Exhibit 4.1


 


 


 









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CERTIFICATE OF DESIGNATIONS, PREFERENCES,
AND RIGHTS


 


OF THE 


 


SERIES A NON-VOTING CONVERTIBLE PREFERRED
STOCK 


 


OF


 


PREMIER HOLDING CORPORATION


 


[Continued from previous page]


 


“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.


 


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


 


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


 


“Common Stock”
means the Company’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.


 


“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.


 


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


 


“Holder”
means individually a holder and collectively the holders of Preferred Stock.


 


“Junior Securities”
means the Common Stock and all other Common Stock Equivalents of the Company other than those securities which are explicitly senior
or pari passu to the Preferred Stock in dividend rights or liquidation preference.


 


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


 






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“Nevada Courts”
shall have the meaning set forth in Section 9(d).


 


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


 


“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.


 


“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.


 


“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 Underlying 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.


 


“Subscription Amount”
shall mean, as to each Holder, the aggregate paid for the Preferred Stock purchased pursuant to a Purchase Agreement as specified
below such Holder’s name on the signature page of the Purchase Agreement in (i) United States dollars and in immediately
available funds or (ii) in exchange for existing liabilities of the Company.


 


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


 


“Trading Day”
means a day on which the principal Trading Market is open for business.


 


“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 AMEX Equities, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).


 






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


 


“Transfer Agent”
means Columbia Stock Transfer Company, the current transfer agent of the Company, with a mailing address of 1869 E. Seltice Way
#292, Post Falls, ID 83854, Telephone: 208-664-3544, and any successor transfer agent of the Company.


 


“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.


 


Section 2. Designation, Amount
and Par Value. The series of Preferred Stock shall be designated the “SERIES A NON-VOTING CONVERTIBLE PREFERRED STOCK”
and shall consist of Seven Million (7,000,000) shares of $.0001 par value and a stated value equal to One Dollar ($1.00) per share
(the “Stated Value”).


 


Section 3. Dividends. No dividends will accrue
or be paid on the SERIES A NON-VOTING CONVERTIBLE PREFERRED STOCK.


 


Section 4. Voting Rights.
Except as otherwise provided herein or as otherwise required by law, Holders of the Preferred Stock will not be entitled to vote
with the Company’s Common Stockholders.


 


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 commencing nine
months (270 calendar days) 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)) determined by dividing the Stated Value of such share of Preferred
Stock by the Conversion Price. Holders shall effect conversions by providing the Company with a form of conversion notice (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 Company (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 Company 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 Company 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.


 






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b) Conversion Price.
The conversion price for the Preferred Stock shall be equal to one tenth (1/10) of the Stated Value.


 


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 Company shall deliver, or cause to be delivered, to the converting Holder (A) a certificate or certificates representing the
number of Conversion Shares being acquired upon the conversion of the Preferred Stock.


 


ii - iv. [RESERVED]


 


v. Reservation of
Shares Issuable Upon Conversion. The Company 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. The Company covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and
non-assessable.


 


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 Company shall round
up to the next whole share.


 


vii. Transfer Taxes.
The issuance of certificates for shares of the Common Stock on conversion of this 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 Company 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 Company 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 Company the amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid.


 






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d) Beneficial Ownership
Limitation. The Company shall not give effect to 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 herein). 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 Company subject to a limitation
on conversion or exercise analogous to the limitation contained herein (including, without limitation, the Preferred Stock or the
Warrants) 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 Company 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 Company 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) a more recent public announcement by the Company or (ii) a more
recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon
the written or oral request of a Holder, the Company 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 Company, 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 sixty one (61) days’ prior notice to the Company, may decrease the Beneficial Ownership Limitation provisions
of this Section 6(d) applicable to its Preferred Stock and the provisions of this Section 6(d) shall continue to apply. Any such
decrease will not be effective until the sixty-first (61st) day after such notice is delivered to the Company 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.


 






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Section 7. RESERVED.


 


Section 8. RESERVED


 


Section 9. 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 personally, by facsimile, or sent by a nationally recognized overnight
courier service. Any and all notices or other communications or deliveries to be provided by the Company 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 Company, or if no such facsimile number
or address appears on the books of the Company, 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.


 


b) Absolute Obligation.
Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the obligation of the
Company, 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 Company 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 Company.


 


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 Nevada, 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 the city of Las Vegas, Nevada (the “Nevada Courts”). Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the Nevada 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 Nevada Courts, or such Nevada 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.


 






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e) Waiver. Any
waiver by the Company 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 Company 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 Company 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 Trading
Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Trading Day, such payment shall
be made on the next succeeding Trading Day.


 






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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. If any shares of Preferred Stock shall be converted, redeemed or reacquired by the Company, such
shares shall resume the status of authorized but unissued shares of preferred stock and shall no longer be designated as SERIES
A NON-VOTING CONVERTIBLE PREFERRED STOCK.


 


j) Amendment to
Certificate of Designation. The Company shall not amend this certificate of designation without the express written consent
of the Holders of two-thirds (2/3rd) of the shares of SERIES A NON-VOTING CONVERTIBLE PREFERRED STOCK then outstanding.


 


Reissuance. Any shares of SERIES
A NON-VOTING CONVERTIBLE PREFERRED STOCK acquired by the Corporation by reason of redemption shall be returned to the status of
undesignated and unissued shares of Preferred Stock of the Corporation.


 


The undersigned being the President of the
Corporation hereby declares under penalty of perjury that the foregoing is a true and correct copy of the Certificate of Designation
of the Rights and Preferences of the SERIES A NON-VOTING CONVERTIBLE PREFERRED STOCK of Premier Holding Corporation duly adopted
by the Board of Directors of the Corporation on March 31, 2014.


 


 


 


 


By: /s/ Randy Letcavage              


Name: Randy Letcavage


Title: President


 








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