foregoing instrument; that he knows the seal of said LLC; that one of the seals affixed to said instrument is such seal; that it was so affixed by order of the Board of Managers of said LLC; and that he signed his name thereto by like order.

 

	
			 

				
			 

				
			/s/ Elizabeth A. Bames 

				
			 

			
	
			 

				
			 

				
			 Notary

				
			 

			

 

18

 

 

/s/ Max Alperovich                 

MAX ALPEROVICH

 

 

Sworn to before me this

12th day of January , 2018

 

 

/s/ Elizabeth A. Bames                   

Notary 

 

19

 

 

/s/ Alex Khanas                 

ALEX KHANAS

 

 

Sworn to before me this

12th day of January , 2018

 

 

/s/ Elizabeth A. Bames                

Notary 

 

20

 

 

/s/ Larry Stoddard, III                   

LARRY STODDARD, III

 

 

Sworn to before me this

12 day of January , 2018

 

 

/s/ Stephanie Sicora (Stoddard)

Notary 

 

21

 

 

/s/ Louis Piccolo                       

LOUIS PICCOLO

 

 

Sworn to before me this

12 day of January , 2018

 

 

/s/ Gudrun M. Harris                  

Notary 

 

22

 

 

A.L. PICCOLO & CO., INC.

 

 

 

	
			By: 

				/s/ Louis A. Piccolo	 
	 	
			Name:

				Louis A. Piccolo	 
	 	
			Title:

				Owner & CEO	 

 

 

 

 

	STATE OF NJ                      	)
	 	) ss.:
	COUNTY OF Hudson           	)

                      

On this __ day of January , 2018, before me personally came Lou Piccolo, to me known, being by me duly sworn did depose and say that he resides at ________________________, he is one of the members of A.L. PICCOLO & CO., INC., described in and who executed the foregoing instrument; that he knows the seal of said corporation; that one of the seals affixed to said instrument is such seal; that it was so affixed by order of the directors of said corporation; and that he signed his name thereto by like order.

 

	
			 

				
			 

				
			/s/ Gudrun M. Harris

				
			 

			
	
			 

				
			 

				
			 Notary

				
			 

			
	
			 

				
			 

				
			 

				
			 

			

 

23Exhibit

Exhibit 4.1

GENOCEA BIOSCIENCES, INC. 
CERTIFICATE OF DESIGNATION OF PREFERENCES, 
RIGHTS AND LIMITATIONS 
OF 
SERIES A CONVERTIBLE PREFERRED STOCK
PURSUANT TO SECTION 151 OF THE 
DELAWARE GENERAL CORPORATION LAW 
GENOCEA BIOSCIENCES, INC., a Delaware corporation (the “Corporation”), in accordance with the provisions of Section 103 of the Delaware General Corporation Law (the “DGCL”) does hereby certify that, in accordance with Sections 141(c) and 151 of the DGCL, the following resolution was duly adopted by the Pricing Committee of the Board of Directors of the Corporation (the “Committee”) as of January 17, 2018: 
RESOLVED:    That the Committee, pursuant to authority expressly vested in it by the Board of Directors, hereby authorizes the issuance of a series of preferred stock designated as the Series A Convertible Preferred Stock, par value $0.001 per share, of the Corporation and hereby fixes the designation, number of shares, powers, preferences, rights, qualifications, limitations and restrictions thereof (in addition to any provisions set forth in the Certificate of Incorporation of the Corporation that are applicable to the preferred stock of all classes and series) as set forth below, and that the filing of this Certificate of Designation with the Secretary of State of the State of Delaware is hereby approved.
SERIES A CONVERTIBLE PREFERRED STOCK
SECTION 1.  DEFINITIONS
For the purposes hereof, the following terms shall have the following meanings: 
“Affiliate” means any person or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act. With respect to a Holder, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Holder will be deemed to be an Affiliate of such Holder. 
“Beneficial Ownership Limitation” shall have the meaning set forth in Section 6(c). 
“Business Day” means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.
“Buy-In” shall have the meaning set forth in Section 6(d)(iii). 
“Closing Sale Price” means, for any security as of any date, the last closing trade price for such security prior to 4:00 p.m., New York City time, on the principal securities exchange or trading market where such security is listed or traded, as reported by Bloomberg, L.P. (or an equivalent, 

reliable reporting service mutually acceptable to and hereafter designated by Holders of a majority of the then-outstanding Series A Preferred Stock and the Corporation), or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, L.P., or, if no last trade price is reported for such security by Bloomberg, L.P., the average of the bid prices of any market makers for such security as reported on the OTC Pink Market by OTC Markets Group, Inc. If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as determined in good faith by the Board of Directors of the Corporation. 
“Commission” means the Securities and Exchange Commission. 
“Common Stock” means the Corporation’s common stock, par value $0.001 per share, and stock of any other class of securities into which such securities may hereafter be reclassified or changed into. 
“Common Stock Equivalents” means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 
“Conversion Date” shall have the meaning set forth in Section 6(a). 
“Conversion Price” shall mean $1.00, as adjusted pursuant to paragraph 7 hereof. 
“Conversion Ratio” shall have the meaning set forth in Section 6(b). 
“Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Series A Preferred Stock in accordance with the terms hereof. 
“Daily Failure Amount” means the product of (x) .005 multiplied by (y) the Closing Sale Price of the Common Stock on the applicable Share Delivery Date. 
“DGCL” shall mean the Delaware General Corporation Law. 
“Distributions” shall have the meaning set forth in Section 5(a). 
“DWAC Delivery” shall have the meaning set forth in Section 6(a). 
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
“Fundamental Transaction” shall mean (A) the Corporation effects any merger or consolidation of the Corporation with or into another Person (other than a merger in which the Corporation is the surviving or continuing entity and its Common Stock is not exchanged for or converted into other securities, cash or property), (B) the Corporation, directly or indirectly, 

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effects any sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, of all or substantially all of its assets in one transaction or a series of related transactions, (C) any tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which all of the Common Stock is exchanged for or converted into other securities, cash or property, or (D) the Corporation effects any reclassification of the Common Stock or any compulsory share exchange (other than as a result of a dividend, subdivision or combination covered by Section 7(a) below) pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property. 
“Holder” means any holder of Series A Preferred Stock. 
“Issuance Date” means the date of the “Closing” as defined in that certain Underwriting Agreement related to the Series A Preferred Stock, dated January 17, 2018, by and between the Corporation and Cantor Fitzgerald & Co. as representative of the several underwriters named therein. 
“Junior Securities” shall have the meaning set forth in Section 5(a). 
“Notice of Conversion” shall have the meaning set forth in Section 6(a). 
“Parity Securities” shall have the meaning set forth in Section 5(a). 
“Person” means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
“Senior Securities” shall have the meaning set forth in Section 5(a). 
“Series A Preferred Stock Register” shall have the meaning set forth in Section 2(b). 
“Share Delivery Date” shall have the meaning set forth in Section 6(d). 
“Stated Value” shall mean $1,000.00. 
“Trading Day” means a day on which the Common Sock is traded for any period on the principal securities exchange or if the Common Stock is not traded on a principal securities exchange, on a day that the Common Stock is traded on another securities market on which the Common Stock is then being traded. 
SECTION 2.  DESIGNATION, AMOUNT AND PAR VALUE; ASSIGNMENT. 
a.    The series of preferred stock designated by this Certificate shall be designated as the Corporation’s Series A Convertible Preferred Stock (the “Series A Preferred Stock”) and the 

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number of shares so designated shall be 1,635. Each share of Series A Preferred Stock shall have a par value of $0.001 per share. 
b.    The Corporation shall register shares of the Series A Preferred Stock, upon records to be maintained by the Corporation for that purpose (the “Series A Preferred Stock Register”), in the name of the Holders thereof from time to time. The Corporation may deem and treat the registered Holder of shares of Series A Preferred Stock as the absolute owner thereof for the purpose of any conversion thereof and for all other purposes. The Corporation shall register the transfer of any shares of Series A Preferred Stock in the Series A Preferred Stock Register upon surrender of the certificates evidencing such shares to be transferred, duly endorsed by the Holder thereof, to the Corporation at its address specified herein, or, in the case of shares of Series A Preferred Stock held through DWAC Delivery (as defined below), upon notice from the Holder’s prime broker with DTC (as defined below). Upon any such registration or transfer, (i) a new certificate evidencing the shares of Series A Preferred Stock so transferred shall be issued to the transferee and a new certificate evidencing the remaining portion of the shares not so transferred, if any, shall be issued to the transferring Holder, or (ii) in the case of DWAC Delivery, credit the account of the new Holder’s prime broker with DTC through its DWAC system and debit the account of the previous Holder’s prime broker with DTC through its DWAC system, in each case (i) and (ii), within three Business Days. The provisions of this Certificate are intended to be for the benefit of all Holders from time to time and shall be enforceable by any such Holder. 
SECTION 3.  DIVIDENDS.
Holders shall be entitled to receive, and the Corporation shall pay, dividends on shares of Series A Preferred Stock equal (on an as-if-converted-to-Common-Stock basis) to and in the same form as dividends (other than dividends in the form of Common Stock, which shall be made in accordance with Section 7(a)) actually paid on shares of the Common Stock when, as and if such dividends (other than dividends in the form of Common Stock, which shall be made in accordance with Section 7(a)) are paid on shares of the Common Stock. Other than as set forth in the previous sentence, no other dividends shall be paid on shares of Series A Preferred Stock; and the Corporation shall pay no dividends (other than dividends in the form of Common Stock) on shares of the Common Stock unless it simultaneously complies with the previous sentence.  All declared but unpaid dividends on shares of Series A Preferred Stock shall increase the Stated Value of such shares, but when such dividends are actually paid any such increase in the Stated Value shall be rescinded.
SECTION 4.  VOTING RIGHTS.
Except as otherwise provided herein or as otherwise required by the DGCL, the Series A Preferred Stock shall have no voting rights. However, as long as any shares of Series A Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote of the Holders of a majority of the then outstanding shares of the Series A Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Series A Preferred Stock or alter or amend this Certificate, amend or repeal any provision of, or add any provision to, the Certificate of Incorporation or bylaws of the Corporation, or file any articles of amendment, certificate of 

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designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series A Preferred Stock in a manner materially different than the effect on the Common Stock, regardless of whether any of the foregoing actions shall be by means of amendment to the Certificate of Incorporation or by merger, consolidation or otherwise, or (b) enter into any agreement with respect to any of the foregoing. 
SECTION 5.  RANK; LIQUIDATION.
The Series A Preferred Stock shall rank pari passu, on an as-converted to Common Stock basis, with all of the Common Stock as to distributions of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntarily or involuntarily, or Fundamental Transaction (in any case, a “Liquidation”). In the event of any Liquidation, the assets of the Corporation available for distribution to its stockholders shall be distributed among the holders of the shares of Series A Preferred Stock and Common Stock, pro rata based on the number of shares held by each such holder, treating for this purpose all such securities as if they had been converted to Common Stock pursuant to the terms of this Certificate of Designation (without regard to the Beneficial Ownership Limitation (as defined below)) immediately prior to such Liquidation. For the sake of clarity, in the no event shall the Beneficial Ownership Limitation apply in the event of a Liquidation.  The Series A Preferred Stock shall, on an as-converted to Common Stock basis, rank (i) senior to any class or series of capital stock of the Corporation hereafter created specifically ranking by its terms junior to any Series A Preferred Stock (the “Junior Securities”); and (ii) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking by its terms senior to any Series A Preferred Stock (“Senior Securities”).
SECTION 6.  CONVERSION. 
a.    Conversions at Option of Holder.  Subject to Section 6(c) below, each share of Series A Preferred Stock shall be convertible, at any time and from time to time from and after the Issuance Date, at the option of the Holder thereof, into a number of shares of Common Stock equal to the Conversion Ratio. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as Annex A (a “Notice of Conversion”), duly completed and executed. Other than a conversion following a Fundamental Transaction or following a notice provided for under Section 7(d)(ii) hereof, the Notice of Conversion must specify at least a number of shares of Series A Preferred Stock to be converted equal to the lesser of (x) 100 shares (such number subject to appropriate adjustment following the occurrence of an event specified in Section 7(a) hereof) and (y) the number of shares of Series A Preferred Stock then held by the Holder. Provided the Corporation’s transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer program, the Notice of Conversion may specify, at the Holder’s election, whether the applicable Conversion Shares shall be credited to the account of the Holder’s prime broker with DTC through its Deposit Withdrawal Agent Commission system (a “DWAC Delivery”). The “Conversion Date”, or the date on which a conversion shall be deemed effective, shall be defined as the Trading Day that the Notice of Conversion, completed and executed, is sent by facsimile to, and received during 

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regular business hours by, the Corporation; provided that the original certificate(s) representing such shares of Series A Preferred Stock being converted, duly endorsed, and the accompanying Notice of Conversion, are received by the Corporation within two (2) Trading Days thereafter. In all other cases, the Conversion Date shall be defined as the Trading Day on which the original shares of Series A Preferred Stock being converted, duly endorsed, and the accompanying Notice of Conversion, are received by the Corporation. The calculations set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error. 
b.    Conversion Ratio.  The “Conversion Ratio” for each share of Series A Preferred Stock shall be equal to the Stated Value divided by the Conversion Price. 
c.    Beneficial Ownership Limitation.  Notwithstanding anything herein to the contrary, the Corporation shall not effect any conversion of the Series A Preferred Stock, and a Holder shall not have the right to convert any portion of the Series A Preferred Stock, to the extent that, after giving effect to an attempted conversion set forth on an applicable Notice of Conversion, such Holder (together with such Holder’s Affiliates, and any other Person whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) or Section 16 of the Exchange Act and the applicable regulations of the Commission, including any “group” of which the Holder is a member (the foregoing, “Attribution Parties”) would beneficially own a number of shares of Common Stock in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its Attribution Parties shall include the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock subject to the Notice of Conversion with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (A) conversion of the remaining, unconverted Series A Preferred Stock beneficially owned by such Holder or any of its Attribution Parties, and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation (including any warrants) beneficially owned by such Holder or any of its Attribution Parties that are subject to a limitation on conversion or exercise similar to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this Section 6(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the applicable regulations of the Commission. In addition, for purposes hereof, “group” has the meaning set forth in Section 13(d) of the Exchange Act and the applicable regulations of the Commission. For purposes of this Section 6(c), it is understood that the number of shares of Common Stock beneficially owned by each Investor shall be aggregated with each other Investor for purposes of Section 13(d) of the Exchange Act. For purposes of this Section 6(c), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (A) the Corporation’s most recent periodic or annual filing with the Commission, as the case may be, (B) a more recent public announcement by the Corporation that is filed with the Commission or (C) a more recent notice by the Corporation or the Corporation’s transfer agent to the Holder setting forth the number of shares of Common Stock then outstanding. Upon the written request of a Holder (which may be by email), the Corporation shall, within three (3) Trading Days thereof, confirm in writing to such Holder (which may be via email) the number of shares of 

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Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to any actual conversion or exercise of securities of the Corporation, including shares of Series A Preferred Stock, by such Holder or its Attribution Parties since the date as of which such number of outstanding shares of Common Stock was last publicly reported or confirmed to the Holder. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock pursuant to such Notice of Conversion (to the extent permitted pursuant to this Section 6(c)). The Corporation shall be entitled to rely on representations made to it by the Holder in any Notice of Conversion regarding its Beneficial Ownership Limitation. 
d.    Mechanics of Conversion.
i.    Delivery of Certificate or Electronic Issuance Upon Conversion.  Not later than three (3) Trading Days after the applicable Conversion Date, or if the Holder requests the issuance of physical certificate(s), two (2) Trading Days after receipt by the Corporation of the original certificate(s) representing such shares of Series A Preferred Stock being converted, duly endorsed, and the accompanying Notice of Conversion (the “Share Delivery Date”), the Corporation shall (a) deliver, or cause to be delivered, to the converting Holder a physical certificate or certificates representing the number of Conversion Shares being acquired upon the conversion of shares of Series A Preferred Stock or (b) in the case of a DWAC Delivery, electronically transfer such Conversion Shares by crediting the account of the Holder’s prime broker with DTC through its DWAC system. If in the case of any Notice of Conversion such certificate or certificates are not delivered to or as directed by or, in the case of a DWAC Delivery, such shares are not electronically delivered to or as directed by, the applicable Holder by the Share Delivery Date, the applicable Holder shall be entitled to elect to rescind such Conversion Notice by written notice to the Corporation at any time on or before its receipt of such certificate or certificates for Conversion Shares or electronic receipt of such shares, as applicable, in which event the Corporation shall promptly return to such Holder any original Series A Preferred Stock certificate delivered to the Corporation and such Holder shall promptly return to the Corporation any Common Stock certificates or otherwise direct the return of any shares of Common Stock delivered to the Holder through the DWAC system, representing the shares of Series A Preferred Stock unsuccessfully tendered for conversion to the Corporation. 
ii.    Obligation Absolute.  Subject to Section 6(c) hereof and subject to Holder’s right to rescind a Conversion Notice pursuant to Section 6(d)(i) above, the Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Series A Preferred Stock in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation 

-7-

of law by such Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to such Holder in connection with the issuance of such Conversion Shares. Subject to Section 6(c) hereof and subject to Holder’s right to rescind a Conversion Notice pursuant to Section 6(d)(i) above, in the event a Holder shall elect to convert any or all of its Series A Preferred Stock, the Corporation may not refuse conversion based on any claim that such Holder or any one associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining conversion of all or part of the Series A Preferred Stock of such Holder shall have been sought and obtained by the Corporation, and the Corporation posts a surety bond for the benefit of such Holder in the amount of 150% of the value of the Conversion Shares into which would be converted the Series A Preferred Stock which is subject to such injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the Corporation shall, subject to Section 6(c) hereof and subject to Holder’s right to rescind a Conversion Notice pursuant to Section 6(d)(i) above, issue Conversion Shares upon a properly noticed conversion. If the Corporation fails to deliver to a Holder such certificate or certificates, or electronically deliver (or cause its transfer agent to electronically deliver) such shares in the case of a DWAC Delivery, pursuant to Section 6(d)(i) on or prior to the fifth (5th) Trading Day after the Share Delivery Date applicable to such conversion (other than a failure caused by incorrect or incomplete information provided by Holder to the Corporation), then, unless the Holder has rescinded the applicable Conversion Notice pursuant to Section 6(d)(i) above, the Corporation shall pay (as liquidated damages and not as a penalty) to such Holder an amount payable, at the Corporation’s option, either (a) in cash or (b) in shares of Common Stock that are valued for these purposes at the Closing Sale Price on the date of such calculation, in each case equal to the product of (x) the number of Conversion Shares required to have been issued by the Corporation on such Share Delivery Date, (y) an amount equal to the Daily Failure Amount and (z) the number of Trading Days actually lapsed after such fifth (5th) Trading Day after the Share Delivery Date during which such certificates have not been delivered, or, in the case of a DWAC Delivery, such shares have not been electronically delivered; provided, however, the Holder shall only receive up to such amount of shares of Common Stock such that Holder and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act (including shares held by any “group” of which the Holder is a member, but excluding shares beneficially owned by virtue of the ownership of securities or rights to acquire securities that have limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) shall not collectively beneficially own greater than 9.99% of the total number of shares of Common Stock of the Corporation then issued and outstanding. Nothing herein shall limit a Holder’s right to pursue actual damages for the Corporation’s failure to deliver Conversion Shares within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief; provided that Holder shall not 

-8-

receive duplicate damages for the Corporation’s failure to deliver Conversion Shares within the period specified herein. The exercise of any such rights shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law. 
iii.    Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Conversion.  If the Corporation fails to deliver to a Holder the applicable certificate or certificates or to effect a DWAC Delivery, as applicable, by the Share Delivery Date pursuant to Section 6(d)(i) (other than a failure caused by incorrect or incomplete information provided by Holder to the Corporation), and if after such Share Delivery Date such Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Conversion Shares which such Holder was entitled to receive upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the Corporation shall (A) pay in cash to such Holder (in addition to any other remedies available to or elected by such Holder) the amount by which (x) such Holder’s total purchase price (including any brokerage commissions) for the shares of Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common Stock that such Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the option of such Holder, either reissue (if surrendered) the shares of Series A Preferred Stock equal to the number of shares of Series A Preferred Stock submitted for conversion or deliver to such Holder the number of shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery requirements under Section 6(d)(i). For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Series A Preferred Stock with respect to which the actual sale price (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay such Holder $1,000. The Holder shall provide the Corporation written notice, within three (3) Trading Days after the occurrence of a Buy-In, indicating the amounts payable to such Holder in respect of such Buy-In together with applicable confirmations and other evidence reasonably requested by the Corporation. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Corporation’s failure to timely deliver certificates representing shares of Common Stock upon conversion of the shares of Series A Preferred Stock as required pursuant to the terms hereof; provided, however, that the Holder shall not be entitled to both (i) require the reissuance of the shares of Series A Preferred Stock submitted for conversion for which such conversion was not timely honored and (ii) receive the number of shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery requirements under Section 6(d)(i). 

-9-

iv.    Reservation of Shares Issuable Upon Conversion.  The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Series A Preferred Stock, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holders of the Series A Preferred Stock, not less than such aggregate number of shares of the Common Stock as shall be issuable (taking into account the adjustments of Section 7) upon the conversion of all outstanding shares of Series A Preferred Stock. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable. 
v.    Fractional Shares.  No fractional shares or scrip representing fractional shares of Common Stock shall be issued upon the conversion of the Series A Preferred Stock. As to any fraction of a share which a Holder would otherwise be entitled to receive upon such conversion, the Corporation shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share. 
vi.    Transfer Taxes.  The issuance of certificates for shares of the Common Stock upon conversion of the Series A Preferred Stock shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the registered Holder(s) of such shares of Series A Preferred Stock and the Corporation shall not be required to issue or deliver such certificates unless or until the Person or Persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid. 
e.    Status as Stockholder.  Upon each Conversion Date, (i) the shares of Series A Preferred Stock being converted shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a holder of such converted shares of Series A Preferred Stock shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Corporation to comply with the terms of this Certificate of Designation. In all cases, the holder shall retain all of its rights and remedies for the Corporation’s failure to convert Series A Preferred Stock. 
SECTION 7.  CERTAIN ADJUSTMENTS. 
a.    Stock Dividends and Stock Splits.  If the Corporation, at any time while this Series A Preferred Stock is outstanding: (A) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of this Series A Preferred Stock) with respect to the then outstanding shares of Common Stock; (B) 

-10-

subdivides outstanding shares of Common Stock into a larger number of shares; or (C) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event (excluding any treasury shares of the Corporation). Any adjustment made pursuant to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision or combination. 
b.    Reserved. 
c.    Calculations.  All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding. 
d.    Notice to the Holders.  
i.    Adjustment to Conversion Price.  Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation shall promptly deliver to each Holder a notice setting forth the Conversion Ratio after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
ii.    Other Notices.  If (A) the Corporation shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Corporation shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Corporation shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Corporation is a party, any sale or transfer of all or substantially all of the assets of the Corporation, of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Corporation, then, in each case, the Corporation shall cause to be filed at each office or agency maintained for the purpose of conversion of this Series A Preferred Stock, and shall cause to be delivered to each Holder at its last address as it shall appear upon the stock books of the Corporation, at least 30 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, 

-11-

consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. 
SECTION 8.  MISCELLANEOUS. 
a.    Notices.  Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service, addressed to the Corporation, at 100 Acorn Park Drive, Cambridge, Massachusetts 02140, facsimile number XXX-XXX-XXXX, or such other facsimile number or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with this Section. Any and all notices or other communications or deliveries to be provided by the Corporation hereunder shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address of such Holder appearing on the books of the Corporation, or if no such facsimile number or address appears on the books of the Corporation, at the principal place of business of such Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the date immediately following the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section between 5:30 p.m. and 11:59 p.m. (New York City time) on any date, (iii) the second Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. 
b.    Lost or Mutilated Series A Preferred Stock Certificate.  If a Holder’s Series A Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of Series A Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership thereof, reasonably satisfactory to the Corporation and, in each case, customary and reasonable indemnity, if requested. Applicants for a new certificate under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Corporation may prescribe. 
c.    Waiver.  Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate of 

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Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of Designation. Any waiver by the Corporation or a Holder must be in writing. Notwithstanding any provision in this Certificate of Designation to the contrary, any provision contained herein and any right of the holders of Series A Preferred Stock granted hereunder may be waived as to all shares of Series A Preferred Stock (and the Holders thereof) upon the written consent of the Holders of not less than a majority of the shares of Series A Preferred Stock then outstanding, unless a higher percentage is required by the DGCL, in which case the written consent of the holders of not less than such higher percentage shall be required. 
d.    Severability.  If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. 
e.    Next Business Day.  Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day. 
f.    Headings.  The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and shall not be deemed to limit or affect any of the provisions hereof. 
g.    Status of Converted Series A Preferred Stock.  If any shares of Series A Preferred Stock shall be converted or reacquired by the Corporation, such shares shall resume the status of authorized but unissued shares of preferred stock and shall no longer be designated as Series A Preferred Stock. 
******************** 

-13-

IN WITNESS WHEREOF, the undersigned has executed this Certificate of Designation this 18th day of January, 2018. 
 
	
			
	 
	 
	 

	 
	 
	/s/ Jonathan Poole

	 
	Name:
	Jonathan Poole

	 
	Title:
	Chief Financial Officer

[Signature Page to Certificate of Designation]

ANNEX A 
NOTICE OF CONVERSION 
(TO BE EXECUTED BY THE REGISTERED HOLDER 
IN ORDER TO CONVERT SHARES OF SERIES A PREFERRED STOCK) 
The undersigned Holder hereby irrevocably elects to convert the number of shares of Series A Convertible Preferred Stock indicated below, represented by stock certificate No(s). (the “Preferred Stock Certificates”), into shares of common stock, par value $0.001 per share (the “Common Stock”), of Genocea Biosciences, Inc., a Delaware corporation (the “Corporation”), as of the date written below. If securities are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. Capitalized terms utilized but not defined herein shall have the meaning ascribed to such terms in that certain Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock (the “Certificate of Designation”) filed by the Corporation on January 18, 2018. 
As of the date hereof, the number of shares of Common Stock beneficially owned by the undersigned Holder (together with such Holder’s Affiliates, and any other Person whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act and the applicable regulations of the Commission, including any “group” of which the Holder is a member), including the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock subject to this Notice of Conversion, but excluding the number of shares of Common Stock which are issuable upon (A) conversion of the remaining, unconverted Series A Preferred Stock beneficially owned by such Holder or any of its Affiliates, and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation (including any warrants) beneficially owned by such Holder or any of its Affiliates that are subject to a limitation on conversion or exercise similar to the limitation contained in Section 6(c) of the Certificate of Designation, is ________. For purposes hereof, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the applicable regulations of the Commission. In addition, for purposes hereof, “group” has the meaning set forth in Section 13(d) of the Exchange Act and the applicable regulations of the Commission. 
Conversion calculations: 
	
		
	Date to Effect Conversion:
	 

	Number of shares of Series A Preferred Stock owned prior to Conversion:
	 

	Number of shares of Series A Preferred Stock to be Converted:
	 

	Number of shares of Common Stock to be Issued:
	 

	Address for delivery of physical certificates:
	 

A-1

or 
for DWAC Delivery:

DWAC Instructions:
Broker no:  _________________________

Account no:  ________________________

	
		
	[HOLDER]
	 

	 
	 

	 
	 

	By:
	 

	 
	Name:

	 
	Title:

	 
	Date:

A-2

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