Document:

Exhibit 10.3

Execution Version

 

WARRANT

 

NEITHER THIS WARRANT NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUBJECT TO SECTION 6
BELOW, AND EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT, NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR HOLDER, SATISFACTORY TO COMPANY, THAT SUCH REGISTRATION IS
NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

 

WARRANT TO PURCHASE
135,542 SHARES OF COMMON STOCK

 

June 25, 2013

 

THIS CERTIFIES THAT,
for value received, MidCap Financial SBIC, LP (“Holder”) is entitled to subscribe for and purchase ONE HUNDRED THIRTY-FIVE
THOUSAND FIVE HUNDRED FORTY-TWO (135,542) shares of fully paid and nonassessable shares of Common Stock of NAVIDEA BIOPHARMACEUTICALS,
INC., a Delaware corporation (“Company”), at the Warrant Price (as hereinafter defined), subject to the provisions
and upon the terms and conditions hereinafter set forth. As used herein, the term “Common Stock” shall mean Company’s
presently authorized common stock, $0.001 par value per share, and any stock into which such Common Stock may hereafter be converted
or exchanged and the term “Warrant Shares” shall mean the shares of Common Stock which Holder may acquire pursuant
to this Warrant and any other shares of stock into which such shares of Common Stock may hereafter be converted or exchanged. This
Warrant is being executed and delivered pursuant to the terms of a Loan and Security Agreement of even date among the Company,
the other loan parties thereto from time to time, Holder, as a lender and General Electric Capital Corporation (“GECC”),
as a lender and agent for the other the financial institutions who are or become parties to thereto as lenders (the “Loan
Agreement”). Capitalized terms not otherwise defined herein shall have the respective meanings defined in the Loan Agreement.

 

1.          Warrant
Price. The “Warrant Price” shall initially be two and 49/100 dollars ($2.49) per share, subject to adjustment as
provided in Section 7 below.

 

2.          Conditions
to Exercise. The purchase right represented by this Warrant may be exercised at any time, or from time to time, in whole or
in part during the term commencing on the date hereof and ending at 5:00 P.M. (New
York City time) on the tenth anniversary of the date of this Warrant (the “Expiration Date”).

 

3.          Method
of Exercise or Conversion; Payment; Issuance of Shares; Issuance of New Warrant.

 

(a)          Cash
Exercise. Subject to Section 2 hereof, the purchase right represented by this Warrant may be exercised by Holder hereof,
in whole or in part, by delivery (pursuant to Section 17) to the Company of a duly executed Notice of Exercise in substantially
the form attached hereto, provided that, within three (3) trading days following the date of such exercise, Holder shall surrender
the original of this Warrant and pay to Company, by certified or bank check, or wire transfer of immediately available funds, an
amount equal to the then applicable Warrant Price per share multiplied by the number of Warrant Shares then being purchased. In
the event of any exercise of the rights represented by this Warrant, certificates for the shares of stock so purchased shall be
in the name of, and delivered to, Holder hereof, or as such Holder may direct (subject to the terms of transfer contained herein
and upon payment by such Holder hereof of any applicable transfer taxes). Such delivery shall be made within 10 trading days
after exercise of this Warrant and at Company’s expense and, unless this Warrant has been fully exercised or expired, a new
Warrant having terms and conditions substantially identical to this Warrant and representing the portion of the Warrant Shares,
if any, with respect to which this Warrant shall not have been exercised, shall also be issued to Holder hereof within 10 days
after exercise of this Warrant. The Warrant Shares shall be deemed to have been issued and Holder or its designee shall be deemed
to have become a holder of record of such Warrant Shares for all purposes as of the date the Notice of Exercise of this Warrant
is delivered to the Company.

 

    	 

    	 

    

 

(b)          Conversion.
In lieu of exercising this Warrant as specified in Section 3(a), Holder may from time to time convert this Warrant, in whole or
in part, into Warrant Shares by surrender of the original of this Warrant (together with a duly executed Notice of Exercise in
substantially the form attached hereto) at the principal office of Company, in which event Company shall issue to Holder the number
of Warrant Shares computed using the following formula:

 

X = Y (A-B)

A

 

Where:

 

X = the number of Warrant Shares
to be issued to Holder.

 

Y = the number of Warrant Shares
requested to be purchased under this Warrant (at the date of such calculation).

A = the Fair Market Value of one
share of Company’s Common Stock (at the date of such calculation).

 

B = Warrant Price (as adjusted
to the date of such calculation).

 

(c)          Fair
Market Value. For purposes of this Section 3, Fair Market Value of one share of Company’s Common Stock shall mean:

 

(i)          The
last reported sale price quoted on the NYSE MKT or on any other exchange on which the Common Stock is listed, or the average of
the closing bid and asked prices of Common Stock quoted in the Over-The-Counter Market Summary, whichever
is applicable, as published in the Eastern Edition of the Wall Street Journal for the three (3) trading days prior to the date
of determination of Fair Market Value; or 

 

(ii)         In
the event of an exercise in connection with a merger, acquisition or other consolidation in which Company is not the surviving
entity, the value to be received per share of Common Stock by all holders of the Common Stock in such transaction as determined
in the reasonable good faith judgment of Company’s Board of Directors; or

 

(iii)        In
any other instance, the value as determined in the reasonable good faith judgment of Company’s Board of Directors.

 

In the event of Section 3(c)(ii)
or 3(c)(iii) above, Company’s Board of Directors shall prepare a certificate, to be signed by an authorized officer of Company,
setting forth in reasonable detail the basis for and method of determination of the per share Fair Market Value of the Common Stock.
The Board of Directors will also certify to Holder that this per share Fair Market Value will be applicable to all holders of Company’s
Common Stock. Such certifications must be made to Holder, in the event of Section 3(c)(ii) above, at least ten (10) business
days prior to the proposed effective date of the merger, acquisition or other consolidation, and in the event of Section 3(c)(iii),
promptly after exercise of this Warrant.

 

(d)          Automatic
Exercise. To the extent this Warrant is not previously exercised, it shall be deemed to have been automatically converted in
accordance with Sections 3(b) and 3(c) hereof (even if not surrendered) as of immediately before its expiration, involuntary
termination or cancellation (including, without limitation, pursuant to Section 3(e)(ii)) if the then-Fair Market Value of a Warrant
Share exceeds the then-Warrant Price, unless Holder notifies Company in writing to the contrary prior to such automatic exercise.

 

    	 

    	 

    

 

(e)          Treatment
of Warrant Upon Acquisition of Company.

 

(i)          Certain
Definitions. For the purpose of this Warrant: “Acquisition” means, whether direct or indirect and whether in one
or a series of related transactions, any sale, license, assignment, or other disposition of all or substantially all of the assets
of Company, or any reorganization, consolidation, or merger of Company, or sale of outstanding Company securities by holders thereof,
where the holders of Company's securities as of immediately before the transaction beneficially own less than a majority of the
outstanding voting securities of the successor or surviving entity as of immediately after the transaction (or, if the successor
or surviving entity is a wholly-owned subsidiary of another corporation, such successor or surviving entity’s parent). For
purposes of this Section 3(e), “Affiliate” shall mean any person or entity that owns or controls directly or indirectly
ten percent (10%) or more of the voting capital stock of Company, any person or entity that controls or is controlled by or is
under common control with such persons or entities, and each of such person’s or entity’s officers, directors, joint
venturers or partners, as applicable. Company shall provide Holder with written notice of any proposed Acquisition not later than
ten (10) business days prior to the closing thereof setting forth the material terms and conditions thereof, and shall provide
Holder with copies of the draft transaction agreements and other documents in connection therewith and with such other information
respecting such proposed Acquisition as may reasonably be requested by Holder. If the Acquisition described in such notice is terminated
or abandoned prior to the consummation thereof, the Company shall provide prompt notice thereof to Holder and, unless Holder advises
the Company in a written notice that it elects to reaffirm the exercise, any purported exercise of this Warrant in connection with
such proposed Acquisition shall be null and void.

 

(ii)         Acquisition
for Cash. Holder agrees that, in the event of an Acquisition in which the sole consideration is cash, and such consideration
is to be received by the holders of the Company’s Common Stock in respect of their shares of the Common Stock at the closing
of the Acquisition, this Warrant shall be automatically exercised (or terminate) as provided in Section 3(d) on and as of the closing
of such Acquisition to the extent not previously exercised.

 

(iii)        Asset
Sale. In the event of an Acquisition that is an arms length sale of all or substantially all of Company’s assets (and
only its assets) to a third party that is not an Affiliate of Company (a “True Asset Sale”), Holder may either (a) exercise
its conversion or purchase right under this Warrant and such exercise will be deemed effective immediately prior to the consummation
of such Acquisition, or (b) permit the Warrant to continue until the Expiration Date if Company continues as a going concern
following the closing of any such True Asset Sale.

 

(iv)        Assumption
of Warrant. Upon the closing of any Acquisition other than as particularly described in Section 3(e)(ii) or 3(e)(iii) above
(and, for the avoidance of doubt, including any such Acquisition in which the Company is not the surviving entity), Company shall,
unless Holder requests otherwise, cause the surviving or successor entity to assume this Warrant and the obligations of Company
hereunder, and this Warrant shall, from and after such closing, be exercisable for the same class, number and kind of securities,
cash and other property as would have been paid for or in respect of the shares issuable (as of immediately prior to such closing)
upon exercise in full hereof as if such shares had been issued and outstanding on and as of such closing, at an aggregate Warrant
Price equal to the aggregate Warrant Price in effect as of immediately prior to such closing (and subject to further adjustment
thereafter from time to time in accordance with the provisions of this Warrant).

 

(v)         Conditional
Exercise. Notwithstanding any other provision hereof, if an exercise of this Warrant is to be made in connection with an Acquisition,
such exercise may at the election of Holder be conditioned upon the consummation of such Acquisition, in which case such exercise
shall not be deemed to be effective until immediately prior to the consummation of such Acquisition.

 

4.          Representations
and Warranties of Holder and Company.

 

(a)          Representations
and Warranties by Holder. Holder represents and warrants to Company as of the date hereof with respect to this Warrant as follows:

 

    	 

    	 

    

 

(i)          Evaluation.
Holder has substantial experience in evaluating and investing in private placement transactions of securities of companies similar
to Company so that Holder is capable of evaluating the merits and risks of its investment in Company and has the capacity to protect
its interests.

 

(ii)         Resale.
Except for transfers to an affiliate of Holder, Holder is acquiring this Warrant and the Warrant Shares issuable upon exercise
of this Warrant (collectively the “Securities”) for investment for its own account and not with a view to, or for resale
in connection with, any distribution thereof. Holder understands that the Securities have not been registered under the Securities
Act of 1933, as amended (the “Act”) by reason of a specific exemption from the registration provisions of the Act which
depends upon, among other things, the bona fide nature of the investment intent as expressed herein.

 

(iii)        Rule
144. Holder acknowledges that the Securities must be held indefinitely unless subsequently registered under the Act or an exemption
from such registration is available. Holder is aware of the provisions of Rule 144 promulgated under the Act.

 

(iv)        Accredited
Investor. Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

 

(v)         Opportunity
To Discuss. Holder has had an opportunity to discuss Company’s business, management and financial affairs with its management
and an opportunity to review Company’s facilities. Holder understands that such discussions, as well as the written information
issued by Company, were intended to describe the aspects of Company’s business and prospects which Company believes to be
material but were not necessarily a thorough or exhaustive description.

 

(b)          Representations
and Warranties by Company. Company hereby represents and warrants to Holder that the statements in the following paragraphs
of this Section 4(b) are true and correct as of the date hereof.

 

(i)          Corporate
Organization and Authority. Company (a) is a corporation duly organized, validly existing, and in good standing under the laws
of the jurisdiction of its organization, (b) has the corporate power and authority to own and operate
its properties and to carry on its business as now conducted and as proposed to be conducted; and (c) is qualified as a foreign
corporation in all jurisdictions where such qualification is required.

 

(ii)         Corporate
Power. Company has all requisite legal and corporate power and authority to execute, issue and deliver this Warrant, to issue
the Warrant Shares issuable upon exercise or conversion of this Warrant, and to carry out and perform its obligations under this
Warrant and any related agreements.

 

(iii)        Authorization;
Enforceability. All corporate action on the part of Company, its officers, directors and shareholders necessary for the authorization,
execution, delivery and performance of its obligations under this Warrant and for the authorization, issuance and delivery of this
Warrant and the Warrant Shares issuable upon exercise of this Warrant has been taken and this Warrant constitutes the legally binding
and valid obligation of Company enforceable in accordance with its terms.

 

    	 

    	 

    

 

(iv)        Valid
Issuance of Warrant and Warrant Shares. This Warrant has been validly issued and is free of restrictions on transfer other
than restrictions on transfer set forth herein and under applicable state and federal securities laws. The Warrant Shares issuable
upon exercise or conversion of this Warrant, when issued, sold and delivered in accordance with the terms of this Warrant for the
consideration expressed herein, will be duly and validly issued, fully paid and nonassessable, and will be free of restrictions
on transfer other than restrictions on transfer under this Warrant and under applicable state and federal securities laws. Subject
to applicable restrictions on transfer, the issuance and delivery of this Warrant and the Warrant Shares issuable upon exercise
or conversion of this Warrant are not subject to any preemptive or other similar rights or any liens or encumbrances except as
specifically set forth in Company’s Amended and Restated Certificate of Incorporation (“Certificate of Incorporation”)
or this Warrant. The offer, sale and issuance of the Warrant Shares, as contemplated by this Warrant, are exempt from the prospectus
and registration requirements of applicable United States federal and state security laws, and neither Company nor any authorized
agent acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.

 

(v)         No
Conflict. The execution, delivery, and performance of this Warrant will not (a) contravene any of the organizational documents
of the Company, (b) violate any material Requirement of Law, (c) require any action by, filing, registration, qualification with,
or approval, consent or withholding of objections from, any Governmental Authority or any other Person, except those which have
been obtained and are in full force and effect, (d) result in the creation of any Lien on any of the Company’s Property,
or (e) result in any breach of or constitute a default under, or permit the termination or acceleration of, any Material Agreement
to which the Company is a party.

 

(vi)        Reports.
Company has previously furnished or made available to Holder complete and accurate copies, as amended or supplemented, of its (a)
Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission (the
“SEC”), and (b) all other reports filed by Company under Section 13 or subsections (a) or (c) of Section 14 of the
Securities Exchange Act of 1934 (as amended, the “Exchange Act”) with the SEC since December 31, 2012 (such reports
are collectively referred to herein as the “Company Reports”). The Company Reports constitute all of the documents
required to be filed by Company under Section 13 or subsections (a) or (c) of Section 14 of the Exchange Act with the SEC from
December 31, 2012 through the date of this Warrant. The Company Reports complied in all material respects with the requirements
of the Exchange Act and the rules and regulations thereunder when filed. As of their respective dates, the Company Reports did
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

5.          Legends.

 

(a)          Legend.
Each certificate representing the Warrant Shares shall be endorsed with substantially the following legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED (UNLESS SUCH TRANSFER IS TO AN
AFFILIATE OF HOLDER) UNLESS COVERED BY AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, A “NO ACTION” LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE
SECURITIES ACT OF 1933, OR (IF REASONABLY REQUIRED BY COMPANY) AN OPINION OF COUNSEL SATISFACTORY
TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

Company need not enter into its
stock records a transfer of Warrant Shares unless the conditions specified in the foregoing legend are satisfied. Company may also
instruct its transfer agent not to allow the transfer of any of the Warrant Shares unless the conditions specified in the foregoing
legend are satisfied.

 

    	 

    	 

    

 

(b)          Removal
of Legend and Transfer Restrictions. The legend relating to the Act endorsed on a certificate pursuant to paragraph 5(a) of
this Warrant shall not be affixed or shall be removed and Company shall issue a certificate without such legend to Holder if (i)
the Securities are registered under the Act and a prospectus meeting the requirements of Section 10 of the Act is available
or (ii) Holder provides to Company an opinion of counsel for Holder reasonably satisfactory to Company, a no-action letter or interpretive
opinion of the staff of the SEC reasonably satisfactory to Company, or other evidence reasonably satisfactory to Company, to the
effect that public sale, transfer or assignment of the Securities may be made without registration and without compliance with
any restriction such as Rule 144.

 

6.          
Transfers of Warrant. In connection with any transfer by Holder of this Warrant, Company may require the transferee to provide
Company with written representations and warranties that transferee is acquiring this Warrant and the shares of Common Stock to
be issued upon exercise for investment purposes only and not with a view to any sale or distribution, and may require a legal opinion,
in form and substance satisfactory to Company and its counsel, stating that such transfer is exempt from the registration and prospectus
delivery requirements of the Act; provided, that Company shall not require an opinion of counsel if the transfer is to an
affiliate of Holder. Following any transfer of this Warrant, at the request of either Company or the transferee, the transferee
shall surrender this Warrant to Company in exchange for a new warrant of like tenor and date, executed by Company. Upon any partial
transfer, Company will also execute and deliver to Holder a new warrant of like tenor with respect to the portion of this Warrant
not so transferred. Subject to the foregoing, this Warrant is transferable on the books of Company at its principal office by the
registered Holder hereof upon surrender of this Warrant properly endorsed. Holder shall not have any right to transfer any portion
of this Warrant to any direct competitor of Company.

 

7.          Adjustment
for Certain Events. The number and kind of securities purchasable upon the exercise of this Warrant and the Warrant Price shall
be subject to adjustment from time to time upon the occurrence of certain events, as follows:

 

(a)          Reclassification
or Merger. In case of (i) any reclassification or change of securities of the class issuable upon exercise of this Warrant
(other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision
or combination), (ii) any merger of Company with or into another corporation (other than a merger with another corporation
in which Company is the acquiring and the surviving corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant), or (iii) any sale of all or substantially all of the assets
of Company, Company, or such successor or purchasing corporation, as the case may be, shall duly execute and deliver to Holder
a new Warrant (in form and substance satisfactory to Holder of this Warrant), or Company shall make appropriate provision without
the issuance of a new Warrant, so that Holder shall have the right to receive, at a total purchase price not to exceed that payable
upon the exercise of the unexercised portion of this Warrant, and in lieu of the Warrant Shares theretofore issuable upon exercise
or conversion of this Warrant, the kind and amount of shares of stock, other securities, money and property receivable upon such
reclassification, change, merger or sale by a holder of the number of shares of Common Stock then purchasable under this Warrant,
or in the case of such a merger or sale in which the consideration paid consists all or in part of assets other than securities
of the successor or purchasing corporation, at the option of Holder, the securities of the successor or purchasing corporation
having a value at the time of the transaction equivalent to the value of the Warrant Shares purchasable upon exercise of this Warrant
at the time of the transaction. Any new Warrant shall provide for adjustments that shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Section 7. The provisions of this subparagraph (a) shall similarly apply to successive
reclassifications, changes, mergers and transfers.

 

(b)          Subdivision
or Combination of Shares. If Company at any time while this Warrant remains outstanding and unexpired shall subdivide or combine
its outstanding shares of Common Stock, the Warrant Price shall be proportionately decreased and the number of Warrant Shares issuable
hereunder shall be proportionately increased in the case of a subdivision and the Warrant Price shall be proportionately increased
and the number of Warrant Shares issuable hereunder shall be proportionately decreased in the case of a combination.

 

    	 

    	 

    

 

(c)          Stock
Dividends and Other Distributions. If Company at any time while this Warrant is outstanding and unexpired shall (i) pay
a dividend with respect to Common Stock payable in Common Stock, then the Warrant Price shall be adjusted, from and after the date
of determination of shareholders entitled to receive such dividend or distribution, to that price determined by multiplying the
Warrant Price in effect immediately prior to such date of determination by a fraction (A) the numerator of which shall be
the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution, and (B) the denominator
of which shall be the total number of shares of Common Stock outstanding immediately after such dividend or distribution; or (ii) make
any other distribution with respect to Common Stock (except any distribution specifically provided for in Sections 7(a) and
7(b)), then, in each such case, provision shall be made by Company such that Holder shall receive upon exercise of this Warrant
a proportionate share of any such dividend or distribution as though it were Holder of the Warrant Shares as of the record date
fixed for the determination of the shareholders of Company entitled to receive such dividend or distribution.

 

(d)          Adjustment
of Number of Shares. Upon each adjustment in the Warrant Price, the number of Warrant Shares purchasable hereunder shall be
adjusted, to the nearest whole share, to the product obtained by multiplying the number of Warrant Shares purchasable immediately
prior to such adjustment in the Warrant Price by a fraction, the numerator of which shall be the Warrant Price immediately prior
to such adjustment and the denominator of which shall be the Warrant Price immediately thereafter.

 

8.          Notice
of Adjustments; Redemption. Whenever any Warrant Price or the kind or number of securities issuable under this Warrant shall
be adjusted pursuant to Section 7 hereof, Company shall prepare a certificate signed by an officer of Company setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated,
and the Warrant Price and number or kind of shares issuable upon exercise of this Warrant after giving effect to such adjustment,
and within thirty (30) days of such adjustment shall cause copies of such certificate to be delivered to Holder in accordance
with Section 17 hereof. 

 

9.          Financial
and Other Reports. 

 

(a)          Exchange
Act Reports. With a view to making available to Holder the benefits of Rule 144, the Company shall, so long as it is subject
to the reporting requirements of the Act and the Exchange Act (collectively, the “Acts”), (i) at all times make and
keep available adequate current public information, as those terms are understood and defined in Rule 144, (ii) use commercially
reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Acts,
and (iii) furnish Holder upon request a written statement by Company that it has complied with the reporting requirements of Rule
144 and the Acts, or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3, and such other information
as may be reasonable requested in availing Holder of any rule or regulation of the SEC that permits the sale of any securities
without registration or pursuant to Form S-3.

 

(b)          Financial
Statements and Capitalization Table. If at any time up to the earlier of the Expiration Date and the complete exercise of this
Warrant, Company is no longer subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, Company
shall furnish to Holder, (i) as soon as available and in any event within 30 days after the end of each fiscal month, unaudited
consolidated (and if available, consolidating) balance sheets, statements of income or operations and cash flow statements of Company
and its Subsidiaries as of the end of such fiscal month and that portion of the fiscal year ending as of the close of such fiscal
month, in a form acceptable to Holder and certified by Company’s president, chief executive officer or chief financial officer,
(ii) as soon as available and in any event within 45 days after the end of each fiscal quarter, unaudited consolidated (and if
available, consolidating) balance sheets, statements of income or operations and cash flow statements of Company and its Subsidiaries
as of the end of such fiscal quarter and that portion of the fiscal year ending as of the close of such fiscal quarter, in a form
acceptable to Holder and certified by Company’s president, chief executive officer or chief financial officer and (iii) as
soon as available and in any event within ninety (90) days after the end of each fiscal year, audited consolidated (and if available,
consolidating) balance sheets, statements of income or operations and cash flow statements of Company and its Subsidiaries as of
the end of such fiscal year, together with a report of an independent certified public accounting firm reasonably acceptable to
Holder, which report shall contain an unqualified opinion stating that such audited financial statements fairly present
in all material respects the financial position of Company and its Subsidiaries for the periods indicated therein in conformity
with GAAP applied on a basis consistent with prior years without qualification as to the scope of the audit or as to going concern
and without any similar qualification. All such financial statements are to be prepared using GAAP (subject, in the case of unaudited
financial statements, to the absence of footnotes and normal year end audit adjustments). If at any time up to the earlier of the
Expiration Date and the complete exercise of this Warrant, Company is no longer subject to the reporting requirements of Section
13 or Section 15(d) of the Exchange Act, within 30 days of the end of each calendar quarter, Company shall also deliver to Holder
an updated capitalization table of Company in form and substance reasonably acceptable to Holder.

 

    	 

    	 

    

 

10.         No
Fractional Shares. No fractional share of Common Stock will be issued in connection with any exercise or conversion hereunder,
but in lieu of such fractional share Company shall make a cash payment therefor upon the basis of the Warrant Price then in effect.

 

11.         Charges,
Taxes and Expenses. Issuance of certificates for shares of Common Stock upon the exercise or conversion of this Warrant shall
be made without charge to Holder for any United States or state of the United States documentary stamp tax or other incidental
expense with respect to the issuance of such certificate, all of which taxes and expenses shall be paid by Company, and such certificates
shall be issued in the name of Holder.

 

12.         No
Shareholder Rights Until Exercise. Except as expressly provided herein, this Warrant does not entitle Holder to any voting
rights or other rights as a shareholder of Company prior to the exercise hereof.

 

13.         Registry
of Warrant. Company shall maintain a registry showing the name and address of the registered Holder of this Warrant. This Warrant
may be surrendered for exchange or exercise, in accordance with its terms, at such office or agency of Company, and Company and
Holder shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

 

14.         Loss,
Theft, Destruction or Mutilation of Warrant. Upon receipt by Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant, and, in the case of loss, theft, or destruction, of indemnity reasonably satisfactory
to it, and, if mutilated, upon surrender and cancellation of this Warrant, Company will execute and deliver a new Warrant, having
terms and conditions substantially identical to this Warrant, in lieu hereof.

 

15.         Miscellaneous.

 

(a)          Issue
Date. The provisions of this Warrant shall be construed and shall be given effect in all respect as if it had been issued and
delivered by Company on the date hereof.

 

(b)          Successors.
This Warrant shall be binding upon any successors or assigns of Company.

 

(c)          Headings.
The headings used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this
Warrant.

 

(d)          Saturdays,
Sundays, Holidays. If the last or appointed day for the taking of any action or the expiration of any right required or granted
herein shall be a Saturday or a Sunday or shall be a legal holiday in the State of New York, then such action may be taken or such
right may be exercised on the next succeeding day not a Saturday, Sunday or a legal holiday.

 

16.         No
Impairment. Company will not, by amendment of its Certificate of Incorporation or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying
out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of
Holder hereof against impairment. 

 

    	 

    	 

    

 

17.         Addresses.
All notices or other communications given in connection with this Warrant shall be
in writing, shall be addressed to the parties at their respective addresses set forth below (unless and until a different address
may be specified in a written notice to the other party delivered in accordance with this Section 17), and shall be deemed given
(a) on the date of receipt if delivered by hand, (b) on the next business day after being sent by a nationally-recognized
overnight courier, or (c) on the third business day after being sent by registered or certified mail, return receipt requested
and postage prepaid.  

 

	 	If to Company:	Navidea Biopharmaceuticals, Inc.
	 	 	425 Metro Place North, Suite 300
	 	 	Dublin, OH 43017-1367
	 	 	Attn: Brent L. Larson, Senior Vice President
	 	 	 
	 	With copies to:	Porter, Wright, Morris & Arthur, LLP
	 	 	41 South High Street, Suites 2800-3200
	 	 	Columbus, OH 43215
	 	 	Attn:  William J. Kelly
	 	 	 
	 	If to Holder:	MidCap Financial SBIC, LP
	 	 	7255 Woodmont Avenue, Suite 200
	 	 	Bethesda, Maryland 20814
	 	 	Attention: Portfolio Management – Life Sciences
	 	 	 
	 	With copies to:	MC Serviceco, LLC
	 	 	7255 Woodmont Avenue, Suite 200
	 	 	Bethesda, Maryland 20814
	 	 	Attention: General Counsel

 

18.         WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS WARRANT
OR THE WARRANT SHARES.

 

19.         GOVERNING
LAW. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
THE CONFLICT OF LAW PRINCIPLES OF SUCH STATE) EXCEPT THAT THE GENERAL CORPORATION LAW OF DELAWARE SHALL APPLY TO MATTERS SPECIFICALLY
ADDRESSED THEREIN.

 

[Remainder of page intentionally left blank]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

NAVIDEA BIOPHARMACEUTICALS, INC.

 

	By:	/s/ Brent L. Larson	 
	 	Name: Brent L. Larson	 
	 	Title:  EVP, CFO, Treasurer and Secretary	 

 

    	 

    	 

    

 

NOTICE OF EXERCISE

To: 

[____________]

[____________]

[____________]

Attn: [____________]

 

1.          The
undersigned Warrantholder (“Holder”) elects to acquire shares of the Common Stock (the “Common Stock”)
of NAVIDEA BIOPHARMACEUTICALS, INC. (the “Company”), pursuant to the terms of the Stock Purchase Warrant dated __________
_____, 2013 (the “Warrant”).

 

2.          Holder
exercises its rights under the Warrant as set forth below:

 

(         )
          
   Holder elects to purchase _____________ shares of Common Stock as provided
in Section 3(a) and tenders herewith a check in the amount of $___________ as payment of the purchase price.

 

(         )
          
    Holder elects to convert the purchase rights into shares of Common
Stock as provided in Section 3(b) of the Warrant.

 

3.          Holder
surrenders the Warrant with this Notice of Exercise.

 

Holder represents that it is acquiring
the aforesaid shares of Common Stock for investment and not with a view to or for resale in connection with distribution, and it
has no present intention of distributing or reselling the shares.

 

Please issue a certificate representing
the shares of the Common Stock in the name of Holder or in such other name as is specified below:

 

	 	Name:	 	 
	 	 	 	 
	 	Address:	 	 
	 	 	 	 
	 	Taxpayer I.D.:	 	 

 

	 	MIDCAP FINANCIAL SBIC, LP
	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title: 	Duly Authorized Signatory
	 	 	 	 
	 	Date:	_______ ___, 20___Exhibit 10.4

 

AMENDMENT TO LOAN AGREEMENT

 

This Amendment to Loan
Agreement (the “Amendment”) is made as of the 25th day of June, 2013, by and between NAVIDEA BIOPHARMACEUTICALS,
INC., a Delaware corporation (the “Borrower”), and PLATINUM-MONTAUR LIFE SCIENCES, LLC, a Delaware
limited liability company (the “Lender”).

 

WHEREAS, pursuant
to a Loan Agreement, dated as of July 25, 2012, by and between the Borrower and the Lender (the “Loan Agreement”),
the Lender extended a Term Loan to the Borrower;

 

WHEREAS, the
Borrower has requested that the Lender consent to the incurrence of indebtedness pursuant to a Loan and Security Agreement, dated
as of June 25, 2013, by and among the Borrower, General Electric Capital Corporation, as administrative and collateral agent (“GECC”),
and the lenders from time to time party thereto (the “GECC Loan Agreement”);

 

WHEREAS, the
Borrower and the Lender have agreed to convert a portion of the outstanding Obligations to Series B Convertible Preferred Stock
of the Borrower through the exercise of all outstanding Series X and Series AA Warrants of Borrower, pursuant to a Warrant Exercise
Agreement, dated as of the date hereof, between the Borrower and the Lender (the “Exercise Agreement”); and

 

WHEREAS, the
Borrower and the Lender desire to amend certain terms of the Loan Agreement to, among other things, reflect the incurrence of Indebtedness
pursuant to the GECC Loan Agreement and permit the conversion of the Obligations on the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the foregoing and the covenants contained herein, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties agree as follows:

 

Article
One

DEFINITIONS; REPRESENTATIONS; CONSENT

 

Section 1.1           Terms Defined.

 

Unless otherwise defined
herein, capitalized terms used herein shall have the same meanings given in the Loan Agreement.

 

Section 1.2           Representations
and Warranties of the Borrower.

 

1.2.1       The
representations and warranties of the Borrower made in the Loan Documents remain true and accurate and the covenants of the Borrower
under the Loan Documents are hereby reaffirmed as of the date hereof.

 

    	 

    	 

    

 

1.2.2       The
Borrower has performed, in all material respects, all obligations to be performed by it to date under the Loan Documents and no
Event of Default exists thereunder or an event which, with the passage of time or giving of notice or both, would constitute an
Event of Default.

 

1.2.3       The
execution, delivery and performance of this Amendment and any and all documents and instruments relating hereto of even or approximate
date as this Amendment (collectively, and including the Amended Note (as defined below), the “Amendment Documents”),
are within the power and authority of the Borrower and are not in contravention of the Borrower’s Certificate of Incorporation
or Bylaws, or the terms of any other documents, instruments, agreements or undertakings to which the Borrower is a party or by
which the Borrower is bound. To the best of the Borrower’s knowledge, no approval of any person, corporation, governmental
body or other entity not provided herewith is a prerequisite to the execution, delivery and performance by the Borrower of the
Amendment Documents or any of the documents submitted to the Lender in connection with the Amendment Documents, to ensure the validity
or enforceability thereof.

 

1.2.4       When
executed on behalf of the Borrower, the Amendment Documents will constitute the legally binding obligations of the Borrower, enforceable
in accordance with their terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, moratorium and other
similar laws now existing or hereafter enacted relating to or affecting the enforcement of creditors’ rights generally, and
the enforceability may be subject to limitations based on general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

Section 1.3           Consent
to GECC Loan Documents

 

Upon
and as of the Effective Date, the Lender hereby consents to the terms and conditions of the GECC Loan Agreement and the “Loan
Documents” as defined therein, each in substantially the forms attached hereto as Exhibit A, and the incurrence of
Indebtedness and granting of Liens contemplated thereby. 

 

Article
Two

Increase in Term Loan; AMENDMENTS

 

Section 2.1           Amendments
to Defined Terms.

 

(a)          Upon
and as of the Effective Date, the following paragraph shall be inserted at the top of the first page of the Loan Agreement:

 

“This
instrument and the indebtedness, rights and obligations evidenced hereby and any liens or other security interests securing such
rights and obligations are subordinate in the manner and to the extent set forth in that certain Subordination Agreement (as amended,
restated, supplemented or modified from time to time, the “Subordination Agreement”) dated as of June 25, 2013, by
and among the Subordinated Creditor identified therein and General Electric Capital Corporation in its capacity as agent for certain
lenders (together with its successors and assigns, “Senior Creditor Agent”), to certain indebtedness, rights, and obligations
of Navidea Biopharmaceuticals, Inc. to Senior Creditor Agent and Senior Creditor (as defined therein) and liens and security interests
of Senior Creditor Agent securing the same all as described in the Subordination Agreement; and each holder and transferee of this
instrument, by its acceptance hereof, irrevocably agrees to be bound by the provisions of the Subordination Agreement.”

 

    	2

    	 

    

 

(b)          Upon
and as of the Effective Date, the definition of “Applicable Rate” in the Loan Agreement shall be amended to read in
its entirety as follows:

 

“Applicable
Rate” means the greatest of (i) the United States prime rate as reported in The Wall Street Journal plus 6.75%,
(ii) 10.0% and (iii) the highest rate of interest then payable by the Borrower pursuant to the GECC Loan Documents plus
12.5 basis points (0.125%); provided, that, the Applicable Rate shall be adjusted immediately to correspond with
each change in the prime rate or the highest rate of interest then payable by the Borrower pursuant to the GECC Loan Documents.

 

(b)          Upon
and as of the Effective Date, the following definition of “Common Stock” shall be added to Section 1.2 of the Loan
Agreement:

 

“Common
Stock” is defined in Section 2.7 hereof.

 

(c)          Upon
and as of the Effective Date, the following definition of “Conversion Amount” shall be added to Section 1.2 of the
Loan Agreement:

 

“Conversion
Amount” is defined in Section 2.7 hereof.

 

(d)          Upon
and as of the Effective Date, the following definition of “Conversion Notice” shall be added to Section 1.2 of the
Loan Agreement:

 

“Conversion
Notice” is defined in Section 2.7 hereof.

 

(e)          Upon
and as of the Effective Date, the following definition of “Conversion Price” shall be added to Section 1.2 of the Loan
Agreement:

 

“Conversion
Price” is defined in Section 2.7 hereof.

 

(f)          Upon
and as of the Effective Date, the definition of “Draw Loan Maturity Date” in the Loan Agreement shall be amended to
read in its entirety as follows:

 

“Draw
Loan Maturity Date” means with respect to each Draw, the day that is the earlier of (a) two (2) years following the day
such Draw was funded by the Lender and (b) June 25, 2017; provided, that in no event shall the Draw Loan Maturity Date for
any Draw occur prior to the earlier of (a) June 25, 2017 and (b) the Subordination Termination Date (as defined in the Subordination
Agreement).

 

    	3

    	 

    

 

(g)          Upon
and as of the Effective Date, the following definition of “DWAC” shall be added to Section 1.2 of the Loan Agreement:

 

“DWAC”
is defined in Section 2.7 hereof.

 

(h)          Upon
and as of the Effective Date, the following definition of “GECC Loan Agreement” shall be added to Section 1.1 of the
Loan Agreement:

 

“GECC
Loan Agreement” means the Loan and Security Agreement, dated as of June 25, 2013, by and between the Borrower, the other
loan parties from time to time party thereto, General Electric Capital Corporation, as administrative and collateral agent, and
the lenders from time to time party thereto, as it may be amended, restated, supplemented, refinanced or otherwise modified from
time to time.

 

(i)          Upon
and as of the Effective Date, the following definition of “GECC Loan Documents” shall be added to Section 1.1 of the
Loan Agreement:

 

“GECC
Loan Documents” means the GECC Loan Agreement and the “Loan Documents” referred to therein, as each may be
amended, restated, supplemented, refinanced or otherwise modified from time to time.

 

(j)          Upon
and as of the Effective Date, the definition of “Hercules Loan Documents” shall be deleted in its entirety.

 

(k)          Upon
and as of the Effective Date, the definition of “Permitted Liens” shall be amended to read in its entirety as follows:

 

    	4

    	 

    

 

“Permitted
Liens” mean (i) any Liens held by Lender or Affiliates of Lender at any time after the termination of the Subordination
Agreement, (ii) Liens for unpaid taxes that either are not yet delinquent, or do not constitute an Event of Default hereunder and
are the subject of a Permitted Contest, (iii) Liens securing Indebtedness incurred pursuant to the GECC Loan Documents, (iv) the
interests of lessors under any lease of real property in the ordinary course of business, (v) Liens securing purchase money Indebtedness
or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness,
provided that (x) such Liens exist prior to the acquisition of, or attach substantially simultaneous with, or within 20 days after,
the acquisition, repair, improvement or construction of, such property financed by such Indebtedness and (y) such Liens do not
extend to any Property of a Loan Party other than the Property (and proceeds thereof) acquired or built, or the improvements or
repairs, financed by such Indebtedness,(vi) Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics,
materialmen, or laborers, incurred in the ordinary course of Borrower’s business and not in connection with the borrowing
of money, and which Liens either (A) are for sums not yet delinquent, or (B) are the subject of Permitted Contests, (vii) Liens
arising from pledges or deposits made in the ordinary course of business in connection with obtaining worker’s compensation
or other unemployment insurance, (viii) Liens or pledged or deposits to secure performance of bids, tenders, leases (other than
capital leases), sales or other trade contracts incurred in the ordinary course of Borrower’s business and not in connection
with the borrowing of money, (ix) Liens granted as security for surety, customs, reclamation or performance bonds, or judgment
or appeal bonds, in each case in connection with obtaining such bonds in the ordinary
course of Borrower’s business, (x) Liens resulting from any judgment or award that is not an Event of Default hereunder,
(xi) Liens related to any Permitted Acquisition, to the extent such Liens encumber only the assets acquired in such Permitted Acquisition,
(xii) Liens of a collection bank on items in the course of collection arising under Section 4-208 of the UCC, (xiii) Liens arising
by reason of zoning restrictions, easements, licenses, reservations, restrictions, covenants, rights-of-way, encroachments, minor
defects or irregularities in title (including leasehold title) and other similar encumbrances on the use of real property that
do not materially (x) impair the value or marketability of such real property or (y) interfere with the ordinary conduct of the
business conducted and proposed to be conducted at such real property; and (xiv) non-exclusive licenses of the intellectual property
of the Borrower or any Subsidiary of the Borrower that do not restrict the applicable licensor’s ability to grant a lien
on, assign or otherwise transfer such license or any intellectual property.

 

(l)          
Upon and as of the Effective Date, the following definition of “Subordination Agreement” shall be added to Section
1.1 of the Loan Agreement:

 

“Subordination
Agreement” means the Subordination Agreement, dated as of June 25, 2013, between the Lender and General Electric Capital
Corporation, and consented to by the Borrower and the Subsidiaries of the Borrower from time to time party thereto.

 

(m) Upon and as of
the Effective Date, the following definition of “Trading Day” shall be added to Section 1.1 of the Loan Agreement:

 

“Trading
Day” means (a) a day on which the Common Stock is traded on the OTC Bulletin Board or a registered national securities
exchange, or (b) if the Common Stock is not traded on the OTC Bulletin Board or a registered national securities exchange, a day
on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or
any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the
Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall mean any day except Saturday, Sunday
and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required
by law or other government action to close.

 

(n) Upon and as of
the Effective Date, the following definition of “VWAP” shall be added to Section 1.1 of the Loan Agreement:

 

    	5

    	 

    

 

“VWAP” means
for any date, (i) the daily volume weighted average price of the Common Stock for such date on the OTC Bulletin Board or national
securities exchange as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern
Time); (ii) if the Common Stock is not then listed or quoted on the OTC Bulletin Board or a national securities exchange and if
prices for the Common Stock are then reported in the “Pink Sheets” published by the Pink Sheets, LLC (or a similar
organization or agency succeeding to its functions or reporting prices), the most recent bid price per share of the Common Stock
so reported; or (iii) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser
selected in good faith by the Lender and reasonably acceptable to the Borrower.

 

Section 2.2          Amendment
to Section 2.2.

 

Upon and as of the Effective Date, Section
2.2 of the Loan Agreement shall be amended to append thereto the following subsection:

 

(f)          Notwithstanding
anything to the contrary contained herein, the Lender shall have no obligation to fund any Draw hereunder upon and after the occurrence
of an Event of Default or an “Event of Default” under and as defined in the GECC Loan Agreement; provided, that,
in the case of an occurrence of an “Event of “Default” arising under Section 7.11 of the GECC Loan Agreement
that is subsequently cured, the Lender’s obligations to fund Draws hereunder subsequent to such cure shall not be terminated
solely as a result of such “Event of Default”.

 

Section 2.3          Amendment
to Section 2.6.

 

Upon and as of the Effective Date, Section
2.6 of the Loan Agreement shall be amended to read in its entirety as follows:

 

At any time following the satisfaction
of the FDA Approval Condition, the Lender may, in the Lender's sole and absolute discretion, increase the Draw Credit Maximum Amount
to an amount not to exceed $50,000,000; provided, that, in connection with any such increase, the Lender may, in the Lender' sole
and absolute discretion, require the Borrower to (i) execute and deliver a promissory note in such increased Draw Credit Maximum
Amount, which promissory note shall be in form and substance satisfactory to the Lender, and (ii) solely to the extent that the
Subordination Termination Date (as defined in the Subordination Agreement) has occurred, grant collateral to the Lender to secure
the Borrower's Obligations hereunder pursuant to a security agreement in form and substance reasonably satisfactory to the Lender.
It is understood and agreed that no commitment fur such increased availability exists on the date hereof; and such availability
shall be dependent upon, among other things, the Lender's assessment of the Borrower's performance, prospects and management.

 

    	6

    	 

    

 

Section 2.4           Amendment
to Section 3.2(b).

 

Upon and as of the
Effective Date, Section 3.2 (b) of the Loan Agreement shall be amended to read in its entirety as follows:

 

(b)          At
all times after the fiscal quarter during which the Triggering Event Date occurs, Borrower shall, on a quarterly basis thereafter,
pay to Lender an aggregate amount equal to 1/3rd of the aggregate amount of revenue derived by Borrower solely from
the commercial sales of and license agreements in connection with Lymphoseek during the then immediately prior fiscal quarter,
such payments to be applied no later than 30 days following the end of such immediately prior fiscal quarter and to be applied
to Draws in inverse order of maturity; provided, that, in no event shall any such prepayment amount be due and payable
pursuant to this Section 3.2(b) if the payment thereof would violate the terms of the Subordination Agreement.

 

Section 2.5           Amendment
to Section 5.10.

 

Upon and as of the Effective Date, Section
5.10 of the Loan Agreement shall be amended to read in its entirety as follows:

 

The Borrower each Guarantor (a)
has an indefeasible interest in all personal property which it has an interest, free and clear of any Liens, except Permitted Liens,
and (b) has not agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of
its property whether now owned or hereafter acquired to be subject to a Lien, except Permitted Liens and agreements contained under
the GECC Loan Documents. Neither Borrower nor any Guarantor owns any real property.

 

Section 2.6           Amendment
to Section 7.1.

 

Upon and as of the
Effective Date, Section 7.1(viii) of the Loan Agreement shall be amended to read in its entirety as follows:

 

(viii)       The
occurrence of any event which allows the acceleration of the maturity of any Indebtedness in excess of the amount of $1,000,000
of Borrower and/or any Guarantor on an aggregate basis (other than Indebtedness incurred pursuant to the GECC Loan Documents);

 

Section 2.7           Amendment
to Section 7.1.

 

Upon and as of the
Effective Date, Section 7.1(x) of the Loan Agreement shall be amended to read in its entirety as follows:

 

    	7

    	 

    

 

(x)          An
event of default shall have occurred under the GECC Loan Documents, and as a result thereof the loans made under the GECC Loan
Documents have become due prior to the stated maturity of such loans; and

 

Section 2.8           Amendment
to Section 2.1(a).

 

Upon and as of the Effective Date, Section
2.1(a) of the Loan Agreement shall be amended to read in its entirety as follows:

 

(a)          Lender,
subject to the terms and conditions hereof, will make a non-revolving draw credit facility (the “Term Loan Facility”)
available to the Borrower in an aggregate principal amount not to exceed the Draw Credit Maximum Amount. The Term Loan Facility
is non-revolving, and Draws repaid may not be re-borrowed; provided, that, the principal amount of the Draws converted
pursuant to the Warrant Exercise Agreement, dated as of June 25, 2013, between the Borrower and the Lender $4,781,333.00 shall
be available for advances and shall not be deemed to reduce the Draw Credit Maximum Amount.

 

Section 2.9           Amendment
and Restatement of Note.

 

Upon and as of the Effective Date, the Promissory
Note shall be amended and restated, in the form attached hereto as Exhibit B (the “Amended Note”), and all references
in the Loan Documents to the Note or Notes shall be deemed to mean and refer to the Amended Note.

 

Section 2.10         Conversion
Option.

 

Upon and as of the Effective Date, Article
II of the Loan Agreement shall be deemed amended by adding the following as Section 2.7 thereof:

 

Section 2.7        Conversion
Of Outstanding Amounts

 

(a)          Subject
to Sections 2.7(c) and (e), with respect to any Draw advanced on or after June 25, 2013, beginning on a date that is two (2) years
from the date on which such Draw was advanced, and thereafter at any time and from time to time while any portion of the principal,
or unpaid interest accrued on such Draw, is outstanding, the Lender shall have the right, at Lender’s option, to convert
all or any portion of the unpaid principal or unpaid interest accrued on such Draw (the “Conversion Amount”)
into the number of shares of Borrower’s common stock (the “Common Stock”) computed by dividing the Conversion
Amount by a conversion price equal to the lesser of (i) 90% of the lowest VWAP for the 10 Trading Days preceding the date of such
conversion request, or (ii) the average VWAP for the 10 Trading Days preceding the date of such conversion request (the “Conversion
Price”);

 

    	8

    	 

    

 

(b)          Subject
to Sections 2.7(c) and (e), with respect to any Draw advanced on or after June 25, 2013, and while the Subordination Agreement
is in effect, if at any time following the Triggering Event Date Borrower is required, without giving effect to the proviso in
Section 3.2 hereof, to repay Lender any amount due under Section 3.2 of this Agreement (a “Revenue-Based Repayment”)
but is prohibited by the Subordination Agreement from doing so, and General Electric Capital Corporation, or its successor, as
administrative and collateral agent, has not waived such prohibition in writing on behalf of itself and the Senior Creditor (as
defined in the Subordination Agreement), Lender shall have the right, at Lender’s option to convert all or any portion of
Revenue-Based Repayment (the “Conversion Amount”) into Common Stock at the Conversion Price;

 

(c)          In
no event shall more than 23,906,000 shares (as adjusted for splits, combinations and the like) be issued at the Conversion Price
without the prior approval of the Borrower’s stockholders; it being understood that any number of shares may be issued at
the Conversion Price set forth in clause (ii) of Section 2.7(a) without such approval.

 

(d)          To
exercise its right to effect any conversion of a Conversion Amount pursuant to this Section 2.7, the Lender shall deliver written
notice to the Borrower setting forth (i) its calculation of the Conversion Price as of the date of such conversion request, (ii)
the Conversion Amount, and (iii) delivery instructions with respect to the Common Stock to be received upon such conversion of
the Conversion Amount (the “Conversion Notice”). Not later than five (5) Trading Days following the giving of
the Conversion Notice, the Borrower shall deliver the Common Stock to be received in such conversion, which delivery shall be made
via the Deposit Withdrawal Agent Commission System (“DWAC”) if such delivery is lawful, or if delivery via DWAC
is not lawful, then delivery shall be made by overnight courier in accordance with the Lender’s instructions.

 

(e)          
Notwithstanding anything to the contrary set forth in this Section 2.7, at no time may the either party convert all or a portion
of the Obligations if the number of shares of Common Stock to be issued pursuant to such conversion, when aggregated with all other
shares of Common Stock owned by the Lender at such time, would result in the Lender beneficially owning (as determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934 and the rules thereunder) in excess of 9.99% of the then issued and outstanding
shares of Common Stock outstanding at such time; provided, however, that upon the Lender providing the Borrower with
sixty-one (61) days’ written notice that the Lender would like to waive this Section 2.7(e) with regard to any or all shares
of Common Stock issuable upon conversion of a Conversion Amount, this Section 2.7(e) shall be of no force or effect with regard
to all or a portion of the Conversion Amount referenced in such notice.

 

    	9

    	 

    

 

Article
Three

CLOSING CONDITIONS

 

Section 3.1           Closing
Conditions.

 

The obligation of the
Lender to execute and deliver this Amendment is subject to fulfillment of the following conditions precedent:

 

(i)          the Borrower
shall have executed and delivered to the Lender this Amendment and all other Amendment Documents applicable to it, including the
Amended Note;

 

(ii)        all representations
and warranties of the Borrower shall be true and correct and no material adverse change shall have occurred in the business, condition
(financial or otherwise) or prospects of the Borrower, from the date of the most recent financial statements of the Borrower delivered
to the Lender;

 

(iii)      if requested
by the Lender, counsel to the Borrower shall have executed and delivered a legal opinion to the Lender, which legal opinion shall
be in form and substance satisfactory to the Lender and shall address the Amendment Documents and such other matters as may be
reasonably requested by the Lender;

 

(iv)        the
Lender shall have received evidence of the repayment in full, and release of all liens securing, the Indebtedness of the Borrower
and the Subsidiaries of the Borrower to Hercules Technology II, L.P;

 

(v)         the
Lender shall have received evidence of the execution and delivery of the GECC Loan Agreement and the “Loan Documents”
referred to therein, and GECC shall have committed to fund Indebtedness thereunder in a gross amount of not less than $25,000,000
contemporaneously with this Amendment becoming effective; and

 

(vi)         the transactions
contemplated by the Exercise Agreement shall have been consummated.

 

Section 3.2          Effective
Date.

 

This Amendment shall
become effective as of the date first above written upon evidence satisfactory to the Lender that all of the foregoing closing
conditions have been satisfied (the “Effective Date”).

 

Article
Four

MISCELLANEOUS

 

Section 4.1           Loan
Documents

 

The Borrower shall
deliver this Amendment, and all other Amendment Documents, to the Lender and those documents shall be included in the term the
“Loan Documents” in the Loan Agreement. The provisions of the Loan Documents, as modified herein, shall remain in full
force and effect in accordance with their terms and are hereby ratified and confirmed.

 

    	10

    	 

    

 

Section 4.2           Survival
of Representations and Warranties.

 

All agreements, representations
and warranties contained in the Loan Documents shall survive the execution and delivery of this Amendment, and any investigation
at any time made by or on behalf of the Lender.

 

Section 4.3           Expenses.

 

The Borrower agrees,
regardless of whether or not the transactions contemplated hereby shall be consummated, to pay all reasonable expenses incurred
by the Lender incident to such transactions in the preparation of documentation relating thereto, including without limitation
fees and disbursements of the Lender’s counsel incurred in connection with this Amendment, the Subordination Agreement and
the Warrant Exercise Agreement.

 

Section 4.4           General.

 

The Borrower shall
execute and deliver such additional documents and instruments and shall do such other acts as the Lender may reasonably require
in order to implement this Amendment fully. This Amendment may be executed in counterparts by the Borrower and the Lender, each
of which shall be deemed an original but all of which together shall constitute one and the same agreement.

 

[Signature Page Follows]

 

    	11

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Amendment to be executed by their duly authorized agents as of the date first above written.

 

	 	Borrower:
	 	 
	 	NAVIDEA BIOPHARMACEUTICALS, INC.
	 	 	 	 
	 	By:	/s/ Brent L. Larson
	 	 	Name:	Brent L. Larson
	 	 	Title:	EVP, CFO, Treasurer and Secretary
	 	 	 	 
	 	Lender:
	 	 
	 	PLATINUM-MONTAUR LIFE SCIENCES, LLC
	 	 	 	 
	 	By:	/s/ Michael Goldberg
	 	 	Name: 	Michael Goldberg
	 	 	Title:	Portfolio Manager

 

    	 

    	 

    

 

Exhibit A

 

[GECC Loan Documents*]

 

* Filed as Exhibit 10.1 to the Current Report on Form 8-K of
Navidea Biopharmaceuticals, Inc., File No. 001-35076, dated June 24, 2013, filed June 26, 2013, as amended June 28, 2013, and incorporated
herein by reference.

 

    	 

    	 

    

 

Exhibit B

 

[Amended Note*]

 

* Filed as Exhibit 10.6 to the Current Report on Form 8-K of
Navidea Biopharmaceuticals, Inc., File No. 001-35076, dated June 24, 2013, filed June 26, 2013, as amended June 28, 2013, and incorporated
herein by reference.

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