CERTIFICATE
OF DESIGNATION OF 


PREFERENCES,
RIGHTS AND LIMITATIONS OF THE

0% E-1 CONVERTIBLE PREFERRED STOCK OF

MARATHON PATENT GROUP, INC. 


 


I,
Doug Croxall, hereby certify that I am the Chief Executive Officer of Marathon Patent Group, Inc. (the “Company”),
a corporation organized and existing under the Nevada Revised Statutes (the “NRS”), and further do hereby certify:


 


That
pursuant to the authority expressly conferred upon the Board of Directors of the Company (the “Board”) by the
Company’s Articles of Incorporation (the “Articles of Incorporation”), the Board on ___________, adopted
the following resolutions creating a series of shares of Preferred Stock designated as 0% Series E-1 Convertible Preferred Stock,
none of which shares have been issued:


 


RESOLVED,
that the Board designates the 0% Series E-1 Convertible Preferred Stock and the number of shares constituting such series, and
fixes the rights, powers, preferences, privileges and restrictions relating to such series in addition to any set forth in the
Articles of Incorporation as follows:


 


TERMS
OF SERIES E-1 CONVERTIBLE PREFERRED STOCK


 


1.
Designation and Number of Shares. There shall hereby be created and established by this Certificate of Designation of Preferences,
Rights and Limitations of the 0% Series E-1 Convertible Preferred Stock (this “Certificate of Designation”)
a series of preferred stock of the Company designated as “0% Series E-1 Convertible Preferred Stock” (the “Preferred
Shares”). The authorized number of Preferred Shares shall be 5,075 shares. Each Preferred Share shall have $0.0001 par
value (the “Par Value”). Capitalized terms not defined herein shall have the meaning as set forth in Section
23 below and the Merger Agreement.


 


2.
Liquidation and Ranking. (i) Upon the liquidation, dissolution or winding up of the business of the Company, whether voluntary
or involuntary, each holder of Preferred Shares shall be entitled to receive, for each share thereof, out of assets of the Company
legally available therefor, a preferential amount in cash equal to (and not more than) the Par Value. All preferential amounts
to be paid to the holders of Preferred Shares in connection with such liquidation, dissolution or winding up shall be paid before
the payment or setting apart for payment of any amount for, or the distribution of any assets of the Company to the holders of
(i) any other class or series of capital stock whose terms expressly provide that the holders of Preferred Shares should receive
preferential payment with respect to such distribution (to the extent of such preference) and (ii) the Common Stock but not before
any payment to the holders of outstanding shares of the Company’s Series B and D Convertible Preferred Stock. If upon any
such distribution the assets of the Company shall be insufficient to pay the holders of the Preferred Shares (or the holders of
any class or series of capital stock ranking on a parity with the Preferred Shares as to distributions in the event of a liquidation,
dissolution or winding up of the Company) the full amounts to which they shall be entitled, such holders shall share ratably in
any distribution of assets in accordance with the sums which would be payable on such distribution if all sums payable thereon
were paid in full. Any distribution in connection with the liquidation, dissolution or winding up of the Company, or any bankruptcy
or insolvency proceeding, shall be made in cash to the extent possible. Whenever any such distribution shall be paid in property
other than cash, the value of such distribution shall be the fair market value of such property as determined in good faith by
the Board of Directors of the Company.


 


(ii)
Ranking. Except to the extent that the holders of at least a majority of the outstanding Preferred Shares (the “Required
Holders”) expressly consent to the creation of Parity Stock (as defined below) or Senior Preferred Stock (as defined
below) in accordance with Section 12, all shares of capital stock of the Company hereafter issued shall be junior in rank to all
Preferred Shares with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company (such junior stock is referred to herein collectively as “Junior Stock”) (except,
for the avoidance of doubt, with respect to the Company’s Series B Convertible Preferred Stock) . The rights of all such
shares of capital stock of the Company shall be subject to the rights, powers, preferences and privileges of the Preferred Shares.
Without limiting any other provision of this Certificate of Designation, without the prior express consent of the Required Holders,
voting separate as a single class, the Company shall not hereafter authorize or issue any additional or other shares of capital
stock that is (i) of senior rank to the Preferred Shares in respect of the preferences as to dividends, distributions and payments
upon the liquidation, dissolution and winding-up of the Company (collectively, the “Senior Preferred Stock”),
(ii) of pari passu rank to the Preferred Shares in respect of the preferences as to dividends, distributions and payments upon
the liquidation, dissolution and winding-up of the Company (collectively, the “Parity Stock”) or (iii) any
Junior Stock having a maturity date (or any other date requiring redemption or repayment of such shares of Junior Stock) that
is prior to the date on which any Preferred Shares remain outstanding. In the event of the merger or consolidation of the Company
with or into another corporation, the Preferred Shares shall maintain their relative rights, powers, designations, privileges
and preferences provided for herein and no such merger or consolidation shall result inconsistent therewith


 




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3.
Dividends. In addition to Sections 5(a) and 11 below, from and after the first date of issuance of any Preferred Shares
(the “Initial Issuance Date”), each holder of a Preferred Share (each, a “Holder” and collectively,
the “Holders”) shall be entitled to receive dividends (“Dividends”) when and as declared
by the Board, from time to time, in its sole discretion, which Dividends shall be paid by the Company out of funds legally available
therefor, payable, subject to the conditions and other terms hereof, in cash on the Stated Value of such Preferred Share. In addition
to the foregoing, the Preferred Shares shall participate on an “as converted” basis, with all Dividends declared on
the Common Stock (as defined below) of the Company as provided herein.


 


4.
Conversion. Each Preferred Share shall be convertible into validly issued, fully paid and non-assessable shares of Common
Stock on the terms and conditions set forth in this Section 4.


 


(a)
Holder’s Conversion Right. Subject to the provisions of Section 4(e) and 4(f), at any time or times on or after the
Initial Issuance Date, each Holder shall be entitled to convert any whole number of Preferred Shares into validly issued, fully
paid and non-assessable shares of Common Stock in accordance with Section 4(c) at the Conversion Rate (as defined below).


 


(b)
Conversion Rate. The number of validly issued, fully paid and non-assessable shares of Common Stock issuable upon conversion
of each Preferred Share pursuant to Section 4(a) shall be determined according to the following formula (the “Conversion
Rate”):


 


Base
Amount

Conversion Price


 


No
fractional shares of Common Stock are to be issued upon the conversion of any Preferred Shares. If the issuance would result in
the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to
the nearest whole share.


 


(c)
Mechanics of Conversion. The conversion of each Preferred Share shall be conducted in the following manner:


 


(i)
Holder’s Conversion. To convert a Preferred Share into validly issued, fully paid and non-assessable shares of Common
Stock on any date (a “Conversion Date”), a Holder shall deliver (whether via facsimile or otherwise), for receipt
on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion of the share(s) of Preferred
Shares subject to such conversion in the form attached hereto as Exhibit I (the “Conversion Notice”)
to the Company. If required by Section 4(c)(vi), within five (5) Trading Days following a conversion of any such Preferred Shares
as aforesaid, such Holder shall surrender to a nationally recognized overnight delivery service for delivery to the Company the
original certificates representing the share(s) of Preferred Shares (the “Preferred Share Certificates”) so
converted as aforesaid.


 


(ii)
Company’s Response. On or before the first (1st) Trading Day following the date of receipt of a Conversion
Notice, the Company shall transmit by facsimile an acknowledgment of confirmation, in the form attached hereto as Exhibit
II, of receipt of such Conversion Notice to such Holder and the transfer agent for the Company’s Common Stock (the
“Transfer Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such
Conversion Notice in accordance with the terms herein. On or before the second (2nd) Trading Day following the date
of receipt by the Company of such Conversion Notice, the Company shall (1) provided that the Transfer Agent is participating in
DTC Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which such Holder shall
be entitled to such Holder’s or its designee’s balance account with DTC through its Deposit and Withdrawal at Custodian
system, or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver
(via reputable overnight courier) to the address as specified in such Conversion Notice, a certificate, registered in the name
of such Holder or its designee, for the number of shares of Common Stock to which such Holder shall be entitled. If the number
of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion pursuant to Section 4(c)(vi) is
greater than the number of Preferred Shares being converted, then the Company shall if requested by such Holder, as soon as practicable
and in no event later than two (2) Trading Days after receipt of the Preferred Share Certificate(s) and at its own expense, issue
and deliver to such Holder (or its designee) a new Preferred Share Certificate representing the number of Preferred Shares not
converted.


 




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(iii)
Record Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred
Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.


 


(iv)
Company’s Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, except in the case
that the relevant Preferred Share Certificate is required to be and shall not have been timely received by the Transfer Agent,
to issue to a Holder within two (2) Trading Days after the Company’s receipt of a Conversion Notice (whether via facsimile
or otherwise) (the “Share Delivery Deadline”), a certificate for the number of shares of Common Stock to which
such Holder is entitled and register such shares of Common Stock on the Company’s share register or to credit such Holder’s
or its designee’s balance account with DTC for such number of shares of Common Stock to which such Holder is entitled upon
such Holder’s conversion of any Preferred Shares (as the case may be) (a “Conversion Failure”), then,
in addition to all other remedies available to such Holder, such Holder, upon written notice to the Company, (x) may void its
Conversion Notice with respect to, and retain or have returned (as the case may be) any Preferred Shares that have not been converted
pursuant to such Holder’s Conversion Notice, provided that the voiding of a Conversion Notice shall not affect the Company’s
obligations to make any payments which have accrued prior to the date of such notice pursuant to the terms of this Certificate
of Designation or otherwise and (y) the Company shall pay in cash to such Holder on each day after such second (2nd)
Trading Day that the issuance of such shares of Common Stock is not timely effected an amount equal to 1.0% of the greater of
(y) the Stated Value of the Preferred Shares subject to the Conversion Failure and (z) the product of (A) the aggregate number
of shares of Common Stock not issued to such Holder on a timely basis and to which the Holder is entitled and (B) the Closing
Sale Price of the Common Stock on the Trading Day immediately preceding the last possible date on which the Company could have
issued such shares of Common Stock to the Holder without violating Section 4(c). In addition to the foregoing, if within two (2)
Trading Days after the Company’s receipt of a Conversion Notice (whether via facsimile or otherwise), the Company shall
fail to issue and deliver a certificate to such Holder and register such shares of Common Stock on the Company’s share register
or credit such Holder’s or its designee’s balance account with DTC for the number of shares of Common Stock to which
such Holder is entitled upon such Holder’s conversion hereunder (as the case may be), and if on or after such second (2nd)
Trading Day such Holder (or any other Person in respect, or on behalf, of such Holder) purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Holder of all or any portion of the number of
shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of
Common Stock, issuable upon such conversion that such Holder so anticipated receiving from the Company, then, in addition to all
other remedies available to such Holder, the Company shall, within two (2) Business Days after such Holder’s request and
in such Holder’s discretion, either (i) pay cash to such Holder in an amount equal to such Holder’s total purchase
price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including,
without limitation, by any other Person in respect, or on behalf, of such Holder) (the “Buy-In Price”), at
which point the Company’s obligation to so issue and deliver such certificate or credit such Holder’s balance account
with DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion hereunder
(as the case may be) (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to so issue
and deliver to such Holder a certificate or certificates representing such shares of Common Stock or credit such Holder’s
balance account with DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion
hereunder (as the case may be) and pay cash to such Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (A) such number of shares of Common Stock multiplied by (B) the lowest Closing Sale Price of the Common Stock on
any Trading Day during the period commencing on the date of the applicable Conversion Notice and ending on the date of such issuance
and payment under this clause (ii).


 




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(v)
Pro Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the
same Conversion Date and the Company can convert some, but not all, of such Preferred Shares submitted for conversion, the Company
shall convert from each Holder electing to have Preferred Shares converted on such date a pro rata amount of such Holder’s
Preferred Shares submitted for conversion on such date based on the number of Preferred Shares submitted for conversion on such
date by such Holder relative to the aggregate number of Preferred Shares submitted for conversion on such date. In the event of
a dispute as to the number of shares of Common Stock issuable to a Holder in connection with a conversion of Preferred Shares,
the Company shall issue to such Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance
with Section 22.


 


(vi)
Book-Entry. Notwithstanding anything to the contrary set forth in this Section 4, upon conversion of any Preferred Shares
in accordance with the terms hereof, no Holder thereof shall be required to physically surrender the certificate representing
the Preferred Shares to the Company following conversion thereof unless (A) the full or remaining number of Preferred Shares represented
by the certificate are being converted (in which event such certificate(s) shall be delivered to the Company as contemplated by
this Section 4(c)(vi)) or (B) such Holder has provided the Company with prior written notice (which notice may be included in
a Conversion Notice) requesting reissuance of Preferred Shares upon physical surrender of any Preferred Shares. Each Holder and
the Company shall maintain records showing the number of Preferred Shares so converted by such Holder and the dates of such conversions
or shall use such other method, reasonably satisfactory to such Holder and the Company, so as not to require physical surrender
of the certificate representing the Preferred Shares upon each such conversion. In the event of any dispute or discrepancy, such
records of the Company establishing the number of Preferred Shares to which the record holder is entitled shall be controlling
and determinative in the absence of manifest error. A Holder and any transferee or assignee, by acceptance of a certificate, acknowledge
and agree that, by reason of the provisions of this paragraph, following conversion of any Preferred Shares, the number of Preferred
Shares represented by such certificate may be less than the number of Preferred Shares stated on the face thereof. Each certificate
for Preferred Shares shall bear the following legend:


 


ANY
TRANSFEREE OR ASSIGNEE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE CORPORATION’S CERTIFICATE OF DESIGNATIONS
RELATING TO THE SHARES OF SERIES E-1 PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 4(c)(vi) THEREOF. THE
NUMBER OF SHARES OF SERIES E-1 PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SHARES OF SERIES
E-1 PREFERRED STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION 4(c)(vi) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE
SHARES OF SERIES E-1 PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE.


 




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(d)
Taxes. The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof),
issuance and other similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon
the conversion of Preferred Shares.


 


(e)
Limitation on Beneficial Ownership. Notwithstanding anything to the contrary set forth in this Certificate of Designation,
the Company shall not effect the conversion of any Preferred Shares of a Holder, and such Holder shall not have the right to convert
such Preferred Shares pursuant to the terms and conditions of this Certificate of Designation and any such conversion shall be
null and void and treated as if never made, to the extent that after giving effect to such conversion, such Holder together with
any Attribution Parties to such Holder collectively would beneficially own in excess of 2.49% (the “Maximum Percentage”)
of the shares of Common Stock outstanding immediately after giving effect to such conversion. The Holder shall have the right
to elect an initial Maximum Percentage of up to 4.99% and thereafter decrease the Maximum Percentage, upon one (1) days’
notice or to increase the Maximum Percentage, to up to 9.99% upon 61 days’ notice. For purposes of the foregoing sentence,
the aggregate number of shares of Common Stock beneficially owned by such Holder and other Attribution Parties to such Holder
shall include the number of shares of Common Stock held by such Holder and all other Attribution Parties to such Holder plus the
number of shares of Common Stock issuable upon conversion of the Preferred Shares with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (A) conversion of the remaining,
non-converted Preferred Shares beneficially owned by such Holder or any of other Attribution Parties to such Holder and (B) exercise
or conversion of the unexercised or non-converted portion of any other securities of the Company (including, without limitation,
any convertible notes or convertible preferred stock or warrants) beneficially owned by such Holder or any other Attribution Party
to such Holder subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 4(e). For
purposes of this Section 4(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For
purposes of determining the number of outstanding shares of Common Stock such Holder may acquire upon the conversion of Preferred
Shares without exceeding the Maximum Percentage, such Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or
other public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written
notice by the Company or its transfer agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported
Outstanding Share Number”). If the Company receives a Conversion Notice from such Holder at a time when the actual number
of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall notify such Holder
in writing of the number of shares of Common Stock then outstanding and, to the extent that such Conversion Notice would otherwise
cause such Holder’s beneficial ownership, as determined pursuant to this Section 4(e), to exceed the Maximum Percentage,
such Holder must notify the Company of a reduced number of shares of Common Stock to be purchased pursuant to such Conversion
Notice. For any reason at any time, upon the written or oral request of such Holder, the Company shall within one (1) Business
Day confirm orally and in writing or by electronic mail 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 Company, including any Preferred Shares then outstanding, by such Holder and any other Attribution Party
since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common
Stock to such Holder upon conversion of any Preferred Shares results in such Holder and the other Attribution Parties to such
Holder being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares
of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which such Holder’s
and the other Attribution Parties to such Holder’s aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess
Shares”) shall be deemed null and void and shall be cancelled ab initio, and such Holder shall not have the power to
vote or to transfer the Excess Shares. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this
Certificate of Designation in excess of the Maximum Percentage shall not be deemed to be beneficially owned by such Holder for
any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to convert any Preferred
Shares pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect
to any subsequent determination of convertibility. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 4(e) to the extent necessary to correct this paragraph (or
any portion of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained
in this Section 4(e) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitation contained in this paragraph may not be waived and shall apply to each successor holder of Preferred Shares.


 




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(f)
Issuance Restrictions. (i) If the Company has not obtained the Shareholder and NASDAQ Approvals (as defined in the Merger
Agreement) in accordance with NASDAQ Listing Rules, then the Company may not issue, upon conversion of the Preferred Shares, a
number of shares of Common Stock, which, when aggregated with any shares of Common Stock (i) issued pursuant to the Merger Agreement
or (ii) underlying the Preferred Shares issued pursuant to the Merger Agreement, would exceed 19.99% of the shares of Common Stock
issued and outstanding as of the Closing Date, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of the Merger Agreement (such number
of shares, the “Issuable Maximum”). The Holder and the holders of the other Preferred Shares issued pursuant
to the Merger Agreement shall be entitled to a portion of the Issuable Maximum equal to such Holder’s pro rata portion of
the aggregate Merger Consideration. In addition, the Holder may allocate its pro-rata portion of the Issuable Maximum among Preferred
Shares held by it in its sole discretion. Such portion shall be adjusted upward ratably in the event a Holder no longer holds
any Preferred Shares and the amount of shares issued to such Holder pursuant to its Preferred Shares was less than such Holder’s
pro-rata share of the Issuable Maximum.


 


5.
Rights Upon Issuance of Purchase Rights and Other Corporate Events.


 


(a)
Purchase Rights. In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants, issues
or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of Common Stock (the “Purchase Rights”), then each Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such
Holder had held the number of shares of Common Stock acquirable upon complete conversion of all the Preferred Shares (without
taking into account any limitations or restrictions on the convertibility of the Preferred Shares) held by such Holder 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 Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that such Holder’s right to participate in any such Purchase Right would result in such
Holder exceeding the Maximum Percentage, then such 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 such Holder until such time, if ever, as its right thereto would not result
in such Holder exceeding the Maximum Percentage).


 


(b)
Other Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation
of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other
assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make
appropriate provision to insure that each Holder will thereafter have the right to receive upon a conversion of all the Preferred
Shares held by such Holder (i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other
assets to which such Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock
been held by such Holder upon the consummation of such Corporate Event (without taking into account any limitations or restrictions
on the convertibility of the Preferred Shares contained in this Certificate of Designation) or (ii) in lieu of the shares of Common
Stock otherwise receivable upon such conversion, such securities or other assets received by the holders of shares of Common Stock
in connection with the consummation of such Corporate Event in such amounts as such Holder would have been entitled to receive
had the Preferred Shares held by such Holder initially been issued with conversion rights for the form of such consideration (as
opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. The provisions
of this Section 5(b) shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any
limitations on the conversion of the Preferred Shares contained in this Certificate of Designation.


 




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6.
Rights Upon Fundamental Transactions.


 


(a)
Assumption. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes
in writing all of the obligations of the Company under this Certificate of Designation and the other Transaction Documents in
accordance with the provisions of this Section 6 pursuant to written agreements in form and substance satisfactory to holders
of Preferred Shares representing the Required Holders and approved by the Required Holders prior to such Fundamental Transaction,
including agreements to deliver to each holder of Preferred Shares in exchange for such Preferred Shares a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this Certificate of Designation, including,
without limitation, having a stated value and dividend rate equal to the stated value and dividend rate of the Preferred Shares
held by the Holders and having similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders and
(ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose shares of common stock are quoted
on or listed for trading on an Eligible Market. Upon the occurrence of any 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 “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this
Certificate of Designation and the other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein and therein. In addition to the foregoing, upon consummation of a Fundamental Transaction, the Successor
Entity shall deliver to each Holder confirmation that there shall be issued upon conversion of the Preferred Shares at any time
after the consummation of such Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets
or other property (except such items still issuable under Sections 5 and 11, which shall continue to be receivable thereafter))
issuable upon the conversion of the Preferred Shares prior to such Fundamental Transaction, such shares of publicly traded common
stock (or their equivalent) of the Successor Entity (including its Parent Entity) which each Holder would have been entitled to
receive upon the happening of such Fundamental Transaction had all the Preferred Shares held by each Holder been converted immediately
prior to such Fundamental Transaction (without regard to any limitations on the conversion of the Preferred Shares contained in
this Certificate of Designation), as adjusted in accordance with the provisions of this Certificate of Designation. The provisions
of this Section 6 shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard
to any limitations on the conversion of the Preferred Shares.


 


7.
Rights and Restrictions Upon Issuance of Other Securities.


 


(a)
Record Date.


 


If
the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend
or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase
shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such
other distribution or the date of the granting of such right of subscription or purchase (as the case may be).


 


(b)
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Sections
5 and 11, if the Company at any time on or after the Initial Issuance Date subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price
in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision of Sections 5
and 11, if the Company at any time on or after the Initial Issuance Date combines (by combination, reverse stock split or otherwise)
one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination will be proportionately increased. Any adjustment pursuant to this Section 7(b) shall become
effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under
this Section 7(b) occurs during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion
Price shall be adjusted appropriately to reflect such event.


 




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(c)
Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time while this Preferred Shares
are outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise issue (or announce
any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock Equivalents, at an effective
price per share less than the Conversion Price then in effect, excluding Exempt Issuances as (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed
that 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 less 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 at such effective price), then simultaneously with the consummation of each Dilutive
Issuance the Conversion Price shall be reduced and only reduced to equal the Base Share Price and the number of Preferred Shares
issuable hereunder shall be increased such that the aggregate Conversion Price payable hereunder, after taking into account the
decrease in the Conversion Price, shall be equal to the aggregate Conversion Price prior to such adjustment. Such adjustment shall
be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustments shall
be made, paid or issued under this Section in respect of an Exempt Issuance. The Company shall notify the Holder, in writing,
no later than the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject
to this Section, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price
and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether
or not the Company provides a Dilutive Issuance Notice pursuant to this Section, upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Preferred Shares based upon the Base Share Price regardless of whether the Holder
accurately refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction, the
Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion or exercise
price at which such securities may be converted or exercised.


 


(d)
Restriction on offering of Securities. For a period of twelve (12) months from the Initial Issuance Date, the Company will
not issue or agree to issue any common stock or securities that are convertible into common stock or create or incur any indebtedness,
except in the ordinary course of business, without the consent of the Required Holders. The prohibitions in this Section shall
also apply to an equity line or ATM transaction but shall not apply to an Exempt Issuance.


 


(e)
Other Events. In the event that the Company (or any Subsidiary) shall take any action to which the provisions hereof are
not strictly applicable, or, if applicable, would not operate to protect any Holder from dilution or if any event occurs of the
type contemplated by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Board shall in
good faith determine and implement an appropriate adjustment in the Conversion Price so as to protect the rights of such Holder,
provided that no such adjustment pursuant to this Section 7(d) will increase the Conversion Price as otherwise determined pursuant
to this Section 7, provided further that if such Holder does not accept such adjustments as appropriately protecting its interests
hereunder against such dilution, then the Board and such Holder shall agree, in good faith, upon an independent investment bank
of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose
fees and expenses shall be borne by the Company.


 




    	 	8	 



     


    

 





(f)
Calculations. All calculations under this Section 7 shall be made by rounding to the nearest one-hundred thousandth of
a cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given
time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares, other
than a return thereof to the Company’s treasury for cancellation shall be considered an issue or sale of Common Stock.


 


8.
Authorized Shares.


 


(a)
Reservation. The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of
Common Stock equal to 100% of the Conversion Rate with respect to the Base Amount of each Preferred Share as of the Initial Issuance
Date (assuming for purposes hereof, that all the Preferred Shares issuable pursuant to the Merger Agreement have been issued,
such Preferred Shares are convertible at the Conversion Price and without taking into account any limitations on the conversion
of such Preferred Shares set forth in herein) issuable pursuant to the terms of this Certificate of Designationsfrom the Initial
Issuance Date through the second anniversary of the Initial Issuance Date assuming (assuming for purposes hereof, that all the
Preferred Shares issuable pursuant to the Merger Agreements have been issued and without taking into account any limitations on
the issuance of securities set forth herein). So long as any of the Preferred Shares are outstanding, the Company shall take all
action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose
of effecting the conversion of the Preferred Shares, as of any given date, 100% of the number of shares of Common Stock as shall
from time to time be necessary to effect the conversion of all of the Preferred Shares issued or issuable pursuant to the Merger
Agreement assuming for purposes hereof, that all the Preferred Shares issuable pursuant to the Merger Agreement have been issued
and without taking into account any limitations on the issuance of securities set forth herein), provided that at no time shall
the number of shares of Common Stock so available be less than the number of shares required to be reserved by the previous sentence
(without regard to any limitations on conversions contained in this Certificate of Designation) (the “Required Amount”).
The initial number of shares of Common Stock reserved for conversions of the Preferred Shares and each increase in the number
of shares so reserved shall be allocated pro rata among the Holders based on the number of Preferred Shares held by each Holder
on the Initial Issuance Date or increase in the number of reserved shares (as the case may be) (the “Authorized Share
Allocation”). In the event a Holder shall sell or otherwise transfer any of such Holder’s Preferred Shares, each
transferee shall be allocated a pro rata portion of such Holder’s Authorized Share Allocation. Any shares of Common Stock
reserved and allocated to any Person which ceases to hold any Preferred Shares shall be allocated to the remaining Holders of
Preferred Shares, pro rata based on the number of Preferred Shares then held by such Holders.


 


(b)
Insufficient Authorized Shares. If, notwithstanding Section 8(a) and not in limitation thereof, at any time while any of
the Preferred Shares remain outstanding the Company does not have a sufficient number of authorized and unissued shares of Common
Stock to satisfy its obligation to have available for issuance upon conversion of the Preferred Shares at least a number of shares
of Common Stock equal to the Required Amount (an “Authorized Share Failure”), then the Company shall promptly
take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the
Company to reserve and have available the Required Amount for all of the Preferred Shares then outstanding. Without limiting the
generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting
of its stockholders or conduct a consent solicitation for the approval of an increase in the number of authorized shares of Common
Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement (or consent solicitation
statement, as the case may be) and shall use its best efforts to solicit its stockholders’ approval of such increase in
authorized shares of Common Stock and to cause its Board to recommend to the stockholders that they approve such proposal. Nothing
contained in this Section 8 shall limit any obligations of the Company under any provision of the Merger Agreement. In the event
that the Company is prohibited from issuing shares of Common Stock upon a conversion of any Preferred Share due to the failure
by the Company to have sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such
unavailable number of shares of Common Stock, the “Authorization Failure Shares”), in lieu of delivering such
Authorization Failure Shares to such Holder of such Preferred Shares, the Company shall pay cash in exchange for the cancellation
of such Preferred Shares convertible into such Authorized Failure Shares at a price equal to the greater of (y) the Stated Value
of the Preferred Shares subject to the Conversion Notice with respect to such Authorization Failure Shares and (z) the sum of
(i) the product of (x) such number of Authorization Failure Shares and (y) the Closing Sale Price on the Trading Day immediately
preceding the date such Holder delivers the applicable Conversion Notice with respect to such Authorization Failure Shares to
the Company and (ii) to the extent such Holder purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by such Holder of Authorization Failure Shares, any brokerage commissions and other out-of-pocket
expenses, if any, of such Holder incurred in connection therewith.


 




    	 	9	 



     


    

 





9.
[Intentionally Omitted].


 


10.
Voting Rights. Except as otherwise required by law, the Holders of the Preferred Shares shall vote together with the holders
of Common Stock (subject to the conversion limitations set forth in section 4(e) and Section 4(f) herein) on all matters and shall
not vote as a separate class such that except as otherwise expressly required by law, each Holder shall be entitled to vote on
all matters submitted to shareholders of the Company and shall be entitled to the number of votes for its Preferred Shares owned
at the record date for the determination of shareholders entitled to vote on such matter or, if no such record date is established,
at the date such vote is taken or any written consent of shareholders is solicited, equal to the number of shares of Common Stock
into which such Preferred Shares held are convertible, but not in excess of the conversion limitations set forth in Section 4(e)
and Section 4(f) herein.


 


11.
Participation. In addition to any adjustments pursuant to Section 7(b), the Holders shall, as holders of Preferred Shares,
be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock to the same extent
as if such Holders had converted each Preferred Share held by each of them into shares of Common Stock (without regard to any
limitations on conversion herein or elsewhere) and had held such shares of Common Stock on the record date for such dividends
and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders
of shares of Common Stock (provided, however, to the extent that a Holder’s right to participate in any such dividend or
distribution would result in such Holder exceeding the Maximum Percentage, then such Holder shall not be entitled to participate
in such dividend or distribution to such extent (or the beneficial ownership of any such shares of Common Stock as a result of
such dividend or distribution to such extent) and such dividend or distribution to such extent shall be held in abeyance for the
benefit of such Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Maximum Percentage).


 


12.
Vote to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the
vote or written consent of the holders of a greater number of shares is required by law or by another provision of the Articles
of Incorporation, without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent
without a meeting of the Required Holders, voting together as a single class, the Company shall not: (a) amend or repeal any provision
of, or add any provision to, its Articles of Incorporation or bylaws, or file any certificate of designations or articles of amendment
of any series of shares of preferred stock, if such action would adversely alter or change in any respect the preferences, rights,
privileges or powers, or restrictions provided for the benefit, of the Preferred Shares, regardless of whether any such action
shall be by means of amendment to the Articles of Incorporation or by merger, consolidation or otherwise; (b) increase or decrease
(other than by conversion) the authorized number of Preferred Shares; (c) without limiting any provision of Section 2, create
or authorize (by reclassification or otherwise) any new class or series of shares that has a preference over or is on a parity
with the Preferred Shares with respect to dividends or the distribution of assets on the liquidation, dissolution or winding-up
of the Company; (d) purchase, repurchase or redeem any shares of capital stock of the Company junior in rank to the Preferred
Shares (other than pursuant to equity incentive agreements (that have in good faith been approved by the Board) with employees
giving the Company the right to repurchase shares upon the termination of services); (e) without limiting any provision of Section
2, pay dividends or make any other distribution on any shares of any capital stock of the Company junior in rank to the Preferred
Shares; or (f) without limiting any provision of Section 16, whether or not prohibited by the terms of the Preferred Shares, circumvent
a right of the Preferred Shares.


 


13.
Intentionally Omitted.


 




    	 	10	 



     


    

 





14.
Lost or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of any certificates representing Preferred Shares (as to which a written certification and the
indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of an indemnification
undertaking by the applicable Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender
and cancellation of the certificate(s), the Company shall execute and deliver new certificate(s) of like tenor and date.


 


15.
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate
of Designation shall be cumulative and in addition to all other remedies available under this Certificate of Designation and any
of the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief),
and no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy. Nothing
herein shall limit any Holder’s right to pursue actual and consequential damages for any failure by the Company to comply
with the terms of this Certificate of Designation. The Company covenants to each Holder that there shall be no characterization
concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be received by a Holder and shall not, except as
expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Holders and that the remedy at law for any
such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, each Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened
breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall
provide all information and documentation to a Holder that is requested by such Holder to enable such Holder to confirm the Company’s
compliance with the terms and conditions of this Certificate of Designation.


 


16.
Noncircumvention. The Company hereby covenants and agrees that the Company will not, by amendment of its Articles of Incorporation,
bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Certificate of Designation, and will at all times in good faith carry out all the provisions of this Certificate of Designation
and take all action as may be required to protect the rights of the Holders. Without limiting the generality of the foregoing
or any other provision of this Certificate of Designation, the Company (i) shall not increase the par value of any shares of Common
Stock receivable upon the conversion of any Preferred Shares above the Conversion Price then in effect, (ii) shall take all such
actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the conversion of Preferred Shares and (iii) shall, so long as any Preferred Shares are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for
the purpose of effecting the conversion of the Preferred Shares, the maximum number of shares of Common Stock as shall from time
to time be necessary to effect the conversion of the Preferred Shares then outstanding (without regard to any limitations on conversion
contained herein).


 


17.
Failure or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing
and signed by an authorized representative of the waiving party. This Certificate of Designation shall be deemed to be jointly
drafted by the Company and all Holders and shall not be construed against any Person as the drafter hereof.


 


18.
Notices. The Company shall provide each Holder of Preferred Shares with prompt written notice of all actions taken pursuant
to the terms of this Certificate of Designation, including in reasonable detail a description of such action and the reason therefor.
Whenever notice is required to be given under this Certificate of Designation, unless otherwise provided herein, such notice must
be in writing and shall be given in accordance with Section 8.01 of the Merger Agreement or, with respect to any Holder, to the
last address the Company has on file for such Holder in its register. Without limiting the generality of the foregoing, the Company
shall give written notice to each Holder (i) promptly following any adjustment of the Conversion Price, setting forth in reasonable
detail, and certifying, the calculation of such adjustment and (ii) at least fifteen (15) days prior to the date on which the
Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect
to any grant, issuances, or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or
other property to all holders of shares of Common Stock as a class or (C) for determining rights to vote with respect to any Fundamental
Transaction, dissolution or liquidation, provided, in each case, that such information shall be made known to the public prior
to, or simultaneously with, such notice being provided to any Holder.


 




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19.
Transfer of Preferred Shares. The Holder may transfer some or all of its Preferred Shares without the consent of the Company.


 


20.
Preferred Shares Register. The Company shall maintain at its principal executive offices (or such other office or agency
of the Company as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall
record the name, address and facsimile number of the Persons in whose name the Preferred Shares have been issued, as well as the
name and address of each transferee. The Company may treat the Person in whose name any Preferred Shares is registered on the
register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events recognizing
any properly made transfers.


 


21.
Stockholder Matters; Amendment.


 


(a)
Stockholder Matters. Any stockholder action, approval or consent required, desired or otherwise sought by the Company pursuant
to the NRS, the Articles of Incorporation, this Certificate of Designation or otherwise with respect to the issuance of Preferred
Shares may be effected by written consent of the Company’s stockholders or at a duly called meeting of the Company’s
stockholders, all in accordance with the applicable rules and regulations of the NRS. This provision is intended to comply with
the applicable sections of the NRS permitting stockholder action, approval and consent affected by written consent in lieu of
a meeting.


 


(b)
Amendment. This Certificate of Designation or any provision hereof may be amended by obtaining the affirmative vote at
a meeting duly called for such purpose, or written consent without a meeting in accordance with the NRS, of the Required Holders,
voting separate as a single class, and with such other stockholder approval, if any, as may then be required pursuant to the NRS
and the Articles of Incorporation.


 


22.
Dispute Resolution.


 


(a)
Disputes Over Closing Bid Price, Closing Sale Price, Conversion Price or Fair Market Value.


 


(i)
In the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price or fair market value (as the
case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company or
such applicable Holder (as the case may be) shall submit the dispute via facsimile (I) within two (2) Business Days after delivery
of the applicable notice giving rise to such dispute to the Company or such Holder (as the case may be) or (II) if no notice gave
rise to such dispute, at any time after such Holder learned of the circumstances giving rise to such dispute. If such Holder and
the Company are unable to resolve such dispute relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price
or such fair market value (as the case may be) by 5:00 p.m. (New York time) on the third (3rd) Business Day following
such delivery by the Company or such Holder (as the case may be) of such dispute to the Company or such Holder (as the case may
be), then such Holder shall select an independent, reputable investment bank to resolve such dispute.


 


(ii)
Such Holder and the Company shall each deliver to such investment bank (x) a copy of the initial dispute submission so delivered
in accordance with the first sentence of this Section 22(a) and (y) written documentation supporting its position with respect
to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately
following the date on which such Holder selected such investment bank (the “Dispute Submission Deadline”) (the
documents referred to in the immediately preceding clauses (x) and (y) are collectively referred to herein as the “Required
Dispute Documentation”) (it being understood and agreed that if either such Holder or the Company fails to so deliver
all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the
Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation
or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based
solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline).
Unless otherwise agreed to in writing by both the Company and such Holder or otherwise requested by such investment bank, neither
the Company nor such Holder shall be entitled to deliver or submit any written documentation or other support to such investment
bank in connection with such dispute (other than the Required Dispute Documentation).


 




    	 	12	 



     


    

 





(iii)
The Company and such Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company
and such Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline.
The fees and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution
of such dispute shall be final and binding upon all parties absent manifest error.


 


(b)
Disputes Over Arithmetic Calculation of the Conversion Rate.


 


(i)
In the case of a dispute as to the arithmetic calculation of a Conversion Rate, the Company or such Holder (as the case may be)
shall submit the disputed arithmetic calculation via facsimile (i) within two (2) Business Days after delivery of the applicable
notice giving rise to such dispute to the Company or such Holder (as the case may be) or (ii) if no notice gave rise to such dispute,
at any time after such Holder learned of the circumstances giving rise to such dispute. If such Holder and the Company are unable
to resolve such disputed arithmetic calculation of such Conversion Rate by 5:00 p.m. (New York time) on the third (3rd)
Business Day following such delivery by the Company or such Holder (as the case may be) of such disputed arithmetic calculation,
then such Holder shall select an independent, reputable accountant or accounting firm to perform such disputed arithmetic calculation.


 


(ii)
Such Holder and the Company shall each deliver to such accountant or accounting firm (as the case may be) (x) a copy of the initial
dispute submission so delivered in accordance with the first sentence of this Section 22(a) and (y) written documentation supporting
its position with respect to such disputed arithmetic calculation, in each case, no later than 5:00 p.m. (New York time) by the
fifth (5th) Business Day immediately following the date on which such Holder selected such accountant or accounting
firm (as the case may be) (the “Submission Deadline”) (the documents referred to in the immediately preceding
clauses (x) and (y) are collectively referred to herein as the “Required Documentation”) (it being understood
and agreed that if either such Holder or the Company fails to so deliver all of the Required Documentation by the Submission Deadline,
then the party who fails to so submit all of the Required Documentation shall no longer be entitled to (and hereby waives its
right to) deliver or submit any written documentation or other support to such accountant or accounting firm (as the case may
be) with respect to such disputed arithmetic calculation and such accountant or accounting firm (as the case may be) shall perform
such disputed arithmetic calculation based solely on the Required Documentation that was delivered to such accountant or accounting
firm (as the case may be) prior to the Submission Deadline). Unless otherwise agreed to in writing by both the Company and such
Holder or otherwise requested by such accountant or accounting firm (as the case may be), neither the Company nor such Holder
shall be entitled to deliver or submit any written documentation or other support to such accountant or accounting firm (as the
case may be) in connection with such disputed arithmetic calculation of the Conversion Rate (other than the Required Documentation).


 


(iii)
The Company and such Holder shall use their respective commercial best efforts to cause such accountant or accounting firm (as
the case may be) to perform such disputed arithmetic calculation and notify the Company and such Holder of the results no later
than ten (10) Business Days immediately following the Submission Deadline. The fees and expenses of such accountant or accounting
firm (as the case may be) shall be borne solely by the Company, and such accountant’s or accounting firm’s (as the
case may be) arithmetic calculation shall be final and binding upon all parties absent manifest error.


 




    	 	13	 



     


    

 





(c)
Miscellaneous. The Company expressly acknowledges and agrees that (i) this Section 22 constitutes an agreement to arbitrate
between the Company and such Holder (and constitutes an arbitration agreement) under § 7501, et seq. of the New York Civil
Practice Law and Rules (“CPLR”) and that each party shall be entitled to compel arbitration pursuant to CPLR
§ 7503(a) in order to compel compliance with this Section 22, (ii) the terms of this Certificate of Designation and each
other applicable Transaction Document shall serve as the basis for the selected investment bank’s resolution of the applicable
dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations and
the like that such investment bank determines are required to be made by such investment bank in connection with its resolution
of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations and the like to the
terms of this Certificate of Designation and any other applicable Transaction Documents, (iii) the terms of this Certificate of
Designation and each other applicable Transaction Document shall serve as the basis for the selected accountant’s or accounting
firm’s performance of the applicable arithmetic calculation, (iv) for clarification purposes and without implication that
the contrary would otherwise be true, disputes relating to matters described in Section 22(a) shall be governed by Section 22(a)
and not by Section 22(b), (v) such Holder (and only such Holder), in its sole discretion, shall have the right to submit any dispute
described in this Section 22 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of utilizing
the procedures set forth in this Section 22 and (vi) nothing in this Section 22 shall limit such Holder from obtaining any injunctive
relief or other equitable remedies (including, without limitation, with respect to any matters described in Section 22(a) or Section
22(b)).


 


23.
Certain Defined Terms. For purposes of this Certificate of Designation, the following terms shall have the following meanings:


 


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


 


(b)
“Attribution Parties” means, with respect to any given Holder, collectively, the following Persons and entities:
(i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after the
issuance of the Preferred Shares, directly or indirectly managed or advised by such Holder’s investment manager or any of
its affiliates or principals, (ii) any direct or indirect affiliates of such Holder or any of the foregoing, (iii) any Person
acting or who could be deemed to be acting as a group together with such Holder or any of the foregoing and (iv) any other Persons
whose beneficial ownership of the Company’s Common Stock would or could be aggregated with such Holder’s and the other
Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively
such Holder and all other Attribution Parties to the Maximum Percentage.


 


(c)
“Base Amount” means, with respect to each Preferred Share, as of the applicable date of determination, the
sum of (1) the Stated Value thereof, plus (2) the Unpaid Dividend Amount thereon as of such date of determination.


 


(d)
“Bloomberg” means Bloomberg, L.P.


 


(e)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.


 


(f)
“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the
last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg,
or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing
trade price (as the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00:00
p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply,
the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported
for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such
security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid
Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing
Bid Price or the Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually
determined by the Company and the applicable Holder. If the Company and such Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved in accordance with the procedures in Section 22. All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such
period.


 




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(g)
“Common Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii)
any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.


 


(h)
“Common Stock Equivalents” means any securities of the Company 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.


 


(i)
“Conversion Price” means, with respect to each Preferred Share, as of any Conversion Date or other applicable
date of determination, $0.80, subject to adjustment as provided herein.


 


(j)
“Convertible Securities” means any stock or other security (other than Options) that is at any time and under
any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the
holder thereof to acquire, any shares of Common Stock.


 


(k)
“Eligible Market” means the Principal Market, The New York Stock Exchange, the NYSE American, the Nasdaq Global
Select Market, the Nasdaq Global Market, the OTCQB, or the OTCQX (or any successor thereto).


 


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


 




    	 	15	 



     


    

 





(l)
“Fundamental Transaction” “ means that (i) the Company or any of its Subsidiaries shall, directly or
indirectly, in one or more related transactions, (1) consolidate or merge with or into (whether or not the Company or any of its
Subsidiaries is the surviving corporation) any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise
dispose of all or substantially all of its respective properties or assets to any other Person, or (3) allow any other Person
to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting
Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to,
or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (4) consummate a
stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares
of Voting Stock of the Company (not including any shares of Voting Stock of the Company 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), or (5) reorganize, recapitalize or reclassify the Common Stock, or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly
or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.


 


(m)
“Merger Agreement” means that certain agreement and plan of merger by and among the Company, Global Bit Acquisition
Corp. and Global Bit Ventures Inc. dated November __, 2017, as may be amended from time in accordance with the terms thereof.


 


(n)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.


 


(o)
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.


 


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


 


(q)
“Principal Market” means The NASDAQ Capital Market.


 


(r)
“SEC” means the Securities and Exchange Commission or the successor thereto.


 


(s)
“Stated Value” shall mean $1,000 per share, subject to adjustment for stock splits, stock dividends, recapitalizations,
reorganizations, reclassifications, combinations, subdivisions or other similar events occurring after the Initial Issuance Date
with respect to the Preferred Shares.


 


(t)
“Subsidiaries” means any and all subsidiaries of the Company.


 


(u)
“Successor Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity)
with which such Fundamental Transaction shall have been entered into.


 


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


 




    	 	16	 



     


    

 





(w)
“Transaction Documents” means the Merger Agreement, including all agreements or documents attached as exhibits
thereto, this Certificate of Designation and each of the other agreements and instruments entered into or delivered by the Company
or any of the Holders in connection with the transactions contemplated by the Merger Agreement, all as may be amended from time
to time in accordance with the terms thereof.


 


(x)
“Unpaid Dividend Amount” means, as of the applicable date of determination, with respect to each Preferred
Share, all accrued and unpaid Dividends on such Preferred Share.


 


(y)
“Voting Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the
holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors,
managers, trustees or other similar governing body of such Person (irrespective of whether or not at the time capital stock of
any other class or classes shall have or might have voting power by reason of the happening of any contingency).


 


24.
Disclosure. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate of Designation,
unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public
information relating to the Company or any of its Subsidiaries, the Company shall simultaneously with any such receipt or delivery
publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company
so shall indicate to each Holder contemporaneously with delivery of such notice, and in the absence of any such indication, each
Holder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information
relating to the Company or its Subsidiaries. Nothing contained in this Section 24 shall limit any obligations of the Company,
under the Merger Agreement.


 


*
* * * *


 


IN
WITNESS WHEREOF, the Corporation has caused this Certificate of Designation of 0% Series E-1 Convertible Preferred Stock of Marathon
Patent Group, Inc. to be signed by its Chief Executive Officer on this __ day of November, 2017.


 


	 	MARATHON
    PATENT GROUP


 


	 	By:
    	 
	 	Name:
    	Doug
Croxall
	 	Title:
    	Chief
    Executive Officer 





 




    	 	17	 



     


    

 


EXHIBIT
I


 


MARATHON
PATENT GROUP 


CONVERSION
NOTICE


 


Reference
is made to the Certificate of Designations, Preferences and Rights of the 0% Series E-1 Convertible Preferred Stock of MARATHON
PATENT GROUP (the “Certificate of Designations”). In accordance with and pursuant to the Certificate of Designations,
the undersigned hereby elects to convert the number of shares of Series E-1 Convertible Preferred Stock, $0.0001 par value per
share (the “Preferred Shares”), of Marathon Patent Group, a Nevada corporation (the “Company”),
indicated below into shares of common stock, $0.0001 par value per share (the “Common Stock”), of the Company,
as of the date specified below.


 


Date
of Conversion:_________________________________


 


Number
of Preferred Shares to be converted:______________________________________


 


Share
certificate no(s). of Preferred Shares to be converted:_______________________________


 


Tax
ID Number (If applicable): ________________________________________


 


Conversion
Price:_________________________________________________________


 


Number
of shares of Common Stock to be issued:______________________________________


 


Please
issue the shares of Common Stock into which the Preferred Shares are being converted in the following name and to the following
address:


 


Issue
to:_______________________________________


 


_______________________________________


 


Address:
_________________________________________


 


Telephone
Number: ________________________________


 


Facsimile
Number:___________________________________________


 


Holder:___________________________________________________


 


By:_______________________________________________________


 


Title:____________________________


 


Dated:___________________________


 


Account
Number (if electronic book entry transfer):__________________________________


 


Transaction
Code Number (if electronic book entry transfer):_____________________________





 




    	 	18	 



     


    

 


EXHIBIT
II


 


ACKNOWLEDGMENT


 


The
Company hereby acknowledges this Conversion Notice and hereby directs Equity Stock Transfer, LLC to issue the above indicated
number of shares of Common Stock in accordance with the Irrevocable Transfer Agent Instructions dated __________, 2017 from the
Company and acknowledged and agreed to by Equity Stock Transfer, LLC.


 


	 	MARATHON
    PATENT GROUP, INC. 


 


	 	By:	 
	 	Name:	 
	 	Title:	 


 




    	 	19