Document:

eyes-ex101_6.htm

Exhibit 10.1

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS. IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND REGISTRATION OR QUALIFICATION UNDER ANY APPLICABLE STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED PURSUANT TO AN EXEMPTION UNDER SUCH ACT AND SECURITIES LAWS.

PROMISSORY NOTE

$[         ]________, 2020

FOR VALUE RECEIVED, SECOND SIGHT MEDICAL PRODUCTS, INC., a California corporation (the “Borrower”), hereby unconditionally promises to pay to the order of [             ] (the “Holder”), the principal sum of [             ] U.S. Dollars (the “Principal Amount”), together with accrued and unpaid interest thereon (as provided below).

This Promissory Note (the “Note”) is made by the Borrower in favor of Lender for purposes of providing ongoing working capital funding to Borrower. 

This Note is one of a series of notes in the aggregate principal amount of $[        ], each of like tenor and ranking without priority over one another (collectively, the “Notes”), made by the Borrower in favor of certain lenders (the “Lenders”). Any payments made by the Borrower with respect to this Note or any of the other Notes shall be made to each of the Lenders on a pro rata basis in accordance with the aggregate principal and interest owing under each of the Notes then outstanding.  To the extent any Lender of a Note receives any payment in excess of its pro rata share of such payment, such amount shall be held in trust and delivered over to the Lenders then entitled to receive such amounts.  

In no event shall any interest charged, collected or reserved under this Note exceed the maximum rate then permitted by applicable law and if any such payment is paid by the Borrower, then such excess sum shall be credited by the Holder as a payment of principal.

1.Interest Rate and Repayment of Principal Amount. The Principal Amount outstanding under this Note shall accrue interest at the rate of TWELVE PERCENT (12%) per annum beginning the date of receipt of the Principal Amount (“Issuance Date”). Interest accrued under the Note, along with the Principal Amount will be payable on the December 31, 2021 (the “Maturity Date”). Interest shall be calculated on the basis of a year of 365 days applied to the actual days on which there exists an unpaid balance under this Note.

2.Repayment Extension. If any payment of principal or interest shall be due on a Saturday, Sunday or any other day on which banking institutions in the State of California are required or permitted to be closed, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest under this Note.

3.Manner and Application of Payments. All payments due hereunder shall be paid in lawful money of the United States of America which shall be legal tender in payment of all debts and dues, public and private, in immediately available funds, without offset, deduction or recoupment. Any payment 

 

 

by check or draft shall be subject to the condition that any receipt issued therefore shall be ineffective unless the amount due is actually received by the Holder. Each payment shall be applied first to the payment of any and all costs, fees and expenses incurred by or payable to the Holder in connection with the collection or enforcement of this Note, second to the payment of all unpaid late charges (if any), third, to the payment of all accrued and unpaid interest hereunder and fourth, to the payment of the unpaid Principal Amount, or in any other manner which the Holder may, in its sole discretion, elect from time to time.

4.Prepayment. The Borrower shall have the right to prepay this Note in whole or in part, at any time or from time to time, without premium, penalty or prior written notice to the Holder.

5.Events of Default; Remedies.

(a)Events of Default. Each of the following events shall constitute an “Event of Default” under this Note and under all Notes outstanding, if such event has not been cured within 15 days of written notice of such event to the Borrower: (i) failure of the Borrower to pay any principal, interest, or other amount due hereunder when due, or failure of the Borrower to comply with the other terms, covenants or conditions contained in the Notes; (ii) the commencement, whether voluntary or involuntary, of a case under the laws of the United States, or any other proceeding or action seeking reorganization, liquidation, dissolution or other relief under bankruptcy or insolvency statutes or similar laws, or the appointment of a receiver, trustee or custodian for the Borrower or all or a material portion of the Borrower’s assets or property; or (iii) the dissolution, liquidation, or winding-up of the Borrower. Notwithstanding the foregoing, a merger or consolidation approved in advance in writing by the Holder with a company that assumes responsibility for all obligations of the Borrower under this Note, and is approved in writing in advance of such event by the Holder, shall not constitute an Event of Default. 

(b)Remedies. Upon the occurrence of an Event of Default, and without demand or notice of any kind: (i) all outstanding amounts under this Note (including the outstanding Principal Amount plus any accrued and unpaid interest less any principal payments previously made) shall become immediately due and payable; and (ii) the Holder may exercise any and all rights and remedies available to it at law, in equity or otherwise.

(c)Remedies Cumulative. Each right, power and remedy of the Holder hereunder shall be cumulative and concurrent, and the exercise or beginning of the exercise of any one or more of them shall not preclude the simultaneous or later exercise by the Holder of any or all such other rights, powers or remedies. No failure or delay by the Holder to insist upon the strict performance of any one or more provisions of this Note or to exercise any right, power or remedy consequent upon a breach thereof or default hereunder shall constitute a waiver thereof or preclude the Holder from exercising any such right, power or remedy. By accepting full or partial payment after the due date of any amount of principal of or interest on this Note, or other amounts payable on demand, the Holder shall not be deemed to have waived the right either to require prompt payment when due and payable of all other amounts of principal of or interest on this Note or other amounts payable on demand, or to exercise any rights and remedies available to it in order to collect all such other amounts due and payable under this Note.

(d)Costs of Collection. If this Note is placed in the hands of an attorney for collection following the occurrence of an Event of Default hereunder, the Borrower agrees to pay to the Holder upon demand all reasonable costs and expenses, including, without limitation, all reasonable attorneys’ fees and court costs incurred by the Holder in connection with the enforcement or collection of this Note (whether or not any action has been commenced by the Holder to enforce or collect this Note) or in successfully defending any counterclaim or other legal proceeding brought by the Borrower contesting the Holder’s right to collect the outstanding Principal Amount and/or interest thereon. The obligation of the Borrower to pay all such costs and expenses shall not be merged into any judgment by confession against the Borrower. 

 

 

All of such costs and expenses shall bear interest at the higher of the rate of interest provided herein from the date of payment by the Holder until repaid in full.

6.Miscellaneous.

(a)Jurisdiction and Venue. THE BORROWER AND HOLDER HEREBY AGREE THAT ANY FEDERAL COURT IN THE STATE OF CALIFORNIA SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE BORROWER AND HOLDER PERTAINING DIRECTLY OR INDIRECTLY TO THIS NOTE. THE BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS. FURTHER, THE BORROWER HEREBY WAIVES THE RIGHT TO ASSERT THE DEFENSE OF FORUM NON CONVENIENS AND THE RIGHT TO CHALLENGE THE VENUE OF ANY COURT PROCEEDING COMMENCED PURSUANT TO THIS SECTION 6(a).

(b)Amendment and Waivers. No delay or failure on the part of Holder in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by Holder of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. No modification, amendment or waiver of any provision of this Note or consent to departure therefrom shall be effective unless in writing and signed by the Borrower and the Holder. The Borrower hereby waives presentment and demand for payment, notice of dishonor, protest and notice of protest of this Note.

(c)Assignment. This Note is not assignable by either party unless such assignment is consented to in writing by the other party, except that the Holder may assign its rights hereunder to any of its Affiliates (as defined under the Securities Exchange Act of 1934, as amended) after giving the Borrower written notice at the time of such assignment stating the name and address of the assignee, and provided that such assignee expressly agrees in writing with the Borrower to be bound by and to comply with all of the terms and conditions of this Note. Anything contained herein to the contrary notwithstanding, the Holder (and its permitted assignees) shall not, without the consent of the Borrower, be permitted to assign any rights and/or benefits hereunder to a person that is then actively engaged in a business that is directly competitive with the business then primarily and actively conducted or engaged in by the Borrower. Subject to the foregoing, this Note and all the provisions hereof shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors or permitted assigns.

(d)Governing Law. This Note shall be governed by, and construed in accordance with, the laws of the State of California, without regard to the conflicts of law principles thereof.

(e)Titles and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note.

(f)Notices. Any notice to be given hereunder shall be in writing, and shall be sent to Holder or the Borrower, as the case may be, at the addresses set forth below each party’s signature hereto and shall be deemed received (i) on the earlier of the date of receipt or the date that is five business days after deposit of such notice in the United States mail, if sent postage prepaid, certified mail, return receipt requested, (ii) one business day after dispatch if sent for overnight delivery by a nationally recognized overnight courier, (iii) on the day of transmission if sent by facsimile with electronic receipt of transmission; or (iv) when actually received, if personally delivered.

(g)Maximum Rate of Interest. All payment obligations arising under this Note are subject to the express condition that at no time shall the Borrower be obligated or required to pay interest 

 

 

at a rate which could subject the Holder to either civil or criminal liability as a result of being in excess of the maximum rate which the Borrower is permitted by law to contract or agree to pay. If by the terms of this Note, the Borrower is at any time required or obligated to pay interest at a rate in excess of such maximum rate, the applicable rate of interest shall be deemed to be immediately reduced to such maximum rate, and interest thus payable shall be computed at such maximum rate, and the portion of all prior interest payments in excess of such maximum rate shall be applied and shall be deemed to have been payments in reduction of principal.

(h)Subsequent Holders. This Note is not transferrable by its holder, except with the written consent of the Borrower, which consent shall not be unreasonably withheld. In the event that any holder of this Note transfers this Note for value, the Borrower agrees that except with respect to subsequent holders with actual knowledge of a claim or defense, no subsequent holder of this Note shall be subject to any claims or defenses which Borrower may have against a prior holder (which claims or defenses are not waived as to prior holders), all of which are waived as to the subsequent holder, and that all such subsequent holders shall have all of the rights of a holder in due course with respect to the Borrower even though the subsequent holder may not qualify, under applicable law, absent this paragraph, as a holder in due course.

(i)Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

(j)Severability. It is the desire and intent of the parties that the provisions of this Note be enforced to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, in the event that any provision of this Note would be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Note. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Note. In addition, the parties understand and agree that notwithstanding any of the above provisions of this Section 7(j), no such severability shall be effective if it materially changes the economic benefit of this Note to any party.

(k)Entire Agreement. This Note constitutes the full and entire understanding and agreement between the parties with regard to the subject hereof and thereof.

[Signature page follows]

 

 

SIGNATURE PAGE TO NOTE

 

IN WITNESS WHEREOF, the undersigned have executed this Note as of the date first written above.

 

BORROWER:

SECOND SIGHT MEDICAL PRODUCTS, INC.

 

By:
[Name. Title]

Notice address:

Second Sight Medical Products, Inc.

12744 San Fernando Road, Suite 400

Sylmar, California 91342

 

HOLDER:

[Name]

By:

Notice address:

 

 

Telephone:

E-mail:EX-10.1

 Exhibit 10.1 
  

 

			
	

	  	 Canaccord Genuity LLC

99 High Street
 Suite 1200

Boston, MA
 USA 02110

		
	 CONFIDENTIAL 
  

November 25, 2020
	  	 T1: 1.617.371.3900

T2: 1.800.225.6201

cgf.com

 Delcath Systems, Inc. 
 1633
Broadway 
 22nd Floor, Suite C 

New York, NY 10019 
  

	Attn:	 Gerard Michel 

Chief Executive Officer 
 Dear Mr. Michel,

 This letter (the “Agreement”) will confirm the basis upon which Delcath Systems, Inc. (“Client”) has engaged Canaccord Genuity LLC
(together with its affiliates, control persons, directors, officers, employees and agents, “CG”) to act as Client’s exclusive agent and financial advisor in connection with a registered public offering, on a best efforts basis or in a
firm commitment underwriting, of one or more classes or series of securities of Client (the “Securities”). The Securities may take the form of common stock or other equity-related securities, including warrants and convertible debt. The
offering of the Securities shall be referred to as the “Offering.” 
 As of the date of this Agreement, Client intends to sell approximately
$20 million in Securities. The number or amount and price of the Securities Client shall ultimately agree to sell is entirely within Client’s sole discretion. 
  

	1.	 Services to be Rendered. In performing its services hereunder, CG will: 

 

	 	(a)	 familiarize itself with the business, operations, properties, financial condition and prospects of Client;

  

	 	(b)	 assist Client in the development of descriptive textual and financial materials for filing with the SEC and
other applicable regulatory authorities and distribution to potential investors; and 

  

	 	(c)	 coordinate the marketing and distribution of the Securities to potential investors, including determination of
the terms and pricing of the Securities. 

  

	2.	 Type of Offering. It is understood that the form of the Offering undertaken by Client and CG shall be
subject to the mutual agreement of Client and CG, and that the consummation of any Offering will be subject to, among other things, market conditions. The Offering will be subject to the execution of an underwriting or placement agency agreement
between Client and CG in a form customary for such transactions and mutually satisfactory to each party. It is understood that neither Client nor CG shall have any obligation to undertake an Offering 

 

 Delcath Systems, Inc. 

November 25, 2020 
 Page 2 of 7 

 

 except pursuant to such an agreement. Any Offering undertaken not as a firm commitment
underwriting will be undertaken strictly on a best efforts basis. Any Offering hereunder shall further be subject to the approval of CG’s internal committee, in its sole discretion, in accordance with its usual practices. 

CG will act as a lead left bookrunner of the Offering and will be entitled to a minimum of 62% of the aggregate underwriting discounts,
commissions or other fees (collectively, the “Underwriting Fees”). 
  

	3.	 Fees. In consideration for its services hereunder, Client shall pay to CG the following fees with
such Cash amounts payable by wire transfer of immediately available funds, upon and subject to the closing of the Offering, a placement fee or underwriting discount (the “Offering Fee”) equal to (A) 6.0% of (i) Gross Proceeds, in the
case of a best efforts offering or (ii) the aggregate price to the public, in the case of a firm commitment underwriting, in each case of (i) and (ii) from sales of common stock or other equity-related securities, including warrants;
plus (B) 4.0% of the aggregate principal amount of convertible debt securities sold in the Offering. For purposes hereof, the term “Gross Proceeds” shall mean the aggregate proceeds received by Client at the closing (or closings if
there shall be more than one) of the Offering. 

  

	4.	 Expenses. In addition to any fees that may be payable to CG hereunder and regardless of whether any
Offering is proposed or closed, the Company hereby agrees, from time to time upon request, to reimburse CGfor all of its reasonable expenses arising out of the engagement hereunder (including travel and related expenses, the costs of document
preparation, production and distribution (such as printing and binding, and photocopies), and third party research and database services). In addition, the Company agrees to reimburse the reasonable fees and disbursements of independent counsel
retained by CG in connection with this Agreement, which shall include, without limitation, legal expenses incurred to initially set up the Offering, provided that such expenses shall not exceed $75,000. In the event that the Company advances payment
for expenses to CG pursuant to this Section 4, and such expenses are not ultimately incurred by CG, CG agrees to reimburse the Company for such unincurred expenses upon the earlier of (a) the closing of the Offering, or (b) the date
CG’s engagement terminates pursuant to Section 8 hereof. Nothing herein will be deemed to limit in any manner the indemnification, expense reimbursement, and other obligations of the Company pursuant to the provisions set forth in Annexes
A, which is incorporated by reference into this Agreement. 

  

	5.	 Confidentiality. Client acknowledges that this Agreement and all opinions and advice (whether written or
oral) given by CG to Client in connection with CG’s engagement are confidential and are intended solely for the benefit and use of Client. Client further acknowledges that neither the terms of this Agreement nor CG’s engagement hereunder
nor any of CG’s opinions or financial advice will be disclosed to any third party, without the prior written consent of CG, except as required by law. CG agrees that any non-public information relating to
Client or any potential Investor received by CG from or at the direction of Client will be used by CG solely for the purpose of performing its agency and 

 Delcath Systems, Inc. 

November 25, 2020 
 Page 3 of 7 

 

 advisory roles and that CG will maintain the confidentiality thereof. Notwithstanding the
foregoing, CG may disclose confidential information hereunder (i) to such of its employees and advisors as CG determines have a need to know and who are bound to hold such information confidential, and (ii) to the extent necessary to
comply with any order or other action of a court or administrative agency of competent jurisdiction. 
  

	6.	 Due Diligence. It is understood that CG’s role in the Offering will be subject to the satisfactory
completion of investigation and inquiry into the affairs of Client as CG deems appropriate and necessary under the circumstances (“Due Diligence”). CG shall have the right, in its sole discretion, to terminate its involvement in the
Offering if the outcome of the Due Diligence is not to its satisfaction or if approval of its internal committee is not obtained (“Early Termination”). In the event of an Early Termination by CG, the Client shall not be required to
reimburse CG for its expenses incurred pursuant to Section 4 of this Agreement. 

  

	7.	 Exclusivity. During the term of this Agreement Client will not, and will not permit its representatives,
to: (i) contact or solicit institutions, corporations or other entities as potential purchasers of the Securities; or (ii) pursue any financing transaction which would be in lieu of the contemplated Offering. Furthermore, Client agrees
that during the term of this Agreement, all inquiries, whether direct or indirect, from prospective Investors will be referred to CG and will be deemed to have been contacted by CG in connection with the Offering. Client may reject any potential
Investor if, in its discretion, Client believes that the inclusion of such Investor as a purchaser of the Securities would be incompatible with the best interests of Client. Client shall not be obligated to sell the Securities or to accept any offer
thereof, and the terms of such Securities and the final decision to issue the same shall be subject to the discretionary approval of Client. 

  

	8.	 Term and Termination of Engagement. The term of this Agreement shall extend from the date hereof until
terminated under this Section 8. CG’s engagement hereunder shall terminate upon the earliest to occur of: (i) Early Terminaton; (ii) the closing of the Offering; (iii) the termination of this Agreement by either Client or CG
at any time for any reason, upon ten (10) days written notice to the other party. In the event this Agreement expires or is terminated prior to the closing of the Offering, the rights and obligations of the parties shall cease except as set
forth in Sections 8(a) and 8(b) below. 

  

	 	(a)	 Unless terminated by CG for any reason, or unless terminated by the Company for Cause, (i) CG will be
entitled to its full fee under Section 3 hereof in the event that at any time prior to the expiration of six (6) months after the termination or expiration of this Agreement a Client completes an Offering of Securities for cash; and

  

	 	(b)	 the provisions of this Section 8 and of Sections 3, 4, 5, 9, 10, and 11 hereof shall survive such
termination. 

 Upon any termination of this Agreement by the Company for Cause, the Company shall have no further
obligation to CG with respect to the payment of termination fees or future Offerings under this Section 8. 

 Delcath Systems, Inc. 

November 25, 2020 
 Page 4 of 7 

 

 For purposes of this Agreement, “Cause” shall mean CG’s material failure to
provide the underwriting services contemplated by this Agreement. 
  

	9.	 Indemnification; Contribution. In consideration of and as a condition precedent to CG undertaking the
engagement contemplated by this letter, Client agrees to the indemnification provisions and other matters set forth in Annex A, which is incorporated by reference into this Agreement. 

 

	10.	 Reliance on Others. Client confirms that it will rely on its own counsel and accountants for legal, tax
and accounting advice. 

  

	11.	 Miscellaneous. Nothing in this Agreement is intended to obligate or commit CG to provide any services
other than as set forth above. This Agreement may be executed in counterparts, each of which shall be deemed an original, but which together shall be considered a single instrument. This Agreement constitutes the entire agreement between the parties
hereto, and supersedes all prior agreements and understandings (both written and oral) of the parties hereto with respect to the subject matter hereof, and cannot be amended or otherwise modified except in writing executed by the parties hereto.
Neither party may assign its rights or delegate its obligations hereunder without the prior written consent of the other party. Client and CG represent and warrant that each has the requisite power and authority to enter into and carry out the terms
and provisions of this Agreement and that the execution, delivery and performance of this Agreement does not breach or conflict with any agreement, document or instrument to which it is a party or bound. 

If you are in agreement with the foregoing, please sign where indicated below, whereupon this Agreement shall become effective as of the date hereof. 

Sincerely, 
  

			
	CANACCORD GENUITY LLC
		
	By:	 	 /s/ Eugene Rozelman

		 	Eugene Rozelman
		 	Co-Head of Healthcare, Head of U.S. Biotech & Spec Pharma
	
	ACCEPTED AND AGREED:
	
	DELCATH SYSTEMS, INC.
		
	By:	 	 /s/ Gerard Michel

		 	Gerard Michel
		 	Chief Executive Officer

 Delcath Systems, Inc. 

November 25, 2020 
 Page 5 of 7 

 

 ANNEX A 
 In
the event that Canaccord Genuity LLC or any of its affiliates (“Canaccord Genuity”), the respective shareholders, directors, officers, agents or employees of Canaccord Genuity, or any other person controlling Canaccord Genuity
(collectively, together with Canaccord Genuity, “Indemnified Persons”) becomes involved in any capacity in any action, claim, suit, investigation or proceeding, actual or threatened, brought by or against any person, including stockholders
of Delcath Systems, Inc. (the “Company”), in connection with or as a result of (i) the engagement contemplated by the letter agreement to which this Annex A is attached (the “engagement”), or (ii) any untrue statement
or alleged untrue statement of a material fact contained in any offering materials, including but not limited to any registration statement, prospectus and any prospectus supplement used to offer securities of the Company in a transaction subject to
the engagement as such materials may be amended or supplemented (and including but not limited to any documents deemed to be incorporated therein by reference) (collectively, the “Offering Materials”), or any omission or alleged omission
to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Company will reimburse such Indemnified Person for its legal and other expenses
(including without limitation the costs and expenses incurred in connection with investigating, preparing for and responding to third party subpoenas or enforcing the engagement) incurred in connection therewith as such expenses are incurred;
provided, however, that with respect to clause (i) above if it is finally determined by a court or arbitral tribunal in any such action, claim, suit, investigation or proceeding that any loss, claim damage or liability of
Canaccord Genuity or any other Indemnified Person has resulted primarily and directly from the gross negligence or willful misconduct of Canaccord Genuity in performing the services that are the subject of the engagement, then Canaccord Genuity will
repay such portion of reimbursed amounts that is attributable to expenses incurred in relation to the act or omission of Canaccord Genuity which is the subject of such determination. The Company will also indemnify and hold harmless each Indemnified
Person from and against any losses, claims, damages or liabilities (including actions or proceedings in respect thereof) (collectively, “Losses”) related to or arising out of (i) the engagement, or (ii) any untrue statement or
alleged untrue statement of a material fact contained in the Offering Materials, or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, except, with respect to clause (i) above, to the extent any such Losses are finally determined by a court or arbitral tribunal to have resulted primarily and directly from the willful misconduct or gross
negligence of Canaccord Genuity in performing the services that are the subject of the engagement. 
 If such indemnification is for any reason not
available or insufficient to hold an Indemnified Person harmless (except by reason of the gross negligence or willful misconduct of Canaccord Genuity as described above), the Company and Canaccord Genuity shall contribute to the Losses involved in
such proportion as is appropriate to reflect the relative benefits received (or anticipated to be received) by the Company, on the one hand, and by Canaccord Genuity, on the other hand, with respect to the engagement or, if such allocation is
determined by a court or arbitral tribunal to be unavailable, in such proportion as is appropriate to reflect other 

 Delcath Systems, Inc. 

November 25, 2020 
 Page 6 of 7 

 

 equitable considerations such as the relative fault of the Company on the one hand and of Canaccord Genuity
on the other hand; provided, however, that in no event shall the amounts to be contributed by Canaccord Genuity exceed the fees actually received by Canaccord Genuity in the engagement. Relative benefits to the Company, on the one hand, and
Canaccord Genuity, on the other hand, shall be deemed to be in the same proportion as (i) the total value paid or proposed to be paid or received or proposed to be received by the Company or its security holders, as the case may be, pursuant to
the transaction(s), whether or not consummated, contemplated by the engagement, bears to (ii) all fees actually received by Canaccord Genuity in the engagement. 

The Company also agrees that neither Canaccord Genuity nor any other Indemnified Person shall have any liability to the Company or any person asserting claims
on behalf or in right of the Company in connection with or as a result of the engagement or any matter referred to in the engagement, except to the extent that any Losses incurred by the Company are finally determined by a court or arbitral tribunal
to have resulted primarily and directly from the willful misconduct or gross negligence of Canaccord Genuity in performing the services that are the subject of the engagement. In no event shall Canaccord Genuity or any other Indemnified Person be
responsible for any indirect, special or consequential damages, even if advised of the possibility thereof. 
 In the event that an Indemnified Person is
requested or required to appear as a witness in any action brought by or on behalf of or against the Company relating to the engagement in which such Indemnified Person is not named as a defendant, the Company agrees to promptly reimburse Canaccord
on a monthly basis for all expenses incurred by it in connection with such Indemnified Person’s appearing and preparing to appear as such a witness, including, without limitation, the reasonable fees and disbursements of its legal counsel. 

The Company’s obligations hereunder shall be in addition to any rights that any Indemnified Person may have at common law or otherwise. The letter to
which this Annex A is attached, including this Annex A, and any other agreements relating to the engagement shall be governed by and construed in accordance with the laws of the State of New York, applicable to contracts made and to be performed
therein and, in connection therewith, the parties hereto consent to the exclusive jurisdiction of the state and federal courts of the State of New York, located in Manhattan. Notwithstanding the foregoing, solely for purposes of enforcing the
Company’s obligations hereunder, the Company consents to personal jurisdiction, service and venue in any court proceeding in which any claim subject to this Annex A is brought by or against any Indemnified Person. CANACCORD GENUITY HEREBY
AGREES, AND THE COMPANY HEREBY AGREES ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS SECURITY HOLDERS, TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF THE
ENGAGEMENT OR CANACCORD GENUITY’S PERFORMANCE OF SERVICES THAT ARE THE SUBJECT THEREOF. 

 Delcath Systems, Inc. 

November 25, 2020 
 Page 7 of 7 

 

 The provisions of this Annex A shall apply to the engagement (including related activities prior to the date
hereof) and any modification thereof and shall remain in full force and effect regardless of the completion or termination of the engagement. If any term, provision, covenant or restriction herein is held by a court of competent jurisdiction to be
invalid, void or unenforceable or against public policy, the remainder of the terms, provisions and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

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