Document:

EX-4.1

 Exhibit 4.1 

(Final Execution Version) 

OMNIBUS SUPPLEMENT 
 TO
INDENTURE SUPPLEMENTS 
 This OMNIBUS SUPPLEMENT TO INDENTURE SUPPLEMENTS, dated as of June 29, 2020 (this
“Supplement”), is entered into by and among NISSAN WHOLESALE RECEIVABLES CORPORATION II, a Delaware corporation, as transferor (the “Transferor”), NISSAN MOTOR ACCEPTANCE CORPORATION, a California corporation, as
servicer (the “Servicer”), and NISSAN MASTER OWNER TRUST RECEIVABLES, a Delaware statutory trust, as issuer (the “Issuer”), and consented to by U.S. BANK NATIONAL ASSOCIATION, a national banking association
organized and existing under the laws of the United States, not in its individual capacity but solely as indenture trustee (the “Indenture Trustee”). 

RECITALS: 

WHEREAS, the Issuer and the Indenture Trustee are parties to the Amended and Restated Indenture, dated as of October 15, 2003 (as
supplemented, amended or restated or otherwise modified from time to time, the “Amended and Restated Indenture”), as supplemented by (a) the Series 2017-C Indenture Supplement, dated as of November 13, 2017 (as
supplemented, amended or restated or otherwise modified from time to time, the “Series 2017-C Indenture Supplement”), (b) the Series 2019-A Indenture Supplement, dated as of March 13, 2019 (as supplemented, amended or
restated or otherwise modified from time to time, the “Series 2019-A Indenture Supplement”), and (c) the Series 2019-B Indenture Supplement, dated as of November 25, 2019 (as supplemented, amended or restated or otherwise
modified from time to time, the “Series 2019-B Indenture Supplement”, and together with the Series 2017-C Indenture Supplement and the Series 2019-A Indenture Supplement, the “Outstanding Indenture Supplements”, and
each an “Outstanding Indenture Supplement”), each between the Issuer and the Indenture Trustee (the Amended and Restated Indenture as so supplemented by the Outstanding Indenture Supplements, the “Indenture”); and

 WHEREAS, the parties hereto wish to amend the Outstanding Indenture Supplements pursuant to Section 8.04(a) of each
Outstanding Indenture Supplement and Section 10.01(b) of the Amended and Restated Indenture as of the Effective Date (as defined below). 

NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, receipt of which
is acknowledged, the parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. Capitalized terms used and not defined herein have the respective meanings assigned such terms in
the Annex of Definitions (the “Annex of Definitions”) attached to the Amended and Restated Transfer and Servicing Agreement, dated as of October 15, 2003 among Nissan Wholesale Receivables Corporation II, as transferor, the
Issuer and Nissan Motor Acceptance Corporation, as servicer. 

  

					
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 ARTICLE II 

AMENDMENTS 

Section 2.1 Amendment to Series 2017-C Indenture Supplement. As of the Effective Date, the Series 2017-C Indenture
Supplement is hereby amended as follows: 
 (a) The definition of “Series 2017-C Overcollateralization Percentage”
contained in Section 2.01 of the Series 2017-C Indenture Supplement is hereby amended as set forth below, with text marked in
underline indicating additions to such definition and with text marked in
strikethrough indicating deletions to such definition: 

“”Series 2017-C Overcollateralization Percentage” means 26.59%, provided, however, that (i) the Transferor may, in
its sole discretion, increase this percentage, provided, however, that if the Transferor voluntarily increases the Series 2017-C Overcollateralization Percentage, then it may, in its sole discretion, upon ten days prior notice to the Indenture
Trustee, subsequently decrease the Series 2017-C Overcollateralization Percentage to 26.59% or higher so long as the Rating Agency Condition shall have been satisfied with respect to the Series 2017-C Notes and any other outstanding and rated series
or class of Notes, and (ii) this percentage will increase to 31.90% if the average of the Monthly Payment Rates for the three preceding Collection Periods is less than 35%, and this percentage will further increase to 38.09% if the average of the Monthly Payment Rates for the three preceding
Collection Periods is less than 30% and this percentage will further increase to 39.86% if the average of the Monthly Payment Rates
for the three preceding Collection Periods is less than 25% provided, further, however, that if this overcollateralization percentage is increased pursuant to this clause, and the average of the Monthly Payment Rates for the three
preceding Collection Periods subsequently increases to more than 25% or more, but less than 30%, then the overcollateralization percentage shall decrease to 38.09%, and if this overcollateralization
percentage is further increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods further increases to 30% or more, but less than 35%, then the overcollateralization percentage shall decrease to 31.90%, and if this
overcollateralization percentage is further increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods further increases to more than
35% or more, then the overcollateralization percentage shall
decrease to 26.59%.” 
 (b) Section 6.01(v) of the Series 2017-C Indenture Supplement is hereby amended as
set forth below, with text marked in underline indicating additions to such definition and with text marked in strikethrough indicating deletions to such definition: 

“(v) on any Payment Date, the Series 2017-C Overcollateralization Amount is reduced to an amount less than the product of (i) the
applicable Series 2017-C Overcollateralization Percentage and (ii) the Series 2017-C Initial Principal Amount; provided, that, for the purpose of determining whether an Early Amortization Event has occurred pursuant to this clause (v), any
reduction of the Primary Series 2017-C Overcollateralization Amount resulting from Reallocated Principal Collections to pay interest on the Series 2017-C Notes in the event LIBOR is equal to or greater than the Reference Rate upon which interest on
the Receivables is calculated on the applicable Interest Determination Date will be considered an Early Amortization Event only if LIBOR remains equal to or greater than such Reference Rate for the next 30 consecutive days following such Interest
Determination Date; provided, further that, if the reduction occurs on any Payment Date on which the Series 2017-C Overcollateralization Percentage is increased because the average of the Monthly Payment Rates for the three preceding Collection
Periods is less than 35%, or the Series 2017-C Overcollateralization Percentage is further increased because the average of the Monthly Payment Rates for the three preceding Collection Periods is less than 30% or the Series 2017-C Overcollateralization Percentage is further increased because the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 25%, then that reduction shall be an Early Amortization Event if the Series 2017-C Overcollateralization Amount remains less than the Required Series
2017-C Overcollateralization Amount for five or more days after the Payment Date on which the Series 2017-C Overcollateralization Percentage increased;” 

  

					
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 (c) Section 6.01(vii) of the Series 2017-C Indenture Supplement is
hereby amended as set forth below, with text marked in underline indicating
additions to such definition and with text marked in strikethrough indicating deletions to such definition:

 “(vii) on any Determination Date, the average of the Monthly Payment Rates for the threesix consecutive Collection Periods preceding such Determination Date is less than 25% for a period of at least 5 days after the date on which written notice of such event has been given to the Issuer, NMAC and the
Transferor;” 
 Section 2.2 Amendment to Series 2019-A Indenture Supplement. As of the Effective Date, the
Series 2019-A Indenture Supplement is hereby amended as follows: 
 (a) The definition of “Series 2019-A
Overcollateralization Percentage” contained in Section 2.01 of the Series 2019-A Indenture Supplement is hereby amended as set forth below, with text marked in
underline indicating additions to such definition and with text marked in strikethrough indicating deletions to such definition: 

“”Series 2019-A Overcollateralization Percentage” means 26.59%, provided, however, that (i) the Transferor may, in
its sole discretion, increase this percentage, provided, however, that if the Transferor voluntarily increases the Series 2019-A Overcollateralization Percentage, then it may, in its sole discretion, upon ten days prior notice to the Indenture
Trustee, subsequently decrease the Series 2019-A Overcollateralization Percentage to 26.59% or higher so long as the Rating Agency Condition shall have been satisfied with respect to the Series 2019-A Notes and any other outstanding and rated series
or class of Notes, and (ii) this percentage will increase to 31.86% if the average of the Monthly Payment Rates for the three preceding Collection Periods is less than
35%,
and this percentage will further increase to 38.00% if the average of the Monthly Payment Rates for the
three preceding Collection Periods is less than 30% and this percentage will further increase to 39.86% if the average of the
Monthly Payment Rates for the three preceding Collection Periods is less than 25% provided, further, however, that if this overcollateralization percentage is increased pursuant to this clause, and the average of the Monthly Payment
Rates for the three preceding Collection Periods subsequently increases to more than 25% or more, but less than 30%, then the overcollateralization percentage shall decrease to 38.00%, and if this overcollateralization
percentage is further increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods further increases to 30% or more, but less than 35%, then the overcollateralization percentage shall decrease to 31.86%, and if this
overcollateralization percentage is further increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods further increases to more than
35% or more, then the overcollateralization percentage shall decrease to 26.59%.” 

  

					
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 (b) Section 6.01(v) of the Series 2019-A Indenture Supplement is hereby
amended as set forth below, with text marked in underline indicating
additions to such definition and with text marked in strikethrough indicating deletions to such definition:

 “(v) on any Payment Date, the Series 2019-A Overcollateralization Amount is reduced to an amount less than the product of
(i) the applicable Series 2019-A Overcollateralization Percentage and (ii) the Series 2019-A Initial Principal Amount; provided, that, for the purpose of determining whether an Early Amortization Event has occurred pursuant to this clause
(v), any reduction of the Primary Series 2019-A Overcollateralization Amount resulting from Reallocated Principal Collections to pay interest on the Series 2019-A Notes in the event LIBOR is equal to or greater than the Reference Rate upon which
interest on the Receivables is calculated on the applicable Interest Determination Date will be considered an Early Amortization Event only if LIBOR remains equal to or greater than such Reference Rate for the next 30 consecutive days following such
Interest Determination Date; provided, further that, if the reduction occurs on any Payment Date on which the Series 2019-A Overcollateralization Percentage is increased because the average of the Monthly Payment Rates for the three preceding
Collection Periods is less than 35%,
or the Series 2019-A Overcollateralization Percentage is further increased because the average of the Monthly Payment Rates for the three preceding Collection Periods is less than 30%
or the Series 2019-A Overcollateralization Percentage is further increased because the average of the Monthly Payment Rates
for the three preceding Collection Periods is less than 25%, then that reduction shall be an Early Amortization Event if the Series 2019-A Overcollateralization Amount remains less than the
Required Series 2019-A Overcollateralization Amount for five or more days after the Payment Date on which the Series 2019-A Overcollateralization Percentage increased;” 

  

					
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 (c) Section 6.01(vii) of the Series 2019-A Indenture Supplement is
hereby amended as set forth below, with text marked in underline indicating
additions to such definition and with text marked in strikethrough indicating deletions to such definition:

 “(vii) on any Determination Date, the average of the Monthly Payment Rates for the threesix consecutive Collection Periods preceding such Determination Date is less than 25% for a period of at least 5 days after the date on which written notice of such event has been given to the Issuer, NMAC and the
Transferor;” 
 Section 2.3 Amendment to Series 2019-B Indenture Supplement. As of the Effective Date, the
Series 2019-B Indenture Supplement is hereby amended as follows: 
 (a) The definition of “Series 2019-B
Overcollateralization Percentage” contained in Section 2.01 of the Series 2019-B Indenture Supplement is hereby amended as set forth below, with text marked in
underline indicating additions to such definition and with text marked in
strikethrough indicating deletions to such definition: 

“”Series 2019-B Overcollateralization Percentage” means 26.59%, provided, however, that (i) the Transferor may, in
its sole discretion, increase this percentage, provided, however, that if the Transferor voluntarily increases the Series 2019-B Overcollateralization Percentage, then it may, in its sole discretion, upon ten days prior notice to the Indenture
Trustee, subsequently decrease the Series 2019-B Overcollateralization Percentage to 26.59% or higher so long as the Rating Agency Condition shall have been satisfied with respect to the Series 2019-B Notes and any other outstanding and rated series
or class of Notes, and (ii) this percentage will increase to 31.86% if the average of the Monthly Payment Rates for the three preceding Collection Periods is less than
35%,
and this percentage will further increase to 38.00% if the average of the Monthly Payment Rates for the three preceding Collection Periods is less than 30% and this percentage will further increase to 39.86% if the average of the Monthly Payment Rates for the three preceding Collection Periods is
less than 25% provided, further, however, that if this overcollateralization percentage is increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods subsequently
increases to more than
25% or more, but less than 30%, then the overcollateralization percentage shall decrease to 38.00%, and if this
overcollateralization percentage is further increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods further increases to 30% or more, but less than 35%, then the overcollateralization percentage shall decrease to 31.86%, and if this
overcollateralization percentage is further increased pursuant to this clause, and the average of the Monthly Payment Rates for the three preceding Collection Periods further increases to more than
35% or more, then the overcollateralization percentage
shall decrease to 26.59%.” 
 (b) Section 6.01(v) of the Series 2019-B Indenture Supplement is hereby
amended as set forth below, with text marked in underline indicating additions to such definition and with text
marked in strikethrough indicating deletions to such definition: 

  

					
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 “(v) on any Payment Date, the Series 2019-B Overcollateralization Amount is reduced to
an amount less than the product of (i) the applicable Series 2019-B Overcollateralization Percentage and (ii) the Series 2019-B Initial Principal Amount; provided, that, for the purpose of determining whether an Early Amortization Event
has occurred pursuant to this clause (v), any reduction of the Primary Series 2019-B Overcollateralization Amount resulting from Reallocated Principal Collections to pay interest on the Series 2019-B Notes in the event the Benchmark is equal to or
greater than the Reference Rate upon which interest on the Receivables is calculated on the applicable Interest Determination Date will be considered an Early Amortization Event only if the Benchmark remains equal to or greater than such Reference
Rate for the next 30 consecutive days following such Interest Determination Date; provided, further that, if the reduction occurs on any Payment Date on which the Series 2019-B Overcollateralization Percentage is increased because the average of the
Monthly Payment Rates for the three preceding Collection Periods is less than 35%, or the Series 2019-B Overcollateralization Percentage is further increased because the average of the Monthly Payment Rates
for the three preceding Collection Periods is less than 30% or the Series 2019-B Overcollateralization Percentage is further
increased because the average of the Monthly Payment Rates for the three preceding Collection Periods is less than 25%, then that reduction shall be an Early Amortization Event if the Series
2019-B Overcollateralization Amount remains less than the Required Series 2019-B Overcollateralization Amount for five or more days after the Payment Date on which the Series 2019-B Overcollateralization Percentage increased;” 

(c) Section 6.01(vii) of the Series 2019-B Indenture Supplement is hereby amended as set forth below, with text marked in underline indicating additions to such definition and with text marked in strikethrough indicating deletions to such definition: 

“(vii) on any Determination Date, the average of the Monthly Payment Rates for the
threesix consecutive Collection Periods preceding such Determination Date is less than 25% for a period of at least 5 days after the date on which written notice of such event has been given to the Issuer, NMAC and the
Transferor;” 
 ARTICLE III 

EFFECTIVE DATE 

Section 3.1 Effective Date. Upon satisfaction of the following conditions this Supplement shall become effective
immediately (such date, the “Effective Date”) without further action by any party: 
 (a) receipt by the
Indenture Trustee of an Issuer Order in accordance with Section 10.01(b) of the Amended and Restated Indenture; 
 (b)
receipt by each party hereto of an executed counterpart of this Supplement from each other party hereto; 

  

					
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 (c) satisfaction of the Rating Agency Condition with respect to this
Supplement and the Notes of all outstanding Series in accordance with Section 10.01(b)(i) of the Amended and Restated Indenture and Section 8.04(a)(i)(B) of each Outstanding Indenture Supplement; 

(d) receipt by the Issuer and the Indenture Trustee of an Officer’s Certificate of the Transferor in accordance with
Section 10.01(b)(ii) of the Amended and Restated Indenture; 
 (e) receipt by the Issuer and the Indenture Trustee of a
Required Federal Income Tax Opinion in accordance with Section 10.01(b)(iii) of the Amended and Restated Indenture and Section 8.04(a)(ii) of each Outstanding Indenture Supplement; 

(f) receipt by the Indenture Trustee and the Owner Trustee of an Opinion of Counsel in accordance with Section 10.03 of
the Amended and Restated Indenture and Section 8.04(d) of each Outstanding Indenture Supplement; and 
 (g) receipt by
the Indenture Trustee of an Officer’s Certificate of the Issuer in accordance with Section 12.01(a)(i) of the Amended and Restated Indenture. 

ARTICLE IV 

MISCELLANEOUS 

Section 4.1 Indenture Unaffected. Except as modified herein, the parties acknowledge that the provisions of the Indenture
remain in full force and effect and are hereby ratified and confirmed by the parties hereto. After the Effective Date all references in the Transaction Documents to the any of the Outstanding Indenture Supplement or the Indenture shall mean such
Outstanding Indenture Supplement or the Indenture, as applicable, as modified hereby. 
 Section 4.2 Governing Law. This
Supplement shall be governed by the governing law described in Section 12.12 of the Amended and Restated Indenture and Section 8.06 of each Outstanding Indenture Supplement. 

Section 4.3 Captions. The various captions in this Supplement are included for convenience only and shall not affect
the meaning or interpretation of any provision of this Supplement or any provision hereof. 
 Section 4.4 Severability.
Whenever possible, each provision of this Supplement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Supplement shall be prohibited by or invalid under the laws of any applicable
jurisdiction, such provision, as to jurisdiction, shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Supplement as to such jurisdiction or
any other jurisdiction. 
 Section 4.5 Binding Effect. This Supplement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. 

  

					
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 Section 4.6 Counterparts. This Supplement may be executed in any number
of counterparts and by the parties hereto on separate signature pages, each such executed counterpart constituting an original but all together only one Supplement. The parties intend that faxed signatures and electronically imaged signatures such
as .pdf files shall constitute original signatures and are binding on all parties. Delivery of an executed counterpart of a signature page of this Agreement by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the
actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or
relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the
Federal Electronic Signatures in Global and National Commerce Act or any other similar state laws based on the Uniform Electronic Transactions Act. 

Section 4.7 No Recourse. It is expressly understood and agreed by the parties hereto that (a) this Supplement is
executed and delivered by Wilmington Trust Company (“WTC”), not individually or personally, but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by WTC, but is made and intended for the purpose of binding only the Issuer,
(c) nothing herein contained shall be construed as creating any liability on WTC, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties hereto and (d) under no circumstances shall WTC be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Supplement or any other related documents. 

[SIGNATURE PAGES FOLLOW] 

  

					
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 IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be executed and
delivered as of the date first above written. 
  

			
	NISSAN WHOLESALE RECEIVABLES CORPORATION II,
	as Transferor
		
	By:	 	 /s/ Douglas E. Gwin, Jr.

	Name:	 	Douglas E. Gwin, Jr.
	Title:	 	Assistant Treasurer

  

					
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	NISSAN MOTOR ACCEPTANCE CORPORATION,
	as Servicer
		
	By:	 	 /s/ Douglas E. Gwin, Jr.

	Name:	 	Douglas E. Gwin, Jr.
	Title:	 	Assistant Treasurer

  

					
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	NISSAN MASTER OWNER TRUST RECEIVABLES,
	as Issuer
	
	By: WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee
		
	By:	 	 /s/ Dorri E. Costello

	Name:	 	Dorri E. Costello
	Title:	 	Vice President

  

					
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	CONSENTED TO:
	
	 U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity but solely as Indenture Trustee

		
	By:	 	 /s/ Brian W. Kozack

	Name:	 	Brian W. Kozack
	Title:	 	Vice President

  

					
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Exhibit 4.1 

 

 

CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS

OF

SERIES A CONVERTIBLE PREFERRED STOCK

 

The undersigned, David Lelong, the Chief Executive Officer of Vado Corp. (the “Corporation”), a corporation organized and existing under Chapter 78 of the Nevada Revised Statutes (the “Nevada Corporations Law”), in accordance with the provisions of Section 78.195 of the Nevada Corporations Law, does hereby certify:

 

That pursuant to the authority expressly conferred upon the Board of Directors of the Corporation (the “Board of Directors”) by the Corporation’s Articles of Incorporation, as may be amended from time to time (the “Articles of Incorporation”), the Board of Directors has adopted the following resolutions authorizing the creation and issuance of a series of preferred stock designated as the “Series A Convertible Preferred Stock”, none of which shares have been issued:

 

RESOLVED, that pursuant to Section 78.195 of the Nevada Corporations Law, Series A Convertible Preferred Stock, par value $0.001 per share, a new series of preferred stock of the Corporation, is authorized and established, and that the number of shares constituting such series shall be 1,000,000 shares; it is further

 

RESOLVED, that the designations, powers, preferences and rights of the Series A Preferred Stock, and the qualifications, limitations or restrictions thereof, shall be as follows:

 

Section 1.     Designation and Authorized Shares. There shall hereby be created and established a series of preferred stock of the Corporation designated as “Series A Convertible Preferred Stock” (the “Series A Preferred Stock”). The authorized number of shares of the Series A Preferred Stock shall be 1,000,000 shares (the “Preferred Shares”). Each Preferred Share shall have a par value of $0.001. Capitalized terms not defined herein shall have the meaning as set forth in Section 7 below.

 

Section 2.     Conversion.

 

(a)     Conversion Right. Subject to the provisions of Section 2(c) and Section 6, each Holder shall be entitled to convert each Preferred Share held by such Holder into 20 validly issued, fully paid and non-assessable shares of Common Stock. The Corporation shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Corporation shall round such fraction of a share of Common Stock up to the nearest whole share. The Corporation shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including fees and expenses of the Transfer Agent (as defined below)) that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Preferred Share (as defined below).

 

1

 

 

(b)     Mechanics of Conversion. To convert a Preferred Share into shares of Common Stock on any date after the issuance of such Preferred Share (a “Conversion Date”), a Holder shall deliver (via, electronic mail or otherwise), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion of the Preferred Shares subject to such conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Corporation. Within two Trading Days following a conversion of any such Preferred Shares as aforesaid, such Holder shall surrender to a nationally recognized overnight delivery service for delivery to the Corporation the original certificates representing the Preferred Shares (the “Preferred Share Certificates”) so converted as aforesaid (or an indemnification undertaking with respect to the Preferred Shares in the case of its loss, theft or destruction). On or before the first Trading Day following the date of receipt of a Conversion Notice, the Corporation shall transmit by electronic mail an acknowledgment of confirmation, in the form attached hereto as Exhibit II, of receipt of such Conversion Notice to such Holder and the Corporation’s transfer agent (the “Transfer Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before the two Trading Day following the date of receipt of a Conversion Notice (or such earlier date as required pursuant to the Securities Exchange Act of 1934, (the “Exchange Act”) or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion Date of such shares of Common Stock issuable pursuant to such Conversion Notice) (the “Share Delivery Deadline”), the Corporation shall (1) provided that the Transfer Agent is participating in The Depository Trust Corporation’s (“DTC”) Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which such Holder shall be entitled to such Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the address as specified in such Conversion Notice, a certificate, registered in the name of such Holder or its designee, for the number of shares of Common Stock to which such Holder shall be entitled. If the number of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion is greater than the number of Preferred Shares being converted, then the Corporation shall, as soon as practicable and in no event later than two Trading Days after receipt of the Preferred Share Certificate(s) and at its own expense, issue and deliver to such Holder (or its designee) a new Preferred Share Certificate representing the number of Preferred Shares not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(c)     Maximum Conversion. Notwithstanding anything to the contrary set forth in this Certificate of Designation, at no time may all or a portion of the Preferred Shares be converted if the number of shares of Common Stock to be issued pursuant to such conversion would cause the holder’s beneficial ownership to exceed, when aggregated with all other shares of Common Stock beneficially owned (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) by such holder at such time, the number of

 

2

 

 

shares of Common Stock more than 4.99% of all of the Common Stock issued and outstanding at such time (which provision may be waived by such Holder by written notice from such Holder to the Corporation, which notice shall be effective 61 calendar days after the date of such notice). Additionally, in no event shall any Preferred Shares be converted if after giving effect to the conversion, the Holder would beneficially own more than 9.99% of all of the Common Stock issued and outstanding at such time. For purposes of this Section 2(c), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Corporation’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Corporation or (3) any other notice by the Corporation setting forth the number of shares of Common Stock outstanding. The number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including shares of Series A Preferred Stock, held by such holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported, which in any event are convertible or exercisable, as the case may be, into shares of the Corporation’s Common Stock within 60 days’ of such calculation and which are not subject to a limitation on conversion or exercise analogous to the limitation contained herein. The provisions of this Section 2 shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(c) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitations herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

Section 3.      Voting. Except as may be required by the Nevada Corporations Law or other applicable law, the Holders shall not be entitled to vote on any matters submitted to the stockholders of the Corporation.

 

Section 4.     Amendment. The Board of Directors shall have the exclusive power to amend this Certificate and the designations, powers, preferences, rights, qualifications, limitations and restrictions of the Series A Preferred Stock provided hereunder.

 

Section 5.     Other Provisions.

 

(a)     Transfer of Preferred Shares. A Holder may transfer some or all of its Preferred Shares without the consent of the Corporation, subject to compliance with the Securities Act of 1933. If any Preferred Shares are to be transferred, the applicable Holder shall surrender the applicable Preferred Share certificate to the Corporation, whereupon the Corporation will forthwith issue and deliver upon the order of such Holder a new Preferred Share certificate, registered as such Holder may request, representing the outstanding number of Preferred Shares being transferred by such Holder and, if less than the entire outstanding number of Preferred Shares is being transferred, a new Preferred Share certificate to such Holder representing the outstanding number of Preferred Shares not being transferred.

 

(b)     Lost, Stolen or Mutilated Preferred Share Certificate. Upon receipt by the Corporation of evidence reasonably satisfactory to the Corporation of the loss, theft, destruction

 

3

 

 

or mutilation of a Preferred Share Certificate (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 applicable Holder to the Corporation in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of such Preferred Share certificate, the Corporation shall execute and deliver to such Holder a new Preferred Share certificate representing the applicable outstanding number of Preferred Shares.

 

Section 6.   Certain Adjustments. Stock Dividends and Stock Splits. If the Corporation, at any time while any Preferred Shares remain outstanding: (A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation pursuant to the conversion of the Series A Preferred Stock), (B) subdivide outstanding shares of Common Stock into a larger number of shares, (C) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issue by reclassification of shares of the Common Stock any shares of capital stock of the Corporation, each Preferred Share shall receive such consideration as if such number Preferred Shares had been, immediately prior to such foregoing dividend, distribution, subdivision, combination or reclassification, the holder of the number of shares of Common Stock into which it could convert at such time. Any adjustment made pursuant to this Section 6 shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. Notwithstanding the preceding, there shall be no adjustment as a result of the contemplated reverse stock split.

 

Section 7.     Certain Defined Terms. For purposes of this Certificate of Designation, the following terms shall have the following meanings:

 

(a)      “Common Stock” shall mean the Corporation’s common stock, $0.001 par value per share.

 

(b)     “Holder” or “Holders” means a holder of Series A Preferred Stock.

 

(c)     “Person” means an individual, a limited liability corporation, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(d)     “Principal Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, OTCPink, OTCQB, or OTCQX and any successor markets thereto.

 

(e)     “Trading Day” means any day on which the Common Stock is eligible to be traded on the Principal Market 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

 

4

 

 

 

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., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

 

 

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Certificate this 11th day of June 2020.

 

 

 

By: /s/ David Lelong                                                         

Name: David Lelong

Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS OF SERIES A CONVERTIBLE PREFERRED STOCK]

 

6

 

 

EXHIBIT I

 

VADO CORP.

CONVERSION NOTICE

 

Reference is made to the Certificate of Designations, Preferences and Rights of the Series A Convertible Preferred Stock of Vado Corp. (the “Certificate of Designation”). In accordance with and pursuant to the Certificate of Designation, the undersigned hereby elects to convert the number of shares of Series A Convertible Preferred Stock, $0.001 par value per share (the “Preferred Shares”), of Vado Corp., a Nevada corporation (the “Corporation”), indicated below into shares of common stock, $0.001 par value per share (the “Common Stock”), of the Corporation, as of the date specified below.

 

Date of Conversion: _________

 

Number of Preferred Shares to be converted: ______________

 

Number of shares of Common Stock to be issued: ___________________

 

	
			Please issue the Common Stock into which the applicable Preferred Shares are being converted 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:

			 

			
	
			Issue to:

				 
	 	 
	 	 
	 	 
	
			☐Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

			
	
			DTC Participant:

				 
	
			DTC Number:

				 
	
			Account Number:

				 

 

 

	
			Date: _____________ __,

			 

			                                            

			Name of Registered Holder

				 
	
			 

			By:                                              

			Name:

			Title:

			Tax ID:_____________________

			Facsimile:___________________

			 

			E-mail Address:

			
	 

 

 

 

 

 

 

EXHIBIT II

 

ACKNOWLEDGMENT

 

The Corporation hereby acknowledges this Conversion 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 Corporation and acknowledged and agreed to by ________________________.

 

Vado Corp.

 

 

 

By:                                                       

Name:

Title:

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