Document:

Exhibit 10.50

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO
CREDIT AGREEMENT dated as of January 17, 2017 (this “Amendment”), is entered into among RITCHIE BROS. AUCTIONEERS
INCORPORATED, a Canadian corporation (the “Company”), certain Subsidiaries of the Company identified on the
signature pages hereto (each a “Designated Borrower” and, together with the Company, the “Borrowers”
and each a “Borrower”), the Guarantors identified on the signature pages hereto, the Lenders party hereto,
and BANK OF AMERICA, N.A., as administrative agent (the “Administrative Agent”). Capitalized terms used herein
and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement (defined below). 

 

RECITALS

 

A.           The
Borrowers, the Guarantors, the Lenders and the Administrative Agent entered into that certain Credit Agreement dated as of October
27, 2016 (as amended and modified from time to time, the “Credit Agreement”).

 

B.           The
parties hereto have agreed to amend the Credit Agreement as provided herein.

 

C.           In
consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows.

 

AGREEMENT

 

1.          Amendments
to Credit Agreement.

 

(a)          The
following definition appearing in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Delayed-Draw
Term Loan Commitment” means, as to any Term Lender, such Term Lender’s obligation to make its portion of the Delayed-Draw
Term Loan to the Company and/or Ritchie Bros. Auctioneers (Canada) Ltd. pursuant to Section 2.01(c), in the principal amount
set forth opposite such Term Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant to which
such Term Lender becomes a party hereto. The aggregate principal amount of the Delayed-Draw Term Loan Commitments of all of the
Lenders as in effect on the Closing Date is $325,000,000.

 

(b)          Section
1.05(d). Section 1.05(d) of the Credit Agreement is hereby amended to read as follows:

 

(d)          Notwithstanding
anything to the contrary contained herein, if any Delayed-Draw Term Loan is denominated in Canadian Dollars, the Spot Rate therefor
shall be fixed as of the date of the Borrowing thereof for the term of this Agreement.

 

(c)          Section
2.01(c). Section 2.01(c) of the Credit Agreement is hereby amended to read as follows:

 

(c)          Delayed-Draw
Term Loan. Subject to the terms and conditions set forth herein, each Term Lender with a Delayed-Draw Term Loan Commitment
severally agrees to make its portion of a term loan to the Company and/or Ritchie Bros.

 

     

     

    

 

Auctioneers
(Canada) Ltd. in Dollars or Canadian Dollars in up to five (5) Borrowings which shall all be made on a single Business Day during
the Availability Period in an amount not to exceed such Term Lender’s Delayed-Draw Term Loan Commitment (such Borrowings,
individually and collectively, the “Delayed-Draw Term Loan”). Amounts repaid on the Delayed-Draw Term Loan
may not be reborrowed. The Delayed-Draw Term Loan may consist of Base Rate Loans (to the extent that the initial Borrowing thereof
was in Dollars), Canadian Prime Rate Loans (to the extent that the initial Borrowing thereof was in Canadian Dollars) or Eurocurrency
Rate Loans, or a combination thereof, as further provided herein.

 

(d)          Section
2.07(d). Section 2.07(d) of the Credit Agreement is hereby amended to read as follows:

 

(d)          Delayed-Draw
Term Loan. Each of the Company and Ritchie Bros. Auctioneers (Canada) Ltd. shall repay the outstanding principal amount of
its Delayed-Draw Term Loan in the currency in which it was originally funded, in installments payable on the last day of each calendar
quarter (i.e. March 31, June 30, September 30 and December 31), commencing on the first full calendar quarter after the Delayed-Draw
Term Loan has been funded, with each such installment being equal to (i) for the first eight (8) full calendar quarters after the
Borrowing of the Delayed-Draw Term Loan, 1.25% of the original principal amount of the Delayed-Draw Term Loan and (ii) each calendar
quarter thereafter, 2.5% of the original principal amount of the Delayed-Draw Term Loan, in each case, as such installments may
be adjusted as a result of prepayments made pursuant to Section 2.05, unless accelerated sooner pursuant to Section 8.02;
provided, that, to the extent not previously paid, the aggregate unpaid principal balance of the Delayed-Draw Term
Loan shall be due and payable on the Maturity Date.

 

2.          Effectiveness;
Conditions Precedent. This Amendment shall be effective as of the date hereof upon receipt by the Administrative Agent of copies
of this Amendment duly executed by the Loan Parties, the Required Lenders and the Administrative Agent.

 

3.          Ratification
of Credit Agreement. Each Loan Party acknowledges and consents to the terms set forth herein and agrees that this Amendment
does not impair, reduce or limit any of its obligations under the Loan Documents.

 

4.          Authority/Enforceability.
Each Loan Party represents and warrants as follows:

 

(a)          It
has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

 

(b)          This
Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligations,
enforceable in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles
of equity and principles of good faith and fair dealing.

 

(c)          No
approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any
Loan Party of this Amendment other than (a) those that have already been obtained and are in full force and effect, and (b) except
to the extent that the failure to obtain or make such approval, consent,

 

    	 	2	 

     

    

 

 exemption, authorization, registration, action, notice
or filing would not reasonably be expected to have a Material Adverse Effect.

 

(d)          The
execution, delivery and performance of this Amendment does not (i) contravene the terms of any of such Person’s Organization
Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien (other than Permitted Liens)
under (A) any material Contractual Obligation to which such Person is a party or affecting such Person or the properties of such
Person or any of its Subsidiaries or (B) any material order, injunction, writ or decree of any Governmental Authority or any arbitral
award to which such Person or its property is subject, in each case, except to the extent any such conflict, breach or contravention
would not reasonably be expected to have a Material Adverse Effect or (iii) violate any applicable Law, except to the extent any
such violation would not reasonably be expected to have a Material Adverse Effect.

 

5.          Representations
and Warranties of the Loan Parties. Each Borrower represents and warrants that after giving effect to this Amendment (a) the
representations and warranties of the Loan Parties set forth in Article V of the Credit Agreement are true and correct in
all material respects (or if such representation and warranty is qualified by materiality or Material Adverse Effect, it shall
be true and correct) on and as of the date hereof, except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they shall be true and correct in all material respects (or if such representation and warranty
is qualified by materiality or Material Adverse Effect, it shall be true and correct) as of such earlier date, and (b) no
Default exists.

 

6.          Counterparts/Facsimile.
This Amendment is a Loan Document. This Amendment may be executed in any number of counterparts, each of which when so executed
and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of executed counterparts
of this Amendment by facsimile or pdf shall be effective as an original.

 

7.          Governing
Law. This Amendment and the rights and obligations of the parties hereunder shall be governed by and construed and interpreted
in accordance with the laws of the state of NEW YORK.

 

[remainder of page intentionally left blank]

 

    	 	3	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	BORROWERS 	 
	AND GUARANTORS1:	RITCHIE BROS. AUCTIONEERS INCORPORATED,
	 	a Canadian corporation

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Chief Financial Officer
	 	 	 
	 	RITCHIE BROS. HOLDINGS LTD.,
	 	a Canadian corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	President
	 	 	 
	 	RITCHIE BROS. PROPERTIES LTD.,
	 	a Canadian corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	President
	 	 	 
	 	RITCHIE BROS. AUCTIONEERS (CANADA) LTD.,
	 	a Canadian corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	President
	 	 	 
	 	RITCHIE BROS. AUCTIONEERS (AMERICA) INC.,
	 	a Washington corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	RITCHIE BROS. PROPERTIES INC.,
	 	a Washington corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent

 

 

1 Entities are signing in both capacities

  

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	BORROWERS 	 
	AND GUARANTORS2:	RITCHIE BROS. HOLDINGS (AMERICA) INC.,
		a Washington corporation

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	RITCHIE BROS. HOLDINGS INC.,
	 	a Washington corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	RITCHIE BROS. HOLDINGS B.V.,
	 	a private company with limited liability (besloten vennootschap) incorporated under the laws of The Netherlands
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney
	 	 	 
	 	RITCHIE BROS. PROPERTIES B.V.,
	 	a private company with limited liability (besloten vennootschap) incorporated under the laws of The Netherlands
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney
	 	 	 
	 	RITCHIE BROS. AUCTIONEERS B.V.,
	 	a private company with limited liability (besloten vennootschap) incorporated under the laws of The Netherlands
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney
	 	 	 
	 	RITCHIE BROS. SHARED SERVICES B.V.,
	 	a private company with limited liability (besloten vennootschap) incorporated under the laws of The Netherlands
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney

 

 

2 Entities are signing in both capacities

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

BORROWERS

AND GUARANTORS3:

 

	SIGNED for and on behalf of RITCHIE

                            BROS. AUCTIONEERS PTY. LTD. (ACN

                           080 895 898) by its attorney Sharon Driscoll

                           under a power of attorney dated 21 Oct. 2016

                           and the attorney declares that the attorney has

                           not received any notice of the revocation of such

                           power of attorney in the presence of:
	)

)

)

)

)

)

)

)	 
	 	 	 
	/s/ Darren Watt	 	/s/ Sharon Driscoll
	Signature of witness	 	Signature of attorney
	 	 	 
	Darren Jeffrey Watt	 	 
	Name of witness	 	 

 

	SIGNED for and on behalf of RITCHIE
                           BROS.

                            PROPERTIES PTY. LTD. (ACN 080 895 772)

                            by its attorney Sharon Driscoll under a power of

                           attorney dated 21 Oct. 2016 and the attorney

                           declares that the attorney has not received any

                           notice of the revocation of such power of

                           attorney in the presence of:
	)

)

)

)

)

)

)

)	 
	 	 	 
	/s/ Darren Watt	 	/s/ Sharon Driscoll
	Signature of witness	 	Signature of attorney
	 	 	 
	Darren Jeffrey Watt	 	 
	Name of witness	 	 

 

 

3 Entities are signing in both capacities

  

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	BORROWERS 	 
	AND GUARANTORS4:	RITCHIE BROS. PROPERTIES JAPAN KK,
	 	a Japanese corporation

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney
	 	 	 
	 	RITCHIE BROS. AUCTIONEERS (JAPAN) Kabushiki Kaisha,
	 	a Japanese corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney
	 	 	 
	 	Signed by Sharon Driscoll for and on behalf of RITCHIE BROS. AUCTIONEERS (UK) LIMITED, as a Borrower
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney

 

 

4 Entities are signing in both capacities

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	GUARANTORS:	BRIDGEPORT AGENCIES LTD.
	 	a British Columbia corporation

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	President
	 	 	 
	 	RITCHIE BROS. AUCTIONEERS (INTERNATIONAL) LTD.,
	 	a British Columbia corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	President
	 	 	 
	 	RITCHIE BROS. FINANCIAL SERVICES LTD.,
	 	a Canadian corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Authorized Signatory
	 	 	 
	 	RITCHIE BROS. REAL ESTATE SERVICES LTD.,
	 	a Canadian corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	President
	 	 	 
	 	ASSETNATION, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	RBA HOLDINGS INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	GUARANTORS:	TOPAZ MERGERSUB, INC.,
	 	a Delaware corporation

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	MASCUS USA INC.,
	 	a Florida corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	RITCHIE BROS. FINANCIAL SERVICES (AMERICA) INC.,
	 	a Nevada corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	SALVAGESALE SERVICES, INC.,
	 	a Texas corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	SALVAGESALE MEXICO HOLDING LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	SPINDLETOP GROUP, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent
	 	 	 
	 	BRIDGEPORT AGENCIES INC.,
	 	a Washington corporation
	 	 	 
	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Agent

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	GUARANTORS:	Signed by Sharon Driscoll for and on behalf of RITCHIE BROS. AUCTIONEERS (UK) LIMITED, as a Guarantor

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	GUARANTORS:	RITCHIE BROS. TECHNICAL SERVICES B.V.,
	 	a private company with limited liability (besloten vennootschap) incorporated under the laws of The Netherlands

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Attorney

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	GUARANTORS:	MASCUS CANADA LIMITED,
	 	a Canadian  corporation

 

	 	By:	/s/ Sharon Driscoll
	 	Name:	Sharon Driscoll
	 	Title:	Authorized Signatory

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	ADMINISTRATIVE AGENT:	BANK OF AMERICA, N.A.,
	 	as Administrative Agent

 

	 	By:	/s/ Maurice Washington
	 	Name: 	Maurice Washington
	 	Title:  	Vice President

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	LENDERS:	BANK OF AMERICA, N.A.,
	 	as a Lender, L/C Issuer and U.S. Swing Line Lender

 

	 	By:	/s/ Daryl K. Hogge
	 	Name:	Daryl K. Hogge
	 	Title: 	Senior Vice President
	 	 	 
	 	bank of america, n.a., Tokyo Branch
	 	 	 
	 	By:	/s/ Miwa Ohmori
	 	Name: 	Miwa Ohmori
	 	Title: 	Representative
	 	 	 
	 	bank of america, n.a., acting through its Canada branch
	 	 	 
	 	By:	/s/ Medina Sales de Andrade
	 	Name: 	Medina Sales de Andrade
	 	Title: 	Vice President

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	ROYAL BANK OF CANADA,
	 	as a Lender, an L/C Issuer and Canadian Swing Line Lender

 

	 	By:	/s/ Baljit Mann
	 	Name: 	Baljit Mann
	 	Title: 	Authorized Signatory

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	WELLS FARGO BANK, N.A., CANADIAN BRANCH,
	 	as a Lender
	 	 	 
	 	By:	/s/ Chris Sheppard
	 	Name: 	Chris Sheppard
	 	Title: 	Vice President, Relationship Manager
	 	 	 
	 	By:	/s/ John Davis
	 	Name: 	John Davis
	 	Title: 	Senior Vice President, Regional Manager

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	EXPORT DEVELOPMENT CANADA,
	 	as a Lender

 

	 	By:	/s/ Allan T. Quiz
	 	Name: 	Allan T. Quiz
	 	Title: 	Senior Asset Manager
	 	 	 
	 	By:	/s/ Michael Lambe
	 	Name: 	Michael Lambe
	 	Title: 	Asset Manager

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	HSBC BANK CANADA,
	 	as a Lender

 

	 	By:	/s/ Todd Patchell
	 	Name: 	Todd Patchell
	 	Title: 	Vice President, Region Head of Large Corporate
	 	 	 
	 	By:	/s/ Reid Hamilton
	 	Name: 	Reid Hamilton
	 	Title	: Assistant Vice President, Corporate Banking

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., CANADA BRANCH,
	 	as a Lender

 

	 	By:	/s/ Daniel Nanson
	 	Name: 	Daniel Nanson
	 	Title: 	Managing Director

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	NATIONAL BANK OF CANADA,
	 	as a Lender
	 	 	 
	 	By:	/s/ Manny Deol
	 	Name: 	Manny Deol
	 	Title: 	Director
	 	 	 
	 	By:	/s/ David Torrey
	 	Name: 	David Torrey
	 	Title: 	Managing Director

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	GOLDMAN SACHS BANK USA,
	 	as a Lender
	 	 	 
	 	By:	/s/ Ushma Dedhiya
	 	Name: 	Ushma Dedhiya
	 	Title: 	Authorized Signatory

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	RAYMOND JAMES BANK, N.A.,
	 	as a Lender
	 	 
	 	By:	/s/ Cormac Mac Lochlainn
	 	Name: 	Cormac Mac Lochlainn
	 	Title: 	Senior Vice President, Corporate Banking

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENT

     

    

 

	 	THE BANK OF NOVA SCOTIA,
	 	as a Lender
	 	 	 
	 	By:	/s/ Edwin Ho
	 	Name: 	Edwin Ho
	 	Title: 	Director, Credit Solutions
	 	 	 
	 	By:	/s/ Hilary Thompson
	 	Name: 	Hilary Thompson
	 	Title: 	Director, Commercial Banking

 

    	 	 	RITCHIE BROS. AUCTIONEERS INCORPORATED
FIRST AMENDMENT TO CREDIT AGREEMENTConverted by EDGARwiz

NGFC EQUITIES, INC.

CERTIFICATE OF DESIGNATIONS OF PREFERENCES, 

RIGHTS AND LIMITATIONS

OF SERIES A CONVERTIBLE PREFERRED STOCK

        The undersigned, Mark C. Jensen and Thomas M. Sauve, do hereby certify that:

1.

They are the Chief Executive Officer and President/Secretary, respectively, of NGFC Equities, Inc., a Florida corporation (the “Company”).

2.

The Company is authorized to issue 5,000,000 shares of Series A Preferred Stock, none of which have been previously issued.

3.

The following resolutions were duly adopted by the Board of Directors:

WHEREAS, the Certificate of Incorporation of the Company provides for a class of its authorized stock known as Series A Preferred Stock, comprised of 5,000,000 shares, $0.0001 par value per share, issuable from time to time in one or more series;

WHEREAS, the Board of Directors of the Company is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms of redemption and liquidation preferences of any wholly unissued Series A Preferred Stock and the number of shares constituting any Series and the designation thereof, of any of them; 

WHEREAS the Company, through the Amended and Restated Articles of Incorporation dated January 18, 2017, designated the Series A Preferred Stock of the Company; and the Company desires to update the previous certificate of designations with the terms found within this Certificate of Designations, which shall be the governing document for all Series A Preferred Stock; and

WHEREAS, it is the desire of the Board of Directors of the Company, pursuant to its authority as aforesaid, to fix the rights, preferences, restrictions and other matters relating to a Series A Preferred Stock, which shall consist of up to 5,000,000 shares of the Series A Preferred Stock which the Company has the authority to issue, as follows:

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a Series A Preferred Stock for cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters relating to such series of preferred stock as follows:

TERMS OF PREFERRED STOCK

Section 1. Definitions. Capitalized terms used shall have the following meanings, or shall otherwise be defined elsewhere within this certificate of designations:

SERIES A PREFERRED CERTIFICATE OF DESIGNATION

PAGE 1 OF 11

“Bankruptcy Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule 1.02(s) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Significant Subsidiary thereof; (b) there is commenced against the Company or any Significant Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement; (c) the Company or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered; (d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 days; (e) the Company or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors; (f) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or (g) the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

“Closing Date” means the date of the closing of the Share Exchange Agreement.

“Common Stock" means the Company's Class A Common stock, par value $0.0001 per share, and/or stock of any other class of common stock into which such shares may hereafter have been reclassified or changed or created.

“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 exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

“Conversion Shares” means, collectively, the shares of Common Stock into which the shares of Series A Preferred Stock are convertible in accordance with the terms hereof.

“Effective Date” means the date that a registration statement is declared effective by the Securities and Exchange Commission pursuant to the Piggyback Registration Rights found in Section 8.

“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 by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise of or conversion of any securities issued hereunder, and of any convertible securities, options or warrants issued and outstanding on the date of this Certificate of Designations, provided that such securities have not been amended since the date of this Certificate of Designations to 

SERIES A PREFERRED CERTIFICATE OF DESIGNATION

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increase the number of such securities, and (c) securities issued pursuant to acquisitions or strategic transactions, provided 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.

“Fundamental Transaction” shall have the meaning set forth in Section 8(d)(iii) hereof.

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

“Junior Securities” means the Common Stock and all other equity or equity equivalent securities of the Company other than those securities that are explicitly senior in rights or liquidation preference to the Series A Preferred Stock. 

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

“Person” means a Company, an association, a partnership, a limited liability company, a business association, an individual, a government or political subdivision thereof or a governmental agency.

“Share Exchange Agreement” means the acquisition agreement between NGFC Equities Inc. and Quest Energy Inc., dated as of  January 5, 2017, to which the Company and the original Holders are parties, as amended, modified or supplemented from time to time in accordance with its terms, a copy of which is on file at the principal offices of the Company.

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

“Subsidiary” shall mean a Company, limited liability company, partnership, joint venture or other business entity of which the Company owns beneficially or of record more than 19% of the equity interest.

“Trading Day” means a day on which the Common Stock is traded on a Trading Market.

“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the Nasdaq SmallCap Market, the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or the OTC Bulletin Board.

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Section 2. Designation, Amount and Par Value. The series of preferred stock shall be designated as the Company’s Series A Convertible Preferred Stock (the “Series A Preferred Stock or “Preferred Stock”) and the number of shares so designated shall be (which shall not be subject to increase without the consent of all of the holders of the Series A Preferred Stock (each a “Holder” and collectively, the “Holders”).  Each share of Series A Preferred Stock shall have a par value of $0.0001 per share.  Capitalized terms not otherwise defined herein shall have the meaning given such terms in Section 1 hereof.

Section 3. Dividends and Other Distributions. The Series A Preferred Stock shall accrue or pay in cash a 0% annual dividend.

Section 4. Voting Rights. Each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes, on an “as-converted” basis, and with respect to such votes, shall be entitled, notwithstanding any provision hereof, to notice of any stockholders’ meeting in accordance with the bylaws of this Company, and shall be entitled to vote, together as a single class with holders of Common Stock with respect to any question or matter upon which holders of Common Stock have the right to vote.  So long as any shares of Series A Preferred Stock are outstanding, the Company shall not, without the affirmative approval of the Holders of the shares of the Series A Preferred Stock then outstanding, (a) alter or change adversely the powers, preferences or rights given to the Series A Preferred Stock or alter or amend this Certificate of Designation, (b) authorize or create any class of stock ranking as to dividends or distribution of assets upon a Liquidation (as defined in Section 5) senior to or otherwise pari passu with the Series A Preferred Stock, or any of preferred stock possessing greater voting rights or the right to convert at a more favorable price than the Series A Preferred Stock, (c) amend its certificate or articles of incorporation or other charter documents in breach of any of the provisions hereof, (d) increase the authorized number of shares of Series A Preferred Stock, or (e) enter into any agreement with respect to the foregoing.

Section 5. Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (a “Liquidation”), the Holders shall be entitled to receive in preference to the holders of the Common Stock a per share amount equal to $0.055 per share (the “Liquidation Preference”).

Section 6. Conversion.

a)

Conversions at Option of Holder. Each share of Series A Preferred Stock shall be initially convertible (subject to the limitations set forth in Section 6(c)), into One Hundred (100) shares of Common Stock (as adjusted as provided below, the “Conversion Ratio”) at the option and discretion of the Holder(s), at any time and from time to time from and after the Original Issue Date.  There is no additional consideration required to convert the Series A Preferred Stock to common shares.  There is no expiration date on the Series A Preferred Stock and the Series A Preferred Stock is convertible to common shares on a cashless basis.  Holders shall effect conversions by providing the Company with the form of conversion notice attached hereto as Annex A (a “Notice of Conversion”) as fully and originally executed by the Holder, together with the delivery by the Holder to the Company of the stock certificate(s) representing the number of shares of Series A Preferred Stock so converted, with such stock 

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certificates being duly endorsed in full for transfer to the Company or with an applicable stock power duly executed by the Holder in the manner and form as deemed reasonable by the transfer agent of the Common Stock. Each Notice of Conversion shall specify the number of shares of Series A Preferred Stock to be converted, the number of shares of Series A Preferred Stock owned prior to the conversion at issue, the number of shares of Series A Preferred Stock owned subsequent to the conversion at issue, the stock certificate number and the shares of Series A Preferred Stock represented thereby which are accompanying the Notice of Conversion, and the date on which such conversion is to be effected, which date may not be prior to the date the Holder delivers such Notice of Conversion and the applicable stock certificates to the Company by overnight delivery service (the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the Trading Day immediately following the date that such Notice of Conversion and applicable stock certificates are received by the Company. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error.  Shares of Series A Preferred Stock converted into Common Stock in accordance with the terms hereof shall be canceled and may not be reissued.

b)

Automatic Conversion Upon Change of Control.

i.

Subject to the provisions within this Certificate of Designations, all of the outstanding shares of Series A Preferred Stock shall be automatically converted into the Conversion Shares upon the close of business on the business day immediately preceding the date fixed for consummation of any transaction resulting in a Change of Control of the Company (an "Automatic Conversion Event").  A "Change in Control" means a consolidation or merger of the Company with or into another company or entity in which the Company is not the surviving entity or the sale of all or substantially all of the assets of the Company to another company or entity not controlled by the then existing stockholders of the Company in a transaction or series of transactions.  The Company shall not be obligated to issue certificates evidencing the Conversion Shares unless certificates evidencing the shares of Series A Preferred Stock so converted are either delivered to the Company or its transfer agent or the holder notifies the Company or its transfer agent in writing that such certificates have been lost, stolen, or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection therewith.  Upon the conversion of the Series A Preferred Stock pursuant to this Section 6(b)(i), the Company shall promptly send written notice thereof, by hand delivery or by overnight delivery, to the holder of record of all of the Series A Preferred Stock at its address then shown on the records of the Company, which notice shall state that certificates evidencing shares of Series A Preferred Stock must be surrendered at the office of the Company (or of its transfer agent for the Common Stock, if applicable).

c)

Anti-Dilution Protection. The Series A Preferred Shares shall have full anti-dilution protection for a period of 36 months post the date of this certificate of designation such that that Series A Preferred Shares shall be convertible into no less than Seventy-Two Percent (72.0%) of the fully diluted shares outstanding of the Company.  This anti-dilution protection shall include the effect of any security, note, Common Stock Equivalents, or any other derivative instruments or liability issued or outstanding during the 36 months that could potential cause dilution during such 36 month period or in the future.

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d)

Mechanics of Conversion

i.

Delivery of Certificate Upon Conversion. Except as otherwise set forth herein, not later than three Trading Days after each Conversion Date (the “Share Delivery Date”), the Company shall deliver to the Holder (A) a certificate or certificates which, after the Effective Date, shall be free of restrictive legends and trading restrictions (other than those required by the Share Exchange Agreement) representing the number of shares of Common Stock being acquired upon the conversion of shares of Series A Preferred Stock, and (B) a bank check in the amount of accrued and unpaid dividends (if the Company has elected or is required to pay accrued dividends in cash). After the Effective Date, the Company shall, upon request of the Holder, deliver any certificate or certificates required to be delivered by the Company under this Section electronically through the Depository Trust Company or another established clearing Company performing similar functions. If in the case of any Notice of Conversion such certificate or certificates are not delivered to or as directed by the applicable Holder by the third Trading Day after the Conversion Date, the Holder shall be entitled to elect by written notice to the Company at any time on or before its receipt of such certificate or certificates thereafter, to rescind such conversion, in which event the Company shall immediately return the certificates representing the shares of Series A Preferred Stock tendered for conversion.

ii.

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 solely for the purpose of issuance upon conversion of the Series A Preferred Stock, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holders, not less than such number of shares of the Common Stock as shall (subject to any additional requirements of the Company as to reservation of such shares set forth in the Share Exchange Agreement) be issuable (taking into account the adjustments and restrictions of Section 7) upon the conversion of all outstanding shares of Series A Preferred Stock.  The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid, nonassessable and, if a registration statement covering the common stock underlying the Preferred Shares is then effective under the Securities Act and pursuant to the Piggyback Registration Rights found within Section 8, registered for public sale in accordance with such registration statement.

iii.

Fractional Shares. Upon a conversion hereunder, the Company shall not be required to issue stock certificates representing fractions of shares of the Common Stock.

iv.

Transfer Taxes. The issuance of certificates for shares of the Common Stock on conversion of the Series A Preferred Stock shall be made without charge to the Holders thereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, 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 Holder of such shares of Series A Preferred Stock so converted 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 

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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.

Section 7. 

Certain Adjustments.

a)

Stock Dividends and Stock Splits.  If the Company, at any time while the Series A Preferred Stock is outstanding: (A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company pursuant to this Series A Preferred Stock), (B) subdivide outstanding shares of Common Stock into a larger number of shares, (C) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issue by reclassification of shares of the Common Stock any shares of capital stock of the Company, then the Conversion Ratio shall be adjusted appropriately by the Company’s Board of Directors.  Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

b)

Capital Reorganization or Reclassification.  If the Common Stock issuable upon the conversion of the Series A Preferred Stock shall be changed into the same or different number of shares of any class or classes of stock, whether by capital reorganization, reclassification, or otherwise (other than a subdivision or combination of shares or stock dividend), then in each such event, the holder of each share of Series A Preferred Stock shall have the right thereafter to convert such share into the kind and amount of shares of stock and other securities and property receivable upon such capital reorganization, reclassification, or other change by holder of the number of shares of Common Stock into which such shares of Series A Preferred Stock might have been converted immediately prior to such capital reorganization, reclassification, or other change.

c)

Pro Rata Distributions. If the Company, at any time while Series A Preferred Stock is outstanding, shall distribute to any or all holders of Common Stock any evidences of its indebtedness, or any of the Company’s assets whatsoever, or rights or warrants to subscribe for or purchase any security (each and collectively a “Distributed Asset”), then in each such case the Holders of the Series A Preferred Stock shall receive its proportional distribution of the Distributed Asset as if the Series A Preferred Stock were converted to Common Stock (plus any Common Stock Equivalents that may be entitled to receive a Distributed Assets) at the time of such distribution to the holders of Common Stock and/or Common Stock Equivalents.  

d)

Calculations.  All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  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 description of any such shares of Common 

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Stock shall be considered on issue or sale of Common Stock.  For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) actually issued and outstanding.

e)

Notice to Holders.

i.

Notices of Other Events. If (A) the Company shall declare a dividend (or any other distribution) on the Common Stock; (B) the Company shall declare a redemption of the Common Stock; (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock or any Fundamental Transaction, (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company; then in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of the Series A Preferred Stock, and shall cause to be mailed to the Holders at their last addresses as they shall appear upon the  stock books of the Company, at least 30 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification or Fundamental Transaction; provided, that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.

ii.

Exempt Issuance. Notwithstanding the foregoing, no adjustment will be made under this Section 7 in respect of an Exempt Issuance.

iii.

Fundamental Transaction. If, at any time while this Series A Preferred Stock is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then upon any subsequent conversion of this Series A Preferred Stock, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion absent such Fundamental 

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Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share of Common Stock (the “Alternate Consideration”).  For purposes of any such conversion, the determination of the Conversion Ratio shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Ratio among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Series A Preferred Stock following such Fundamental Transaction.  To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall file a new Certificate of Designations with the same terms and conditions and issue to the Holder new preferred stock consistent with the foregoing provisions and evidencing the Holder’s right to convert such preferred stock into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (f)(iv) and insuring that this Series A Preferred Stock (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

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, sent by a nationally recognized overnight courier service, addressed to the Company, at the address provided in the Share Exchange Agreement or such other address or facsimile number as the Company may specify for such purposes by notice to the Holders delivered in accordance with this Section.  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, sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile telephone number or address of such Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of the Holder. 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 telephone number specified in this Section prior to 5:30 p.m. (Indiana time), (ii) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (Indianapolis, Indiana time) on any date and earlier than 11:59 p.m. (Indianapolis, Indiana time) on such date, (iii) the second Business Day following the date of mailing, if 

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sent by 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 the liquidated damages (if any) on, the shares of Series A 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 Series A 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 Series A 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 thereof, and indemnity, if requested, all reasonably satisfactory to the Company.

d)

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

e)

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

RESOLVED, FURTHER, that the Chairman, the president or any vice-president, and the secretary or any assistant secretary, of the Company be and they hereby are authorized and directed to prepare and file a Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of Florida law.

        IN WITNESS WHEREOF, the undersigned have executed this Certificate this 7th day of February 2017.

		
	

_/s/  Mark C. Jensen_______________

Name: Mark C. Jensen

Title:  Chief Executive Officer 

	

__/s/ Thomas M. Sauve________________

Name: Thomas M. Sauve

Title:  President & Secretary

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ANNEX A

NOTICE OF CONVERSION

(TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF SERIES A PREFERRED STOCK)

The undersigned hereby elects to convert the number of shares of Series A Preferred Stock indicated below, into shares of common stock, par value $ 0.0001 per share (the "Common Stock"), of NGFC Equities Inc., a Florida Company (the "Company"), according to the conditions hereof, as of the date written below. If shares are to be issued in the name of a person other than undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the Holder for any conversion, except for such transfer taxes, if any.

Conversion calculations:

		
	Date to Effect Conversion: _____________________________________________

	Number of shares of Common Stock owned prior to Conversion: _______________

	Number of shares of Series A Preferred Stock to be Converted: _________________

	Number of shares of Common Stock to be Issued: ___________________________

	Certificate Number of Series A Preferred Stock attached hereto:________________________

	Number of Shares of Series A Preferred Stock represented by attached certificate:__________

	 

	Number of shares of Series A Preferred Stock subsequent to Conversion: ________________

	 
	HOLDER: ________________________

By:___________________________________

     Name:

     Title:

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