Document:

CERTIFICATE
      OF DESIGNATIONS, PREFERENCES AND RIGHTS 

     

    OF

     

    SERIES
      D
      CONVERTIBLE PREFERRED STOCK

     

    OF

     

    NOVELOS
      THERAPEUTICS, INC.

    

    (Pursuant
      to Section 151 of the

    Delaware
      General Corporation Law)

     

    Novelos
      Therapeutics, Inc. (the “Corporation”),
      a
      corporation organized and existing under the laws of the State of Delaware,
      hereby certifies that, pursuant to authority conferred on its Board of Directors
      (the “Board”)
      by the
      Certificate of Incorporation of the Corporation, the following resolution was
      adopted by the Board at a meeting of the Board duly held on March 26, 2008,
      which resolution remains in full force and effect on the date hereof:

     

    RESOLVED,
      that
      there is hereby established a series of the Corporation’s authorized Preferred
      Stock (the “Preferred
      Stock”)
      having
      a par value of $0.00001 per share, which series shall be designated as “Series D
      Convertible Preferred Stock” (the “Series
      D Preferred Stock”)
      and
      shall consist of Four Hundred Twenty (420) shares. The shares of Series D
      Preferred Stock shall have the voting powers, designations, preferences and
      other special rights, and qualifications, limitations and restrictions thereof
      set forth below:

     

    1. Certain
      Definitions.
      As
      used
      herein, the following terms shall have the following meanings: 

     

    (a) “Affiliate”
shall
      mean, with respect to any Person, any other Person directly or indirectly
      controlling or controlled by or under direct or indirect common control with
      such specified Person. For the purposes of this definition, “control,”
when
      used with respect to any Person, means the power to direct the management and
      policies of such Person, directly or indirectly, whether through the ownership
      of voting securities, by contract or otherwise; and the terms “affiliated,”
      “controlling”
and
      “controlled”
have
      meanings correlative to the foregoing.

     

    (b) “Business
      Day”
shall
      mean a day, other than a Saturday or Sunday, on which banks in New York City
      are
      open for the general transaction of business.

     

    (c) “Fair
      Market Value”
shall
      mean, with respect to any listed security, its Market Price, and with respect
      to
      any property or assets other than cash or listed securities, the fair value
      thereof determined in good faith by the Board and the Requisite Holders.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) “Initial
      Issue Date”
shall
      mean the date that shares of Series D Preferred Stock are first issued by the
      Corporation.

     

    (e) “Lead
      Series D Preferred Investors”
shall
      mean, collectively, Xmark Opportunity Fund, L.P., a Delaware limited partnership
      (“Xmark
      LP”),
      Xmark
      Opportunity Fund, Ltd., a Cayman Islands exempted company (“Xmark
      Ltd”),
      Xmark
      JV Investment Partners, LLC, a Delaware limited liability company (“Xmark
      LLC”),
      Caduceus Master Fund Limited, a Bermuda corporation (“Caduceus
      Master”),
      Caduceus Capital II, L.P., a Delaware limited partnership (“Caduceus
      Capital”),
      Summer Street Life Sciences Hedge Fund Investors, LLC a Delaware limited
      liability company (“Summer
      Street”),
      UBS
      Eucalyptus Fund, L.L.C., a Delaware registered investment company (“UBS
      Eucalyptus”)
      and PW
      Eucalyptus Fund, Ltd., a Cayman Islands investment company (“PW
      Eucalyptus”). 

     

    (f) “Market
      Price”,
      as of
      a particular date (the “Valuation
      Date”),
      shall
      mean the following with respect to any class of listed securities: (A) if such
      security is then listed on a national stock exchange, the Market Price shall
      be
      the closing sale price of one share of such security on such exchange on the
      last trading day prior to the Valuation Date, provided that if such security
      has
      not traded in the prior ten (10) trading sessions, the Market Price shall be
      the
      average closing price of such security in the most recent ten (10) trading
      sessions during which such security has traded; (B) if such security is then
      included in the OTC Bulletin Board, the Market Price shall be the closing sale
      price of one share of such security on the OTC Bulletin Board on the last
      trading day prior to the Valuation Date or, if no such closing sale price is
      available, the average of the high bid and the low ask price quoted on the
      OTC
      Bulletin Board as of the end of the last trading day prior to the Valuation
      Date, provided that if such stock has not traded in the prior ten (10) trading
      sessions, the Market Price shall be the average closing price of one share
      of
      such security in the most recent ten (10) trading sessions during which such
      security has traded; or (C) if such security is then included in the “pink
      sheets,” the Market Price shall be the closing sale price of one share of such
      security on the “pink sheets” on the last trading day prior to the Valuation
      Date or, if no such closing sale price is available, the average of the high
      bid
      and the low ask price quoted on the “pink sheets” as of the end of the last
      trading day prior to the Valuation Date, provided that if such stock has not
      traded in the prior ten (10) trading sessions, the Market Price shall be the
      average closing price of one share of such security in the most recent ten
      (10)
      trading sessions during which such security has traded.

     

    (g) “OrbiMed
      Entities”
shall
      mean, collectively, Caduceus Master, Caduceus Capital, Summer Street, UBS
      Eucalyptus and PW Eucalyptus.

     

    (h) “Person”
shall
      mean any individual, partnership, company, limited liability company, joint
      venture, association, joint-stock company, trust, unincorporated organization,
      government or agency or political subdivision thereof, or other
      entity.

     

    (i) “Principal
      Market”
means
      the Trading Market on which the Common Stock is primarily listed on and quoted
      for trading, which, as of the Initial Issue Date means the OTC Bulletin Board
      (“OTCBB”). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (j) “Requisite
      Holders”
shall
      mean the holders of at least a majority of the then outstanding shares of
      Preferred Stock which majority must include (i) the Xmark Entities, provided
      such Xmark Entities have purchased an aggregate of $1,480,000 of Series D
      Preferred Stock and hold at least one-third of the Series D Preferred Stock
      issued to the Xmark Entities and (ii) the OrbiMed Entities, provided such
      OrbiMed Entities have purchased an aggregate of $1,813,750 of Series D Preferred
      Stock and hold at least one-third of the Series D Preferred Stock issued to
      the
      OrbiMed Entities (appropriately adjusted for any stock dividend, stock split,
      reverse stock split, reclassification, stock combination or other
      recapitalization occurring after the date hereof).

     

    (k) “SEC”
shall
      mean the U.S. Securities and Exchange Commission.

     

    (l) “Series
      D Stated Value”
shall
      mean, with respect to each share of Series D Preferred Stock, Fifty Thousand
      Dollars ($50,000), which Series D Stated Value shall be subject to appropriate
      adjustment from time to time in the event of any stock dividend, stock split,
      reverse stock split, reclassification, stock combination or other
      recapitalization affecting the Series D Preferred Stock.

     

    (m) “Trading
      Day”
means
      any day on which the Common Stock is purchased and sold on the Principal
      Market.

     

    (n) “VWAP”
on
      a
      Trading Day means the volume weighted average price of the Common Stock for
      such
      Trading Day on the Principal Market as reported by Bloomberg Financial Markets
      or, if Bloomberg Financial Markets is not then reporting such prices, by a
      comparable reporting service of national reputation selected by the Requisite
      Holders and reasonably satisfactory to the Corporation.  If VWAP cannot be
      calculated for the Common Stock on such Trading Day on any of the foregoing
      bases, then the Corporation shall submit such calculation to an independent
      investment banking firm of national reputation reasonably acceptable to the
      Requisite Holders, and shall cause such investment banking firm to perform
      such
      determination and notify the Corporation and the Requisite Holders of the
      results of determination no later than two (2) Business Days from the time
      such
      calculation was submitted to it by the Corporation.  All such
      determinations shall be appropriately adjusted for any stock dividend, stock
      split or other similar transaction during such period.

     

    (o) “Xmark
      Entities”
shall
      mean, collectively, Xmark LP, Xmark Ltd. and Xmark LLC.

     

    2. Designation;
      Preference and Ranking.
      The
      Series D Preferred Stock shall consist of Four Hundred Twenty (420) shares.
      The
      preferences of each share of Series D Preferred Stock with respect to dividend
      payments and distributions of the Corporation's assets upon voluntary or
      involuntary liquidation, dissolution or winding up of the Corporation shall
      be
      equal to the preferences of every other share of Series D Preferred Stock from
      time to time outstanding in every respect. Notwithstanding the terms and
      conditions of any series of Preferred Stock now or hereafter existing providing
      that the Series D Preferred Stock shall rank junior or senior thereto, the
      Series D Preferred Stock shall rank senior to all other outstanding series
      of
      Preferred Stock and senior to the Common Stock, par value $0.00001 per share
      (the “Common
      Stock”),
      of
      the Corporation as to the payment of dividends and the distribution of assets
      upon voluntary or involuntary liquidation, dissolution or winding up of the
      Corporation. No other equity or equity-linked securities shall be permitted
      to
      rank pari passu with the Series D Preferred Stock without express written
      approval of the Requisite Holders.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Dividend
      Rights.
      (a) Each
      holder of Series D Preferred Stock, in preference and priority to the holders
      of
      all other classes of stock, shall be entitled to receive, with respect to each
      share of Series D Preferred Stock then outstanding and held by such holder
      of
      Series D Preferred Stock, dividends, commencing from the date of issuance of
      such share of Series D Preferred Stock, at the rate of nine percent (9%) per
      annum of the Series D Stated Value (the “Series
      D Preferred Dividends”).
      The
      Series D Preferred Dividends shall be cumulative, whether or not earned or
      declared, and shall be paid semi-annually in arrears beginning on June 30,
      2008
      and then on the last day of June and December in each year. The Series D
      Preferred Dividends shall be paid to each holder of Series D Preferred Stock
      in
      cash, out of legally available funds or at the Corporation’s election, but only
      if the Common Stock underlying such dividends are, on the payment date, subject
      to an effective Registration Statement (as defined in the Registration Rights
      Agreement), in Common Stock, based on the lesser of (x) the Conversion Price
      (as
      defined below) then in effect, and (y) the Fair Market Value of the Common
      Stock
      on the Business Day preceding the payment date. If shares of Series D Preferred
      Stock are transferred in between the scheduled Series D Preferred Stock dividend
      payment dates, each of the transferor and transferee of the Series D Preferred
      Stock are entitled to their respective pro rata portion of such Series D
      Preferred Dividends as of the date of transfer. Any election by the Corporation
      to pay dividends in cash or shares of Common Stock shall be made uniformly
      with
      respect to all outstanding shares of Series D Preferred Stock for a given
      dividend period.

    

    (b) No
      dividends shall be paid on any Common Stock of the Corporation or any other
      capital stock of the Corporation during any fiscal year of the Corporation
      until
      all Series D Preferred Dividends (with respect to the current fiscal year and
      all prior fiscal years) shall have been paid, or declared and set apart for
      payment, when due to the holders of Series D Preferred Stock. 

    

    (c) In
      the
      event that the Corporation shall at any time pay a dividend on the Common Stock
      (other than a dividend payable solely in shares of Common Stock) or any other
      class or series of capital stock of the Corporation (except for Series C
      Preferred Stock), the Corporation shall, at the same time, pay to each holder
      of
      Series D Preferred Stock a dividend equal to the dividend that would have been
      payable to such holder if the shares of Series D Preferred Stock held by such
      holder had been converted into Common Stock on the date of determination of
      holders of Common Stock entitled to receive such dividends, subject to the
      limitations on conversion set forth in Sections 6(l) below.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Liquidation
      Rights.
      (a) In
      the event of any liquidation, dissolution or winding up of the Corporation,
      whether voluntary or involuntary, the holders of Series D Preferred Stock shall
      be entitled to receive, on a pro rata basis, prior and in preference to any
      distribution of any of the assets or surplus funds of the Corporation to the
      holders of the Common Stock, or any other class of capital stock of the
      Corporation, an amount equal to the Series D Stated Value for each share of
      Series D Preferred Stock then held by such holder, plus an amount equal to
      all
      declared but unpaid dividends, and all accrued but unpaid dividends set forth
      in
      Section 3(a) above, on each such share of Series D Preferred Stock (the
“Liquidation
      Preference Payment”).
      If,
      upon the occurrence of any such liquidation, dissolution or winding up of the
      Corporation, the assets and funds to be distributed among the holders of Series
      D Preferred Stock shall be insufficient to permit the payment to such holders
      of
      the full Liquidation Preference Payment, then the
      entire assets and funds of the Corporation legally available for distribution
      shall be distributed ratably among the holders of Series D Preferred Stock
      in
      proportion to the Liquidation Preference Payment each such holder is entitled
      to
      receive, and no assets of the Corporation shall be distributed to the holders
      of
      the Common Stock or any other class or series of capital stock of the
      Corporation in respect of such Common Stock or such other stock unless and
      until
      the Liquidation Preference Payment payable to all holders of the Series D
      Preferred Stock has been paid in full. 

    

    (b) After
      payment of the full Liquidation Preference Payment to the holders of the Series
      D Preferred Stock as set forth in Section 4(a) above and subject to any other
      distribution that may be required with respect to any future series of Preferred
      Stock that may from time to time come into existence, the remaining assets
      and
      funds of the Corporation, if any, available for distribution to stockholders
      shall be distributed (i) in connection with a Liquidation Event pursuant to
      Section
      4(c)(1)
      below,
      ratably among the holders of the Series D Preferred Stock, any other class
      or
      series of capital stock that participates with the Common Stock in the
      distribution of assets upon such Liquidation Event and the Common Stock, with
      the holders of the Series D Preferred Stock deemed to hold that number of shares
      of Common Stock into which such shares of Series D Preferred Stock are then
      convertible and (ii) in connection with a Liquidation Event pursuant to
Sections
      4(c)(2)-(5)
      below,
      ratably among the holders of Common Stock.

    

    (c) The
      Requisite Holders, by written notice to the Corporation at least two (2)
      Business Days prior to the effective date thereof, may
      elect
      to treat any of the following transactions as a dissolution or winding up of
      the
      Corporation (each a “Liquidation
      Event”)
      for
      the purposes of this Section 4: (1) any dissolution, winding up or liquidation
      of the Corporation; (2) any sale, lease or other transfer of substantially
      all
      of the Corporation’s assets, in one or a series of transactions; (3) any merger,
      consolidation or similar business combination transaction, in which the
      Corporation is not the survivor or, if the Corporation is the survivor, then
      only if the holders of a majority of the Common Stock outstanding immediately
      before such transaction cease to own a majority of the Common Stock immediately
      after the transaction; (4) in one or a series of events, any change in the
      majority of the members of the Corporation’s Board of Directors (the
“Board”),
      unless the replacement directors were nominated by the majority of the Board
      immediately preceding such change; and (5) if any person or entity (other than
      the Investors) shall acquire or become the “beneficial owner” (as that term is
      defined in Rule 13d-3 of the Exchange Act) of more than 50% of the Corporation’s
      outstanding stock. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) Distributions
      Other than Cash.
      Whenever the distributions provided for in this Section 4 shall be payable
      in
      property other than cash, the value of such distribution shall be
      the Fair
      Market Value thereof. All distributions (including distributions other than
      cash) made hereunder shall be made pro rata
      to the
      holders of Series D Preferred Stock, based on the number of shares of Series
      D
      Preferred Stock held by each such holder.

    

    (e) Right
      to Convert.
      Nothing
      in this Section 4 shall affect in any way the right of each holder of Series
      D
      Preferred Stock to convert such shares at any time and from time to time into
      Common Stock in accordance with Section 6 hereof prior to the Liquidation
      Event.

     

    5. Voting
      Rights; Protective Provisions; Covenants.

    

    (a) Except
      as
      otherwise provided herein or as required by applicable law, the holders of
      Series D Preferred Stock shall be entitled to vote on all matters on which
      the
      holders of Common Stock shall be entitled to vote, in the same manner and with
      the same effect as the holders of Common Stock, voting together with the holders
      of Common Stock as a single class. For this purpose, the holders of Series
      D
      Preferred Stock shall be given notice of any meeting of stockholders as to
      which
      the holders of Common Stock are given notice in accordance with the by-laws
      of
      the Corporation. As to any matter on which the holders of Series D Preferred
      Stock shall be entitled to vote, each holder of Series D Preferred Stock shall
      have a number of votes per share of Series D Preferred Stock held of record
      by
      such holder on the record date for the meeting of stockholders, if such matter
      is subject to a vote at a meeting of stockholders, or on the effective date
      of
      any written consent, if such matter is subject to a written consent of the
      stockholders without a meeting of stockholders, equal to the number of shares
      of
      Common Stock into which such share of Series D Preferred Stock is then
      convertible on such record date or effective date, as the case may be, in
      accordance with Section 6 hereof (subject to the limitations on conversion
      set
      forth in Sections 6(l) below). 

    

    (b) So
      long
      as all or any portion of the Series D Preferred Stock remain outstanding,
      without the prior written consent of the holders of the Requisite Holders,
      the
      Corporation shall not, directly or indirectly, take any of the following actions
      or agree to take any of the following actions:

     

    (1) amend,
      alter or repeal (whether by merger, consolidation or otherwise) any provision
      of
      the Corporation’s certificate of incorporation or the bylaws;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2) create
      or
      authorize the creation of or issue any equity security, or any security
      convertible into or exercisable for any equity security, unless the per share
      price of such securities exceeds $0.65 in cash and such securities rank junior
      to the Series D Preferred Stock; provided that the Company may issue shares
      of
      Common Stock or options to employees, consultants, officers or directors of
      the
      Company pursuant to any stock or option plan duly adopted by a majority of
      the
      non-employee members of the Board of Directors of the Company or a majority
      of
      the members of a committee of non-employee directors established for such
      purpose;

     

    (3) increase
      the number of authorized shares of Series D Preferred Stock or authorize the
      issuance of or issue any shares of Series D Preferred Stock (other than in
      connection with the payment of Series D Preferred Dividends in accordance with
      Section 3 hereof);

     

    (4) sell,
      lease, convey, license or otherwise grant any rights with respect to, all or
      substantially all of its assets (and in the case of licensing, any material
      intellectual property) or business of the Corporation and shall not effect
      any
      merger or consolidation with any other company unless as a result thereof and
      after giving effect thereto (a) the Corporation shall be the surviving
      corporation, (b) the Series D Preferred Stock shall continue to be outstanding,
      (c) there shall be no change in the preference, privileges or other rights
      and
      restrictions with respect to the Series D Preferred Stock and (d) there shall
      not be created or thereafter exist as a result of thereof any new class of
      shares having preference over the Series D Preferred Stock with respect to
      dividends, distribution of assets or rights upon liquidation;

     

    (5) except
      for a declaration or payment of dividends on the Series D Preferred Stock and
      the Series C Preferred Stock (at such time as all accrued and unpaid dividends
      on shares of Series D Preferred Stock then due have been paid), the Corporation
      shall not declare or pay any dividends on any common stock, preferred stock
      or
      other capital stock of the Corporation;

     

    (6) except
      for a redemption or repurchase of the Series D Preferred Stock or the Warrants
      issued to the holders of Series D Preferred Stock on the Initial Issue Date,
      the
      Corporation shall not redeem or repurchase any of its capital stock (or security
      exercisable, convertible or exchangeable for any of its capital stock), except
      relating to settlement with departing employees pursuant to written employment
      agreements in effect on the Initial Issue Date;

    

    (7) incur
      any
      debt for borrowed money in excess of $500,000; and

    

    (8) change
      the number of directors which constitutes the Board of Directors.

    

    6. Conversion.
      The
      holders of shares of Series D Preferred Stock shall have the following
      conversion rights:

     

    (a) Optional
      Conversion.
      Subject
      to the terms and conditions of this Section 6, the holder of any share or shares
      of Series D Preferred Stock shall have the right, at its option at any time,
      to
      convert any such shares of Series D Preferred Stock into such number of fully
      paid and nonassessable shares of Common Stock as is obtained by: (i) multiplying
      the number of shares of Series D Preferred Stock to be converted by the Series
      D
      Stated Value and adding to such product the amount of any accrued but unpaid
      dividends with respect to such shares of Series D Preferred Stock to be
      converted; and (ii) dividing the result obtained pursuant to clause (i) above
      by
      the Series D Conversion Price then in effect. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Mandatory
      Conversion.
      Subject
      to the terms and conditions of this Section 6, if the
      Registration Statement covering the resale of the shares of Common Stock
      underlying all of the Series
      D
      Preferred Stock
      is
      declared effective by the SEC, and is then effective and the
      daily
      VWAP of the Common Stock for twenty (20) consecutive trading days exceeds $2.00
      per share (subject to appropriate adjustment from time to time in the event
      of
      any stock dividend, stock split, reverse stock split, reclassification, stock
      combination or other recapitalization affecting the Common Stock), then the
      outstanding Series D Preferred Stock shall automatically convert, together
      with
      accrued dividends, into Common Stock at the Conversion Price then in effect.
      

     

    (c) The
      “Series
      D Conversion Price”
shall
      initially be $0.65, and shall be subject to adjustment from time to time in
      accordance with the provisions of this Section 6. 

     

    (d) Conversion
      Procedures:

     

    (1)
       Optional.
      The
      rights of conversion set forth in this Section 6 shall be exercised by any
      holder of Series D Preferred Stock by giving written notice to the Corporation
      that such holder elects to convert a stated number of shares of Series D
      Preferred Stock into Common Stock (the “Optional
      Conversion Notice”)
      and by
      surrender of a certificate or certificates for the shares of Series D Preferred
      Stock so to be converted (or, in lieu thereof, by delivery of an appropriate
      lost stock affidavit in the event such certificate or certificates have been
      lost or destroyed) to the Corporation at its principal office (or such other
      office or agency of the Corporation as the Corporation may designate by notice
      in writing to the holders of Series D Preferred Stock) at any time on the date
      set forth in such notice (which date shall not be earlier than the Corporation’s
      receipt of such notice), together with a statement of the name or names (with
      address) in which the certificate or certificates for shares of Common Stock
      shall be issued.

     

    (2) Mandatory.
      In the
      case of mandatory conversion, the Corporation shall within five (5) Business
      Days of the occurrence of the events described in Section 6(b) notify the
      Corporation’s transfer agent of such events (“Mandatory
      Conversion Notice”)
      which
      shall identify the Conversion Price then in effect and direct the Transfer
      Agent
      to send certificates representing shares of Common Stock issued upon conversion
      to the holders of Series D Preferred Stock upon surrender of the certificates
      for shares of Series D Preferred Stock; and the Corporation shall provide a
      copy
      of such Mandatory Conversion Notice to each holder of Series D Preferred Stock.
      The Mandatory Conversion Notice shall state the Conversion Price then in effect
      and the address for the Company’s transfer agent to send the new Common Stock
      upon surrender of the Series D Preferred Stock certificates to the Company’s
      transfer agent and the address of the Company’s transfer agent for the holder to
      send its Series D Preferred Stock certificate(s). Immediately upon the
      occurrence of the events described in Section 6(b), all shares of Series D
      Preferred Stock shall no longer be deemed to be outstanding and all rights
      with
      respect to such shares shall immediately cease and terminate, except only the
      right of the holders thereof, upon surrender of their certificate or
      certificates therefor, to receive certificates representing the number of shares
      of Common Stock into which such Series D Preferred Stock has been
      converted.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) Promptly
      after receipt of the written notices referred to in Section 6(d) above and
      surrender of the certificate or certificates for the share or shares of Series
      D
      Preferred Stock to be converted (or, in lieu thereof, by delivery of an
      appropriate lost stock affidavit in the event such certificate or certificates
      have been lost or destroyed), but in no event more than three (3) Business
      Days
      thereafter, the Corporation shall issue and deliver, or cause to be issued
      and
      delivered, to the holder of Series D Preferred Stock, registered in such name
      or
      names as such holder may direct in writing, a certificate or certificates for
      the number of whole shares of Common Stock issuable upon the conversion of
      such
      share or shares of Series D Preferred Stock. To the extent permitted by law,
      such optional conversion shall be deemed to have been effected, and the Series
      D
      Conversion Price shall be determined, as of the close of business on the date
      on
      which such Optional Conversion Notice shall have been received by the
      Corporation and the certificate or certificates for such share or shares of
      Series D Preferred Stock shall have been surrendered as aforesaid (or, in lieu
      thereof, an appropriate lost stock affidavit has been delivered to the
      Corporation). Upon a mandatory conversion, such conversion shall be deemed
      to
      have been effected, and the Series D Conversion Price shall be determined,
      as of
      the close of business on the date on which the conditions in Section 6(b) have
      been satisfied. At such time of conversions, the rights of the holder of such
      share or shares of Series D Preferred Stock shall cease with respect to the
      shares of Series D Preferred Stock being converted, and the Person or Persons
      in
      whose name or names any certificate or certificates for shares of Common Stock
      shall be issuable upon such conversion shall be deemed to have become the holder
      or holders of record of the shares represented thereby. 

     

    (f) If
      the
      Company shall fail for any reason or for no reason to issue to a holder the
      applicable certificate or certificates within three (3) Business Days of receipt
      of documents necessary for the conversions set forth above (the “Deadline
      Date”),
      then,
      in addition to all other remedies available to such holder, if on or after
      the
      Business Day immediately following such three (3) Business Day period, such
      holder or holder’s broker, acting on behalf of such holder, purchases (in an
      open market transaction or otherwise) shares of Common Stock to deliver in
      satisfaction of a sale by the holder of shares of Common Stock that such holder
      anticipated receiving from the Company upon a conversion of holder’s Series D
      Preferred tock (a “Buy-In”),
      then
      the Company shall, within three (3) Business Days after such holder’s request
      and in such holder’s sole discretion, either (i) pay cash to the holder in an
      amount equal to such holder’s total purchase price (including brokerage
      commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such shares of Common Stock) shall terminate, or (ii) promptly honor its
      obligation to deliver to such holder a certificate or certificates representing
      such shares of Common Stock and pay cash to the holder in an amount equal to
      the
      excess (if any) of the Buy-In Price over the product of (a) such number of
      shares of Common Stock, times (b) the closing bid price on the Deadline
      Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) No
      fractional shares shall be issued upon any conversion of shares of Series D
      Preferred Stock into Common Stock. If any fractional share of Common Stock
      would, except for the provisions of the first sentence of this Section 6(g),
      be
      delivered upon such conversion, the Corporation, in lieu of delivering such
      fractional share, shall pay to the holder surrendering the shares of Series
      D
      Preferred Stock for conversion an amount in cash equal to the Market Price
      of
      such fractional share of Common Stock. In case the number of shares of Series
      D
      Preferred Stock represented by the certificate or certificates surrendered
      pursuant to Section 6(d) above exceeds the number of shares converted, the
      Corporation shall, upon such conversion, execute and deliver to the holder,
      at
      the expense of the Corporation, a new certificate or certificates for the number
      of shares of Series D Preferred Stock represented by the certificate or
      certificates surrendered which are not to be converted. 

    

    (h) If,
      at
      any time after the Initial Issue Date, the number of shares of Common Stock
      outstanding is increased by a stock dividend payable in shares of Common Stock
      or by a subdivision or split-up of shares of Common Stock, then, following
      the
      record date for the determination of holders of Common Stock entitled to receive
      such stock dividend, or to be affected by such subdivision or split-up, the
      Series D Conversion Price shall be appropriately decreased so that the number
      of
      shares of Common Stock issuable on conversion of Series D Preferred Stock shall
      be increased in proportion to such increase in outstanding shares.

    

    (i) If,
      at
      any time after the Initial Issue Date, the number of shares of Common Stock
      outstanding is decreased by a combination of the outstanding shares of Common
      Stock into a smaller number of shares of Common Stock, then, following the
      record date to determine shares affected by such combination, the Series D
      Conversion Price shall be appropriately increased so that the number of shares
      of Common Stock issuable on conversion of each share of Series D Preferred
      Stock
      shall be decreased in proportion to such decrease in outstanding
      shares.

    

    (j) If
      the
      Common Stock issuable upon the conversion of the Series D Preferred Stock shall
      be changed into the same or different number of shares of any class or classes
      of stock, whether by capital reorganization, reclassification or otherwise
      (other than a subdivision or combination or shares of stock dividend provided
      for elsewhere in this Section 6, or the sale of all or substantially all of
      the
      Corporation’s properties and assets to any other Person), then and in each such
      event the holder of each share of Series D Preferred Stock shall have the right
      thereafter to convert such share into the kind and amount of shares of stock
      and
      other securities and property receivable upon such reorganization,
      reclassification or other change by holders of the number of shares of Common
      Stock into which such shares of Series D Preferred Stock might have been
      converted, as the case may be, immediately prior to such reorganization,
      reclassification or change, all subject to further adjustment as provided
      herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (k) If
      at any
      time or from time to time there shall be a merger or consolidation of the
      Corporation with or into another corporation, or the sale of all or
      substantially all of the Corporation’s properties and assets to any other
      Person, then, as a part of such merger, or consolidation or sale, provision
      shall be made so that holders of Series D Preferred Stock, as the case may
      be,
      shall thereafter be entitled to receive upon conversion of the Series D
      Preferred Stock, the number of shares of stock or other securities or property
      of the Corporation, or of the successor corporation resulting from such merger,
      consolidation or sale, to which such holder would have been entitled if such
      holder had converted its shares of Series D Preferred Stock immediately prior
      to
      such merger, consolidation or sale, without regard to any conversion limitation
      specified in Section 6(j). In any such case, appropriate adjustment shall be
      made in the application of the provisions of this Section 6 with respect to
      the
      rights of the holders of the Series D Preferred Stock after the merger,
      consolidation or sale to the end that the provisions of this Section 6,
      including adjustment of the Series D Conversion Price then in effect for the
      Series D Preferred Stock and the number of shares issuable upon conversion
      of
      the Series D Preferred Stock) shall be applicable after that event in as nearly
      equivalent a manner as may be practicable.

    

    (l) (I)
      Except as to a mandatory conversion contemplated by Section 6(b) above,
      notwithstanding anything herein to the contrary, in no event shall a holder
      of
      Series D Preferred Stock be entitled to convert any portion of the Series D
      Preferred Stock so held by such holder in excess of that portion upon conversion
      of which the sum of (1) the number of shares of Common Stock beneficially owned
      by such holder and its Affiliates (other than shares of Common Stock which
      may
      be deemed beneficially owned through ownership of the unconverted shares of
      Series D Preferred Stock or the unexercised or unconverted portion of any other
      security of the holder subject to a limitation on conversion analogous to the
      limitations contained herein) and (2) the number of shares of Common Stock
      issuable upon the conversion of that portion of the Series D Preferred Stock
      with respect to which the determination of this proviso is being made, would
      result in beneficial ownership by such holder and its Affiliates of any
      amount greater than 4.99% of the then outstanding shares of Common Stock
      (whether or not, at the time of such conversion, the Holder and its Affiliates
      beneficially own more than 4.99% of the then outstanding shares of Common
      Stock).
      The
      waiver by a holder of Series D Preferred Stock of any limitation contained
      in an
      option or convertible security now or hereafter held by such holder that is
      similar or analogous to the limitations set forth in this Section 6(l) shall
      not
      be deemed a waiver or otherwise effect the limitation set forth in this Section
      6(l), unless such waiver expressly states it is a waiver of the provisions
      of
      this Section 6(l). For purposes of this Section 6(l), beneficial ownership
      shall
      be determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
      in clause (1) of such proviso. Any holder of Series D Preferred Stock may waive
      the limitations set forth herein by sixty-one (61) days written notice to the
      Corporation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (II)
      Except as to a mandatory conversion contemplated by Section 6(b) above,
      notwithstanding anything herein to the contrary, in no event shall a holder
      of
      Series D Preferred Stock be entitled to convert any portion of the Series D
      Preferred Stock so held by such holder in excess of that portion upon conversion
      of which the sum of (1) the number of shares of Common Stock beneficially owned
      by such holder and its Affiliates (other than shares of Common Stock which
      may
      be deemed beneficially owned through ownership of the unconverted shares of
      Series D Preferred Stock or the unexercised or unconverted portion of any other
      security of the holder subject to a limitation on conversion analogous to the
      limitations contained herein) and (2) the number of shares of Common Stock
      issuable upon the conversion of that portion of the Series D Preferred Stock
      with respect to which the determination of this proviso is being made, would
      result in beneficial ownership by such holder and its Affiliates of any
      amount greater than 9.99% of the then outstanding shares of Common Stock
      (whether or not, at the time of such conversion, the Holder and its Affiliates
      beneficially own more than 9.99% of the then outstanding shares of Common
      Stock).
      The
      waiver by a holder of Series D Preferred Stock of any limitation contained
      in an
      option or convertible security now or hereafter held by such holder that is
      similar or analogous to the limitations set forth in this Section 6(l) shall
      not
      be deemed a waiver or otherwise effect the limitation set forth in this Section
      6(l), unless such waiver expressly states it is a waiver of the provisions
      of
      this Section 6(l). For purposes of this Section 6(l), beneficial ownership
      shall
      be determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
      in clause (1) of such proviso. Any holder of Series D Preferred Stock may waive
      the limitations set forth herein by sixty-one (61) days written notice to the
      Corporation.

     

    (m) Notices
      of Record Date.
      In case
      at any time:

     

    (1) the
      Corporation shall declare any dividend upon its Common Stock or any other class
      or series of capital stock of the Corporation payable in cash or stock or make
      any other distribution to the holders of its Common Stock or any such other
      class or series of capital stock;

     

    (2) the
      Corporation shall offer for subscription pro rata
      to the
      holders of its Common Stock or any other class or series of capital stock of
      the
      Corporation any additional shares of stock of any class or other rights;
      or

     

    (3) there
      shall be any capital reorganization or reclassification of the capital stock
      of
      the Corporation, any Acquisition or a liquidation, dissolution or winding up
      of
      the Corporation; 

     

    then,
      in
      any one or more of said cases, the Corporation shall give, by delivery in person
      or by certified or registered mail, return receipt requested, addressed to
      each
      holder of any shares of Series D Preferred Stock at the address of such holder
      as shown on the books of the Corporation, (a) at least 20 Business Days’ prior
      written notice of the date on which the books of the Corporation shall close
      or
      a record shall be taken for such dividend, distribution or subscription rights
      or for determining rights to vote in respect of any event set forth in clause
      (3) of this Section 6(m) and (b) in the case of any event set forth in clause
      (3) of this Section 6(m), at least 20 Business Days’ prior written notice of the
      date when the same shall take place. Such notice in accordance with the
      foregoing clause (a) shall also specify, in the case of any such dividend,
      distribution or subscription rights, the date on which the holders of Common
      Stock or such other class or series of capital stock shall be entitled thereto
      and such notice in accordance with the foregoing clause (b) shall also specify
      the date on which the holders of Common Stock and such other series or class
      of
      capital stock shall be entitled to exchange their Common Stock and other stock
      for securities or other property deliverable upon consummation of the applicable
      event set forth in clause (3) of this Section 6(m). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (n) Upon
      any
      adjustment of the Series D Conversion Price, then and in each such case the
      Corporation shall give prompt written notice thereof, by delivery in person
      or
      by certified or registered mail, return receipt requested, addressed to each
      holder of shares of Series D Preferred Stock at the address of such holder
      as
      shown on the books of the Corporation, which notice shall state the Series
      D
      Conversion Price resulting from such adjustment and setting forth in reasonable
      detail the method upon which such calculation is based.

     

    (o) The
      Corporation will at all times reserve and keep available out of its authorized
      Common Stock, solely for the purpose of issuance upon conversion of the Series
      D
      Preferred Stock as herein provided, 100% of such number of shares of Common
      Stock as shall then be issuable upon the conversion of all outstanding shares
      of
      Series D Preferred Stock without regard to the limitation set forth in Section
      6(l). The Corporation covenants that all shares of Common Stock which shall
      be
      so issued shall be duly and validly issued and fully paid and nonassessable,
      and
      free from all taxes, liens and charges with respect to the issue thereof, and,
      without limiting the generality of the foregoing, the Corporation covenants
      that
      it will from time to time take all such action as may be requisite to assure
      that the par value per share of the Common Stock is at all times equal to or
      less than the Series D Conversion Price in effect at the time. The Corporation
      will take all such action as may be necessary to assure that all such shares
      of
      Common Stock may be so issued without violation of any applicable law or
      regulation, or of any requirement of any national securities exchange upon
      which
      the Common Stock may be listed. The Corporation will not take any action which
      results in any adjustment of the Series D Conversion Price if the total number
      of shares of Common Stock issued and issuable after such action upon conversion
      of the Series D Preferred Stock would exceed the total number of shares of
      Common Stock then authorized by the Corporation’s Amended and Restated
      Certificate of Incorporation.

     

    (p) The
      issuance of certificates for shares of Common Stock upon conversion of Series
      D
      Preferred Stock shall be made without charge to the holders thereof for any
      issuance tax in respect thereof, provided that the Corporation shall not be
      required to pay any tax which may be payable in respect of any transfer involved
      in the issuance and delivery of any certificate in a name other than that of
      the
      holder of the Series D Preferred Stock which is being converted.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (q) The
      Corporation will at no time close its transfer books against the transfer of
      any
      Series D Preferred Stock or of any shares of Common Stock issued or issuable
      upon the conversion of any shares of Series D Preferred Stock in any manner
      which interferes with the timely conversion of such Series D Preferred Stock,
      except as may otherwise be required to comply with applicable securities
      laws.

     

    7. Amendment.
      This
      Certificate of Designations may only be amended with the prior written consent
      of the Requisite Holders and, in the event that any such amendment materially
      adversely affects a holder of Series D Preferred Stock in a manner
      disproportionate to the other holders of Series D Preferred Stock, without
      the
      prior written consent of such holder. The Corporation may take any action herein
      prohibited, or omit to perform any act herein required to be performed by it,
      only if the Corporation shall have obtained the written consent to such action
      or omission to act, of the Requisite Holders and, in the event that any such
      action or omission to act materially adversely affects a holder of Series D
      Preferred Stock in a manner disproportionate to the other holders of Series
      D
      Preferred Stock, without the prior written consent of such holder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Corporation has caused this Certificate of Designations
      to
      be duly executed as of the 11th
      day of
      April, 2008.

    

    
      	 	
              NOVELOS
                THERAPEUTICS, INC.

            
	 	
              /s/
                Harry S. Palmin 

            
	 	 
	 	
              Name:
                Harry S. Palmin 

            
	 	
              Title:
                President and CEOCERTIFICATE
      OF ELIMINATION

    OF

    SERIES
      A 8% CUMULATIVE CONVERTIBLE PREFERRED STOCK

    OF

    NOVELOS
      THERAPEUTICS, INC.

     

    (Pursuant
      to Section 151(g) of the General

    Corporation
      Law of the State of Delaware)

     

    Novelos
      Therapeutics, Inc., a corporation organized and existing under the General
      Corporation Law of the State of Delaware (the “Corporation”) does hereby certify
      as follows: 

     

    FIRST:
      The
      Certificate of Designations filed on September 30, 2005 and constituting part
      of
      the Corporation’s Certificate of Incorporation (the “Certificate of
      Designations”) authorizes the issuance of 6,000 shares of a series of Preferred
      Stock designated Series A 8% Cumulative Convertible Preferred Stock, par value
      $0.00001 per share (the “Series A Preferred Stock”). 

     

    SECOND:
      Pursuant to the provisions of Section 151(g) of the General Corporation Law
      of
      the State of Delaware, the Board of Directors of the Corporation adopted the
      following resolutions: 

     

    RESOLVED,
      that no
      shares of the Corporation’s Series A Preferred Stock are outstanding and that no
      shares of the Series A Preferred Stock will be issued subject to the Certificate
      of Designations; and 

     

    RESOLVED
      FURTHER,
      that
      all matters set forth in the Certificate of Designations with respect to the
      Series A Preferred Stock be eliminated from the Corporation’s Certificate of
      Incorporation, as heretofore amended; and 

     

    RESOLVED
      FURTHER,
      that
      the officers of the Corporation are directed to file with the Secretary of
      State
      of the State of Delaware a Certificate of Elimination pursuant to Section 151(g)
      of the General Corporation Law of the State of Delaware setting forth these
      resolutions in order to eliminate from the Corporation’s Certificate of
      Incorporation all matters set forth in the Certificate of Designations with
      respect to the Series A Preferred Stock. 

     

    THIRD:
      Pursuant to the provisions of Section 151(g) of the General Corporation Law
      of
      the State of Delaware, all references to the Series A Preferred Stock in the
      Certificate of Incorporation of the Corporation hereby are eliminated, and
      the
      shares that were designated to such series hereby are returned to the status
      of
      authorized but unissued shares of the Preferred Stock of the Corporation,
      without designation as to series. 

     

    [Signature
      on next page]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Corporation has caused this Certificate to be signed by its duly authorized
      officer this 4th day of April, 2008. 

     

    
      	 	
              NOVELOS
                THERAPEUTICS, INC.

            
	 	 
	 	
              By: 

            	
              /s/
                Harry S. Palmin

            
	 	Name:
              Harry S. Palmin
	 	Title:
              President and Chief Executive Officer

    

    

    
      
         

      

      
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