Document:

exhibit_4-1.htm

EXHIBIT 4.1

 

 

  

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FIREMANS CONTRACTORS, INC. 

CERTIFICATE OF DESIGNATION

OF CLASS A CONVERTIBLE PREFERRED STOCK

 

Pursuant to Title 7, Section 78 of the Nevada Revised Statutes ("NRS"), the undersigned, Firemans Contractors, Inc. (the "Corporation"), a corporation organized and existing under the laws of the State of Nevada, DOES HEREBY CERTIFY:

 

That pursuant to the authority given to the Board of Directors of the Corporation by the Certificate of Incorporation of the Corporation (the "Certificate of Incorporation"), and in accordance with the provisions of Title 7, Section 7 of the NRS, the Board of Directors of the Corporation, on August 15, 2012, adopted the following resolution creating a Class of Preferred Stock designated as Class A Convertible Preferred Stock.

 

RESOLVED that, pursuant to the authority vested in the Board of Directors of the Corporation in accordance with the NRS of the State of Nevada and the provisions of the Certificate of Incorporation, a class of Class A Convertible Preferred Stock, par value $1.00 per share, of the Corporation is hereby created and that the designation and number of shares thereof and the voting powers, preferences, limitations, restrictions and relative rights of the shares of such Class A Convertible Preferred Stock are as follows:

 

CLASS A CONVERTIBLE PREFERRED STOCK

 

 

1.           Designation and Amount. The designation of this class of capital stock shall be "Class A Convertible Preferred Stock," par value $1.00 per share (the "Class A Stock"). The number of shares, powers, terms, conditions, designations, preferences and privileges, relative, participating, optional and other special rights, and qualifications, limitations and restrictions, if any, of the Class A Stock shall be as set forth herein. The number of authorized shares of the Class A Stock is 250,000 shares. The term "Preferred Stock" shall mean the Class A Convertible Stock (Class A), and any other class of preferred stock that the Board of Directors may establish in accordance with the Certificate of Incorporation.

 

2.           Ranking. The Corporation's Class A Stock shall rank, as to dividends and upon Liquidation (as defined in Section 4(b) hereof), senior and prior to the Corporation's Common Stock, par value $0.001 per share (the "Common Stock") and to all other classes or class of stock issued by the Corporation, except as otherwise approved by the affirmative vote or consent of the holders of a majority of the shares of Class A Stock pursuant to Section 6(c) hereof

 

3.          Dividend Provisions. The holders of shares of Class A Stock have no dividend rights except as may be declared by the Board of Directors of the Corporation in its sole and absolute discretion, out of funds legally available for that purpose.

  

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4.           Liquidation Rights.

 

4(a) With respect to rights on Liquidation (as defined in Section 4(h) hereof), the Class A Stock shall rank senior and prior to the Corporation's Common Stock and to all other classes or series of stock issued by the Corporation, except as otherwise approved by the affirmative vote or consent of the holders of at least a majority of Class A Stock outstanding pursuant to Section 6(a) hereof.

 

4(b) In the event of any liquidation, dissolution or winding-up of the affairs of the Corporation (collectively, a "Liquidation"), the sole participation to which the holders of shares of Class A Stock then outstanding (the "Class A Stockholders") shall be entitled, out of the assets of the Corporation legally available for distribution to its stockholders, whether from capital, surplus or earnings, to receive, before any payment shall be made to the holders of Common Stock or any other class or series of stock ranking on Liquidation junior to such Class A Stock, an amount per share equal to $10.00. If upon any such Liquidation of the Corporation, the remaining assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the holders of shares of Class A Stock the full amount to which they shall be entitled, the holders of shares of Class A Stock and any class or series of stock ranking on liquidation on a parity with the Class A Stock shall share Dui passu in any distribution of the remaining assets and funds of the Corporation in proportion to the respective liquidation amounts of the Preferred Stock that would otherwise be payable to the holders of Preferred Stock with respect to the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

 

5              .Voting. The Class A Stockholders shall be entitled to one thousand (1,000) votes for each share of Class A Stock held on any matters requiring a shareholder vote of the Corporation.

 

6.              Conversion.

 

6(a) Any Class A Stockholder shall have the right, at any time from the date of issuance, to convert any or all of its Class A Stock into 10 shares of fully paid and nonassessable shares of Common Stock for each share of Class A Stock so converted. In any event, holders of Class A Stock will have the right to convert as described in this Section 6 upon an initial or secondary public offering of Common Stock by the Corporation or in the event of a change in control as defined in the Rules and Regulations of the Securities and Exchange Commission.

 

6(b)(i) Any Class A Stockholder may exercise the right to convert such shares into Common Stock pursuant to this Section 6 by delivering to the Corporation during regular business hours, at the office of the Corporation or any transfer agent of the Corporation or at such other place as may be designated by the Corporation, the certificate or certificates for the shares to be converted (the "Class A Preferred Certificate"), duly endorsed or assigned in blank to the Corporation (if required by it).

  

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6(b)(ii) Each Class A Preferred Certificate shall be accompanied by written notice stating that such holder elects to convert such shares and stating the name or names (with address) in which the certificate or certificates for the shares of Common Stock (the "Common Certificate") are to be issued. Such conversion shall be deemed to have been effected on the date when such delivery is made, and such date is referred to herein as the "Conversion Date."

 

6(b)(iii) As promptly as practicable thereafter, the Corporation shall issue and deliver to or upon the written order of such holder, at the place designated by such holder, a certificate or certificates for the number of shares of Common Stock to which such holder is entitled.

 

6(b)(iv) The person in whose name the certificate or certificates for Common Stock are to be issued shall be deemed to have become a holder of record of Common Stock on the applicable Conversion Date, unless the transfer books of the Corporation are closed on such Conversion Date, in which event the holder shall be deemed to have become the stockholder of record on the next succeeding date on which the transfer books are open, provided that the Conversion Price shall be that Conversion Price in effect on the Conversion Date.

 

6(b)(v) Upon conversion of only a portion of the number of shares covered by a Class A Preferred Certificate, the Corporation shall issue and deliver to or upon the written order of the holder of such Class A Preferred Certificate, at the expense of the Corporation, a new certificate covering the number of shares of the Class A Stock representing the unconverted portion of the Class A Preferred Certificate, which new certificate shall entitle the holder thereof to all the rights, powers and privileges of a holder of such shares.

 

6(c) The Corporation shall pay all documentary, stamp or other transactional taxes attributable to the issuance or delivery of shares of capital stock of the Corporation upon conversion of any shares of Class A Stock; provided, however, that the Corporation shall not be required to pay any taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificate for such shares in a name other than that of the Class A Stockholder in respect of which such shares of Class A Stock are being issued.

 

6(d) The Corporation shall reserve out of its authorized but unissued shares of Common Stock solely for the purpose of effecting the conversion of the Class A Stock sufficient shares of Common Stock to provide for the conversion of all outstanding shares of Class A Stock,

 

6(e) All shares of Common Stock which may be issued in connection with the conversion provisions set forth herein will, upon issuance by the Corporation, be validly issued, fully paid and nonassessable, not subject to any preemptive or similar rights and free from all taxes, liens or charges with respect thereto created or imposed by the Corporation.

  

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7.              Certain Covenants.

 

Any registered holder of Class A Stock may proceed to protect and enforce its rights and the rights of such holders by any available remedy by proceeding at law or in equity to protect and enforce any such rights, whether for the specific enforcement of any provision in this Certificate of Designation or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

8.     Notice to the Corporation. All notices and other communications required or permitted to be given to the Corporation hereunder shall be made by first-class mail, postage prepaid, to the Corporation at its principal executive offices (currently located on the date of the adoption of these resolutions at the following address:

 

8200 Northeast Parkway, Suite 103 North Richland Hills, TX 76180

 

Any notice to the stockholders shall me made to their address as set forth on the books and records of the Corporation.

 

IN WITNESS WHEREOF, the undersigned has caused this Certificate of Designation to be duly executed on behalf of the Corporation effective August 16, 2011.

 

 

	 	Firemans Contractors, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/Nikolay Frolov 	 
	 	 	Name: Nikolay Frolov 	 
	 	 	Title: CFO 	 
	 	 	 	 

 

 

5exhibit10-1.htm

MTI MICROFUEL CELLS INC. 

 

AMENDMENT NO. 2 TO

COMMON STOCK AND WARRANT PURCHASE AGREEMENT 

 

     This Amendment No. 2 to Common Stock and Warrant Purchase Agreement (this “Amendment”) is made as of September 23, 2011 (the “Effective Date”) by and among MTI MicroFuel Cells Inc., a Delaware corporation (the
“Company”) and Counter Point Ventures Fund II, LP (the “Purchaser”), and amends that certain Common Stock and Warrant Purchase Agreement, dated as of January 11, 2010, as amended February 9, 2011 (the “Purchase Agreement”) between the Company and the Purchaser. 

 

     WHEREAS, pursuant to the Purchase Agreement, as of the Effective Date, the Company has sold an aggregate of 35,000,000 shares of Company Common Stock (“Common Stock”) to the Purchaser under the Purchase Agreement, and has issued warrants
(“Warrants”) exercisable for a number of shares of Common Stock equal to 20% of such shares purchased by the Purchaser; and 

 

     WHEREAS, the Company and the Purchaser desire to amend the Purchase Agreement to permit the Company to sell to the Purchaser up to an additional 1,200,000 shares of Common Stock at $0.07 per share, and Warrants exercisable for a number of shares of Common Stock equal to 20% of such additional shares, in accordance with the schedule set forth herein, subject to prior written approval of each investment by the Company, and subject to certain additional terms and conditions set forth herein. 

 

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, receipt of which is hereby acknowledged, the parties to this Amendment agree as follows: 

 

     1. Amendment of Section 1 of the Purchase Agreement. Section 1 of Purchase Agreement is hereby amended to replace each reference to “$2,450,000.” as the aggregate purchase price and “35,000,000” as the maximum aggregate shares of Common Stock issuable under the Purchase Agreement to “$2,534,000.” and “36,200,000,” respectively, in order
to permit the Company to sell up to an additional 1,200,000 shares of Common Stock at a purchase price per share of $0.070 and Warrants as set forth in the Purchase Agreement, subject to prior written approval of each investment by the Company (electronic acceptable). In addition, the reference to “June 30, 2011” in Section 1(b)(iii) shall be replaced with “December 31, 2011,” as being the final date that the Company may sell and issue Common Stock and Warrants under the Purchase Agreement.

 

     2. Amendment of Section 1(a)(i) of the Purchase Agreement. The “Closing Period” set forth in Section 1(a)(i) of the Purchase Agreement shall be amended to extend the period through December 31, 2011 (such extended period, the “2011 Closing
Period”). The Company shall deliver to the Purchaser each Closing Notice no later than fourteen (14) calendar days prior to each proposed Closing to occur during the 2011 Closing Period, or such shorter period as agreed upon by the parties in writing. 

 

 

     3. Amendment of Exhibit A. Exhibit A to the Purchase Agreement shall be amended to include the following 2011 Closing Period Schedule of Closings: 

 

	2011 Closing Period	Maximum	Maximum	Actual Common	Actual Aggregate
	and Actual Closing	Common	Purchase Price	Stock Issued and Sold	Purchase Price At
	Date	Stock Issuable	 	At Each Closing	Each Closing
	  	 	 	 	 
	September 1 –	300,000	$21,000.00	 	 
	September 30, 2011	 	 	 	 
	[Actual Closing	 	 	 	 
	Date(s)]	 	 	 	 
	 	 	 	 	 
	October 1 –	300,000	$21,000.00	 	 
	October 31, 2011	 	 	 	 
	[Actual Closing	 	 	 	 
	Date(s)]	 	 	 	 
	 	 	 	 	 
	November 1 –	300,000	$21,000.00	 	 
	November 30, 2011	 	 	 	 
	[Actual Closing	 	 	 	 
	Date(s)]	 	 	 	 
	 	 	 	 	 
	December 1 –	300,000	$21,000.00	 	 
	December 31, 2011	 	 	 	 
	[Actual Closing	 	 	 	 
	Date(s)]	 	 	 	 
	 	 	 	 	 
	TOTAL:	1,200,000	$84,000.00	 	 

     4. Purchase Price Adjustment. Notwithstanding anything to the contrary herein, in the event the Company issues capital stock in a fundraising transaction raising at least $1,000,000 in one or more closings (excluding the funds raised pursuant to the Purchase Agreement) during the 2011 Closing Period to a party other than the Purchaser or an affiliate thereof (a
“Next Equity Financing”), the Purchase Price of the Common Stock shall be immediately adjusted for all future 2011 Closing Period closings occurring under the Purchase Agreement to such price per share as paid by participants in such Next Equity Financing, and the number of shares of Common Stock issuable under the Purchase Agreement and the 2011 Closing Period Schedule of Closings set forth in Section 3 above shall be automatically adjusted to reflect such new number of shares, while retaining the same Maximum Purchase Price set forth therein (rounded up to the nearest share purchase price amount).

 

     5. Miscellaneous.

 

          (a) Governing Law. This Amendment and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law.

 

          (b) Counterparts. This Amendment may be executed in two or more counterparts and by facsimile, each of which shall be deemed an original and all of which together shall constitute one instrument.

 

          (c) Entire Agreement. The Purchase Agreement, as amended to date and by this Amendment, and the documents referred to herein and therein, constitute the entire agreement between the parties hereto pertaining to the subject matters hereof and thereof, respectively, and any and all other written or oral agreements existing between the parties hereto are
expressly canceled. 

 

[Signature Pages Follow]

 

 

     The parties have executed this Amendment No. 2 to Common Stock and Warrant Purchase Agreement as of the Effective Date.

 

COMPANY: 

 

	MTI MICROFUEL CELLS INC.
	 
	/s/ Peng K. Lim
	Peng K. Lim, Chief Executive Officer
	 
	PURCHASER:
	 
	COUNTER POINT VENTURES FUND II, LP
	 
	/s/ Walter L. Robb
	Walter L. Robb, General Partner

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