Exhibit
4.1


 


	 	Delaware	Page
    1
	 	The
    First State	 




 


I,
JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF
THE CERTIFICATE OF DESIGNATION OF “POINT CAPITAL, INC .” , FILED IN THIS OFFICE ON THE ELEVENTH DAY OF MAY, A . D
.. 2017, AT 12 : 56 O’CLOCK P.M.


 


A
FILED COPY OF THIS CERTIFICATE HAS BEEN FORWARDED TO THE KENT COUNTY RECORDER OF DEEDS.


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 





	 	 	/s/ Jeffrey W. Bullock 
	5251646
                                            8100

        SR#
        20173361077
	 	Jeffrey W. Bullock, Secretary of State

                                                                                                     

                                                                                                     

                                                                                                     

                                                                                                     

                                                                                                     Authentication:
202542105


Date:
05-15-17





	You
                                         may verify this certificate online at corp.delaware.gov/authver.shtml




	 	 



 


 






     

     


    

 


	State of Delaware

    Secretary of State

    Division of Corporations

    Delivered 12:56 PM 05/11/2017

    FILED 12:56 PM 05/11/2017

    SR 20173361077 - File Number 5251646	POINT
    CAPITAL, INC.	 



 


AMENDED
AND RESTATED CERTIFICATE OF DESIGNATION OF 

PREFERENCES, RIGHTS AND LIMITATIONS OF SERIES A CONVERTIBLE

 PREFERRED STOCK


 


PURSUANT
TO SECTION 151 OF THE

DELAWARE GENERAL CORPORATION LAW


 


Point
Capital, Inc. (the “Corporation”), a corporation organized and existing under the General Corporation Law of
the State of Delaware (the “DGCL”), in accordance with the provisions of Section 151 thereof, DOES HEREBY CERTIFY
THAT:


 


WHEREAS,
in accordance with the provisions of Section 151 of the DGCL and pursuant to the authority under the Certificate of Incorporation
of the Corporation, the Board of Directors of the Corporation is authorized to issue five million (5,000,000) shares of preferred
stock, par value $0.0001 per share;


 


WHEREAS,
the Board of Directors previously adopted a resolution authorizing the creation and issuance of preferred stock designated as
the “Series A Convertible Preferred Stock” (the “Preferred Stock”) and the Certificate of Designation
of Preferences, Rights and Limitations of Series A Convertible Preferred Stock (the “Original Certificate of Designation”)
was filed with the Secretary of State of the State of Delaware on March 18, 2013;


 


WHEREAS,
on March 31, 2017, the Board of Directors, by unanimous written consent, adopted and approved this Amended and Restated Certificate
of Designation (this “Certificate of Designation”) for purposes of amending certain provisions of the Preferred
Stock; and


 


NOW
THEREFORE, BE IT RESOLVED, that, pursuant to the authority expressly vested in the Board of Directors and in accordance with the
provisions of the Certificate of Incorporation and the DGCL, the Original Certificate of Designation is hereby amended and restated
and the designation and amount thereof and the voting powers, preferences and relative, participating, optional and other special
rights of the shares of such series and the qualifications, limitations or restrictions thereof are as follows:


 


TERMS
OF PREFERRED STOCK


 


Section
1. Definitions.


 


For
the purposes hereof, the following temis shall have the following meanings:


 


“1940
Act” means the Investment Company Act of 1940, as amended, or any successor statute.


 


“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 of the Securities Act.


 






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“Alternate Consideration” shall have the meaning set forth in Section 7(e).


 


“Asset Coverage” and “asset
coverage,” as defined for purposes of Sections 18(h) and 61 of the 1940 Act, of at least 200% with respect to all outstanding
senior securities of the Corporation, including all outstanding shares of Preferred Stock (or such other asset coverage as may
in the future be specified in or under the 1940 Act or by rule, regulation or order of United States Securities and Exchange Commission
as the minimum asset coverage for senior securities of a Business Development Company), calculated as of the time of such detetinination.


 


“Asset Coverage Cure Date” means,
with respect to the failure by the Corporation to maintain Asset Coverage as of the close of business on the last Business Day
of a Calendar Quarter (as required by Section 8(c)), the date that is thirty (30) calendar days following the Filing Date with
respect to such Calendar Quarter.


 


“Bankruptcy Event” means any of
the following events: (a) the Corporation or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation
S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief
of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Corporation or any Significant
Subsidiary thereof, (b) there is commenced against the Corporation or any Significant Subsidiary thereof any such case or proceeding
that is not dismissed within 60 days after commencement, (c) the Corporation or any Significant Subsidiary thereof is adjudicated
insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Corporation
or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its
property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Corporation or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Corporation or any Significant Subsidiary
thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts, or
(g) the Corporation or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval
of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.


 


“Base Conversion Price” shall
have the meaning set forth in Section 7(b).


 


“Beneficial Ownership Limitation” shall have the meaning set forth in Section 6(d).


 


“Business Day” means any day except
any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.


 


“Business Development Company”
shall have the meaning set forth in Section 2(a)(48) of the 1940 Act, or any successor provision.


 


“Buy-In” shall have the meaning
set forth in Section 6(c)(iv).


 






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“Calendar Quarter” shall
mean any of the three month periods ending March 31, June 30, September 30, or December 31, of each year.


 


“Change of Control
Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act), other than a legal
entity majority owned by, or a group wholly consisting of, officers and directors of the corporation and their Affiliates, of
effective control (whether through legal or beneficial ownership of capital stock of the Corporation, by contract or otherwise)
of in excess of 40% of the voting securities of the Corporation (other than by means of conversion or exercise of Preferred Stock
and the Securities issued together with the Preferred Stock), (b) the Corporation merges into or consolidates with any other Person,
or any Person merges into or consolidates with the Corporation and, after giving effect to such transaction, the stockholders
of the Corporation immediately prior to such transaction own less than 50% of the aggregate voting power of the Corporation or
the successor entity of such transaction, (c) the Corporation sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Corporation immediately prior to such transaction own less than 50% of the aggregate voting
power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a one year period of
more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members
of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors
on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who
are members on the Original Issue Date), or (e) the execution by the Corporation of an agreement to which the Corporation is a
party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.


 


“Closing” means a closing
of the purchase and sale of the Securities pursuant to Section 1.02 of the Purchase Agreement.


 


“Closing Date” means a Trading
Day on which all of the Transaction Documents have been executed and delivered by the Corporation and each of the purchasers purchasing
shares of Preferred Stock at the Closing, and all conditions precedent to (i) the purchasers’ obligations to pay the Purchase
Price, and (ii) the Corporation’s obligations to deliver the shares of Preferred Stock have been satisfied or waived.


 


“Commission” means the United
States Securities and Exchange Commission.


 


“Common Stock” means the
Corporation’s common stock, par value $0.0001 per share, and stock of any other class of securities into which such securities
may hereafter be reclassified or changed.


 


“Common Stock Equivalents”
means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof to acquire at any time Common
Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any
time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.


 






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“Conversion Amount” means
the sum of the Stated Value at issue.


 


“Conversion Date”
shall have the meaning set forth in Section 6(a).


 


“Conversion Price” shall have the meaning set forth in Section
6(b).


 


“Conversion Shares”
means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the
terms hereof.


 


“Default”
shall have the meaning as set forth in Section 3(g)(i).


 


“Default Period”
shall have the meaning as set forth in Section 3(g)(i).


 


“Default Rate”
shall have the meanings as set forth in Section 3(g)(i).


 


“Dilutive Issuance”
shall have the meaning set forth in Section 7(b).


 


“Dilutive Issuance
Notice” shall have the meaning set forth in Section 7(b).


 


“Dividend Default” shall have the
meaning as set forth in Section 3(g)(i).





 


“Dividend Payment Date” means the last Business Day of each
Dividend Period.


 


“Dividend Notice Period” shall have the meaning set forth in Section 3(a).


 


“Dividend Payment Date” shall have the meaning set forth in Section 3(a).


 


“Dividend Period”
means, with respect to each share of Preferred Stock, in the case of the first Dividend Period, the period beginning on the Date
of Original Issue and ending on and including December 31, 2013 and for each subsequent Dividend Period, the period beginning
on and including the first calendar day of the year following the month in which the previous Dividend Period ended and ending
the last calendar day of such year.


 


“Dividend Rate”
means, as of any date, the Fixed Dividend Rate as adjusted, if a Default Period shall be in existence on such date, in accordance
with the provisions of Section 2.2(g).


 






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“Equity Conditions”
means, during the period in question, (a) the Corporation shall have duly honored all conversions scheduled to occur or occurring
by virtue of one or more Notices of Conversion of the applicable Holder on or prior to the dates so requested or required, if
any, (b) the Corporation shall have paid all liquidated damages and other amounts owing to the applicable Holder in respect of
the Preferred Stock,(c) all of the Conversion Shares issuable pursuant to the Transaction Documents may be resold pursuant to
Rule 144 without volume or manner-of-sale restrictions or current public information requirements as determined by the counsel
to the Corporation as set forth in a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and
the affected Holders,(d) the Common Stock is trading on a Trading Market and all of the shares issuable pursuant to the Transaction
Documents are listed or quoted for trading on such Trading Market (and the Corporation believes, in good faith, that trading of
the Common Stock on a Trading Market will continue uninterrupted for the foreseeable future), (e) there is a sufficient number
of authorized, but unissued and otherwise unreserved, shares of Common Stock for the issuance of all of the shares then issuable
pursuant to the Transaction Documents, (f) there is no existing Triggering Event and no existing event which, with the passage
of time or the giving of notice, would constitute a Triggering Event, (g) the issuance of the shares in question to the applicable
Holder would not violate the limitations set forth in Section 6(d) herein, (h) there has been no public announcement of a pending
or proposed Fundamental Transaction or Change of Control Transaction that has not been consummated, (i) the applicable Holder
is not in possession of any information provided by the Corporation that constitutes, or may constitute, material nonpublic information,
and (j) for each Trading Day in a period of 20 consecutive Trading Days prior to the applicable date in question, the closing
price for the Common Stock on the principal Trading Market exceeds the Conversion Price.


 


“Electronic Means”
means email transmission, facsimile transmission or other similar electronic means of communication providing evidence of transmission
(but excluding online communications systems covered by a separate agreement) acceptable to the sending party and the receiving
party, in any case if operative as between any two parties, or, if not operative, by telephone (promptly confirmed by any other
method set forth in this definition), which, in the case of notices to the Redemption and Paying Agent and the Custodian, shall
be sent by such means to each of its representatives set forth in the Redemption and Paying Agent Agreement and the Custodian
Agreement, respectively.


 


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


 


“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Corporation
pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the Board of Directors of the Corporation
or a majority of the members of a committee of non-employee directors established for such purpose, (b) the Qualified Offering
(as defined in the Purchase Agreement), (c) securities upon the exercise or exchange of or conversion of any securities issued
pursuant to the Purchase Agreement and/or other securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the date of the Purchase Agreement, provided that such securities have not been amended since
the date of the Purchase Agreement to increase the number of such securities or to decrease the exercise price, exchange price
or conversion price of any such securities, and (d) securities issued pursuant to acquisitions or strategic transactions approved
by a majority of the disinterested directors of the Corporation, provided that any such issuance shall only be to a Person (or
to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an asset in a business
synergistic with the business of the Corporation and shall provide to the Corporation additional benefits in addition to the investment
of funds, but shall not include a transaction in which the Corporation is issuing securities primarily for the purpose of raising
capital or to an entity whose primary business is investing in securities.


 






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“Filing Date”
means, with respect to any Calendar Quarter, the date of filing of the Corporation’s SEC Report with respect to such Calendar
Quarter.


 


“Forced Conversion Date” shall have the meaning set forth in Section 8(a).


 


“Forced Conversion
Notice” shall have the meaning set forth in Section 8(a).


 


“Forced Conversion Notice Date” shall have
the meaning set forth in Section 8(a).


 


“Fundamental Transaction” shall have the meaning set forth in Section
7(e).


 


“GAAP”
means United States generally accepted accounting principles.


 


“Holder”
shall have the meaning given such term in Section 2.


 


“Indebtedness”
means (a) any liabilities for borrowed money or amounts owed in excess of $250,000 (other than trade accounts payable incurred
in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Corporation’s balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business, and (c) the present value of any lease payments in excess of $250,000 due under leases required to be capitalized
in accordance with GAAP.


 


“Junior Securities”
means the Common Stock and all other Common Stock Equivalents of the Corporation.


 


“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.


 


“Liquidation”
shall have the meaning set forth in Section 5.


 


“Liquidation
Preference” means $100.00 per share.


 


“Mandatory Redemption
Price” shall have the meaning as set forth in Section 8(c)(i).


 


“New York Courts”
shall have the meaning set forth in Section 11(d).


 


“Notice of Conversion”
shall have the meaning set forth in Section 6(a).


 


“Optional Redemption”
shall have the meaning set forth in Section 8(b).


 


“Optional Redemption
Amount” shall have the meaning set forth in Section 8(b).


 


“Optional Redemption
Date” shall have the meaning set forth in Section 8(b).


 






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“Optional Redemption Notice” shall have the
meaning set forth in Section 8(b).


 


“Optional Redemption
Notice Date” shall have the meaning set forth in Section 8(b).


 


“Original Issue
Date” means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers
of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued to evidence such
Preferred Stock.


 


“Permitted
Indebtedness” means (a) the Indebtedness existing on the Original Issue Date, (b) lease obligations and purchase
money indebtedness of up to $100,000, in the aggregate, incurred in connection with the acquisition of capital assets and
lease obligations with respect to newly acquired or leased assets, and (c) Indebtedness incurred in connection with a
Qualified Offering.


 


“Permitted Lien”
means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental charges
or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good faith and
by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Corporation) have
been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Corporation’s
business, such as carriers’, warehouse men’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Corporation’s business, and which (x) do not individually or in the
aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of
the business of the Corporation and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings,
which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject
to such Lien, (c) Liens incurred in connection with Permitted Indebtedness under clause (a) thereunder, and (d) Liens incurred
in connection with Permitted Indebtedness under clause (b) thereunder, provided that such Liens are not secured by assets of the
Corporation or its Subsidiaries other than the assets so acquired or leased.


 


“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.


 


“Preferred
Stock” shall have the meaning set forth in Section 2.


 


“Purchase Agreement”
means the Securities Purchase Agreement, dated as of April 23, 2013, among the Corporation and the original Holders, as amended,
modified or supplemented from time to time in accordance with its terms.


 


“Purchase Price” shall mean, as to
each Holder, the aggregate amount to be paid for the Preferred Stock purchased pursuant to the Purchase Agreement as specified
below such Holder’s name on the signature page of the Purchase Agreement in United States dollars and in immediately available
funds.


 






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“Purchase Rights”
shall have the meaning set forth in Section 7(c)


 


“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.


 


“Securities”
means the Preferred Stock and the Conversion Shares.


 


“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 


“Share Delivery
Date” shall have the meaning set forth in Section 6(c). “Stated Value” shall have the meaning set
forth in Section 2.


 


“Subsidiary”
means any subsidiary of the Corporation as set forth on Schedule 3.1(a) of the Purchase Agreement and shall, where
applicable, also include any direct or indirect subsidiary of the Corporation formed or acquired after the date of the Purchase
Agreement.


 


“Successor Entity” shall have the meaning set forth in Section 7(e).


 


“Trading Day”
means a day on which the principal Trading Market is open for trading; provided, that in the event that the Common Stock is not
listed or quoted for trading on a Trading Market on the date in question, then Trading Day shall mean a Business Day.


 


“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
the OTC Bulletin Board, the OTC QB Marketplace or the OTC QX Marketplace (or any successors to any of the foregoing).


 


“Transaction
Documents” means this Certificate of Designation, the Purchase Agreement, all exhibits and schedules thereto and hereto
and any other documents or agreements executed in connection with the transactions contemplated pursuant to the Purchase Agreement.


 


“Transfer Agent”
means a transfer agent for the Corporation’s Common Stock and the Securities, and any successor transfer agent of the Corporation.


 


“Triggering Event”
shall have the meaning set forth in Section 10(a).


 


“Triggering Redemption
Amount” means, for each share of Preferred Stock, the sum of (a) the greater of (i) 100% of the Stated Value and (ii)
the product of (y) the VWAP on the Trading Day immediately preceding the date of the Triggering Event and (z) the Stated Value
divided by the then Conversion Price, (b) all accrued but unpaid dividends thereon and (c) all liquidated damages and other costs,
expenses or amounts due in respect of the Preferred Stock.


 






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“Triggering Redemption
Payment Date” shall have the meaning set forth in Section 10(b).


 


“Underlying Shares”
means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock in accordance with the terms of this
Certificate of Designation.


 


“Variable Rate
Transaction” shall have the meaning ascribed to such teat in Section 4.13(b) of the Purchase Agreement.


 


“Voting Period”
shall have the meaning as set forth in Section 4(b)(i).


 


“VWAP” means, for any date, the price determined by
the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common. Stock for such date (or the nearest preceding date) on the Trading Market on which
the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York
City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is not then listed or quoted for trading on a Trading Market
and if prices for the Common Stock are then reported on the OTC Pink Marketplace maintained by OTC Markets Group Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent closing price per share of the Common
Stock so reported, or (c) 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 Holders of a majority in interest of the Securities then outstanding and reasonably acceptable
to the Corporation, the fees and expenses of which shall be paid by the Corporation.


 


Section 2.   Designation,
Amount and Par Value.


 


The series of preferred stock shall be designated
as the Corporation’s Series A Convertible Preferred Stock (the “Preferred Stock”) and the number of shares
so designated shall be 5,000,000 (which shall not be subject to increase without the written consent of all of the holders of
the Preferred Stock (each, a “Holder” and collectively, the “Holders”)). Each share of Preferred
Stock shall have a par value of $0.0001 per share and a stated value equal to $100, subject to increase set forth in Section 3
below (the “Stated Value”).


 


Section 3. Dividends and Distributions.


 


	 	a)	For so long as
                                         shares of Preferred Stock are outstanding, the Corporation shall not declare, pay or
                                         set apart for payment any dividend or other distribution (other than a dividend or distribution
                                         paid in shares of, or options, warrants or rights to subscribe for or purchase, Common
                                         Stock or other shares of capital stock, if any, ranking junior to the Preferred Stock
                                         as to dividends) with respect to Common Stock or any other shares of the Corporation
                                         ranking junior to or on a parity with the Preferred Stock as to dividends, unless (i)
                                         immediately after such transaction the Corporation would have asset coverage of at least
                                         200% after deducting the amount of such dividend or distribution, as the case may be,
                                         (ii) full cumulative dividends on the Preferred Stock due on or prior to the date of
                                         the transaction have been declared and paid and (iii) the Corporation has redeemed the
                                         full number of shares of Preferred Stock required to be redeemed by any provision for
                                         mandatory redemption contained in Section 8 of this Certificate of Designation.



 






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	 	b)	Other
    Securities. So long as at least 15% of the originally issued shares of Preferred Stock shall remain outstanding, neither
    the Corporation nor any Subsidiary thereof shall redeem, purchase or otherwise acquire directly or indirectly any Junior Securities
    except as expressly permitted by Section 10(b). So long as any shares of Preferred Stock are outstanding, the Corporation
    may not, without the vote or consent of a Majority in Interest, authorize, establish and create and issue and sell shares
    of one or more series of a class of senior securities of the Corporation representing stock under Sections 18 and 61 of the
    1940 Act, ranking senior to or on a parity with the Preferred Stock as to the payment of dividends and the distribution of
    assets upon dissolution, liquidation or the winding up of the affairs of the Corporation.


 


	 	c)	Special
    Reserves. The Corporation acknowledges and agrees that the capital of the Corporation (as such term is used in Section
    154 of the Delaware General Corporation Law) in respect of the Preferred Stock and any future issuances of the Corporation’s
    capital stock shall be equal to the aggregate par value of such Preferred Stock or capital stock, as the case may be, and
    that, on or after the date of the Purchase Agreement, it shall not increase the capital of the Corporation with respect to
    any shares of the Corporation’s capital stock issued and outstanding on such date. The Corporation also acknowledges and agrees
    that it shall not create any special reserves under Section 171 of the Delaware General Corporation Law without the prior
    written consent of each Holder.


 


Section 4.   Voting.


 


	 	a)	Voting Rights. Except for matters which
                                         do not require the vote of Holders of the Preferred Stock under the 1940 Act or except
                                         as otherwise provided in this Certificate of Designation or the Certificate of Incorporation
                                         or as otherwise required by applicable law, (1) each Holder of Preferred Stock shall
                                         be entitled to one vote for each share of Preferred Stock held on each matter submitted
                                         to a vote of stockholders of the Corporation, and (2) the Holders of outstanding shares
                                         of Preferred Stock and the outstanding shares of Common Stock shall vote together as
                                         a single class on all matters submitted to stockholders; provided, however, that the
                                         Holders of outstanding shares of Preferred Stock, shall be entitled, as a class, to the
                                         exclusion of the holders of all other classes of capital stock, to elect two (2) members
                                         of the Board as set forth in Section 4(b). Notwithstanding the foregoing, as long as
                                         any shares of Preferred Stock are outstanding, the Corporation shall not, without the
                                         affirmative vote of the Holders of at least 67% in Stated Value of the then outstanding
                                         shares of the Preferred Stock provided such holders must include Alpha Capital Anstalt
                                         so long as Alpha Capital Anstalt holds not less than $100,000 of Preferred Stock, (a)
                                         alter or change adversely the powers, preferences or rights given to the Preferred Stock
                                         or alter or amend this Certificate of Designation, (b) authorize or create any class
                                         of stock ranking as to dividends, redemption or distribution of assets upon a Liquidation
                                         (as defined in Section 5) senior to, or otherwise pari passu with, the Preferred
                                         Stock, (c) amend its certificate of incorporation or other charter documents in any manner
                                         that adversely affects any rights of the Holders, (d) increase the number of authorized
                                         shares of Preferred Stock, or (e) enter into any agreement with respect to any of the
                                         foregoing.



 






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	 	b)	Voting For Additional Directors.



 


	 	i.	For so long as the Corporation is subject to the 1940 Act, the Holders of shares of
Preferred Stock, voting separately as a single class, shall have the right to elect two (2) members of the Board at any annual
or special meeting of stockholders or by a written consent in lieu of a meeting undertaken by the Holders of at least a majority
of the outstanding shares of Preferred Stock.



 


	 	ii.	During
    any period in which any one or more of the conditions described in this Section 4(b) shall exist (such period being referred
    to herein as a “Voting Period”), the number of Directors constituting the Board of Directors shall be automatically
    increased by the smallest number that, when added to the two Directors elected exclusively by the holders of shares of Preferred
    Stock, would constitute a majority of the Board of Directors as so increased by such smallest number; and the Holders of Preferred
    Stock, shall be entitled, voting as a class on a one-vote-per-share basis (to the exclusion of the holders of all other securities
    and classes of capital stock of the Corporation), to elect such smallest number of additional Directors, together with the
    two Directors that such Holders are in any event entitled to elect. A Voting Period shall commence: if at any time Holders
    of shares of Preferred Stock are otherwise entitled under the 1940 Act to elect a majority of the Board of Directors.


 


	 	iii.	As
    soon as practicable after the accrual of any right of the Holders of shares of Preferred Stock to elect additional Directors
    as described in Section 4(b)(i), the Corporation shall call a special meeting of such Holders (i) by mailing or delivery by
    Electronic Means or (ii) in such other manner and by such other means as are specified in the terms of such Preferred Stock,
    a notice of such special meeting to such Holders, such meeting to be held not less than ten (10) nor more than thirty (30)
    calendar days after the date of the delivery by Electronic Means or mailing of such notice. If the Corporation fails to call
    such a special meeting, it may be called at the expense of the Corporation by any such Holder on like notice. The record date
    for determining the Holders of shares of Preferred Stock entitled to notice of and to vote at such special meeting shall be
    the close of business on the fifth (5th) Business Day preceding the calendar day on which such notice is mailed. At any such
    special meeting and at each meeting of Holders of shares of Preferred Stock held during a Voting Period at which Directors
    are to be elected, such Holders, voting together as a class (to the exclusion of the Holders of all other securities and classes
    of capital stock of the Corporation), shall be entitled to elect the number of Directors prescribed in Section 4(b)(i) on
    a one-vote-per-share basis.


 


	 	iv.	The
    terms of office of the incumbent Directors of the Corporation at the time of a special meeting of Holders of the shares of
    Preferred Stock to elect additional Directors in accordance with Section 4(b)(i) shall not be affected by the election at
    such meeting by the Holders of shares of Preferred Stock of the number of Directors that they are entitled to elect, and the Directors
so elected by the Holders of shares of Preferred Stock together with the two (2) Directors elected by the Holders of shares of
Preferred Stock in accordance with Section 4(a) hereof and the remaining Directors elected by the holders of the shares of Common
Stock and Preferred Stock, shall constitute the duly elected Directors of the Corporation.


 






    	 	11	 



     


    

 


	 	v.	Simultaneously with the termination of a Voting Period, the terms of office of the
additional Directors elected by the Holders of the shares of Preferred Stock pursuant to Section 4(b)(i) shall terminate, the
remaining Directors shall constitute the Directors of the Corporation and the voting rights of the Holders of shares of Preferred
Stock to elect additional Directors pursuant to Section 4(b)(i) shall cease, subject to the provisions of the last sentence of
Section 4(b)(i).



 


	 	c)	1940
    Act Matters. Unless a higher percentage is provided for in the Certificate of Incorporation, the affirmative vote of the
    Holders of at least a Majority in Interest voting as a separate class, shall be required (A) to approve the Corporation ceasing
    to be a Business Development Company, or to approve the Corporation’s withdrawal of its election as a Business Development
    Company, or (B) to approve any plan of reorganization (as such term is used in the 1940 Act) adversely affecting such shares.



 


	 	d)	Voting
    Rights Set Forth Herein Are Sole Voting Rights. Unless otherwise required by law or the Certificate of Incorporation,
    the Holders of shares of Preferred Stock shall not have any relative rights or preferences or other special rights with respect
    to voting other than those specifically set forth in this Section 4.


 


	 	e)	No
    Cumulative Voting. The Holders of shares of Preferred Stock shall have no rights to cumulative voting.


 


Section 5.  Liquidation.


 


Upon any liquidation, dissolution or winding-up
of the Corporation, whether voluntary or involuntary (a “Liquidation”), the Holders shall be entitled to receive
out of the assets, whether capital or surplus, of the Corporation an amount equal to the Stated Value, plus any other fees or
liquidated damages then due and owing thereon under this Certificate of Designation, for each share of Preferred Stock before
any distribution or payment shall be made to the holders of any Junior Securities and if the assets of the Corporation shall be
insufficient to pay in full such amounts, then the entire assets to be distributed to the Holders shall be ratably distributed
among the Holders in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon
were paid in full. A Fundamental Transaction or Change of Control Transaction shall not be deemed a Liquidation. The Corporation
shall mail written notice of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each Holder.


 






    	 	12	 



     


    

 


Section 6.   Conversion.


 


	 	a)	Conversions at Option of Holder. Each share of Preferred Stock shall be convertible,
at any time and from time to time from and after the Original Issue Date at the option of the Holder thereof, into that number
of shares of Common Stock (subject to the limitations set forth in Section 6(d)) deteimined by dividing the Stated Value of such
share of Preferred Stock by the Conversion Price. Holders shall effect conversions by providing the Corporation with the form
of conversion notice attached hereto as Annex A (a “Notice of Conversion”). Each Notice of Conversion
shall specify the number of shares of Preferred Stock to be converted, the number of shares of Preferred Stock owned prior to
the conversion at issue, the number of shares of Preferred Stock owned subsequent to the conversion at issue and the date on which
such conversion is to be effected, which date may not be prior to the date the applicable Holder delivers by facsimile such Notice
of Conversion to the Corporation (such date, the “Conversion Date”). If no Conversion Date is specified in
a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered
hereunder. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical
error. To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing
the shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock represented thereby are so converted,
in which case such Holder shall deliver the certificate representing such shares of Preferred Stock promptly following the Conversion
Date at issue. Shares of Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be
canceled and shall not be reissued.



 


	 	b)	Conversion
    Price. The conversion price for the Preferred Stock shall equal $0.20, subject to adjustment herein (the “Conversion
    Price”).


 


	 	c)	Mechanics
    of Conversion


 


	 	i.	Delivery
    of Certificate Upon Conversion. Not later than five(5) Trading Days after each Conversion Date (the “Share Delivery
    Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder a certificate or certificates
    representing the Conversion Shares which, on or after the one year anniversary of the Closing Date (provided that the Holder
    provides the Corporation or the Corporation’s counsel with any reasonable certifications requested by the Corporation with
    respect to future sales of such Conversion Shares) shall be free of restrictive legends and trading restrictions (other than
    those which may then be required by the Purchase Agreement) representing the number of Conversion Shares being acquired upon
    the conversion of the Preferred Stock. On or after the earlier of the one year anniversary of the Closing Date, the Corporation
    shall use commercially reasonable efforts to deliver any certificate or certificates required to be delivered by the Corporation
    under this Section 6 electronically through the Depository Trust Company or another established clearing corporation performing
    similar functions if the Corporation if then a participant in such system.


 


	 	ii.	Failure
    to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered
    to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice
    to the Corporation at any time on or before its receipt of such certificate or certificates, to rescind such Conversion,
in which event the Corporation shall promptly return to the Holder any original Preferred Stock certificate delivered to the Corporation
and the Holder shall promptly return to the Corporation the Common Stock certificates issued to such Holder pursuant to the rescinded
Conversion Notice.


 






    	 	13	 



     


    

 





	 	iii.	Obligation Absolute; Partial Liquidated Damages. Except as otherwise set forth
in this Section 6(c)(iii),the Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Preferred
Stock in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder to
enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by
such Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the
Corporation to such Holder in connection with the issuance of such Conversion Shares; provided, however, that such
delivery shall not operate as a waiver by the Corporation of any such action that the Corporation may have against such Holder.
In the event a Holder shall elect to convert any or all of the Stated Value of its Preferred Stock, the Corporation may not refuse
conversion based on any claim that such Holder or any one associated or affiliated with such Holder has been engaged in any violation
of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining
conversion of all or part of the Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts
a surety bond for the benefit of such Holder in the amount of 150% of the Stated Value of Preferred Stock which is subject to
the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and
the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the
Corporation shall issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion. If the Corporation fails
to deliver to a Holder such certificate or certificates pursuant to Section 6(c)(i) on the second Trading Day after the Share
Delivery Date applicable to such conversion, the Corporation shall pay to such Holder, in cash, as liquidated damages and not
as a penalty, for each $5,000 of Stated Value of Preferred Stock being converted, $50 per Trading Day for each Trading Day after
such second Trading Day after the Share Delivery Date until such certificates are delivered or Holder rescinds such conversion.
Nothing herein shall limit a Holder’s right to pursue actual damages or declare a Triggering Event pursuant to Section 10
hereof for the Corporation’s failure to deliver Conversion Shares within the period specified herein and such Holder shall
have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit a Holder from seeking to enforce
damages pursuant to any other Section hereof or under applicable law. The maximum amount of liquidated damages payable to a Holder
pursuant to this Section 6(c)(iii) shall not exceed 6% of the Stated Value of Preferred Stock purchased by such Holder.



 






    	 	14	 



     


    

  


		iv.	Compensation
                                         for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition
                                         to any other rights available to the Holder, if the Corporation fails for any reason
                                         to deliver to a Holder the applicable certificate or certificates by the Share Delivery
                                         Date pursuant to Section 6(c)(i), and if after such Share Delivery Date such Holder is
                                         required by its brokerage firm to purchase (in an open market transaction or otherwise),
                                         or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
                                         in satisfaction of a sale by such Holder of the Conversion Shares which such Holder was
                                         entitled to receive upon the conversion relating to such Share Delivery Date (a “Buy-In”),
                                         then the Corporation shall (A) pay in cash to such Holder (in addition to any other remedies
                                         available to or elected by such Holder) the amount, if any, by which (x) such Holder’s
                                         total purchase price (including any brokerage commissions) for the Common Stock so purchased
                                         exceeds (y) the product of (1) the aggregate number of shares of Common Stock that such
                                         Holder was entitled to receive from the conversion at issue multiplied by (2) the actual
                                         sale price at which the sell order giving rise to such purchase obligation was executed
                                         (including any brokerage commissions) and (B) at the option of such Holder, either reissue
                                         (if surrendered) the shares of Preferred Stock equal to the number of shares of Preferred
                                         Stock submitted for conversion (in which case, such conversion shall be deemed rescinded)
                                         or deliver to such Holder the number of shares of Common Stock that would have been issued
                                         if the Corporation had timely complied with its delivery requirements under Section 6(c)(i).
                                         For example, if a Holder purchases shares of Common Stock having a total purchase price
                                         of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Preferred
                                         Stock with respect to which the actual sale price of the Conversion Shares (including
                                         any brokerage commissions) giving rise to such purchase obligation was a total of $10,000
                                         under clause (A) of the immediately preceding sentence, the Corporation shall be required
                                         to pay such Holder $1,000. The Holder shall provide the Corporation written notice indicating
                                         the amounts payable to such Holder in respect of the Buy-In and, upon request of the
                                         Corporation, evidence of the amount of such loss. Nothing herein shall limit a Holder’s
                                         right to pursue any other remedies available to it hereunder, at law or in equity including,
                                         without limitation, a decree of specific performance and/or injunctive relief with respect
                                         to the Corporation’s failure to timely deliver certificates representing shares
                                         of Common Stock upon conversion of the shares of Preferred Stock as required pursuant
                                         to the terms hereof
	 	 	 



		v.	Reservation
                                         of Shares Issuable Upon Conversion. The Corporation covenants that it will at all
                                         times reserve and keep available out of its authorized and unissued shares of Common
                                         Stock for the sole purpose of issuance upon conversion of the Preferred Stock and payment
                                         of dividends on the Preferred Stock, each as herein provided, free from preemptive rights
                                         or any other actual contingent purchase rights of Persons other than the Holder (and
                                         the other holders of the Preferred Stock), not less than such aggregate number of shares
                                         of the Common Stock as shall (subject to the terms and conditions set forth
                                         in the Purchase Agreement) be issuable (taking into account the adjustments and restrictions
                                         of Section 7) upon the conversion of the then outstanding shares of Preferred Stock and
                                         payment of dividends hereunder. The Corporation covenants that all shares of Common Stock
                                         that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully
                                         paid and nonassessable.






 






    	 	15	 



     


    

 


		vi.	Fractional
                                         Shares. No fractional shares or scrip representing fractional shares shall be issued
                                         upon the conversion of the Preferred Stock. As to any fraction of a share which the Holder
                                         would otherwise be entitled to purchase upon such conversion, the Corporation shall at
                                         its election, either pay a cash adjustment in respect of such final fraction in an amount
                                         equal to such fraction multiplied by the Conversion Price or round up to the next whole
                                         share.
	 	 	 



		vii.	Transfer
                                         Taxes and Expenses. The issuance of certificates for shares of the Common Stock on
                                         conversion of the Preferred Stock shall be made without charge to any Holder for any
                                         documentary stamp or similar taxes that may be payable in respect of the issue or delivery
                                         of such certificates, provided that the Corporation shall not be required to pay any
                                         tax that may be payable in respect of any transfer involved in the issuance and delivery
                                         of any such certificate upon conversion in a name other than that of the Holders of such
                                         shares of Preferred Stock and the Corporation shall not be required to issue or deliver
                                         such certificates unless or until the Person or Persons requesting the issuance thereof
                                         shall have paid to the Corporation the amount of such tax or shall have established to
                                         the satisfaction of the Corporation that such tax has been paid. The Corporation shall
                                         pay all Transfer Agent fees required for same-day processing of any Notice of Conversion.



 






    	 	16	 



     


    

 


		d)	Beneficial
                                         Ownership Limitation. The Corporation shall not affect any conversion of the Preferred
                                         Stock, and a Holder shall not have the right to convert any portion of the Preferred
                                         Stock, to the extent that, after giving effect to the conversion set forth on the applicable
                                         Notice of Conversion, such Holder (together with such Holder’s Affiliates, and any Persons
                                         acting as a group together with such Holder or any of such Holder’s Affiliates) would
                                         beneficially own in excess of the Beneficial Ownership Limitation (as defined below).
                                         For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
                                         owned by such Holder and its Affiliates shall include the number of shares of Common
                                         Stock issuable upon conversion of the Preferred Stock with respect to which such determination
                                         is being made, but shall exclude the number of shares of Common Stock which are issuable
                                         upon (i) conversion of the remaining, unconverted Stated Value of Preferred Stock beneficially
                                         owned by such Holder or any of its Affiliates and (ii) exercise or conversion of the
                                         unexercised or unconverted portion of any other securities of the Corporation subject
                                         to a limitation on conversion or exercise analogous to the limitation contained herein
                                         (including, without limitation, the Preferred Stock) beneficially owned by such Holder
                                         or any of its Affiliates. Except as set forth in the preceding sentence, for purposes
                                         of this Section 6(d), beneficial ownership shall be calculated in accordance with Section
                                         13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the
                                         extent that the limitation contained in this Section 6(d) applies, the determination
                                         of whether the Preferred Stock is convertible (in relation to other securities
                                         owned by such Holder together with any Affiliates) and of how many shares of Preferred
                                         Stock are convertible shall be in the sole discretion of such Holder, and the submission
                                         of a Notice of
                                         Conversion shall be deemed to be such Holder’s determination of whether the shares
                                         of Preferred Stock may be converted (in relation to other securities owned by such Holder
                                         together with any Affiliates) and how many shares of the Preferred Stock are convertible,
                                         in each case subject to the Beneficial Ownership Limitation. To ensure compliance with
                                         this restriction, each Holder will be deemed to represent to the Corporation each time
                                         it delivers a Notice of Conversion that such Notice of Conversion has not violated the
                                         restrictions set forth in this paragraph and the Corporation shall have no obligation
                                         to verify or confirm the accuracy of such determination. In addition, a determination
                                         as to any group status as contemplated above shall be determined in accordance with Section
                                         13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes
                                         of this Section 6(d), in determining the number of outstanding shares of Common Stock,
                                         a Holder may rely on the number of outstanding shares of Common Stock as stated in the
                                         most recent of the following: (i) the Corporation’s most recent periodic or annual report
                                         filed with the Commission, as the case may be, (ii) a more recent public announcement
                                         by the Corporation or (iii) a more recent written notice by the Corporation or the Transfer
                                         Agent setting forth the number of shares of Common Stock outstanding. Upon the written
                                         or oral request of a Holder, the Corporation shall within two Trading Days confirm orally
                                         and in writing to such Holder the number of shares of Common Stock then outstanding.
                                         In any case, 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
                                         the Preferred Stock, by such Holder or its Affiliates since the date as of which such
                                         number of outstanding shares of Common Stock was reported. The “Beneficial Ownership
                                         Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding
                                         immediately after giving effect to the issuance of shares of Common Stock issuable upon
                                         conversion of Preferred Stock held by the applicable Holder. A Holder, upon not less
                                         than 61 days’ prior notice to the Corporation, may increase or decrease the Beneficial
                                         Ownership Limitation provisions of this Section 6(d) applicable to its Preferred Stock
                                         provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number
                                         of shares of the Common Stock outstanding immediately after giving effect to the issuance
                                         of shares of Common Stock upon conversion of the Preferred Stock held by the Holder and
                                         the provisions of this Section 6(d) shall continue to apply. Any such increase or decrease
                                         will not be effective until the 61’ day after such notice is delivered to the Corporation
                                         and shall only apply to such Holder and no other Holder. The provisions of this paragraph
                                         shall be construed and implemented in a manner otherwise than in strict conformity with
                                         the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which
                                         may be defective or inconsistent with the intended Beneficial Ownership Limitation contained
                                         herein or to make changes or supplements necessary or desirable to properly give effect
                                         to such limitation. The limitations contained in this paragraph shall apply to a successor
                                         holder of Preferred Stock.



 






    	 	17	 



     


    

 


Section
7. Certain Adjustments. 


 





		a)	Stock
                                         Dividends and Stock Splits. If the Corporation, at any time while the Preferred Stock
                                         is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions
                                         payable in shares of Common Stock on shares of Common Stock or any other Common Stock
                                         Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock
                                         issued by the Corporation upon conversion of, or payment of a dividend on, the Preferred
                                         Stock), (ii) subdivides outstanding shares of Common Stock into a larger number of shares,
                                         (iii) combines (including by way of a reverse stock split) outstanding shares of Common
                                         Stock into a smaller number of shares, or (iv) issues, in the event of a reclassification
                                         of shares of the Common Stock, any shares of capital stock of the Corporation, then the
                                         Conversion Price shall be multiplied by a fraction of which the numerator shall be the
                                         number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding
                                         immediately before such event, and of which the denominator shall be the number of shares
                                         of Common Stock outstanding immediately after such event. Any adjustment made pursuant
                                         to this Section 7(a) 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.
	 	 	 



		b)	Subsequent
                                         Equity Sales. If, at any time while the Preferred Stock is outstanding, the Corporation
                                         or any Subsidiary, as applicable sells or grants any option to purchase or sells or grants
                                         any right to reprice, or otherwise disposes of or issues (or announces any sale, grant
                                         or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents
                                         entitling any Person to acquire shares of Common Stock at an effective price per share
                                         that is lower than the then Conversion Price (such lower price, the “Base Conversion
                                         Price” and such issuances, collectively, a “Dilutive Issuance”)
                                         (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any
                                         time, whether by operation of purchase price adjustments, reset provisions, floating
                                         conversion, exercise or exchange prices or otherwise, or due to warrants, options or
                                         rights per share which are issued in connection with such issuance, be entitled to receive
                                         shares of Common Stock at an effective price per share that is lower than the Conversion
                                         Price, such issuance shall be deemed to have occurred for less than the Conversion Price
                                         on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to
                                         equal the Base Conversion Price. Such adjustment shall be made whenever such Common Stock
                                         or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment
                                         will be made under this Section 7(b) in respect of an Exempt Issuance. If the Corporation
                                         enters into a Variable Rate Transaction, despite the prohibition set forth in the Purchase
                                         Agreement, the Corporation shall be deemed to have issued Common Stock or Common Stock
                                         Equivalents at the lowest possible conversion price at which such securities may be converted
                                         or exercised. The Corporation shall notify the Holders in writing, no later than the
                                         Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject
                                         to this Section 7(b), indicating therein the applicable issuance price, or applicable
                                         reset price, exchange price, conversion price and other pricing teems (such notice, the
                                         “Dilutive Issuance Notice”). For purposes of clarification, whether
                                         or not the Corporation provides a Dilutive Issuance Notice pursuant to this Section 7(b),
                                         upon the occurrence of any Dilutive Issuance, the Holders are entitled to receive a number
                                         of Conversion Shares based upon the Base Conversion Price on or after the date of such
                                         Dilutive Issuance, regardless of whether a Holder accurately refers to the Base
                                         Conversion Price in the Notice of Conversion.






 






    	 	18	 



     


    

 


		c)	Subsequent
                                         Rights Offerings. In addition to any adjustments pursuant to Section 7(a) above,
                                         if at any time the Corporation grants, issues or sells any Common Stock Equivalents or
                                         rights to purchase stock, warrants, securities or other property pro rata to the record
                                         holders of any class of shares of Common Stock (the “Purchase Rights”),
                                         then the Holder of will be entitled to acquire, upon the terms applicable to such Purchase
                                         Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder
                                         had held the number of shares of Common Stock acquirable upon complete conversion of
                                         such Holder’s Preferred Stock (without regard to any limitations on exercise hereof,
                                         including without limitation, the Beneficial Ownership Limitation) immediately before
                                         the date on which a record is taken for the grant, issuance or sale of such Purchase
                                         Rights, or, if no such record is taken, the date as of which the record holders of shares
                                         of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
                                         (provided, however, to the extent that the Holder’s right to participate in any such
                                         Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation,
                                         then the Holder shall not be entitled to participate in such Purchase Right to such extent
                                         (or beneficial ownership of such shares of Common Stock as a result of such Purchase
                                         Right to such extent) and such Purchase Right to such extent shall be held in abeyance
                                         for the Holder until such time, if ever, as its right thereto would not result in the
                                         Holder exceeding the Beneficial Ownership Limitation).
	 	 	 



		d)	Pro
                                         Rata Distributions. If the Corporation, at any time while the Preferred Stock is
                                         outstanding, distributes to all holders of Common Stock (and not to the Holders) evidences
                                         of its indebtedness or assets (including cash and cash dividends) or rights or warrants
                                         to subscribe for or purchase any security (other than the Common Stock, which shall be
                                         subject to Section 7(c)), then in each such case the Conversion Price shall be adjusted
                                         by multiplying such Conversion Price in effect immediately prior to the record date fixed
                                         for determination of stockholders entitled to receive such distribution by a fraction
                                         of which the denominator shall be the VWAP determined as of the record date mentioned
                                         above, and of which the numerator shall be such VWAP on such record date less the then
                                         fair market value at such record date of the portion of such assets or evidence of indebtedness
                                         or rights or warrants so distributed applicable to one outstanding share of the Common
                                         Stock as determined by the Board of Directors of the Corporation in good faith. In
                                         either case the adjustments shall be described in a statement delivered to the Holders
                                         describing the portion of assets or evidences of indebtedness so distributed or such
                                         subscription rights applicable to one share of Common Stock. Such adjustment shall be
                                         made whenever any such distribution is made and shall become effective immediately after
                                         the record date mentioned above.



 






    	 	19	 



     


    

 



		e)	Fundamental
                                         Transaction. If, at any time while the Preferred Stock is outstanding, (i) the Corporation,
                                         directly or indirectly, in one or more related transactions effects any merger or consolidation
                                         of the Corporation with or into another Person, (ii) the Corporation, directly or indirectly,
                                         effects any sale, lease, license, assignment, transfer, conveyance or other disposition
                                         of all or substantially all of its assets in one or a series of related transactions,
                                         (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
                                         by the Corporation or another Person) is completed pursuant to which holders of Common
                                         Stock are permitted to sell, tender or exchange their shares for other securities, cash
                                         or property and has been accepted by the holders of 50% or more of the outstanding Common
                                         Stock, (iv) the Corporation, directly or indirectly, in one or more related transactions
                                         effects any reclassification, reorganization or recapitalization of the Common Stock
                                         or any compulsory share exchange pursuant to which the Common Stock is effectively converted
                                         into or exchanged for other securities, cash or property, (v) the Corporation, directly
                                         or indirectly, in one or more related transactions consummates a stock or share purchase
                                         agreement or other business combination (including, without limitation, a reorganization,
                                         recapitalization, spin-off or scheme of arrangement) with another Person whereby such
                                         other Person acquires more than 50% of the outstanding shares of Common Stock (not including
                                         any shares of Common Stock held by the other Person or other Persons making or party
                                         to, or associated or affiliated with the other Persons making or party to, such stock
                                         or share purchase agreement or other business combination) (each a “Fundamental
                                         Transaction"), then, upon any subsequent conversion of the Preferred Stock, the Holder
                                         shall have the right to receive, for each Conversion Share that would have been issuable
                                         upon such conversion immediately prior to the occurrence of such Fundamental Transaction
                                         (without regard to any limitation in Section 6(d) on the conversion of the Preferred
                                         Stock), the number of shares of Common Stock of the successor or acquiring corporation
                                         or of the Corporation, if it is the surviving corporation, and any additional consideration
                                         (the “Alternate Consideration") receivable as a result of such Fundamental
                                         Transaction by a holder of the number of shares of Common Stock for which the Preferred
                                         Stock is convertible immediately prior to such Fundamental Transaction (without regard
                                         to any limitation in Section 6(d) on the conversion of the Preferred Stock). For purposes
                                         of any such conversion, the determination of the Conversion Price shall be appropriately
                                         adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
                                         issuable in respect of one share of Common Stock in such Fundamental Transaction, and
                                         the Corporation shall apportion the Conversion Price among the Alternate Consideration
                                         in a reasonable manner reflecting the relative value of any different components of the
                                         Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
                                         cash or property to be received in a Fundamental Transaction, then the Holder shall be
                                         given the same choice as to the Alternate Consideration it receives upon any conversion
                                         of the Preferred Stock following such Fundamental Transaction. To the extent necessary
                                         to effectuate the foregoing provisions, any successor to the Corporation or surviving
                                         entity in such Fundamental Transaction shall file a new Certificate of Designation with
                                         the same terms and conditions and issue to the Holders new preferred stock consistent
                                         with the foregoing provisions and evidencing the Holders’ right to convert such
                                         preferred stock into Alternate Consideration. The Corporation shall cause any successor
                                         entity in a Fundamental Transaction in which the Corporation is not the survivor (the
                                         “Successor Entity”) to assume in writing all of the obligations of
                                         the Corporation under this Certificate of Designation and the other Transaction Documents
                                         in accordance with the provisions of this Section 7(e) pursuant to written agreements
                                         in form and substance reasonably satisfactory to the Holder and approved by the Holder
                                         (without unreasonable delay) prior to such Fundamental Transaction and shall, at the
                                         option of the holder of the Preferred Stock, deliver to the Holder in exchange for Preferred
                                         Stock a security of the Successor Entity evidenced by a written instrument substantially
                                         similar in form and substance to the Preferred Stock which is convertible for a corresponding
                                         number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
                                         to the shares of Common Stock acquirable and receivable upon conversion of the Preferred
                                         Stock (without regard to any limitations on the conversion of the Preferred Stock) prior
                                         to such Fundamental Transaction, and with a conversion price which applies the conversion
                                         price hereunder to such shares of capital stock (but taking into account the relative
                                         value of the shares of Common Stock pursuant to such Fundamental Transaction and the
                                         value of such shares of capital stock, such number of shares of capital stock and such
                                         conversion price being for the purpose of protecting the economic value of the Preferred
                                         Stock immediately prior to the consummation of such Fundamental Transaction), and which
                                         is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of
                                         any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
                                         for (so that from and after the date of such Fundamental Transaction, the provisions
                                         of this Certificate of Designation and the other Transaction Documents referring to the
                                         “Corporation” shall refer instead to the Successor Entity), and may exercise
                                         every right and power of the Corporation and shall assume all of the obligations of the
                                         Corporation under this Certificate of Designation and the other Transaction Documents
                                         with the same effect as if such Successor Entity had been named as the Corporation herein.






 






    	 	20	 



     


    

 


		f)	Calculations.
                                         All calculations under this Section 7 shall be made to the nearest cent or the nearest
                                         1 /100th of a share, as the case may be. For purposes of this Section 7, the number of
                                         shares of Common Stock deemed to be issued and outstanding as of a given date shall be
                                         the sum of the number of shares of Common Stock (excluding any treasury shares of the
                                         Corporation) issued and outstanding.



 


		g)	Notice to
                                         the Holders.



 


		i.	Adjustment
                                         to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision
                                         of this Section 7, the Corporation shall promptly deliver to each Holder a notice setting
                                         forth the Conversion Price after such adjustment and setting forth a brief statement
                                         of the facts requiring such adjustment.
	 	 	 



		ii.	Notice
                                         to Allow Conversion by Holder. If (A) the Corporation shall declare a dividend (or
                                         any other distribution in whatever form) on the Common Stock, (B) the Corporation shall
                                         declare a special nonrecurring cash dividend on or a redemption of the Common Stock,
                                         (C) the Corporation shall authorize the granting to all holders of the Common Stock of
                                         rights or warrants to subscribe for or purchase any shares of capital stock of any class
                                         or of any rights, (D) the approval of any stockholders of the Corporation shall be required
                                         in connection with any reclassification of the Common Stock, any consolidation or merger
                                         to which the Corporation is a party, any sale or transfer of all or substantially all
                                         of the assets of the Corporation, or any compulsory share exchange whereby the Common
                                         Stock is converted into other securities, cash or property or (E) the Corporation shall
                                         authorize the voluntary or involuntary dissolution, liquidation or winding up of the
                                         affairs of the Corporation, then, in each case, the Corporation shall cause to be filed
                                         at each office or agency maintained for the purpose of conversion of the Preferred
                                         Stock, and shall cause to be delivered to each Holder at its last address as it shall
                                         appear upon the stock books of the Corporation, at least twenty (20) calendar days prior
                                         to the applicable record or effective date hereinafter specified, a notice stating (x)
                                         the date on which a record is to be taken for the purpose of such dividend, distribution,
                                         redemption, rights or warrants, or if a record is not to be taken, the date as of which
                                         the holders of the Common Stock of record to be entitled to such dividend, distributions,
                                         redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
                                         consolidation, merger, sale, transfer or share exchange is expected to become effective
                                         or close, and the date as of which it is expected that holders of the Common Stock of
                                         record shall be entitled to exchange their shares of the Common Stock for securities,
                                         cash or other property deliverable upon such reclassification, consolidation, merger,
                                         sale, transfer or share exchange, provided that the failure to deliver such notice or
                                         any defect therein or in the delivery thereof shall not affect the validity of the corporate
                                         action required to be specified in such notice. To the extent that any notice provided
                                         hereunder constitutes, or contains, material, non-public information regarding the Corporation
                                         or any of the Subsidiaries, the Corporation shall simultaneously file such notice with
                                         the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
                                         to convert the Conversion Amount of the Preferred Stock(or any part hereof) during the
                                         20-day period commencing on the date of such notice through the effective date of the
                                         event triggering such notice except as may otherwise be expressly set forth herein.






 






    	 	21	 



     


    

 


Section
8. Conversion and Redemption.


 


		a)	Forced
                                         Conversion. Notwithstanding anything to the contrary in this Certificate of Designation
                                         and subject to the limitation set forth in Section 6(d), if (i) there is an effective
                                         and current registration statement which includes for resale all of the Common Stock
                                         underlying the Preferred Stock or such Common Stock is freely resellable pursuant to
                                         Rule 144 without any volume or manner of sale restrictions, (ii) the VWAP for each of
                                         any 20 trading days during any 30 consecutive Trading Day period, which 30 consecutive
                                         Trading Day period shall not include any days prior to the execution date of the Purchase
                                         Agreement (“Threshold Period”), exceeds 200% of the Conversion Price
                                         each day during the Threshold Period (subject to adjustment for reverse and forward stock
                                         splits and the like), and (iii) the average daily dollar volume of the Corporation’s
                                         Common Stock during such 30 day period exceeds $25,000 per day, the Corporation may,
                                         within one Trading Day after the end of any such Threshold Period, deliver a written
                                         notice to all Holders (a “Forced Conversion Notice” and the date such
                                         notice is delivered to all Holders, the “Forced Conversion Notice Date”)
                                         to cause each Holder to convert all or part of such Holder’s Preferred Stock (as
                                         specified in such Forced Conversion Notice), it being agreed that the “Conversion
                                         Date” for purposes of Section 6 shall be deemed to occur on the third (3rd)
                                         Trading Day following the Forced Conversion Notice Date (such third Trading Day, the
                                         “Forced Conversion Date”). The Corporation may not deliver a Forced
                                         Conversion Notice, and any Forced Conversion Notice delivered by the Corporation shall
                                         not be effective, unless all of the Equity Conditions have been met on each Trading Day
                                         during the applicable Threshold Period through and including the date that the
                                         Conversion Shares issuable pursuant to such conversion are actually delivered to the
                                         Holders pursuant to the Forced Conversion Notice. Any Forced Conversion Notices shall
                                         be applied ratably to all of the Holders based on each Holder’s initial purchases
                                         of Preferred Stock hereunder, provided that any voluntary conversions by a Holder shall
                                         be applied against such Holder’s pro rata   allocation, thereby decreasing
                                         the aggregate amount forcibly converted hereunder if less than all shares of the Preferred
                                         Stock are forcibly converted. For purposes of clarification, a Forced Conversion shall
                                         be subject to all of the provisions of Section 6, including, without limitation, the
                                         provisions requiring payment of liquidated damages and limitations on conversions. A
                                         Forced Conversion will not be effective in excess of the Beneficial Ownership Limitation
                                         under Section 6(d).
	 	 	 







    	 	22	 



     


    

 


		b)	Optional
                                         Redemption at Election of Corporation. Subject to the provisions of this Section
                                         8, at any time after the issue date of Preferred Stock, the Corporation may deliver a
                                         notice to the Holders (an “Optional Redemption Notice” and the date
                                         such notice is deemed delivered hereunder, the “Optional Redemption Notice Date”)
                                         of its irrevocable election to redeem some or all of the then outstanding Preferred Stock,
                                         for cash in an amount equal to the Stated Value of the outstanding Preferred Stock (“Optional
                                         Redemption Amount”) on the 20th Trading Day following the Optional
                                         Redemption Notice Date (such date, the “Optional Redemption Date” and
                                         such redemption, the “Optional Redemption”). The Optional Redemption
                                         Amount is payable in full on the Optional Redemption Date. The Corporation may only effect
                                         an Optional Redemption if (i) each of the Equity Conditions shall have been met on each
                                         Trading Day occurring during the period commencing on the Optional Redemption Notice
                                         Date through the Optional Redemption Date and through and including the date payment
                                         of the Optional Redemption Amount is actually made, and (ii) the conditions set forth
                                         in Section 8(a)(i), (ii) and (iii) have been satisfied each such date. If any of the
                                         Equity Conditions or the conditions set forth in Sections 8(a)(i), (ii) and (iii) shall
                                         cease to be satisfied at any time during such period, then a Holder may elect to cancel
                                         the Optional Redemption Notice as to such Holder by notice to the Corporation within
                                         3 Trading Days after the first day on which any such Equity Condition or other condition
                                         has not been met (provided that if, by a provision of the Transaction Documents, the
                                         Corporation is obligated to notify the Holders of the non-existence of an Equity Condition,
                                         such notice period shall be extended to the third Trading Day after proper notice from
                                         the Corporation) in which case the Optional Redemption Notice shall be null and void,
                                         ab initio. The Corporation covenants and agrees that it will honor all Notices
                                         of Conversion tendered from the time of delivery of the Optional Redemption Notice through
                                         the date the Optional Redemption Amount is paid in full. An Optional Redemption Notice
                                         will not be effective in connection with an amount of Preferred Stock which on an as
                                         converted basis would be in excess of the Beneficial Ownership Limitation under Section
                                         6(d).
	 	 	 



		c)	Asset
                                         Coverage Mandatory Redemption. For so long as any shares of Preferred Stock are outstanding
                                         and the Company is a Business Development Company, the Corporation shall have Asset Coverage
                                         of at least 200% as of the close of business on the last Business Day of a Calendar Quarter,
                                         such Asset Coverage to be determined exclusively by reference to the asset coverage ratio
                                         reported as of the last Business Day of such Calendar Quarter in the Corporation’s SEC
                                         Report with respect to such Calendar Quarter.






 






    	 	23	 



     


    

 


		i.	If the Corporation
                                         fails to comply with the Asset Coverage requirement as provided in Section 8(c) as of
                                         the last Business Day of any Calendar Quarter and such failure is not cured as of the
                                         Asset Coverage Cure Date, the Corporation shall, to the extent permitted by the 1940
                                         Act and Delaware law, by the close of business on such Asset Coverage Cure Date, fix
                                         a redemption date and proceed to redeem a sufficient number of shares of Preferred Stock,
                                         to enable it to meet the requirements of Section 8(c)(ii). In the event that any shares
                                         of Preferred Stock then outstanding are to be redeemed pursuant to this Section 8(c)(i),
                                         the Corporation shall redeem such shares at a price per share (the “Mandatory
                                         Redemption Price”) equal to (y) the Liquidation Preference per share plus
                                         (z) an amount equal to any unpaid dividends and distributions on such share accumulated
                                         to (but excluding) the date fixed for such redemption by the Board of Directors (whether
                                         or not earned or declared by the Corporation, but excluding interest thereon).



		 	 



		ii.	On
                                         the Redemption Date for a redemption contemplated by Section 8(c)(i), the Corporation
                                         shall redeem, out of funds legally available therefor, such number of shares of Preferred
                                         Stock as shall be equal to the lesser of (x) the minimum number of shares of Preferred
                                         Stock, the redemption of which, if deemed to have occurred immediately prior to the opening
                                         of business on the Asset Coverage Cure Date, would result in the Corporation having Asset
                                         Coverage on such Asset Coverage Cure Date of at least 200% (provided, however,
                                         that if there is no such minimum number of shares of Preferred Stock the redemption or
                                         retirement of which would have such result, all shares of Preferred Stock then outstanding
                                         shall be redeemed), and (y) the maximum number of shares of Preferred Stock that can
                                         be redeemed out of funds expected to be legally available therefor in accordance with
                                         the certificate of incorporation of the Corporation and applicable law, provided further,
                                         that in connection with redemption for failure to maintain such Asset Coverage requirement,
                                         the Corporation may at its sole option, but is not required to (unless Holder exercises
                                         its rights under Section 10), redeem a sufficient number of shares of Preferred Stock
                                         pursuant to this Section 8(c) that would result, if deemed to have occurred immediately
                                         prior to the opening of business on the Asset Coverage Cure Date, in the Corporation
                                         having Asset Coverage on such Asset Coverage Cure Date of up to and including 215%. The
                                         Corporation shall effect such redemption on the date fixed by the Corporation therefor,
                                         which date shall not be later than ninety (90) calendar days after such Asset Coverage
                                         Cure Date, except that if the Corporation does not have funds legally available for the
                                         redemption of all of the required number of shares of Preferred Stock which have been
                                         designated to be redeemed or the Corporation otherwise is unable to effect such redemption
                                         on or prior to ninety (90) calendar days after such Asset Coverage Cure Date, the Corporation
                                         shall redeem those shares of Preferred Stock which it was unable to redeem on the earliest
                                         practicable date on which it is able to effect such redemption. If fewer than all of
                                         the outstanding shares of Preferred Stock are to be redeemed pursuant to this Section
                                         8(c), the number of shares of Preferred Stock to be redeemed shall be redeemed pro rata
                                         among the outstanding shares of Preferred Stock.






 






    	 	24	 



     


    

 


		d)	Compliance
                                         with Law. To the extent that any redemption is not made by reason of the absence
                                         of legally available funds therefor in accordance with the certificate of incorporation
                                         of the Corporation and applicable law, such redemption shall be made as soon as practicable
                                         to the extent such funds become available. In effecting any redemption pursuant to this
                                         Section 8, the Corporation shall use its best efforts to comply with all applicable conditions
                                         precedent to effecting such redemption under the 1940 Act and any applicable Delaware
                                         law, but shall effect no redemption except in accordance with the 1940 Act and any applicable
                                         Delaware law.



 


Section
9. Negative Covenants.


 


As
long as at least 15% of the originally issued shares of Preferred Stock are outstanding, unless the holders of at least 67% in
Stated Value of the then outstanding shares of Preferred Stock, which holders must include Alpha Capital Anstalt so long as Alpha
Capital Anstalt holds not less than $100,000 of Preferred Stock, shall have otherwise given prior written consent, the Corporation
shall not, and shall not permit any of the Subsidiaries to, directly or indirectly:


 


		a)	other
                                         than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to
                                         exist any indebtedness for borrowed money of any kind, including but not limited to,
                                         a guarantee, on or with respect to any of its property or assets now owned or hereafter
                                         acquired or any interest therein or any income or profits therefrom;



 


		b)	other
                                         than Pen-fitted Liens, enter into, create, incur, assume or suffer to
                                         exist any Liens of any kind, on or with respect to any of its property or assets now
                                         owned or hereafter acquired or any interest therein or any income or profits therefrom;
	 	 	 



		c)	repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its
Common Stock, Common Stock Equivalents or Junior Securities, other than as to the Conversion Shares as permitted or required under
the Transaction Documents;
	 	 	 



		d)	other
                                         than as permitted pursuant to Section 3(c), pay cash dividends or distributions on Junior
                                         Securities of the Corporation;
	 	 	 



		e)	enter
                                         into any transaction with any Affiliate of the Corporation which would be required to
                                         be disclosed in any public filing with the Commission, unless such transaction is made
                                         on an arm’s-length basis and expressly approved by a majority of the disinterested directors
                                         of the Corporation (even if less than a quorum otherwise required for board approval);
                                         or
	 	 	 



		f)	enter
                                         into any agreement with respect to any of the foregoing.



 


In
addition, as long as any shares of Preferred Stock are outstanding, unless the holders of at least 67% in Stated Value of
the then outstanding shares of Preferred Stock, which holders must include Alpha Capital Anstalt so long as Alpha Capital
Anstalt holds not less than $100,000 of Preferred Stock, shall have otherwise given prior written consent, the Corporation
shall not, directly or indirectly, amend its charter documents, including, without limitation, its certificate of incorporation
and bylaws, in any manner that materially and adversely affects any rights of the Holder.


 






    	 	25	 



     


    

 


Section
10. Redemption Upon Triggering Events.


 


		a)	“Triggering
                                         Event” means, wherever used herein any of the following events (whatever the
                                         reason for such event and whether such event shall be voluntary or involuntary or effected
                                         by operation of law or pursuant to any judgment, decree or order of any court, or any
                                         order, rule or regulation of any administrative or governmental body):
	 	 	 



		i.	the
                                         Corporation shall fail to deliver certificates representing Conversion Shares issuable
                                         upon a conversion hereunder that comply with the provisions hereof prior to the seventh
                                         Trading Day after such shares are required to be delivered hereunder, or the Corporation
                                         shall provide written notice to any Holder, including by way of public announcement,
                                         at any time, of its intention not to comply with requests for conversion of any shares
                                         of Preferred Stock in accordance with the terms hereof;
	 	 	 






		ii.	the
                                         Corporation shall fail for any reason to pay in full the amount of cash due pursuant
                                         to a Buy-In within five calendar days after notice therefor is delivered hereunder;



		iii.	the
                                         Corporation shall fail to have available a sufficient number of authorized and unreserved
                                         shares of Common Stock to issue to such Holder upon a conversion hereunder;



		iv.	unless
                                         specifically addressed elsewhere in this Certificate of Designation as a Triggering Event,
                                         the Corporation shall fail to observe or perform any other covenant, agreement or warranty
                                         contained in, or otherwise commit any breach of the Transaction Documents, which failure
                                         or breach could have a Material Adverse Effect, and such failure or breach shall not,
                                         if subject to the possibility of a cure by the Corporation, have been cured within 30
                                         calendar days after the date on which written notice of such failure or breach shall
                                         have been delivered;



		v.	the
                                         Corporation shall be party to a Change of Control Transaction;



		vi.	there
                                         shall have occurred a Bankruptcy Event;



		vii.	the
                                         Common Stock shall fail to be listed or quoted for trading on a Trading Market for more
                                         than twenty Trading Days in any twelve month period, which need not be consecutive Trading
                                         Days;



		viii.	any
                                         monetary judgment, writ or similar final process shall be entered or filed against the
                                         Corporation, any subsidiary or any of their respective property or other assets for more
                                         than $100,000, and such judgment, writ or similar final process shall remain unvacated,
                                         unbonded or unstayed for a period of 45 calendar days; or
	 	 	 
	 	ix.	the Corporation shall not have been in compliance
with the Asset Coverage requirements.



 






    	 	26	 



     


    

 


		b)	Upon
                                         the occurrence of a Triggering Event, each Holder shall (in addition to all other rights
                                         it may have hereunder or under applicable law) have the right, exercisable at the sole
                                         option of such Holder, to require the Corporation with respect to each share of Preferred
                                         Stock to redeem each share of Preferred Stock then held by such Holder for a redemption
                                         price, in cash, equal to the Triggering Redemption Amount or increase the dividend rate
                                         on all of the outstanding Preferred Stock held by such Holder to 6% per annum (“Default
                                         Rate”) thereafter. The Triggering Redemption Amount shall be due and payable
                                         within five Trading Days of the date on which the notice for the payment therefor is
                                         provided by a Holder (the “Triggering Redemption Payment Date”). If
                                         the Corporation fails to pay in full the Triggering Redemption Amount hereunder on the
                                         date such amount is due in accordance with this Section, the Corporation will pay interest
                                         thereon at a rate equal to the lesser of 18% per annum or the maximum rate permitted
                                         by applicable law, accruing daily from such date until the Triggering Redemption Amount,
                                         plus all such interest thereon, is paid in full. For purposes of this Section, a share
                                         of Preferred Stock is outstanding until such date as the applicable Holder shall have
                                         received Conversion Shares upon a conversion (or attempted conversion) thereof that meets
                                         the requirements hereof or has been paid the Triggering Redemption Amount in cash.



 


Section
11. Miscellaneous.


 


		a)	Notices.
                                         Any and all notices or other communications or deliveries to be provided by the Holders
                                         hereunder including, without limitation, any Notice of Conversion, shall be in writing
                                         and delivered as set forth in the Purchase Agreement, or such other facsimile number
                                         or address as the Corporation may specify for such purposes by notice to the Holders
                                         delivered in accordance with this Section 11. Any and all notices or other communications
                                         or deliveries to be provided by the Corporation hereunder shall be in writing and delivered
                                         personally, by facsimile, or sent by a nationally recognized overnight courier service
                                         addressed to each Holder at the facsimile number or address of such Holder appearing
                                         on the books of the Corporation, or if no such facsimile number or address appears on
                                         the books of the Corporation, at the principal place of business of such Holder, as set
                                         forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder
                                         shall be deemed given and effective on the earliest of (i) the date of transmission,
                                         if such notice or communication is delivered via facsimile at the facsimile number set
                                         forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next
                                         Trading Day after the date of transmission, if such notice or communication is delivered
                                         via facsimile at the facsimile number set forth in this Section on a day that is not
                                         a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii)
                                         the second Trading Day following the date of mailing, if sent by U.S. nationally recognized
                                         overnight courier service, or (iv) upon actual receipt by the party to whom such notice
                                         is required to be given.



 






    	 	27	 



     


    

 



		b)	Absolute
                                         Obligation. Except as expressly provided herein, no provision of this Certificate
                                         of Designation shall alter or impair the obligation of the Corporation, which is absolute
                                         and unconditional, to pay liquidated damages, accrued dividends and accrued interest,
                                         as applicable, on the shares of Preferred Stock at the time, place, and rate, and in
                                         the coin or currency, herein prescribed.






 


		c)	Lost
                                         or Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock certificate
                                         shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver,
                                         in exchange and substitution for and upon cancellation of a mutilated certificate, or
                                         in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate
                                         for the shares of Preferred Stock so mutilated, lost, stolen or destroyed, but only upon
                                         receipt of evidence of such loss, theft or destruction of such certificate, and of the
                                         ownership hereof reasonably satisfactory to the Corporation.



		d)	Governing
                                         Law. All questions concerning the construction, validity, enforcement and interpretation
                                         of this Certificate of Designation shall be governed by and construed and enforced in
                                         accordance with the internal laws of the State of Delaware, without regard to the principles
                                         of conflict of laws thereof. Each party agrees that all legal proceedings concerning
                                         the interpretation, enforcement and defense of the transactions contemplated by any of
                                         the Transaction Documents (whether brought against a party hereto or its respective Affiliates,
                                         directors, officers, shareholders, employees or agents) shall be commenced in the state
                                         and federal courts sitting in New Jersey (the “New Jersey Courts”).
                                         Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New
                                         York Courts for the adjudication of any dispute hereunder or in connection herewith or
                                         with any transaction contemplated hereby or discussed herein (including with respect
                                         to the enforcement of any of the Transaction Documents), and hereby irrevocably waives,
                                         and agrees not to assert in any suit, action or proceeding, any claim that it is not
                                         personally subject to the jurisdiction of such New Jersey Courts, or such New Jersey
                                         Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably
                                         waives personal service of process and consents to process being served in any such suit,
                                         action or proceeding by mailing a copy thereof via registered or certified mail or overnight
                                         delivery (with evidence of delivery) to such party at the address in effect for notices
                                         to it under this Certificate of Designation and agrees that such service shall constitute
                                         good and sufficient service of process and notice thereof. Nothing contained herein shall
                                         be deemed to limit in any way any right to serve process in any other manner permitted
                                         by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent
                                         permitted by applicable law, any and all right to trial by jury in any legal proceeding
                                         arising out of or relating to this Certificate of Designation or the transactions contemplated
                                         hereby. If any party shall commence an action or proceeding to enforce any provisions
                                         of this Certificate of Designation, then the prevailing party in such action or proceeding
                                         shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses
                                         incurred in the investigation, preparation and prosecution of such action or proceeding.







    	 	28	 



     


    

 


		e)	Waiver.
                                         Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate
                                         of Designation shall not operate as or be construed to be a waiver of any other breach
                                         of such provision or of any breach of any other provision of this Certificate of Designation
                                         or a waiver by any other Holders. The failure of the Corporation or a Holder to insist
                                         upon strict adherence to any term of this Certificate of Designation on one or more occasions
                                         shall not be considered a waiver or deprive that party (or any other Holder) of the right
                                         thereafter to insist upon strict adherence to that term or any other term of this Certificate
                                         of Designation on any other occasion. Any waiver by the Corporation or a Holder must
                                         be in writing.
	 	 	 
	 	f)	Severability.
                                         If any provision of this Certificate of Designation is invalid, illegal or unenforceable,
                                         the balance of this Certificate of Designation shall remain in effect, and if any provision
                                         is inapplicable to any Person or circumstance, it shall nevertheless remain applicable
                                         to all other Persons and circumstances. If it shall be found that any interest or other
                                         amount deemed interest due hereunder violates the applicable law governing usury, the
                                         applicable rate of interest due hereunder shall automatically be lowered to equal the
                                         maximum rate of interest permitted under applicable law.






 


		g)	Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
obligation shall be made on the next succeeding Business Day.



 


		h)	Headings.
                                                                                                                                                                                                                                                                                             The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and
                                                                                                                                                                                                                                                                                             shall not be deemed to limit or affect any of the provisions hereof.
	 	 	 



		i)	Status
of Converted or Redeemed Preferred Stock. Shares of Preferred Stock may only be issued pursuant to the Purchase Agreement.
If any shares of Preferred Stock shall be converted, redeemed or reacquired by the Corporation, such shares shall resume the status
of authorized but unissued shares of preferred stock and shall no longer be designated as Series A Convertible Preferred Stock.






 






    	 	29	 



     


    

 


IN WITNESS WHEREOF, Point
Capital, Inc. has cause this Certificate of Designation to be executed by its duly authorized officer, as of this 31st
day of March, 2017.


 







	 	POINT
    CAPITAL, INC.
	 	 
	 	By:	/s/
    Eric Weisblum
	 	Name:	Eric
    Weisblum
	 	Title:	Chief
    Executive Officer




 


 


30