Document:

Document

Exhibit 10.18

RE:    AMENDED AND RESTATED OFFER OF EMPLOYMENT
To:    Bruce Car
135 University Road Unit 1
Brookline, MA 02445
We refer to the Offer of Employment between you (“Employee”) and Biohaven Pharmaceuticals, Inc. (“Biohaven”). dated August 1, 2022 (“Initial Agreement”).  Following the closing of the merger of Biohaven Pharmaceutical Holding Company Ltd. with Pfizer Inc. on October 3, 2022, we propose to amend and restate the Initial Agreement as follows. The following terms and conditions will govern this employment (“Agreement”). 

Title: Chief Scientific Officer 
(Note: From the period beginning August 1, 2022 through October 2, 2022, the Employee’s title was Scientific Advisor and beginning October 3, 2022, the Employee’s title became Chief Scientific Officer.)

Start date: August 1, 2022
Base Salary: $485,000 per year
•As part of your employment, Biohaven will provide the following benefits:
oHealth & Dental Insurance. Aetna Health and Met Life Dental insurance (family plan) provided to the Employee with no additional premium cost to the Employee (program co- pays, deductibles, etc. will apply). Short and long-term disability insurance.
oEmployer contribution to company 401k plan, representing a 100% company match of up to 4% of Employee contribution.
Annual Merit and Incentives
•45% Annual Target Bonus payable in cash by February 1 of following year depending on Employee performance (prorated for partial year employment) and at the discretion of the Board of Directors.
•Yearly salary increases based on performance will be awarded upon approval of Board of Directors.
•One time issuance of an equity award of 300,000 stock options with a three-year vesting schedule (vesting of 25% on each of the start date, first, second, and third anniversaries) of Biohaven’s parent company, Biohaven Ltd. (NYSE:BHVN) (“Parent”). The grant of all options, or other forms of equity, are governed by the Biohaven Ltd. 2022 Equity Incentive Plan or other relevant equity plan and/or award agreement of the Parent, unless specifically stated otherwise in this Agreement.
•Annual equity awards will be granted upon discretion of the Board of Directors.
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 

Vacation/ Company Holidays / Sick Time
•Vacation time: Biohaven offers a flexible vacation plan that enables employees to schedule vacation with their supervisor without a specific limitation. Further details are outlined in the Biohaven Pharmaceuticals’ Employee Handbook.
•Company Holidays: Nine (9) company holidays.
•Sick Time: To be managed at the discretion of the Employee’s direct manager.
Reporting relationship: Vlad Coric, M.D., Chief Executive Officer
This offer of employment is subject to the Additional Terms attached hereto. Employment at Biohaven is contingent upon successful completion of a background screening. Consistent with our on boarding process, you will be required to review and acknowledge receipt of Biohaven Pharmaceuticals’ Employee Handbook as well as our Code of Conduct.
[Additional Terms Follow]
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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ADDITIONAL TERMS
To the 
EMPLOYMENT OFFER
Between
Biohaven Pharmaceuticals, Inc.
And 
Bruce Car
1.TERM
a.TERM. The term of this Agreement shall commence on the Start Date and shall continue for a period of three (3) years (the “Initial Term”). Thereafter, this Agreement shall be automatically renewed for one-year periods, unless otherwise terminated by Employee or Biohaven upon written notice to the other given not less than ninety (90) days prior to the next anniversary of the Agreement. The Initial Term and any renewals thereof shall be referred to herein as the “Term.”
2.TERMINATION OF EMPLOYMENT.
b.TERMINATION BY THE COMPANY WITHOUT JUST CAUSE, BY VIRTUE OF DEATH OR DISABILITY OF EMPLOYEE, OR RESIGNATION BY EMPLOYEE FOR GOOD REASON.
i.Biohaven shall have the right to terminate Employee’s employment with Biohaven pursuant to this Section 2(a) at any time, in accordance with Section 2(d), without “Just Cause” (as defined in Section 2(c)(ii) below) or by virtue of Employee’s death or Disability (as defined herein). Employee shall have the right to terminate his employment for Good Reason in accordance with Section 2(a)(vi).
ii.If Biohaven terminates Employee’s employment at any time without Just Cause or by virtue of the death or Disability of Employee or Employee terminates his employment with Biohaven for “Good Reason” (as defined in Section 2(a)(vi) below) provided that such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then Employee shall be entitled to receive the Accrued Obligations (defined in 2(a)(iv) below). If Employee complies with the obligations in Section 2(a)(iii) below, Employee shall also be eligible to receive the following “Severance Benefits”:
1.Biohaven will pay Employee an amount equal to the sum of (a) Employee’s then-current Base Salary and (b) Employee’s Annual Target Bonus in substantially equal installments over twelve (12) months following his Separation from Service (the “Severance Period”), less all applicable withholdings and deductions required by law; provided, however, that any such installment payable before the Release Effective Date (as defined in Section 2(a)(iii) below) shall not be paid until the first payroll following the Release Effective Date.
2.If Employee or his covered dependents timely elect continued health and dental coverage under COBRA or, if applicable, state insurance laws, for himself and his covered 
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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dependents under Biohaven’s group health plans following such termination, then Biohaven shall pay the COBRA premiums or, if applicable, premiums for continuation coverage under state insurance laws, necessary to continue Employee’s and/or his covered dependents’ health and dental insurance coverage in effect for himself (and his covered dependents) on the termination date until the earliest of: (i) twelve (12) months following the termination date (the “COBRA Severance Period”); (ii) the date when Employee becomes eligible for substantially equivalent health insurance coverage in connection with new employment; or (iii) the date Employee ceases to be eligible for COBRA or state continuation coverage (or, with respect to his covered dependents, the date they cease to be eligible for COBRA or state continuation coverage) for any reason, including plan termination (such period from the termination date through the earlier of (i)-(iii), (the “COBRA Payment Period”). Notwithstanding the foregoing, if at any time Biohaven determines that its payment of COBRA premiums or, if applicable, premiums for continuation coverage under state insurance laws, on Employee’s behalf would result in a violation of applicable law (including, but not limited to, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying such premiums pursuant to this Section, Biohaven shall pay Employee on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premium or, if applicable, premiums for continuation coverage under state insurance laws, for such month, subject to applicable tax withholding (such amount, the “Special Severance Payment”), for the remainder of the COBRA Payment Period. Nothing in this Agreement shall deprive Employee of his rights under COBRA or ERISA for benefits under plans and policies arising out of his employment by Biohaven or the termination thereof.
3.Payment of a pro-rata bonus payment for which Employee was eligible for the year that includes Employee’s termination date, determined and made in the sole discretion of the Board, equal to the Annual Target Bonus which would have been awarded to Employee if he had remained employed for the applicable performance period, multiplied by a fraction, the numerator of which is the number of days in the year of termination during which Employee was employed, and the denominator of which is 365 and payable at the time bonuses are paid to other similarly situated employees, but no later than March 15 of the year following Employee’s termination date.
4.Biohaven shall pay on Employee’s behalf the premiums for the continuation of Employee’s life insurance benefits for a period of twelve (12) months from the date of termination, subject to any applicable withholdings and deductions required by law, in monthly installments commencing on Biohaven’s first regular payroll date that is more than sixty (60) days following the date of termination.
5.Notwithstanding anything to the contrary set forth in any applicable equity incentive plans or award agreements, effective as of Employee’s last day of employment (“Employment Termination Date”), the vesting and exercisability of unvested time-based vesting equity awards, including without limitation, unvested shares subject to the RSUs and Options, then held by Employee shall accelerate such that any shares that would have vested in the twelve (12) months following Employee’s termination shall become immediately vested and exercisable, if applicable, by Employee upon such termination and Options held by Employee shall remain exercisable, if applicable, for twelve (12) months following Employee’s termination. With respect to any performance-based vesting equity award, such award shall continue to be governed in all respects by the terms of the applicable equity award documents.
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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iii.Employee will be paid all of the Accrued Obligations on Biohaven’s first payroll date after Employee’s date of termination from employment or earlier if required by law. Employee shall receive the Severance Benefits pursuant to Section 2(a)(ii) or Change in Control Severance Benefits pursuant to Section 2(b)(i) of this Agreement if by the 60th day following the date of Employee’s Separation from Service, he or, in case of Employee’s death, his personal representative has signed and delivered to Biohaven a commercially reasonable separation agreement that includes a general release in favor of Biohaven (the “Release”), which cannot be revoked in whole or part by such date (the date that the Release can no longer be revoked is referred to as the “Release Effective Date”). Such Release will not impose any additional restrictive covenants upon Employee beyond those imposed by this Agreement.
iv.For purposes of this Agreement, “Accrued Obligations” are any accrued but unpaid portion of the applicable Base Salary, plus any accrued but unused vacation time that has been earned by Employee as the date of such termination.
v.For purposes of this Agreement, and subject to applicable state and federal law, termination by Biohaven on account of Employee’s “Disability” shall mean termination because Employee is unable due to a physical or mental condition to perform the essential functions of his position with or without reasonable accommodation for six (6) months in the aggregate during any twelve (12) month period. This definition shall be interpreted and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act, and other applicable law. Whenever Severance Benefits or Change in Control Severance Benefits are payable to Employee hereunder during a time when Employee is partially or totally disabled, and such Disability would entitle him to disability income payments according to the terms of any plan or policy now or hereafter provided by Biohaven, the Severance Benefits or Change in Control Severance Benefits payable to Employee hereunder shall be inclusive of any such disability income and shall not be in addition thereto, even if such disability income is payable directly to Employee by an insurance company under a policy paid for by Biohaven.
vi.For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events without Employee’s consent: (1) a material reduction in Employee's Base Salary; (2) a material reduction in Employee’s duties, authority and responsibilities relative to the Employee’s duties, authority, and responsibilities in effect immediately prior to such reduction; (3) the relocation of Employee’s principal place of employment, without Employee's consent, in a manner that lengthens his one-way commute distance by fifty (50) or more miles from his then-current principal place of employment immediately prior to such relocation; (4) any material breach of the Agreement by Biohaven or its successors; or (5) the liquidation, dissolution, merger, consolidation or reorganization of Biohaven or transfer of all or a significant portion of its business and/or assets, other than as a result of the Closing, unless the successor or successors shall have assumed all duties and obligations of Biohaven under the Agreement; provided, however, that, any such termination by Employee shall only be deemed for Good Reason pursuant to this definition if: (a) Employee gives Biohaven written notice to his supervisor of his intent to terminate for Good Reason within thirty (30) days following the occurrence of the condition(s) that he believes constitute(s) Good Reason, which notice shall describe such condition(s); (b) Biohaven fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); (c) Biohaven has not, prior to receiving such notice from Employee, already informed Employee that his employment with Biohaven is being terminated and (d) Employee voluntarily terminates his employment within thirty (30) days following the end of the Cure Period.
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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b.TERMINATION BY THE COMPANY WITHOUT JUST CAUSE OR RESIGNATION BY EMPLOYEE FOR GOOD REASON COINCIDENT WITH A CHANGE IN CONTROL.
i.If Employee’s employment by Biohaven is terminated by Biohaven or any successor entity without “Just Cause” (as defined in Section 2(c)(ii)) (not including termination by virtue of death or Disability) or by Employee for Good Reason within twelve (12) months following the effective date of a “Change in Control” (as defined below), provided that such termination constitutes a Separation from Service, then in addition to paying or providing Employee with the Accrued Obligations and subject to compliance with Section 2(a)(iii), Biohaven will provide the following “Change in Control Severance Benefits”:
1.Biohaven will pay the benefits as described in Sections 2(a)(ii)(l), 2(a)(ii)(2), and 2(a)(ii)(3).
2.Biohaven will pay an additional amount equivalent to Employee’s full Annual Target Bonus, for the performance year in which Employee’s termination occurs. This bonus will be payable subject to standard federal and state payroll withholding requirements and paid in equal installments beginning on the first day of the month following the Release Effective Date (as defined in Section 2(a)(iii)), with the remaining installments paid on the first day of the month for the eleven (11) months thereafter; and
3.Notwithstanding anything to the contrary set forth in any applicable equity incentive plans or award agreements, effective as of Employee’s Employment Termination Date, the vesting and exercisability of all unvested time-based vesting equity awards, including without limitation, unvested shares subject to the RSUs and Options, then held by Employee shall accelerate such that all shares become immediately vested and exercisable, if applicable, by Employee upon such termination and all Options held by Employee shall remain exercisable, if applicable, for twelve (12) months following Employee’s termination. With respect to any performance-based vesting equity award, such award shall continue to be governed in all respects by the terms of the applicable equity award documents.
ii.For purposes of this Agreement, a “Change in Control” means the occurrence of any of the events set forth in clauses (i), (ii) or (iii) with respect to either of Biohaven or the Parent, or the event set forth in clause (v) with respect to Biohaven, in each case of the definition of Change in Control set forth in Biohaven’s 2017 Equity Incentive Plan, as may be amended from time to time.
c.TERMINATION FOR JUST CAUSE OR VOLUNTARY TERMINATION.
i.If Employee’s employment is terminated prior to the expiration of the Term for just cause or if Employee’s employment is terminated as set forth in Section 2(d)(ii) or (iii) hereof (not including a resignation for Good Reason), Employee shall NOT be entitled to receive any Severance Benefits (as defined in Section 2(a)(ii)) or Change in Control Severance Benefits (defined in Section 2(b)(i)) and will only be entitled to receive any accrued but unpaid portion of the applicable Base Salary, plus any accrued but unused vacation that has been earned by Employee as the date of such termination.
ii.For the purposes hereof, Biohaven shall have “Just Cause” to terminate Employee’s employment hereunder as a result of Employee’s gross negligence, willful misconduct, conviction of a felony (including the entry of a plea of nolo contendere) for illegal or criminal behavior in carrying out his duties as required pursuant to the terms of the Agreement. 
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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Notwithstanding any other provision contained herein, Biohaven shall have the right to terminate the Agreement and Employee’s employment without just cause, and Employee’s remedies hereunder in the event of such termination shall be limited to the Severance Benefits or Change in Control Severance Benefits, as applicable, set forth in Section 2(a)(ii) and 2(b)(i) hereof.
d.EVENTS OF TERMINATION. This Agreement shall terminate on the earliest to occur of the following events:
i.    the expiration of the Term;
ii.    the mutual written agreement of Biohaven and Employee;
iii.    the voluntary termination of Employee other than as a result of a resignation for Good Reason (as defined in Section 2(a)(vi));
iv.    the death of Employee or Employee’s retirement;
v.    termination on account of a Disability (as defined above);
vi.    the termination of Employee by Biohaven with or without Just Cause (as defined in Section 2(c)(ii)) upon giving written notice to Employee; or
vii.    for a termination for Good Reason, immediately upon Employee's full satisfaction of the requirements of Section 2(a)(vi)
3.RESTRICTIVE COVENANTS.
a.EPIIA. As a condition of continued employment, Employee agrees to abide by the Employee Proprietary Information and Inventions Agreement that he will execute upon the commencement of employment (the “EPIIA”). The EPIIA may be amended from time to time without regard to this Agreement; provided, however, in the event of any conflict between this Agreement and the EPIIA, whether now or hereafter, the terms of this Agreement shall control notwithstanding any contrary language in the EPIIA. The EPIIA contains provisions that are intended by the parties to survive and do survive termination of this Agreement. The Employee also agrees to review, acknowledge receipt of, and abide by Biohaven Pharmaceuticals’ Employee Handbook as well as our Code of Conduct upon the commencement of employment; provided, however, that in case of any conflict between this Agreement and the Biohaven Pharmaceuticals’ Employee Handbook or Code of Conduct, whether now or hereafter, the terms of this Agreement shall control notwithstanding any contrary language in the Biohaven Pharmaceuticals’ Employee Handbook or Code of Conduct.
b.NON-SOLICITATION AND NON-COMPETITION. Employee and Biohaven agree that Biohaven would suffer irreparable harm and incur substantial damage if Employee were to enter into Competition (as defined herein) with Biohaven. Therefore, in order for Biohaven to protect its legitimate business interests, Employee agrees as follows:
i.    Without the prior written consent of Biohaven, Employee shall not, during the period of employment with Biohaven, directly or indirectly, invest or engage in any business that is Competitive (as defined herein) with the Business (as defined below) of Biohaven or accept employment or render services to a Competitor (as defined herein) of Biohaven as a director, officer, agent, employee or consultant or solicit or attempt to solicit or accept business that is Competitive 
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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with the Business of Biohaven, except that Employee may, subject to Employee’s obligations to Biohaven under this Agreement and the EPIIA, (A) serve on the board of managers or directors (as applicable) of any of the companies or organizations listed on Schedule A hereto, or any other Competitive companies or organizations with the consent of the Board of Directors; and (B) own up to five percent (5%) of any outstanding class of securities of any company registered under Section 12 of the Securities Exchange Act of 1934, as amended. For purposes of this Agreement, the “Business” of Biohaven shall be defined as the development and commercialization of biopharmaceutical drug candidates and related technology based products. Employee is not bound by the terms of any agreement with any previous employer or other party which would limit his abilities to perform his duties and obligations hereunder.
ii.    Without the prior written consent of Biohaven during the Term and upon any termination of Employee’s employment with Biohaven and for a period of twelve (12) months thereafter, Employee shall not, either directly or indirectly, (A) invest or engage in any business that is Competitive (as defined herein) with the Business of Biohaven, except that such restrictions do not apply to Employee’s ownership of up to five percent (5%) of any outstanding class of securities of any company registered under Section 12 of the Securities Exchange Act of 1934, as amended, (B) accept employment with or render services to a Competitor of Biohaven as a director, officer, agent, employee or consultant unless he is serving in a capacity that has no relationship to that portion of the Competitor’s business that is Competitive with the Business of Biohaven, or (C) solicit, attempt to solicit or accept business Competitive with the Business of Biohaven from any of the customers of Biohaven at the time of his termination or within twelve (12) months prior thereto or from any person or entity whose business Biohaven was soliciting at such time.
iii.    Upon termination of his employment with Biohaven, and for a period of twelve (12) months thereafter, Employee shall not, either directly or indirectly, engage, hire, or solicit in any manner whatsoever the employment of an employee of Biohaven.
iv.    For purposes of this Agreement, a business or activity is in “Competition” or “Competitive” with the Business of Biohaven if it involves, and a person or entity is a “Competitor”, if that person or entity is engaged in, or has publicly disclosed plans to become engaged in, the research, development, design, manufacturing, marketing or selling of a specific product or technology that resembles, competes, or is designed to compete, with, or has applications similar to any product or technology within the scope of the Business and for which Biohaven has obtained or applied for a patent or made disclosures, or any product or technology involving any other proprietary research or development engaged in or conducted by Biohaven with which the Employee worked or about which the Employee had access to confidential information during the Term of Employee's employment with Biohaven.
4.GENERAL PROVISIONS.
a.ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties hereto relating to the subject matter hereof, and supersedes all prior agreements and understandings, whether oral or written, with respect to the same, including the Initial Agreement. No modification, alteration, amendment or revision of or supplement to this Agreement shall be valid or effective unless the same is in writing and signed by both parties hereto.
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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b.GOVERNING LAW. This Agreement and the rights and duties of the parties hereunder shall be governed by, construed under and enforced in accordance with the laws of the State of Connecticut.
c.ASSIGNMENT. The rights and obligations of the parties under this Agreement shall not be assignable without written permission of the other party.
d.SEVERABILITY. The invalidity of any provision of this Agreement under the applicable laws of the State of Connecticut or any other jurisdiction, shall not affect the other provisions hereby declared to be severable from all other provisions. The intention of the parties, as expressed in any provision held to be void or ineffective shall be given such full force and effect as may be permitted by law.
e.DISPUTE RESOLUTION. Except for the right of either party to apply to a court of competent jurisdiction for a temporary restraining order, a preliminary injunction, or other equitable relief to preserve the status quo or prevent irreparable harm, any and all claims, disputes or controversies arising under, out of, or in connection with the Agreement, including any disputes relating to production, use or commercialization, which the parties shall be unable to resolve within sixty (60) days shall be mediated in good faith. The party raising such dispute shall promptly advise the other party of such claim, dispute or controversy in a writing, which describes in reasonable detail the nature of such dispute. By not later than five (5) business days after the recipient has received such notice of dispute, each party shall have selected for itself a representative who shall have the authority to bind such party, and shall additionally have advised the other party in writing of the name and title of such representative. By not later than ten (10) business days after the date of such notice of dispute, the party against whom the dispute shall be raised shall select a mediation firm with operations in Connecticut and such representatives shall schedule a date with such firm for a mediation hearing. The parties shall enter into good faith mediation and shall share the costs of the mediation equally, but each party will be responsible for its own attorneys’ fees and costs. If the representatives of the parties have not been able to resolve the dispute within fifteen (15) business days after such mediation hearing, the parties shall have the right to pursue any other remedies legally available to resolve such dispute in either the Courts of the State of Connecticut or in the United States District Court for the District of Connecticut, to whose jurisdiction for such purposes Biohaven and Employee each hereby irrevocably consents and submits.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Start Date.
						
	Biohaven Pharmaceuticals, Inc.
		
	By. 	/s/ Maryellen McQuade
	Name: Maryellen McQuade
	Title: Chief Talent and Sustainability Officer
	
	/s/ Bruce D. Car

	Name: Bruce D. Car

			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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Schedule A
Companies and Organizations on which Employee serves as a Director or Advisor
Pathology AI, Boston, Scientific Advisory Board 
Avanzaex Pharmaceuticals, Scientific Advisory Board
			
	

215 Church Street, New Haven, CT 06510 | Phone: 203-404-0410 | www.biohavenpharma.com 
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Exhibit 4.1

 

Execution Version

 

WARRANT

 

Enservco Corporation

 

Warrant No. 2022-1

 

Date of Issuance: November 3, 2022 (“Issuance Date”)

 

Enservco Corporation, a Delaware corporation (the “Company”), hereby certifies that, Cross River Partners, L.P., a Delaware limited partnership, the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below), upon exercise of this Warrant (including any Warrants issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times after the Issuance Date, but not after 11:59 p.m., Eastern time, on November 3, 2027 (the “Expiration Date”), up to 568,720 (subject to adjustment as provided herein) fully paid and non-assessable shares of Company Common Stock (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 7. This Warrant is issued pursuant to that certain Note Exchange Agreement, dated as of November 3, 2022, by and between the Company and the Holder.

 

1.            EXERCISE OF WARRANT.

 

(a)            Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(c)), this Warrant may be exercised by the Holder on any day after the Issuance Date (an “Exercise Date”), in whole or in part, by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. Within five (5) Trading Days following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the “Aggregate Exercise Price”) via wire transfer of immediately available funds. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the third (3rd) Trading Day following the date on which the Company has received an Exercise Notice, the Company shall transmit to the Holder and the Company’s transfer agent (the “Transfer Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such Exercise Notice in accordance with the terms herein. On or before the fourth (4th) Trading Day following the date on which the Company has received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the Holder or, at the Holder’s instruction pursuant to the Exercise Notice, the Holder’s agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of an Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than five (5) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

 

 

 

 

(b)            Exercise Price. For purposes of this Warrant, “Exercise Price” means, as of any given Exercise Date, $2.11 per share (subject to adjustment as provided herein).

 

(c)            Limitations on Exercises.

 

(i)            Principal Market Regulation. The Company shall not issue any shares of Common Stock upon the exercise of this Warrant if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue without breaching the Company’s obligations under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules and regulations, the “Exchange Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules of the Principal Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder or (C) obtains a waiver from the Principal Market of the applicable rules of such Principal Market for the issuance of shares of Common Stock in excess of such amount. Until such approval or such written opinion is obtained, Holder shall not be issued in the aggregate, upon exercise of the Warrant, shares of Common Stock in an amount greater than the Exchange Cap as of the Issuance Date.

 

2.            ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)            Stock Dividends and Splits. If the Company, at any time on or after the Issuance Date, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock 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 clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b)            Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraphs (a) or (c) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

 

(c)            Other Events. In the event that the Company shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding absent manifest error and whose fees and expenses shall be borne by the Company.

 

2

 

 

3.            REISSUANCE OF WARRANTS.

 

(a)           Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 3(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 3(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b)            Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 3(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

 

(c)            Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 3(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

 

(d)            Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 3(a) or Section 3(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

4.            NOTICES.

 

(a)           Written Notices. All notices and other communications to any party herein to be effective shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail, email, or sent by facsimile as follows:

 

    To the Holder:                  Cross River Partners LP

31 Bailey Avenue, Suite D

Ridgefield, CT 06877

Email: rmurphy@cross-river.com

Attention: Richard Murphy

 

    To the Company:             Enservco Corporation

14133 County Road 9 1/2

Longmont, Colorado 80504

Attention: Mark Patterson

Email: mpatterson@enservco.com

Attn: Chief Financial Officer

 

3

 

 

with a copy to

 

Maslon LLP

3300 Wells Fargo Center

90 South Seventh Street

Email: dholod@maslon.com

Attention: Douglas T. Holod, Esq.

 

Any party hereto may change its address for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, be effective when delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile machine, respectively, or if mailed, upon the third Business Day after the date deposited into the mail or if delivered, upon delivery.

 

5.            AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(c)) may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

6.            GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware.

 

7.            CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

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

 

(b)        “Principal Market” means the NYSE American, (or, if the shares of Common Stock are not listed on the NYSE American, and are listed on one or more Eligible Markets, the primary Eligible Market in which the shares of Common Stock are then listed).

 

(c)        “Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., Eastern time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price or trading volume determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

[signature page follows]

 

4

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	ENSERVCO CORPORATION	 
	 	 	 
	 	 	 
	 	/s/ Mark Patterson	 
	 	 	 
	 	Mark Patterson, Chief Financial Officer	 

 

5

 

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

ENSERVCO CORPORATION

 

The undersigned holder hereby exercises the right to purchase ____________________ of the shares of Common Stock (“Warrant Shares”) of Enservco Corporation, a Delaware corporation (the “Company”), evidenced by Warrant No. 2022-1 (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.             Exercise Price. The Exercise Price of the Warrant is $2.11 per share; therefore, the Aggregate Exercise Price for purchase of the Warrant Shares is $_____________________.

 

2.             Payment of Exercise Price. The Holder shall pay the Aggregate Exercise Price in the sum of $__________________ to the Company in accordance with the terms of the Warrant.

 

3.           Delivery of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, ________________ shares of Common Stock in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

	 	☐  Check here if requesting delivery as a certificate to the following name and to the following address:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	 	DTC Participant:	 	 

 

	 	DTC Number: 	 	 

 

	 	Account Number:	 	 

 

Name of Registered Holder:

 

CROSS RIVER PARTNERS, L.P.

 

	By:	 	 

 

	Print Name:	 	 

 

	Title:	 	 

 

	Tax ID:	 	 

	Facsimile:	 	 

	Email Address:	 	 

 

	Date:	 	 

 

 

 

 

 

Exercise Notice

 

 

 

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Exercise Notice and hereby directs ____________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated _________________, 20___, from the Company and acknowledged and agreed to by __________________________________.

 

	
			 

				
			ENSERVCO CORPORATION

				
			 

			
	
			 

				
			 

				
			 

			
	 	 	 
	
			 

				
			 

				
			 

			

 

	
			 

				
			 Print Name:

				 	
			 

			

 

	 	Title:	 	 

 

 

 

 

 

Acknowledgement

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