Document:

Blueprint

 

Exhibit 10.3

 

ORBITAL TRACKING CORP.

 

CERTIFICATE OF DESIGNATION OF PREFERENCES, 

RIGHTS AND LIMITATIONS

OF

SERIES I CONVERTIBLE PREFERRED STOCK

 

PURSUANT
TO SECTION 78 OF THE

NEVADA
REVISED STATUTES

 

The
undersigned, Chief Executive Officer of Orbital Tracking Corp., a
Nevada corporation (the “Corporation”) DOES HEREBY
CERTIFY that the following resolutions were duly adopted by the
Board of Directors of the Corporation by unanimous written consent
on October 13, 2016;

 

WHEREAS, the Board
of Directors is authorized within the limitations and restrictions
stated in the Articles of Incorporation of the Corporation, as
amended (the “Articles”), to provide by
resolution or resolutions for the issuance of 50,000,000 shares of
Preferred Stock, par value $0.0001 per share, of the Corporation,
in such series and with such designations, preferences and
relative, participating, optional or other special rights and
qualifications, limitations or restrictions as the
Corporation’s Board of Directors shall fix by resolution or
resolutions providing for the issuance thereof duly adopted by the
Board of Directors; and

 

WHEREAS, it is the
desire of the Board of Directors, pursuant to its authority as
aforesaid, to authorize and fix the terms of a new series of
Preferred Stock and the number of shares constituting such
series.

 

NOW,
THEREFORE, BE IT RESOLVED:

 

Section
1. Designation and
Authorized Shares. The Corporation shall be authorized to
issue one hundred fourteen thousand nine hundred and forty-four
(114,944) shares of Series I Preferred Stock, par value $0.0001 per
share (the “Series I
Preferred Stock”).

 

Section 2. Stated
Value. Each share of Series I Preferred Stock shall
have a stated value of twenty-five cents $0.25 (the
“Stated
Value”).

 

Section 3. Liquidation.

 

(a) Upon the
liquidation, dissolution or winding up of the business of the
Corporation, whether voluntary or involuntary, each holder of
Series I Preferred Stock shall be entitled to receive, for each
share thereof, out of assets of the Corporation legally available
therefor, a preferential amount in cash equal to (and
not more than)
the Stated Value. All preferential amounts to be paid to the
holders of Series I Preferred Stock 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 Corporation to the holders of
(i) any other class or series of capital stock whose terms
expressly provide that the holders of Series I Preferred Stock
should receive preferential payment with respect to such
distribution (to the extent of such preference) and (ii) the
Corporation’s common stock (the “Common Stock”). If upon
any such distribution the assets of the Corporation shall be
insufficient to pay the holders of the outstanding shares of Series
I Preferred Stock (or the holders of any class or series of capital
stock ranking on a parity with the Series I Preferred Stock as to
distributions in the event of a liquidation, dissolution or winding
up of the Corporation) 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.

 

(b) Any
distribution in connection with the liquidation, dissolution or
winding up of the Corporation, 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 Corporation.

 

 

 

 

 

Section 4. 
Conversion.

 

(a) Conversion
Right. Each share of Series I Preferred Stock may, from
time to time, be converted into shares of fully paid and
nonassessable shares of Common Stock (the “Conversion Shares”) at a
rate of one hundred (100) shares of the Company’s Common
Stock for every share of Series I Preferred Stock.

 

          
(b) Conversion
Procedure. In order to exercise the conversion
privilege under this Section 4, the holder of any shares of
Series I Preferred Stock to be converted shall give written notice
to the Corporation at its principal office that such holder elects
to convert such shares of Series I Preferred Stock or a specified
portion thereof into shares of Common Stock as set forth in such
notice. At such time as the certificate or certificates
representing the Series I Preferred Stock which has been converted
are surrendered to the Corporation, the Corporation shall issue and
deliver a certificate or certificates representing the number of
shares of Common Stock determined pursuant to this Section 4.
In case of conversion of only a part of the shares of Series I
Preferred Stock represented by a certificate surrendered to the
Corporation, the Corporation shall issue and deliver a new
certificate for the number of shares of Series I Preferred Stock
which have not been converted. Until such time as the certificate
or certificates representing Series I Preferred Stock which has
been converted are surrendered to the Corporation and a certificate
or certificates representing the Common Stock into which such
Series I Preferred Stock has been converted have been issued and
delivered, the certificate or certificates representing the Series
I Preferred Stock which have been converted shall represent the
shares of Common Stock into which such shares of Series I Preferred
Stock have been converted. The Corporation shall pay all
documentary, stamp or similar issue or transfer tax due on the
issue of shares of Common Stock issuable upon conversion of the
Series I Preferred Stock.

 

          
(c) Maximum
Conversion. Notwithstanding anything to the contrary
contained herein, a holder of shares of Series I Preferred Stock
shall not be entitled to convert shares of Series I Preferred Stock
if upon such conversion the number of shares of Common Stock to be
received, together with the number of shares of Common Stock
beneficially owned by the holder and its affiliates on the
conversion date, would result in beneficial ownership by the holder
and its affiliates of more than 4.99% of the outstanding shares of
Common Stock of the Corporation on such conversion
date.  For the purposes of the provision in the
immediately preceding sentence, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  The holder shall have the authority and
obligation to determine whether the restriction contained in this
Section 4(c) will limit any conversion hereunder and to the extent
that the holder determines that the limitation contained in this
Section applies, the determination of the number of shares of
Series I Preferred Stock that are convertible shall be the
responsibility and obligation of the holder.  
 

 

Section 5. Voting.  Except
as otherwise expressly required by law, the conversion limitations
of Section 4(c) or this Section 5, each holder of Series I
Preferred Stock shall be entitled to vote on all matters submitted
to shareholders of the Corporation and shall be entitled to one
vote for each share of Series I Preferred Stock owned on the record
date for the determination of shareholders entitled to vote on such
matter or, if no such record date is established, on the date such
vote is taken or any written consent of shareholders is solicited.
Except as otherwise required by law or this Section 5, the holders
of shares of Series I Preferred Stock shall vote together with the
holders of Common Stock on all matters and shall not vote as a
separate class.

 

Section 6. Other
Provisions.   The Corporation and its transfer
agent, if any, for the Series I Preferred Stock may deem and treat
the record holder of any shares of Series I Preferred Stock and,
upon conversion of the Series I Preferred Stock, the Conversion
Shares, as reflected on the books and records of the Corporation as
the sole true and lawful owner thereof for all purposes, and
neither the Corporation nor any such transfer agent shall be
affected by any notice to the contrary. 

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Certificate of
Designation this 13th day of October, 2016.

 

 

	

 

	
ORBITAL TRACKING
CORP.

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
/s/ David Phipps

	

 

	

 

	

Name: 

	

David
Phipps	

 

	

 

	

Title:

	

Chief
Executive OfficerBlueprint

 

Exhibit
10.4 

 

 

 

 

October
17, 2016

 

Intracoastal
Capital LLC

245
Palm Trail

Delray
Beach, FL 33483

 

This
letter is intended to memorialize that Orbital Tracking Corp is
issuing Intracoastal Capital Corp. an aggregate of 76,667 shares of
Series I Preferred Stock as an adjustment to your shares of Series
F Preferred Stock, which were originally issued on December 28,
2015 (the “Series F Original Issuance Date”) and 15,278
shares of Series I Preferred Stock as an adjustment to your shares
of Series G Preferred Stock, which were originally issued on May
17, 2016 upon the exchange of a promissory note originally issued
on December 28, 2015 (the “Series G Original Issuance
Date”) arising as a result of our sale and issuance of Series
H Preferred Stock to which you have consented. This letter confirms
that the Company’s counsel at Sichenzia Ross Ference Kesner
LLP has advised the Company that the holding period for the shares
of Series I Preferred Stock issued to you will tack back to the
Series F and Series G Original Issuance Dates and that the Company
will not take any position to the contrary.

 

 

 

 

Sincerely,

 

Theresa
Carlise,

Chief
Financial Officer

Orbital
Tracking Corp.

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