Document:

Document

Exhibit 10.3
 Statement of Work
Contract ID Number: 

			
	Statement of Work (SOW) Cover Sheet

						
	BANA SOW Number	
	Vendor SOW Number	Not applicable
	BANA Master Agreement Number	CW1649578

						
	Effective Date	Upon date of last Signature
	Expiration Date	07-31-2025

						
	Vendor Name	Cardlytics, Inc.
	Vendor Contact Name	[***]
	Vendor Contact Phone Number	[***]
	Vendor Contact Email Address	[***]
	Vendor Contact Mailing Address	675 Ponce de Leon Ave., Suite 6000, Atlanta, Georgia 30308

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

This Statement of Work (“SOW”) defines the scope of work to be accomplished by Cardlytics, Inc. (“Vendor”) under the terms and conditions of Bank of America Master Agreement Number
CW1649578 (“Agreement”), effective as of the Effective Date as stated above, by and between Bank of America, N.A. (“Company”) and Vendor. The tasks to be performed by Vendor are defined and an estimated schedule is provided. In addition, the responsibilities of Company are listed.

The following are incorporated in and made a part of this SOW:
APPENDIX A. Statement of Work Change Control Procedure
APPENDIX B. Statement of Work Change Order Form
APPENDIX C. Statement of Work Change Order Log
APPENDIX D. Vendor Reports and Data Fields

1.SOW Changes
Changes to this SOW will be processed in accordance with the procedure described in Appendix A. SOW Change Control Procedure.

2.Definition of Terms, Acronyms, and Abbreviations Used in this SOW
All capitalized terms used in this SOW not defined in this Section shall have the meanings set forth in the Sections of the Agreement in which they are defined. The meaning of the terms defined in this section shall apply only to this SOW and any Change Orders.
1.“Allowable Expenses” means, for any Measurement Period, the aggregate amount of expenses incurred for the following as approved by Company:
i.        [***]
ii.        [***]
iii. [***]
2.[***] “Company Referred Content Provider” means a Content Provider that Company referred to Vendor for the purpose of promoting Offers to Users with which Vendor has not had an active relationship or contract within the last [***] months, and which Vendor acknowledges shall serve as a Company Referred Content Provider for the purposes of this SOW.
3.“Content Provider” means a third party that provides Offers to Users, and which Company approves to present to Users, which may be (1) a merchant that desires to provide an Offer for their products or services via Vendor (e.g., a restaurant, a home-improvement store, a CPG brand), or (2) a third-party-content source or aggregator that allows Vendor to display the selected content via Vendor to Company.  The Parties acknowledge that Company may engage with a merchant, third-party content source or aggregator that provides offers to Company outside of Vendor and the terms of this SOW.  For clarity, any merchant is only considered a “Content Provider” for purposes of the specific offers or content that they provide through Vendor under the Service, and not for purposes of any other content (Offers, services, or products), that the same merchant provides to Company either directly or through any source other than Vendor.
4.“Financial Package” means Vendor provided monthly package detailing activity, payments and collections based on prior month and historical performance.
5.“Measurement Period” means a calendar month.
6.“Offer” means a deal tile that is provided by Vendor and presented to Company Users, and which may include market products, services, coupons, discount offers, and other marketing communications, including without limitation the new advertising campaigns from time to time developed by Vendor.  While Offers are provided by Vendor, the Parties acknowledge that Company may source other Offers from third parties outside the terms of this SOW, and said Offers are not within the scope of this SOW.  For clarity, any merchant is only considered a “Content Provider” for purposes of the specific offers or content that they provide through Vendor under the Service, and not for purposes of any other content (Offers, services, or products), that the same merchant provides to Company either directly or through any source other than Vendor.
7.“Privacy Partner” means a Company approved trusted third-party such as Equifax, Experian, and Acxiom/Live Ramp that anonymously connects Vendor IDs to IDs provided by other entities
8.“Receivables” means the aggregate amount of Total Revenue billed by Vendor to its Content Providers, net of any Revenue Adjustments, which remains uncollected as of any measurement date.
9.“Receivables Adjustment” means, for purposes of adjusting Total Revenue for the portion not collected by Vendor from its Content Providers, an adjustment calculated by subtracting (x) Receivables on the last day of the current Measurement Period from (y) Receivables on the last day of the preceding Measurement Period. If the Receivables Adjustment is positive, it shall be added to Total Revenue. If the Receivables Adjustment is negative, it will be subtracted from Total Revenue.
10.“Redemption Rate” means the number of Offers redeemed divided by the total number of Offers presented.
Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

11.“Revenue Adjustments” includes invoice credits granted by Vendor to its Content Providers for any of the following and shall be subtracted from Total Revenue: Fee discounts, rebates, adjustments, disputed fee invoices.
12.“Revenue Share Amount” means the amount as calculated below in the Service Payments section below.
13.“Revenue Share Percentage” means the applicable percentage as set forth in the Service Payments section below
14.“Reward Summary Offers” means Offers served in a summary format of all Offers available to the individual User.
15.“Rewards” means the economic value of rewards earned by Users.
16.“Term” shall mean the term of this SOW.
17.“Total Redemptions” means total number of redemptions in a calendar month.
18.“Total Revenue” means the aggregate amount of fees billed by Vendor as applicable to its Content Providers and actually collected during the Measurement Period for advertising, Offer placement, and any other activities directly related to the Service and directly identified with, or allocable to, Users; however, the following are not included in Total Revenue and are not to be any part of Revenue Share: (i) User Incentives, and (ii) any markup amounts or other sums charged or received by other third parties that are not collected by Vendor.
19.“User” means a Company account holder that is served an Offer from Vendor in a calendar month regardless of delivery channel.
20.“User Incentive” means the stated or calculated cash value earned by a User upon redemption of an Offer, based upon the value currency of the Offer, including cash, points, miles, or any other rewards currency offered by Company.
21.“User Incentive Adjustments” means, for any Measurement Period, the aggregate amount of the following:
i.Adjustments to User Incentives awarded in the current or any previous Measurement Period resulting from any of the following:
1.Correction of errors by Vendor in the calculation of any User Incentives.
2.Resolution of User disputes regarding determination of User Incentives.
3.Other adjustments to User Incentives mutually agreed to by Company and Vendor.
1.“User Incentive Amount” means (x) the aggregate amount of User Incentives for a Measurement Period (y) plus or minus, as the case may be, the User Incentive Adjustments.
2.“Vendor OPS” means the Vendor Offer Platform System installed on Company’s servers in Company’s data center.
3.“Vendor TMS” means the Vendor Targeted Marketing System which manages the matching, serving and redemption of Offers

3.Description and Scope of the Project
Service Overview: For purposes of this SOW, Vendor will offer the following services to Company (each a “Service” and collectively the “Services”) and will pay Company Revenue Share Amount on such Services as outlined in the Service Payments section:

i.On-Platform Services. 
 Vendor shall provide Offers via certain Company distribution channels, including Company online banking, mobile applications, and emails offered via Company channels, and in connection with these Offers shall provide analytics, assessments, consumer groupings, insights, market information reports or marketing services (in any such instance, from which individual consumer identities have been removed such that any information is not linked or reasonably linkable to any consumer or household, including via a device or other physical object that is capable of connecting to the Internet, directly or indirectly, or to another device) (“On-Platform Analytics”), to Content Providers incorporating Company data subject to the terms of this SOW and the Agreement (collectively, the “On-Platform Services”).  

Additional Service Terms:

Vendor has developed Services that enable Company to target end-users of Company’s debit and credit cards. Activities of Vendor and Company pertaining to the promotion and operation of the Services shall include, but is not limited to, the standard offering of Vendor as it is from time to time revised and enhanced by Vendor, including without limitation those features and services detailed in this SOW and any agreements executed by both parties hereafter.

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

Vendor shall provide the Services with respect to Offers, including the development of advertising campaigns. Vendor shall be solely responsible for billing and collecting User Incentives and advertising fees from its Content Providers. User incentives and revenue share with respect to Content Providers shall be paid as described below in the Service Payments section. 

During the Term, Vendor shall provide a dedicated team to Company consisting of a sufficient number of resources with the appropriate skill set to complete the work necessary to provide the Service. This team will be solely dedicated to Company and will not work on any other Vendor customer.

The Offers will be hosted by Company.

Company will have sole discretion over which Offers to display.  Notwithstanding the foregoing, the Parties agree that Company will not have any right to change the specific content or copy within an Offer. 

4.Out of Scope Activities for each Party
Intentionally Left Blank

5.SOW Term
This SOW shall be in effect from the Effective Date through the Expiration Date indicated on the cover page unless terminated earlier or extended under the terms of the Agreement.

6.Location of Work and Facilities
Intentionally Left Blank

7.Favorable Terms 
During the Term the net economic value, where net economic value is calculated as [***], [***] will be [***]

8.Vendor Responsibilities
Responsibilities of Vendor are listed below.

Task Deliverables
Vendor shall provide the following deliverable(s) to Company:

Task Deliverable: Development of On-Platform Services for Vendor TMS 

Vendor will develop the systems, technologies, relationships, and training to enable Company to electronically accept and process Offers through the Vendor TMS. This process will involve linking the Vendor TMS to Company and installing Vendor OPS on Company’s servers in Company’s data center.                                                                                                                                      
Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

Task Deliverable: Vendor TMS Service Processes 

Vendor will operate and manage the On-Platform Services to and for Company and its Content Providers, which Services will take the following form and also as may be further described in this and other schedules:
i.Vendor is responsible for the design, development, maintenance, and on-going enhancement of the Vendor TMS.
ii.Company acknowledges Vendor utilizes sales materials where Company marks are included in efforts to secure Content Providers.  All materials that include Company marks must be pre-approved by Company.  These materials may be approved in template form.  Authorized templates are required to be approved at a minimum annually.  Any changes to authorized templates must be approved in advance of use.  
iii.Vendor will form relationships with its Content Providers and obtain and publish Offers available for Users to Company.
22.Vendor will develop [***] seasonal concepts throughout the year such as spring home improvement, back-to-school, and summer vacation planning
23.Vendor will provide real time messaging capabilities and enhance such capabilities to allow Company to deliver ‘missed reward’ notifications.
24.Subject to Company providing the relevant User identification information, Vendor will ensure a minimum amount of content is aspirational in nature for the relevant User segment as outlined below. Aspirational content means content from Content Providers that is reasonably considered to be desirable to the relevant customer segment (e.g., Brooks Brothers for Preferred or Office Depot for Small Business).

						
	Customer Segment
(as defined and updated by Company)
	Minimum Aspirational Content
	Preferred	[***]% 

	GWIM	[***]%

	Small Business	[***]%

iv.Vendor will be solely responsible for setting ad pricing with its Content Providers pursuant to separate agreements between Vendor and its Content Providers that shall not be considered beneficiaries of this SOW.  
v.Vendor will operate the Vendor TMS so that it enables its Content Providers to manage market campaigns. Vendor or Content Providers will build advertising campaigns that target Users with particular spend behaviors based on then-current Company Offer approval guidelines.
vi.Vendor will screen its Content Providers’ Offers to ensure that they meet Company media and message standards. Vendor will also conduct ongoing monitoring of its Content Providers for any developments that may result in reputational, regulatory, or other risks to Company or Company Users, and will take all necessary action to mitigate any such risks detected, including immediate notification to Company of the risk identified. Company will have the ability to control Content Provider advertising campaigns in the following manner:
25.Company can eliminate any Content Provider or category of Content Providers from placing Offers to Company. These exclusions will be identified by Company before launching the Vendor Service and will be excluded forever unless Company requests changes, additions, or deletions from the Content Provider exclusions.
26.Company will have access to a review queue where they can preview all Offers that are scheduled to be published to Company. Offers will be in the review queue until Company has approved such offers. Company will make reasonable efforts to approve or disapprove offers within [***] unless mutually agreed between Company and Vendor. Company has the right to veto any Content Provider or Offer for any reason. Publishing of Offers without Company approval shall be considered a breach of this SOW.
vii.Vendor will install and assist Company in operating the Vendor OPS that will be hosted with Company’s data center.
viii.Vendor will provide technology support to Company for problems arising solely out of the Vendor TMS. 
ix.Vendor will provide dedicated client management support to Company.
x.Vendor will receive from Company and review and resolve relevant customer care tickets for customer payment inquiries.
xi.Vendor will provide integration work and training on the Vendor TMS as necessary for activities under this SOW.
xii.Vendor will continue to enhance the Vendor TMS to extend value to Company and create additional earnings for Company.

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

Task Deliverable: Process for Escalating Production Support Issues

Company will submit Production Support Issues through email to [***]. This email distribution group will be monitored [***].  Additionally, in the event of a Severity 1 or 2 issue, in addition to emailing, Company shall call Vendor’s production support line at 1[***].

It will be the responsibility of the active – on call member to acknowledge the Company’s request within the first [***] minutes.

The first responder will escalate the issue to the relative on-call technician (“On-Call Technician”) to begin troubleshooting the issue. The On-Call Technician will assign a severity level, as approved by Company, to the issue, and follow the below Service Level Agreement (“SLA”). If the below SLA elapses, the On-Call Technician will escalate to the next level following the below escalation chart.

The on-call technician will communicate to the party (or parties) on the original issue email following the below communication SLA. On-Call Technician will use all available resources in an attempt to resolve the issues.

Upon successful resolution of a Severity 1 or Severity 2 issue as confirmed by Company, the on-call technician will provide a follow-up email to the party (or parties) and any relative business units within Vendor, with a detailed description of the issue, what the identified root cause was, as outlined in the Production Issue Root Cause Analysis SLA within the SLA table.

Task Deliverable: Reports 

Vendor shall provide Company reports in a manner approved by Company on the Company/Vendor Program that include but are not limited to the list below and the information set forth in APPENDIX D. Vendor Reports and Data Fields.  The reports provided by Vendor to Company will be [***] Further, upon request by Company, Vendor shall provide Company with [***]. Any changes to the reporting content, schedule, or format must be pre-approved by Company in writing.  

Task Deliverable: Offer Details
The parties shall work together to reach an agreed-upon plan regarding Company’s utilization of Offer details and targeting data for the Offers Vendor provides Company, so that Company can facilitate the presentation of Offers in personalized placements, by [***].  As part of this agreement, Company and Vendor shall mutually determine applicable technical and functional requirements, usage details, and other applicable matters.  

Upon the delivery of the data, Company shall be solely authorized to use this data to facilitate the presentation of Offers in personalized placements and this data shall not be shared with any third parties.  Any presentation of offers utilizing this data shall meet Vendor’s program and data requirements, such that Vendor can manage these Offers, and meet its obligations to Content Providers, in the same way that it manages Offers in connection with the On-Platform Services.

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

Service Level Agreement (SLA) & Liquidated Damages:

						
	Customer Care SLA	Liquidated Damages
	Vendor will resolve customer care cases in a Tier 2/Tier 3 environment.  Company will be responsible for entering dispute data into the agreed upon system for submitting tickets.  Vendor will confirm resolution of [***] ([***]%) of cases each month within [***] business days from initial case generation by Company.  
	If Vendor fails to resolve more than [***]percent ([***]%) of cases within [***]days in any month, Company shall be entitled to assess against Vendor, as liquidated damages, and not as a penalty, [***]

*If Company chooses to assess liquidated damages against Vendor in connection with this SLA or any other SLA in this SOW, Company shall notify Vendor in writing of its liquidated-damages assessment within [***] days of the purported occurrence, and any liquidated damages due shall be paid [***].

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

						
	Offer Approval SLA	Liquidated Damages
		
	All Offers and Offer changes (which for purposes of this SLA shall not include date extensions of Offers or placement changes) must be approved by Company prior to presentment to Company Users.  Under no circumstances should Vendor Offers and Offer changes be presented to Company Users without Company approval.	Vendor shall provide a root-cause analysis and mitigation plan to correct Offer approval errors.  In any month where Vendor fails to meet this SLA, Company shall be entitled to assess against Vendor, as liquidated damages, and not as penalty, [***]. 

	Offer Quality SLA	Liquidated Damages
	Vendor shall endeavor to provide customer facing Error-free Offers for the Services herein [***]% of the time each month and must notify Company when Errors are identified.  For purposes of this SLA, an “Error” shall constitute a mistake received from Vendor that should have been corrected by Vendor prior to publishing to Users that falls into one of the following categories: 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
	Vendor shall provide root-cause analysis and mitigation plan to correct Offer quality Errors and User impacts as contemplated by this SLA, if any.  Any rewards expenses tied to the Offer quality error, as deemed by Company will be [***].  If Vendor fails to provide [***]in any month pursuant to the terms of this SLA, Company shall be entitled to assess against Vendor, as liquidated damages, and not as penalty, [***].

	Near-Real-Time Messaging SLA	Liquidated Damages
	Vendor agrees to ensure [***]% of all redemption-eligible transactions are recognized and provided at initial authorization for Company to send near real-time notifications to Users
	Vendor shall provide root-cause analysis and mitigation plan to achieve [***]% and correct customer impacts, if any, at full expense to Vendor.  If Vendor fails to meet this SLA in any month, Company shall be entitled to assess against Vendor, as liquidated damages, and not as a penalty, [***].

	Production Issue Resolution SLA	Liquidated Damages:

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

						
	Severity Level 1 Definition: An event causing severe impact to Vendor’s ability to interact with Company 
No workaround is available.
Services down or unusable: An error stops the Services from running, or so severely impacts production use of the Services that customer’s business operations are critically affected, and Company cannot reasonably continue work

Status Update Frequency: Vendor provides a Bridgeline and a status every [***] to Company

Target Service Restoration: Within [***]

Resolution: up to [***]days or longer if approved by Company

Severity Level 2 Definition: An event causing major impact to Vendor’s support of Company. This could involve severe impact to one or more functions. No workaround is available.
Functionality disabled: An error causes important features of the Service to be unavailable with no reasonable workaround and there is a serious impact on Company’s productivity, but production use of the Service is continuing, and Company can reasonably continue work using the Service.

Status Update Frequency: [***]to Company

Target Service Restoration: Within [***]

Resolution: up to [***] or longer if approved in writing by Company

Severity Level 3 Definition: An event causing moderate impact to Vendor’s ability to support Company. This could involve major impact to one or more business function. A workaround may be available.
Degraded operations: An error which causes important features of the application to be unavailable or to function other than as specified in the applicable documentation, but a workaround exists, or an error causes less significant features of the application to be unavailable or to function other than as specified in the applicable documentation, with no reasonable workaround.

Status Update Frequency: Vendor status update is communicated [***] to Company

Target Service Restoration: Workaround as soon as reasonable and practical in all the circumstances; but not to exceed [***]

Resolution: Fix for the error within the next
Maintenance release or as approved by Company

Severity Level 4 Definition: An event causing minor impact to Vendor’s ability to support Company, but potentially moderate impact on one or more individuals. A workaround may or may not exist.
Minor error: An error which does not affect essential use of the application, but which represents a deviation from the applicable documentation.

Status Update Frequency: Vendor status update is communicated [***] to Company

Target Service Restoration: Vendor workaround as soon as reasonable and practical in all the circumstances; but not to exceed [***]

Resolution: Vendor fix for the error within [***] or as approved by
Company
	If Vendor fails to meet the Production Issue Resolution SLA as outlined in this SLA, Company shall be entitled to assess against Vendor, as liquidated damages, and not as a penalty the amounts stated herein [***].
Vendor restores a Sev 1 issue [***]–[***].  
Vendor restores a Sev1 issue [***]–[***].
Vendor restores a Sev 2 issue [***]–[***].

	SLAs with NO LIQUIDATED DAMAGES
	General Merchant Cleaning SLA
	For customer care cases requiring general merchant cleaning (where the cleaned merchant name is required to generate the appropriate redemption), Vendor will attempt to clean [***] percent ([***]%) of the merchant names within an average of [***] days of initial Company contact case generation

	Financial Reporting

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

						
	Vendor shall supply financial reporting to Company with all details necessary to validate the metrics herein, by [***], as further detailed in this SOW. Vendor shall make all changes to the reporting reasonably requested by Company in a timely manner to allow for full Company reconciliation.  Vendor will provide back-up documentation and other support as necessary to validate any such reporting.  

	Uptime/Availability; Scheduled Maintenance; Performance
	Uptime: Vendor will ensure that the TMS Service will be available to Company and their Users [***]% of the time in any given calendar month, exclusive of scheduled downtime; database maintenance, upgrades, or migrations; hardware maintenance or faults; or connectivity issues. This assumes that Company is maintaining the Vendor OPS installed in their environment per this SOW.   

In the event of scheduled downtime, Vendor agrees to:
a)Provide Company with at least:
i.[***] prior written notice for Priority 3-4 Changes
ii.[***] prior written notice for Priority 2 Changes
iii.[***] notice for Priority 1 Changes
b)Schedule for off-peak hours 
c)Ensure that such downtime does not exceed [***] at any one time; and does not exceed [***] in aggregate in any given month related to core Vendor OPS software. This will not include database maintenance, upgrades, or migrations, hardware maintenance or faults, or connectivity issues caused, by Company. 
The Service availability calculation will exclude “scheduled downtime” which meets the foregoing criteria.   The Company is responsible for calculating Uptime.

	Production Issue Root Cause Analysis
	Vendor will provide a written analysis of the problem provided within [***] days with the required information listed below.  
Issue:  Brief description of the issue/event
Total Outage (if applicable): Include total outage (hours/minutes)
Start Date/Time: Start time of the incident & date
End Date/Time: End time of the incident & date
User Experience: What was experienced as a result of this issue?  What did the User/Company Associate see?
Customer Impact: How many Users were affected?
Technical Impacts:  
Applications Impact:
Root Cause:  If the information is not available, state that it is still being investigated or that the information will be provided by a specific date.  Otherwise, describe the root cause
Short-Term Actions Taken:  Describe the steps that were taken to restore Service.
Next Steps:  Describe what steps will need to be taken and include any target dates that the action will be taken

	Payments
	Vendor shall be solely responsible for paying the User Incentives for its Offers, subject to the User Incentive Adjustments, to Company for payment to Users.  [***]. The User Incentive will be paid to Company no later than [***] days from the last day of the calendar month following in which the incentive was earned by the Users. Vendor agrees to enforce the obligations of its Content Providers to pay any User Incentives provided in Offers from its Content Providers and the other fees and charges owed by that Content Provider. For avoidance of doubt, Vendor will have sole obligation [***].  

The User Incentive Amount from Vendor Content Providers shall be payable by Vendor by wire transfer  no later than [***] days from the last day of the calendar month in which the incentive was earned by the Users.  Each payment shall be accompanied by a data file, in a format acceptable to Company, reconciled to the User Incentive Amount, reflecting the amount of User Incentives and User Incentive Adjustments to be applied to each User account. 

Vendor will pay Revenue Share payments to Company no later than [***] days from the last day of the calendar month in which it was accrued.

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

						
	Financial Package
	For each month, by [***], Vendor will provide Company with a financial package detailing the amounts and supporting documentation for all activity for the preceding month as further detailed in APPENDIX D hereto (the “Financial Package”).  Vendor shall make all changes to the reporting as reasonably requested by Company in a timely manner as requested. For the avoidance of doubt, the Financial Package shall be considered Confidential Information and Vendor shall not share any information from the Financial Package with a third party.

8. Disaster Recovery/Business Continuity
As stated in the Agreement

9. Company Responsibilities
Responsibilities of Company are listed below.

Company will:
•    Obtain any necessary information required for initial testing and integration.
•    Maintain Vendor OPS in the Company’s data center including physical installation, networking, web server configuration and security.
•    On a [***] basis, send to the Vendor OPS a list of transactions and account information for Users.
•    On a [***] basis, enable Vendor to provide Company with the amount of rewards earned by each User. Company will credit the rewards to each account.
•    On a [***] basis, enable Vendor to reimburse Company for the rewards earned by each User. 
•    Perform the tasks required to display Offers to Users on electronic statements.
•    Ensure cardholder terms and conditions allow Company to offer the Vendor Service.
•    Provide Level 1 Customer support
•    Provide assistance and cooperation in the design and preparation of the product display and provide resources to enable the product design and look and feel in the website and computer system of Company operating the Service.
•    Provide the computers and other hardware that is determined to be appropriate for the operation of the Vendor TMS in the data centers of Company in accordance with the scope and specifications in the plan created and agreed to by Vendor and Company.
•    Provide the personnel, hardware and software resources required to support the operation of the Vendor OPS and Services, including without limitation technology and operations support, database management and customer support.

11. Redemption Control

Vendor shall protect against inaccurate redemptions by approving those with certain criteria. Vendor shall hold and review redemptions that meet any of the following:
1.Duplicates
a.REASON: To guard against technical issues. This flag is in place in case a customer loads a transaction file twice.
2.Statistical Deviation
a.REASON: Operations control to ensure campaigns are configured correctly.
3.High Priority
b.REASON: Operations control to ensure all redemptions are reviewed and investigated following the initial launch of a high priority/important campaign. This is an additional safeguard to guarantee Vendor delivers correct results from the campaigns.
i.Set at the discretion of the merchant services team based on priority of merchant relationship.

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

12. Service Payments
Vendor shall pay to Company a revenue share for Services during the Term of this Agreement. Vendor agrees to enforce the obligations of its Content Providers. 
									
	Source	Company Revenue Share Percentage	Vendor Revenue Share 
Percentage

	From Vendor Content Providers

From Company Referred Content Providers 
	[***]% 

[***]% + [***]% of Vendor total advertising fees from non-Company customers.
	[***]%

[***]%

Revenue Share Schedule: Vendor shall make commercially reasonable efforts to collect in a timely fashion all receivables that it is obligated to collect for its Offers.  Regardless of when receivables are collected, they will be shared with the other party per the terms of this Agreement. Vendor is not obligated to pay any Revenue Share Amount with respect to a sum that Vendor has not collected and received. In the unlikely event that receivables are never collected, those sums will not be owed. For all Offers, uncollected receivables will be capped at [***]% of Total Revenues for any given Measurement Period.
Calculation of Revenue Share: 
1.For each Measurement Period, the Revenue Share Amount due to Company shall be calculated as follows:
i.An amount equal to: 
c.Total Revenues from the Services in Section 3. Description of Scope of Project,
d.minus total Revenue Adjustments
e.plus/minus the Receivables Adjustment
f.minus Company approved Allowable Expenses

ii.Multiplied by the applicable Revenue Share Percentage

2.Notwithstanding anything else in this Agreement, Vendor’s Revenue Share under this Agreement for any Measurement Period, will not fall below [***] percent ([***]%).

3.For the avoidance of doubt, all monetary amounts in this SOW are calculated on an accrual basis.
Performance Requirements: The Parties acknowledge that Vendor’s ability to meet its performance obligations under the Agreement is dependent on Company operational performance.  The Parties agree to document such performance goals and meet regularly to discuss, update and resolve any concerns. 

Portfolio Development Expenses
The Parties contemplate continuing user interface updates and annual projects related to the development of system and product improvements throughout the Term.  As such, the Parties agree to reasonably cooperate and agree on finalizing such improvements and projects along with any corresponding Vendor funded development expenses.
13. Designated Contacts for Change Orders

The Designated Contacts for this SOW are listed below. If Vendor’s Designated Contact changes during the Term, Vendor shall notify Company immediately.

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.3
 Statement of Work
Contract ID Number: 

Designated Contacts
												
	Bank of America, N.A.	Cardlytics, Inc.
	Name:		Name:	[***]
	Address:		Address:	675 Ponce de Leon Ave., Suite 6000, Atlanta, GA 30308
	Phone:		Phone:	[***]
	Fax:		Fax:	N/A
	Email:		Email:	[***]

14. Invoicing Information

Vendor shall prepare the Financial Package as set forth in the Agreement and make payments as described in the Service Payments section of this Agreement.

15. Signatures
Vendor agrees to provide the Services described in this SOW provided Bank of America accepts this SOW, without modification, by signing in the space below. 
Each Party agrees that the complete Agreement between us for these Services consists of 1) this SOW and 2) the Agreement.
									
	Agreed to:  Bank of America, N.A.		Agree to:  Cardlytics, Inc.
		 	
	/s/ W. Sam Griffin		/s/ Andy Christiansen

	W. Sam Griffin		Andy Christiansen

	Title:   Procurement Specialist
		Title:   Cheif Financial Officer

APPENDIX A. Statement of Work Change Control Procedure

APPENDIX B.  Statement of Work Change Order Form
APPENDIX C. Statement of Work Change Order Log
APPENDIX D. Vendor Reports and Data Fields 

Certain information has been excluded from this agreement (indicated by “[***]”) because such information (i) is not material and (ii) would be competitively harmful if publicly disclosed.ex_405023.htm

Exhibit 4.18

 

CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS

OF SERIES I CONVERTIBLE PREFERRED STOCK OF

NAVIDEA BIOPHARMACEUTICALS, INC.

 

Pursuant to Section 151 of the General Corporation Law of the State of Delaware, Navidea Biopharmaceuticals, Inc., a corporation organized and existing under the General Corporation Law of the state of Delaware (the “Corporation”), does hereby submit the following:

 

WHEREAS, the Amended and Restated Certificate of Incorporation, as amended, of the Corporation (the “Certificate of Incorporation”) authorizes the issuance of up to 5,000,000 shares of preferred stock, par value $0.001 per share, of the Corporation (“Preferred Stock”) in one or more series, and expressly authorizes the Board of Directors of the Corporation (the “Board”), subject to limitations prescribed by law, to provide, out of the unissued shares of Preferred Stock, for series of Preferred Stock, and, with respect to each such series, to establish and fix the number of shares to be included in any series of Preferred Stock and the designation, rights, preferences, powers, restrictions, and limitations of the shares of such series; and

 

WHEREAS, it is the desire of the Board to establish and fix the number of shares to be included in a new series of Preferred Stock and the designation, rights, preferences, and limitations of the shares of such new series.

 

NOW, THEREFORE, BE IT RESOLVED, that the Board does hereby provide for the issue of a series of Preferred Stock and does hereby in this Certificate of Designation (the “Certificate of Designation”) establish and fix and herein state and express the designation, rights, preferences, powers, restrictions, and limitations of such series of Preferred Stock as follows:

 

	
			Section 1.

				
			Definitions. 

			

 

For the purposes hereof, the following terms shall have the following meanings:

 

“Affiliate” means any Person that. directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 of the Securities Act.

 

“Alternate Consideration” shall have the meaning set forth in Section 7(d).

 

“Beneficial Ownership Limitation” shall have the meaning set forth in Section 6(d).

 

“Board” shall have the meaning set forth in the Recitals.

 

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally are open for use by customers on such day.

 

 

 

 

“Commission” means the United States 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.

 

“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 exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Conversion Amount” means the sum of the Stated Value at issue.

 

“Conversion Date” shall have the meaning set forth in Section 6(a).

 

“Conversion Price” 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 I Preferred Stock in accordance with the terms hereof.

 

“Dealer Manager Agreement” means the dealer manager agreement, dated August [ ], 2022, by and between the Corporation and Maxim Group LLC.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exchange Agent” means Continental Stock Transfer & Trust Company, LLC.

 

“Exempt Issuance” means the sale or issuance of (i) shares of Common Stock or options issued to employees or directors of the Company pursuant to a plan, agreement or arrangement approved by the Board of Directors; (ii) securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Certificate of Designations, provided that such securities have not been amended since the date of this Certificate of Designations to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities; (iii) shares of Common Stock, options or convertible securities issued as acquisition consideration pursuant to the acquisition of another entity by the Company by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement, provided that such issuances are approved by the Board of Directors provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection therewith until the 180th day after the date of this Certificate of Designations, and provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities; (iv) shares of Common Stock, options or convertible securities issued in connection with sponsored research, collaboration, technology license, development, OEM, marketing or other similar agreements or strategic partnerships approved by the Board of Directors provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection therewith until the 180th day after the date of this Certificate of Designations, and provided that any such issuance shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities; and (v) shares of Common Stock issued in connection with the issuance of bona fide commercial bank debt or equipment lease transactions, provided that such issuances are approved by the Board of Directors provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection therewith until the 180th day after the date of this Certificate of Designations.

 

2

 

 

 

“Fundamental Transaction” shall have the meaning set forth in Section 7(d).

 

“Holder” shall mean each of the holders of the Series I Preferred Stock.

 

“Liquidation” shall have the meaning set forth in Section 5.

 

“Notice of Conversion” shall have the meaning set forth in Section 6(a).

 

“Original Issue Date” means the date of the first issuance of any shares of the Series I Preferred Stock regardless of the number of transfers of any particular shares of Series I Preferred Stock and regardless of the number of certificates which may be issued to evidence such Series I Preferred Stock.

 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Preferred Stock” has the meaning set forth in the Recitals.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Series I Preferred Stock” shall have the meaning set forth in Section 2.

 

“Share Delivery Date” shall have the meaning set forth in Section 6(c).

 

“Stated Value” shall have the meaning set forth in Section 2.

 

“Subscription Rights Certificate” shall mean, as to each Holder, the subscription rights certificate completed by such Holder and countersigned by Broadridge.

 

“Subsidiary” means any direct or indirect subsidiary of the Corporation.

 

“Successor Entity” shall have the meaning set forth in Section 7(d).

 

“Trading Day” means a day on which the principal Trading Market is open for business.

 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

 

“Transaction Documents” means this Certificate of Designation, the Dealer Manager Agreement, the Warrant Agreement, the Warrants, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated therein.

 

3

 

 

“Transfer Agent” means Continental Stock Transfer & Trust Company, LLC and a facsimile number of (212) 616-7615 and any successor transfer agent of the Corporation.

 

“Warrant Agreement” means the warrant agency agreement, dated on or about August [ ], 2022, between the Corporation and the Transfer Agent.

 

“Warrants” means, collectively, the Common Stock purchase warrants delivered to the Holders at the closing in accordance with the Warrant Agreement, which Warrants shall be exercisable immediately and have a term of exercise equal to five (5) years, in the form of Exhibit A attached to the Warrant Agreement.

 

	
			Section 2.

				
			Designation, Amount and Par Value.

			

 

The series of preferred stock shall be designated as its Series I Convertible Preferred Stock (the “Series I Preferred Stock”) and the number of shares so designated shall be up to 42,000 (which shall not be subject to increase without the written consent of a majority of the holders of the Series I Preferred Stock then outstanding). Each share of Series I Preferred Stock shall have a par value of $0.001 per share and a stated value equal to $1,000 (the “Stated Value”). The shares of Series I Preferred Stock shall initially be issued and maintained in the form of securities held in book-entry form and the Depository Trust Company or its nominee (“DTC”) shall initially be the sole registered holder of the shares of Series I Preferred Stock.

 

	
			Section 3.

				
			Dividends. 

			

 

Except for stock dividends or distributions for which adjustments are to be made pursuant to Section 7, the Holders shall be entitled to receive, and the Corporation shall pay, dividends on shares of Series I Preferred Stock equal (on an as-if-converted-to-Common-Stock basis, disregarding for such purposes any conversion limitations hereunder) to and in the same form as dividends actually paid on shares of the Common Stock when, as and if such dividends are paid on shares of the Common Stock. No other dividends shall be paid on shares of Series I Preferred Stock, subject to and in accordance with Section 7 below. The Corporation shall not pay any dividends on the Common Stock unless the Corporation simultaneously complies with this provision.

 

	
			Section 4.

				
			Voting Rights.

			

 

Except as otherwise provided herein or as otherwise required by law, the Preferred Stock shall have no voting rights. However, as long as any shares of Series I 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 I Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Series I Preferred Stock or alter or amend this Certificate of Designation, (b) amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the Holders disproportionately to the rights of holders of other capital stock of the Corporation, (c) increase the number of authorized shares of Series I Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing.

 

	
			Section 5.

				
			Liquidation.

			

 

Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”), the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation the same amount that a holder of Common Stock would receive if the Series I Preferred Stock were fully converted (disregarding for such purpose any conversion limitations hereunder) to Common Stock which amounts shall be paid pari passu with all holders of Common Stock. For the avoidance of any doubt, a Fundamental Transaction shall not be deemed a Liquidation. The Corporation shall mail written notice of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each Holder.

 

4

 

 

	
			Section 6.

				
			Conversion.

			

 

	 	
			a.

				
			Conversion at Option of Holder.

			

 

i.    Each share of Series I Preferred Stock shall be convertible, at any time and from time to time from and after the Original Issue Date, at the option of the Holder thereof, into that number of shares of Common Stock (subject to the limitations set forth in Section 6(d)) determined by dividing the Stated Value of such share of Series I Preferred Stock by the Conversion Price. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as Annex A (a “Notice of Conversion”). Each Notice of Conversion shall specify the number of shares of Series I Preferred Stock to be converted, the number of shares of Series I Preferred Stock owned prior to the conversion at issue, the number of shares of Series I Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which day may not be prior to the date the applicable Holder delivers by facsimile or email such Notice of Conversion to the Corporation (such date or the date the Corporation effects an option conversion, the “Conversion Date”). The Conversion Date for a holder whose interest in the shares of Series I Preferred Stock is a beneficial interest in certificate(s) representing the shares of Series I Preferred Stock held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall be the date that DTC (or another established clearing corporation performing similar functions) provides such Notice of Conversion to the Corporation and its Exchange Agent.

 

ii.    Upon delivery of the Notice of Conversion, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Conversion Shares with respect to which the shares of Series I Preferred Stock have been converted irrespective of the date of delivery of the Conversion Shares, provided that the Holder shall deliver such converted shares of Series I Preferred Stock to the Transfer Agent via the DTC’s Deposit/Withdrawal at Custodian system within two Trading Days of delivery of the Notice of Conversion. If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error. To effect conversions of shares of Series I Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing the shares of Series I Preferred Stock to the Corporation unless all of the shares of Series I Preferred Stock represented thereby are so converted, in which case such Holder shall deliver the certificate representing such shares of Series I Preferred Stock promptly following the Conversion Date at issue. Shares of Series I Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued. Notwithstanding anything herein to the contrary, with respect to any conversion at the option of the Corporation hereunder, the Corporation shall exercise such option to convert shares of Series I Preferred Stock on a pro rata basis among Holders based on such Holders’ shares of Series I Preferred Stock. Notwithstanding the foregoing, with respect to any Notice(s) of Conversion delivered by 12:00 p.m. (New York City time) on the Original issue Date, the Corporation agrees to deliver the Conversion Shares subject to such notice(s) by 4:00 p.m. (New York City time) on the Original Issue Date.

 

5

 

 

iii.    Without limiting the rights and remedies of a holder of Series I Preferred Stock hereunder and without limiting the right of a Holder to deliver a Notice of Conversion to the Corporation, a holder whose interest in the shares of Series I Preferred Stock is a beneficial interest in certificate(s) representing the shares of Series I Preferred Stock held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect conversions made pursuant to this Section 6(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction form for conversion, complying with the procedures to effect conversions that are required by DTC (or such other clearing corporation, as applicable).

 

b.     Conversion Price. The conversion price for the Series I Preferred Stock shall equal $____, subject to adjustment herein (the “Conversion Price”).

 

c.     Mechanics of Conversion.

 

i.    Delivery of Conversion Shares Upon Conversion. Not later than the earlier of (y) two (2) Trading Days after each Conversion Date and (z) the number of Trading Days comprising the Standard Settlement Period (as defined below) (the “Share Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder the number of Conversion Shares being acquired upon the conversion of the Series I Preferred Stock, which Conversion Shares shall be free of restrictive legends and trading restrictions. The Corporation shall deliver the Conversion Shares electronically through the Depository Trust Company or another established clearing corporation performing similar functions. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Corporation’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Conversion.

 

ii.    Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Corporation shall promptly return to the Holder any original Series I Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return to the Corporation the Conversion Shares issued to such Holder pursuant to the rescinded Notice of Conversion.

 

6

 

 

iii.    Obligation Absolute; Partial Liquidated Damages. The Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Series I Preferred Stock in accordance with the terms hereof arc 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 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; provided, however, that such delivery shall not operate as a waiver by the Corporation of any such action that the Corporation may have against such Holder. In the event a Holder shall elect to convert any or all of the Stated Value of its 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 Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts a surety bond for the benefit of such Holder in the amount of 150% of the Stated Value of Preferred Stock which is subject to the 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 issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion. If the Corporation fails to deliver to a Holder such Conversion Shares pursuant to Section 6(c)(i) by the Share Delivery Date applicable to such conversion, the Corporation shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated Value of Preferred Stock being converted, $50 per Trading Day (increasing to $100 per Trading Day on the third Trading Day and increasing to $200 per Trading Day on the sixth Trading Day after the Share Delivery Date) for each Trading Day after the Share Delivery Date until such Conversion Shares are delivered or Holder rescinds such conversion. 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. 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.

 

i.    Compensation for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other rights available to the Holder, if the Corporation fails for any reason to deliver to a Holder the applicable Conversion Shares by the Share Delivery Date pursuant to Section 6(c)(i), 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, if any, by which (x) such Holder’s total purchase price (including any brokerage commissions) for the 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 Preferred Stock equal to the number of shares of Preferred Stock submitted for conversion (in which case, such conversion shall be deemed rescinded) 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(c)(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 Preferred Stock with respect to which the actual sale price of the Conversion Shares (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 indicating the amounts payable to such Holder in respect of the Buy-In and, upon request of the Corporation, evidence of the amount of such loss. 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 the Conversion Shares upon conversion of the shares of Preferred Stock as required pursuant to the terms hereof.

 

7

 

 

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 I Preferred Stock, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Series I Preferred Stock), not less than such aggregate number of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions of Section 7) upon the conversion of the then outstanding shares of Series I 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 shall be issued upon the conversion of the Series I Preferred Stock. As to any fraction of a share which the Holder would otherwise be entitled to purchase 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. Notwithstanding anything to the contrary contained herein, but consistent with the provisions of this subsection with respect to fractional Conversion Shares, nothing shall prevent any Holder from converting fractional shares of Series I Preferred Stock.

 

vi.    Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Series I 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 Conversion Shares, 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 Conversion Shares upon conversion in a name other than that of the Holders of such shares of Series I Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares 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. The Corporation shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares.

 

8

 

 

d.    Beneficial Ownership Limitation. The Corporation shall not effect any conversion of the Series I Preferred Stock, and a Holder shall not have the right to convert any portion of the Series I Preferred Stock, to the extent that, after giving effect to the conversion set forth on the applicable Notice of Conversion, such Holder (together with such Holder’s Affiliates, and any Persons acting as a group together with such Holder or any of such Holder’s Affiliates (such Persons, “Attribution Parties”)) would beneficially own 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 Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon conversion of the Series I Preferred Stock with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted Stated Value of Series I Preferred Stock beneficially owned by such Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, the Series I Preferred Stock or the Warrants) beneficially owned by such Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 6(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 6(d) applies, the determination of whether the Series I Preferred Stock is convertible (in relation to other securities owned by such Holder together with any Affiliates and Attribution Parties) and of how many shares of Series I Preferred Stock are convertible shall be in the sole discretion of such Holder, and the submission of a Notice of Conversion shall be deemed to be such Holder’s determination of whether the shares of Series I Preferred Stock may be converted (in relation to other securities owned by such Holder together with any Affiliates and Attribution Parties) and how many shares of the Series I Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, each Holder will be deemed to represent to the Corporation each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 6(d), 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: (i) the Corporation’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Corporation or (iii) a more recent written notice by the Corporation or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request (which may be via email) of a Holder, the Corporation shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including the Series I Preferred Stock, by such Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of Series I Preferred Stock held by the applicable Holder. A Holder may not increase the Beneficial Ownership Limitation provisions of this Section 6(d) applicable to its Series I Preferred Stock without the prior written consent of the Corporation, which may be withheld in the sole discretion of the Corporation; it being understood that in no case shall the Beneficial Ownership Limitation exceed 9.99% of the number of shares of Common Stock outstanding after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the holder and the provisions of this Section 6(d) shall continue to apply. Any such increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered and approved by the Corporation and shall only apply to such Holder and no other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 6(d) to correct this paragraph (or any portion hereon which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of Series I Preferred Stock.

 

9

 

 

	
			Section 7.

				
			Certain Adjustments.

			

 

a.    Stock Dividends and Stock Splits. If the Corporation, at any time while this Series I Preferred Stock is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions that is payable in shares of Common Stock on shares of Common Stock or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of, or payment of a dividend on, this Series I Preferred Stock), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Corporation, 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. 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, combination or re-classification.

 

b.    Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 7(a) above, if at any time the Corporation grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of such Holder’s Series I Preferred Stock (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c.    Pro Rata Distributions. During such time as this Series I Preferred Stock is outstanding, if the Corporation shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Series I Preferred Stock, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Series I Preferred Stock (without regard to any limitations on conversion hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

10

 

 

d.    Fundamental Transaction. If, at any time while this Series I Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Corporation with or into another Person, (ii) the Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Corporation, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Series I Preferred Stock. the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Series I Preferred Stock), the number of shares of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Series I Preferred Stock is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Series I Preferred Stock). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Corporation shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Series I Preferred Stock following such Fundamental Transaction. The amount of any consideration to be received by a Holder in connection with a Fundamental Transaction shall be payable in the same type or form of consideration (and in the same proportion) that is being offered and paid to the holders of Common Stock of the Corporation in connection with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Corporation or surviving entity in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and conditions and issue to the Holders new preferred stock consistent with the foregoing provisions and evidencing the Holders’ right to convert such preferred stock into Alternate Consideration. The Corporation shall cause any successor entity in a Fundamental Transaction in which the Corporation is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents in accordance with the provisions of this Section 7(d) pursuant to written agreements prior to such Fundamental Transaction and shall, at the option of the holder of this Series I Preferred Stock, deliver to the Holder in exchange for this Series I Preferred Stock a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Series I Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Series I Preferred Stock (without regard to any limitations on the conversion of this Series I Preferred Stock) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Series I Preferred Stock immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designation and the other Transaction Documents referring to the “Corporation” shall refer instead to the Successor Entity), and may exercise every right and power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Corporation herein.

 

11

 

 

e.    Subsequent Equity Sales. If, at any time while the Series I Preferred Stock is outstanding, the Corporation or any subsidiary thereof, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any offer, sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than the Conversion Price then in effect (such lower price, the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation (or, if earlier, the announcement) of each Dilutive Issuance the Conversion Price shall be reduced and only reduced to equal the Base Conversion Price, provided that the Base Conversion Price shall not be less than $0.16 (subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions following the date of this Certificate of Designations). Notwithstanding the foregoing, no adjustment will be made under this Section 7(e) in respect of an Exempt Issuance.  The Corporation shall notify the Holders in writing, no later than the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject to this Section 7€, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price, exercise price and other pricing terms (such notice, the “Dilutive Issuance Notice”).  For purposes of clarification, whether or not the Corporation provides a Dilutive Issuance Notice pursuant to this Section 7(e), upon the occurrence of any Dilutive Issuance, the Holders are entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether a Holder accurately refers to the Base Conversion Price in the Notice of Conversion. If the Company enters into a Variable Rate Transaction, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible price, conversion price or exercise price at which such securities may be issued, converted or exercised. The adjustment under this Section 7(e) may be waived with respect to a particular Dilutive Issuance on behalf of all holders of Series I Preferred Stock by the affirmative written consent or vote of the holders of at least a majority of the shares of Series I Preferred Stock then outstanding.

 

12

 

 

f.    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.

 

g.    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 by facsimile or email a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

ii.    Notice to Allow Conversion by Holder. 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, or 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 I Preferred Stock, and shall cause to be delivered by facsimile or email to each Holder at its last facsimile number or email address as it shall appear upon the stock books of the Corporation, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the 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, 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. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Corporation or any of the Subsidiaries, the Corporation shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert the Conversion Amount of this Series I Preferred Stock (or any part hereof) during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

13

 

 

	
			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 e-mail, or sent by a nationally recognized overnight courier service, addressed to the Corporation, at the following address: 4995 Bradenton Avenue, Suite 240, Dublin, Ohio 43017 Attention: Vice President of Finance & Administration, facsimile number 614-793-7520, e-mail address EEves@navidea.com, or such other facsimile number, e-mail address or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with this Section 8a.  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 e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, e-mail address or address of such Holder appearing on the books of the Corporation, or if no such facsimile number, e-mail address or address appears on the books of the Corporation, at the principal place of business of such Holder, as set forth in such Holder’s Subscription Rights Certificate.  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 or e-mail at the e-mail address set forth in this Section 8 prior to 5:30 p.m. (New York City Time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or e-mail address set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (if) upon actual receipt by the party to whom such notice is required to be given.

 

b.    Absolute Obligation. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay liquidated damages, accrued dividends and accrued interest, as applicable, on the shares of Preferred Stock at the time, place, and rate, and in the coin or currency, herein prescribed.

 

c.    Lost or Mutilated Preferred Stock Certificate. If a Holder’s Series I 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 I 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.

 

14

 

 

d.    Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflict of laws thereof. All legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). The Corporation and each Holder hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. The Corporation and each Holder hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Certificate of Designation and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. The Corporation and each Holder hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Certificate of Designation or the transactions contemplated hereby. If the Corporation or any Holder shall commence an action or proceeding to enforce any provisions of this Certificate of Designation, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

e.    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 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 on any other occasion. Any waiver by the Corporation or a Holder must be in writing.

 

f.    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.

 

15

 

 

g.    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.

 

h.    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.

 

i.    Status of Converted or Redeemed Preferred Stock. Shares of Series I Preferred Stock may only be issued pursuant to the Dealer Manager Agreement. If any shares of Series I Preferred Stock shall be converted, redeemed 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 I Convertible Preferred Stock.

 

*************

 

16

 

 

IN WITNESS WHEREOF, the undersigned have executed this Certificate of Designation this [____] day of August, 2022.

 

	
			 

				
			NAVIDEA BIOPHARMACEUTICALS, INC.  

			
	
			 

				
			 

			
	 	 
	
			 

				
			 

			
	
			 

				
			Name: Michael S. Rosol, Ph.D 

			
	
			 

				
			Title: Chief Medical Officer 

			

 

17

 

 

ANNEX A

 

NOTICE OF CONVERSION

 

(TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF PREFERRED STOCK)

 

The undersigned hereby elects to convert the number of shares of Series I Convertible Preferred Stock indicated below into shares of common stock, par value $0.001 per share (the “Common Stock”), of Navidea Biopharmaceuticals, Inc., a Delaware corporation (the “Corporation”), according to the conditions hereof, as of the date written below. If shares of Common Stock 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 and is delivering herewith such certificates and opinions as may be required by the Corporation in accordance with the Dealer Manager Agreement. No fee will be charged to the Holders for any conversion, except for any such transfer taxes.

 

Conversion calculations:

 

	
			Date to Effect Conversion:

				
			 

			

 

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

				
			 

			

 

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

				
			 

			

 

	
			Stated Value of shares of Series I Preferred Stock to be Converted:

				
			 

			

 

	
			Number of shares of Common Stock to be Issued:

				
			 

			

 

	
			Applicable Conversion Price:

				
			 

			

 

	
			Number of shares of Series I Preferred Stock subsequent to Conversion:

				
			 

			

 

	
			Address for Delivery:

				
			 

			

 

or

 

DWAC Instructions:

 

	
			Broker no:

				
			 

				 

 

	
			Account no:

				
			 

				 

 

[HOLDER)

 

By:

Name:

Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]