Document:

Engagement Letter

Prepared
for:

American Housing
Income Trust, Inc.

 

Tobin & Company Securities LLC

112 South Tryon Street

Suite 1760

Charlotte, NC 28284

704.334.2772

www.TobinandCo.com

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July 22nd, 2016

 

 

Jeff Howard

President & CEO

American Housing Income Trust, Inc.

34225 N. 27th Dr. Bldg 5, Suite 238

Phoenix, AZ 85085

 

CONFIDENTIAL

 

Engagement Letter

 

Dear Jeff,

 

The purpose of this contract
(this “Agreement”) is to set forth the terms and conditions under which Tobin & Company Securities LLC (the “Advisor”)
with its exclusive representative Justin Floyd (Managing Director of JCF Capital Advisors, LLC and the “Advisor Rep”)
on this engagement, agrees to serve American Housing Income Trust, Inc. and its owners and affiliates (collectively the “Client”)
as non-exclusive financial advisor in identifying, evaluating, negotiating, and securing financing alternatives for the benefit
of the Client.

 

1.Term.
The initial term of this Agreement shall be for six (6) months from July 15th, 2016 (the “Initial Term”).
At the end of such Initial Term, this Agreement shall automatically renew for additional periods of one (1) month (each such additional
period, a “Renewal Term” and all such Renewal Terms together with the Initial Term, the “Term”) unless
either party provides written notice of termination to the other party at least fifteen (15) days prior to the expiration of the
then current Renewal Term.

 

2.Services.
The Advisor and Advisor Rep, (a) shall (i) identify and/or locate prospective capital sources for the Client, (ii) develop and
furnish material describing the Client’s business to such prospective capital sources, which material shall be based upon
information supplied to the Advisor by the Client, and (iii) introduce such prospective capital sources to the Client and (b) shall
assist in the negotiations with prospective capital sources until the earlier of (i) termination of this Agreement pursuant to
Section 1 or (ii) the closing of a transaction (or series) with a capital source selected by the Client (the “Services”).

 

3.Retainer Fee.
As consideration for the Services during the Term of this Agreement, the Client shall pay to Justin Floyd, as exclusive Advisor
Rep to the the Advisor on this engagement, a non-refundable fee equal to Twenty Thousand Dollars and No Cents ($20,000.00) (the
“Retainer Fee”) of which ($10,000.00) has been paid to date which the Advisor Rep acknowledges receipt, and ($10,000)
of which is payable upon execution of this agreement. All retainer payments shall be made via bank wire transfer to the account
of JCF Capital Advisors, LLC as set forth in ANNEX B.

 

4. Success Fee.
Upon the Client’s securing of a commitment for financing (“Financing”) from investors sourced or introduced to
the Client by Advisor or Advisor Rep via email, meeting, or a telephone call during the term of this Agreement or within the twelve
(12)-month period following the termination of this Agreement (the “Tail Period”), the Client agrees to pay to the
Advisor a fee (the “Success Fee”) (to the exclusion of investors listed in Annex D) a cash payment equal to five percent
(5.0%) of the total debt or equity proceeds received in the Financing plus any additional consideration received or to be received
by the Client as a result of securing such commitment, including, but not limited to, all economic benefits to be realized by the
Client (with full credit for the Retainer Fee as outlined in Section 3).

 

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The cash portion of the
Success Fee, as calculated above, shall be paid to the Advisor in full at closing either in cash (by wire transfer of immediately
available funds) or by cashier’s check as denoted in ANNEX C.

 

The Client hereby agrees
that failure by the Client to pay any amounts as due and payable herein shall entitle Advisor and Advisor Rep to a one percent
(1.0%) monthly late fee in the form of an award of liquidated damages. The parties agree that actual damages incurred by Advisor
and Advisor Rep in the event of unjustified breach by the Client are difficult to ascertain, but that they would include, at minimum,
lost opportunity damages related to other advisory assignments foregone by the Advisor and Advisor Rep. The
parties intend that the above liquidated damages constitutes compensation, and not a penalty. The parties acknowledge and agree
that the Advisor and Advisor Rep’s harm caused by the Client’s breach would be impossible or very difficult to accurately
estimate at the effective time of this Agreement, and that the above liquidated damages are a reasonable estimate of the anticipated
or actual harm that might arise from the Client’s breach. The payment of the above liquidated damages is the Advisor
and Advisor Rep’s exclusive remedy solely for the Client’s breach of failing to pay any amounts due to Advisor in a
timely manner as provided in this Agreement. For avoidance of doubt, the payment of the above liquidated damages as provided in
this section does not reduce any amounts owed by the Client to the Advisor or Advisor Rep for services provided under this Agreement.

 

5.Reliance
Upon and Accuracy of Information; Representation. The Client understands, acknowledges, and agrees that the Advisor may
rely entirely upon publicly available information and information provided by the Client and the Client’s officers, directors,
shareholders, accountants, and other agents and advisors other than counsel without independent investigation or verification by
the Advisor of the accuracy and completeness of such information. Additionally, the Client agrees that the Advisor shall not have
any responsibility for such independent investigation or verification.

 

As a condition to the
Advisor’s obligation to provide the Services pursuant to this Agreement, the Client represents, warrants and covenants to
the Advisor that none of the information furnished to the Advisor by the Client or contained in the Client’s filings under
any federal or state securities laws shall include any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements made, in light of the circumstances under which they are made, not misleading. If any information
provided to the Advisor becomes inaccurate, incomplete or misleading in any material respect during the Advisor’s engagement
hereunder, the Client hereby agrees to so inform the Advisor. The Client hereby agrees to continuously advise the Advisor with
respect to any material developments or matters that occur or come to the Client’s attention during the Term of the Advisor’s
engagement hereunder. The Advisor assumes no responsibility for the titles to, or any liens, against the property or assets of
the Client.

 

6.Indemnity.
The Advisor and the Client agree to the provisions with respect to indemnification by the Client of the Advisor and certain other
parties as set forth on Annex A attached hereto.

 

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7.Limitation
of Engagement to the Client. The Client acknowledges that the Advisor has been retained pursuant to this Agreement only
by the Client and that the Client’s engagement of the Advisor is not deemed to be on behalf of, and is not intended to confer
rights upon, any shareholder, owner, affiliate or partner of the Client or any other person not a party hereto as against the Advisor
or any of its controlling persons, members, affiliates, directors, managers, officers, employees or agents (the “Advisor
Representatives”). Unless otherwise expressly agreed in writing by the Advisor, no one other than the Client is authorized
to rely upon this engagement or any other statements or conduct of the Advisor pursuant to this Agreement, and no one other than
the Client is intended to be a beneficiary of this Agreement. The Client acknowledges that any recommendations or advice, written
or oral, given by the Advisor to the Client in connection with the Advisor’s engagement pursuant to this Agreement are intended
solely for the benefit and use of the Client’s management and directors, and any such recommendations or advice of the Advisor
pursuant to this Agreement shall not confer any rights or remedies upon any other person other than the Client or be used or relied
upon for any other purpose other than that set forth in this Agreement.

 

8.Expenses.
In addition to the Retainer Fee and the Success Fee set forth in Sections 3 and 4 of this Agreement, respectively, the Client hereby
agrees to promptly reimburse the Advisor and Advisor Rep, upon request from time to time, not more than once monthly, for any reasonable
expenses, including, but not limited to, securities laws compliance, legal, travel, research and mailing fees and expenses, incurred
by the Advisor and Advisor Rep in connection with the provision of the Services pursuant to this Agreement. To be eligible for
reimbursement pursuant to this Section 8, any such expenses in excess of One Thousand Dollars and No Cents ($1,000.00) must first
be approved by the Client prior to being incurred by the Advisor and Advisor Rep.

 

9.Exclusivity.
This engagement will be non-exclusive to the Advisor and the Client.

 

10. Successors and
Assigns. The rights, title and interests of this Agreement shall inure to the respective successors and assigns of the
parties hereto, and the obligations and liabilities assumed in this agreement by the parties hereto shall be binding upon their
respective successors and assigns; provided, however, the Advisor shall have the right to assign its rights, title,
interests, obligations and liabilities pursuant to this Agreement to any of its affiliates or subsidiaries; further, provided,
however, the Client shall not have the right to assign its rights, title, interests, obligations and liabilities pursuant
to this Agreement without the prior written consent of the Advisor.

 

11. Governing Law.
This Agreement shall be interpreted under and governed by the laws of the State of North Carolina, without giving effect to its
choice of law rules. The Client hereby agrees to submit to the personal jurisdiction and venue of the state and federal courts
having jurisdiction over Charlotte, North Carolina for a resolution of all disputes arising in connection with the interpretation,
construction and enforcement of this Agreement and hereby waives the claim or defense that such courts constitute an inconvenient
forum.

 

12. Arbitration
of Disputes. The parties to this Agreement hereby agree to attempt to resolve any dispute related to, arising from or in any
way associate with this Agreement through consultation and negotiation in good faith and a spirit of mutual cooperation. In the
event such dispute is not resolved through such consultation and negotiation and within fifteen (15) days of the demand of either
party, such dispute shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration
Association, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The
arbitration of any such claim or controversy shall take place in Charlotte, North Carolina.

 

 

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13. No Representation.
The Client hereby acknowledges and agrees that the Advisor makes no representations, expressed or implied, with respect to the
Services provided by the Advisor pursuant to this Agreement. Furthermore, the Client hereby agrees that the duties of the Advisor
shall not include the provision of financing, legal, tax or accounting services to the Client; such services shall be procured
by the Client at its own expense.

 

14. Attorneys’
Fees; Interest. In the event any portion of the Retainer Fee or the Success Fee set forth in Sections 3 and 4 of
this Agreement, respectively, or expense, pursuant to Section of 8 of this Agreement, is due to the Advisor from the Client and
is collected by or through an attorney at law, the Client agrees to pay, upon the Advisor’s demand, the Advisor’s attorneys’
fees and expenses. If any such attorneys’ fees and expenses are not paid when due, such attorneys’ fees and expenses
shall bear interest at the rate of eighteen percent (18%) from the date due until paid.

 

15. Survival of Obligations.
The respective obligations of the parties hereunder which by their nature or terms will continue beyond the termination of this
Agreement by any party for any reason or the expiration of this Agreement by its terms, including without limitation, the obligation
to pay the Retainer Fee and the Success Fee, to reimburse expenses, to arbitrate disputes and to satisfy indemnity obligations,
shall survive such termination or expiration of this Agreement.

 

16. Authority.
By signing this Agreement, the signing party represents that he or she has unconditional authority to enter into this Agreement
on behalf of the Client.

 

17. Information and
Documentation. In order to provide the Advisor and Advisor Rep with full disclosure and as required for the performance
of its services hereunder, within thirty (30) days following the end of each quarter or the closing of a Financing, the Client
will provide the Advisor and Advisor Rep with quarterly and post-closing financial updates of the Client’s Balance Sheet
and equity capitalization table for a period up to the end of the Tail Period with identification of any new funds received in
the Financing including all final copies of pertinent documentation relating to a Sale, including, but not limited to, executed
Letters of Intent, executed Term Sheets, and executed Purchase and Sale Agreements, as well as any other related documents that
the Advisor and Advisor Rep may reasonably request. The Client hereby agrees that failure by the Client to provide the required
financial disclosures in order to determine and calculate the Success Fee shall entitle the Advisor and Advisor Rep to a $100 daily
late fee in the form of an award of liquidated damages until the required disclosures are provided to the Advisor and Advisor Rep.
The justification for which shall be the value of the time and effort expended by the Advisor and Advisor Rep and its staff and
representatives in pursuit of such information. The parties intend that the above liquidated damages constitutes compensation,
and not a penalty. The parties acknowledge and agree that the Advisor and Advisor Rep's harm caused by the Client’s breach
would be impossible or very difficult to accurately estimate at the effective time of this Agreement, and that the above liquidated
damages are a reasonable estimate of the anticipated or actual harm that might arise from the Client’s breach. The payment
of the above liquidated damages is the Advisor and Advisor Rep’s exclusive remedy solely for the Client’s breach in
failing to provide required financial disclosures. 

 

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The Client agrees to make
available to the Advisor and Advisor Rep the Client’s logos for use in marketing materials and potential advertisements.
Any information provided by the Client to the Advisor (including any copies thereof), including, but not limited to, all data,
reports, records, business opportunities and general information pertaining to the Client disclosed to the Advisor by or through
the Client (the “Information”), upon the Client’s request, shall be destroyed immediately, with such destruction
being certified in writing to the Client by a Managing Partner of the Advisor; provided, however, the Information
shall not include analyses, compilations, studies or other documents prepared by the Advisor or the Advisor Representatives, including,
but not limited to, the executive summary and offering memorandum prepared by the Advisor or the Advisor Representatives, which
will be retained by the Advisor and constitute property of the Advisor.

 

The Client specifically
agrees to fully to include the Advisor and Advisor Rep on any and all written and verbal communications with investors introduced
to the Client by the Advisor or Advisor Rep. The Advisor and Advisor Rep, in its sole discretion, will have the sole right to participate
or be excluded from any meetings, calls, or other forms of communications with such investors.

 

18. Confidentiality.
The Advisor agrees to reveal the Information only to the Advisor Representatives who need to know the Information for the purpose
of evaluating the transaction described above, and the Advisor agrees to inform such Advisor Representatives of the confidential
nature of the Information.

 

For a period of one (1)
year from the date hereof, the Advisor agrees to retain in strict confidence and not to disclose to others, except as provided
for above, any Information received from the Client except Information which:

 

a.               
at the time of the disclosure, is in the public domain;

b.               
after disclosure, becomes part of the public domain through no violation of this Agreement
by the Advisor; 

c.               
prior to disclosure, was in the possession of the Advisor;

d.               
subsequent to disclosure, is independently developed by the Advisor independently; or

e.               
is rightfully received by the Advisor on a non-confidential basis from third parties.

The Advisor shall not
be regarded as having breached its obligations hereunder as a result of disclosure of the Information so long as the Advisor has
taken the same precautions and care to safeguard the Information that it customarily employs to safeguard its own confidential
and proprietary information against unauthorized disclosure.

 

Except as required by
law or pursuant to order of a court of competent jurisdiction and in such event, only to such extent required by law or court order,
no written or oral advice provided by the Advisor pursuant to this Agreement shall be disclosed, in whole or in part, to any third
party other than the Client’s legal and accounting advisors, directors and stockholders, or circulated or referred to publicly,
without the prior written consent of the Advisor. In the event disclosure is required by law or court order, the Client shall provide
the Advisor written notice of such disclosure and exercise best efforts to assist the Advisor in seeking to protect the confidentiality
of the information required to be disclosed.

 

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19. Information
about Client Identity Verification. United States law requires financial institutions such as the Advisor to obtain, verify
and record information that identifies the Client and its investors. To comply with this requirement, the Advisor will request
the Client’s corporate name, date of incorporation, business address and other information to allow the Advisor to identify
the Client. Other information may be collected during the due diligence process.

Further, the Advisor
will

(a)                              
provide notice to each investor that identification information will be collected about the
investor as required by Federal law,

(b)                              
collect the following information of each investor

                
i.                   
the name; 

              
ii.                   
date of birth (for an individual);

             
iii.                   
an address, which will be a residential or business street address; 

             
iv.                   
an identification number, which will be a taxpayer identification number (for U.S. persons),
or one or more of the following: a taxpayer identification number, passport number and country of issuance, alien identification
card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and
bearing a photograph or other similar safeguard (for non-U.S. persons); and

               
v.                   
a photo I.D. (for an individual).

(c)                              
verify the information through the collection of documents and document the verification process,
including listing and saving all identifying information provided by an investor, the method used and results of verification and
the resolution of any discrepancy in the identifying information, and

(d)                              
retain all related documentation for its permanent files. 

 

20. Prevailing Party.
If it is necessary for either party to initiate legal proceedings to enforce the terms of this Agreement, the prevailing party
in such legal proceedings shall be entitled to recover from the non-prevailing party, in addition to all other remedies, all costs
of such enforcement, including reasonable attorneys’ fees and expenses.

 

21. Waiver.
No failure or delay of the Advisor in exercising any right herein shall act as a waiver thereof, nor shall any single or partial
waiver thereof preclude any other or further exercise of any right hereunder.

 

22. Entire Agreement.
This Agreement represents the entire agreement between the parties pertaining to this subject matter and supersedes all prior agreements,
representations and understandings of the parties including the prior Letter of Intent mutually executed by American Housing Income
Trust, Inc. and Justin Floyd as registered representative and Managing Director of JCF Capital Advisors, LLC dated as of March
4th, 2016.

 

23. Modification.
This Agreement shall not be modified or amended except in writing signed by the Advisor and the Client.

 

24. Severability.
If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect
such provision in any other respect, and the remainder of the Agreement shall remain in full force and effect.

 

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25. Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

 

26. Section Headings.
The section headings of this Agreement are merely for convenience in reading and shall not be construed to alter, modify or interpret
the meaning of the provisions of this Agreement.

 

27. Relationship
of the Parties. The parties to this Agreement hereby acknowledge and agree that the relationship of the parties is that
of an independent contractor, that the obligations and responsibilities of the Advisor to the Client are limited to those specifically
set forth herein, and the Advisor, by entering into this Agreement and satisfying its obligation hereunder, does not assume any
fiduciary duties with respect to the Client or its board of directors, management, shareholders, employees or other agents.

 

Please indicate your acceptance
of the terms and conditions of this Agreement by executing and returning the enclosed copy of this letter. If this Agreement is
not executed and returned within five (5) days of the date hereof, or if any changes in content are made, this Agreement shall
be subject to approval by one of the Advisor’s managing partners and shall not be binding on the Advisor unless and until
such approval has been obtained.

 

Very truly yours,

 

Tobin & Company Securities LLC

 

 

By:/s/ Justine E. Tobin_______
 

 

Justine E. Tobin 

Executive Representative

 

 

By:/s/ Justin Floyd_______
 

 

Justin Floyd 

Representative 

 

 

Accepted and Agreed to this 18th
day of August, 2016

 

 

By: American Housing Income Trust, Inc.

 

 

By:/s/ Jeff Howard

 

Name: Jeff Howard

 

Title: President and Chief Executive Officer

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ANNEX A

 

In connection with the
Advisor’s engagement to advise and to assist the Client pursuant to the Agreement to which this Annex A is attached,
the Client agrees to indemnify and to hold harmless the Advisor and each of its affiliates, and their respective officers, directors,
controlling persons (within the meaning of Section 15 of the Securities Act of 1933 or Section 20(a) of the Securities Exchange
Act of 1934), employees, affiliates, agents, counsel and other advisors (hereinafter collectively referred to as an “Indemnified
Party”), to the full extent allowed by law or equity, from and against any and all judgments, losses, claims (whether or
not valid), damages, costs, fees, expenses or liabilities, joint or several, to which an Indemnified Party may become subject,
related to or arising out of the Advisor’s engagement or performance under the Agreement, the transactions contemplated thereby,
the services to be rendered by the Advisor under the Agreement, or any actual or threatened claim, litigation, investigation, proceeding
or action in any court or before any regulatory, administrative or other body relating to any of the foregoing (hereinafter referred
to collectively as a “Claim”), and shall, upon request, reimburse an Indemnified Party for all legal and other costs,
fees and expenses as they are incurred in connection with investigating, preparing or defending a Claim, whether or not such Indemnified
Party is ever made party to any legal proceedings or such Claim arose before or after the date hereof; provided, however, that
no such indemnification shall be required to be paid to an Indemnified Party with respect to a Claim that is finally determined
by a court of competent jurisdiction (after exhaustion of all appeals) or in an arbitration conducted in accordance with this Agreement
to have resulted solely from the gross negligence or willful misconduct of such Indemnified Party.

 

In the event that the foregoing
indemnity is unavailable or insufficient for any reason (other than by reason of the terms hereof) to hold any Indemnified Party
harmless, then the Client shall contribute to any amounts paid or payable by an Indemnified Party in such proportion as appropriately
reflects the relative benefits received by such Indemnified Party and the Client in connection with the matters to which the Claim
relates. If an allocation solely on the basis of benefits is judicially determined to be impermissible, then the Client shall contribute
in such proportion as appropriately reflects the relative benefits and relative fault of the Client and such Indemnified Party,
as well as any other equitable considerations. In no event shall the Client contribute less than the amount necessary to ensure
that the aggregate liability of the Advisor and any other Indemnified Party for contribution pursuant to this paragraph in connection
with all Claims does not exceed the amount of fees actually received by the Advisor under the Agreement. For purposes hereof, relative
benefits to the Client and the Advisor of the transaction pursuant to this Agreement (the “Transaction”) shall be deemed
to be in the same proportion that the total value received or contemplated to be received by the Client and/or its security holders
in connection with the Transaction bears to the fees paid to the Advisor under the Agreement in respect of such Transaction, and
other relative fault of each Indemnified Party and the Client shall be determined by reference to, among other things, whether
the actions and omissions to act were by such Indemnified Party or the Client and the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent such action or omission.

 

All amounts due to an Indemnified
Party hereunder shall be payable by the Client promptly upon request by such Indemnified Party. In addition, the Client agrees
to pay all costs and expenses (including attorneys’ fees) incurred by an Indemnified Party to enforce the terms of this Annex
A.

 

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The Client agrees not to
enter into any waiver, release or settlement of any Claim (whether or not the Advisor or any other Indemnified Party is a formal
party to such Claim) in respect of which indemnification may be sought hereunder without the prior written consent of the Advisor
(which consent will not be unreasonably withheld), unless such waiver, release or settlement includes an unconditional release
of the Advisor and each Indemnified Party from all liability arising out of such Claim. The Advisor may enter into any waiver,
release or settlement of any Claim (whether or not the Advisor or any other Indemnified Party is a formal party to such Claim)
in respect of which indemnification may be sought hereunder without the prior written consent of the Client if the Client shall
have not paid in full all undisputed fees and expenses then due and payable to the Advisor and each Indemnified Party under the
Agreement (including this Annex A).

 

 

	
         

 

The provisions of this Annex A shall be in addition to any liability which the Client may otherwise
have to the Advisor; shall not be limited by any rights that the Advisor or any other Indemnified Party may otherwise have; shall
remain in full force and effect regardless of any expiration or termination of the Advisor’s engagement; and shall be binding
upon any successors or assigns of the Advisor and the Client.

 

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ANNEX B

 

Wiring Instructions

(Advisor Rep Retainer Fee Payments)

 

 

Company Name:JCF Capital Advisors, LLC

 

Company Address:4370 La Jolla Village Drive, Suite 400

San Diego, CA. 92122

 

Bank Name:Wells Fargo Bank, N.A.

 

Bank Address:1302 Garnett Avenue, San Diego, CA 92109

 

ABA Routing Number:121000248

 

Credit Bank Account Name:JCF Capital Advisors, LLC

 

Credit Bank Account Number:2169149909

 

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ANNEX C

 

REDACTED FOR SECURITY PURPOSES.

    	-12-

    	 

    

ANNEX D

 

Excluded Investor List

 

None other than current captable as of July 15, 2016.

 

 

 

    	-13-afpw_ex41.htm

EXHIBIT 4.1
 
ALUMIFUEL POWER CORPORATION
CERTIFICATE OF DESIGNATION OF
SERIES C CONVERTIBLE PREFERRED STOCK
 
The Undersigned, on behalf of AlumiFuel Power Corporation, a Wyoming corporation (the "Corporation"), hereby certifies that the following resolutions were adopted by the Corporation's board of directors (the "Board"), effective as of August 16, 2016, pursuant to the authority conferred upon the Board by the Corporation's certificate of incorporation, as amended, and in accordance with the Wyoming Business Corporation Act:
 
RESOLVED: that pursuant to the authority granted to and vested in the Board in accordance with the provisions of the Corporation's certificate of incorporation, as amended, a series of preferred stock of the Corporation is hereby created and designated with the following relative rights, preferences, privileges, qualifications, limitations and restrictions:
 
1. Amount; Designation; Sub-Series. The designation of this series, the authorized amount of which consists of 1,500 shares of preferred stock, is Series C Convertible Preferred Stock with a par value of $0.001 per share and the stated value shall be $100.00 per share (the "Stated Value") (the "Series C Preferred Stock").
 
2. Rank. In the event of the Corporation's liquidation, the Series C Preferred Stock shall rank senior to any class or series of the Corporation's capital stock hereafter created that ranks junior to the Series C Preferred Stock; pari passu with any class or series of the Corporation's capital stock hereafter created that ranks on parity with the Series C Preferred Stock; and junior to any class or series of the Corporation's capital stock hereafter created that ranks senior to the Series C Preferred Stock. The Series C Preferred Stock shall be senior to the Corporation's common stock.
 
3. Voting Rights. A holder of Series C Preferred Stock (the "Holder") shall have no voting rights on any matters respecting the affairs of the Corporation submitted to the holders of the Corporation's voting capital stock.
 
4. No Preemptive Rights. Holders of Series C Preferred Stock shall not be entitled, as a matter of right, to subscribe for, purchase or receive any part of any stock of the Corporation of any class whatsoever, or of securities convertible into or exchangeable for any stock of any class whatsoever, whether now or hereafter authorized and whether issued for cash or other consideration or by way of dividend by virtue of the Series C Preferred Stock.
 
5. Liquidation Rights. In the event of a liquidation of the Corporation, the holders of Series C Preferred Stock then outstanding shall be entitled to receive a liquidation preference, before any distribution is made to the holders of the Corporation's common stock, in an aggregate amount equal to the par value of their shares of Series C Preferred Stock.
 
	 
	1

	

	 

  
6. Conversion Rights. 
 
(a) Each share of Series C Preferred Stock may be convertible into fully paid and non-assessable shares of the Corporation's common stock at the option of the Holder, at any time from time to time, from and after the issuance of the Series C Preferred Stock, at a conversion price equal to (i) 100% of the Stated Value divided by (ii) the average of the three closing prices of the Company's common stock immediately preceding a Conversion Date (as defined below) (the "Conversion Price"). A Holder shall effect of conversion by submitting to the Corporation the original certificate or certificates representing the shares of Series C Preferred Stock to be converted together with a completed form of conversion notice attached hereto as Exhibit A (the "Conversion Notice"). Each Conversion Notice shall specify the number of shares of Series C Preferred Stock to be converted and the date on which such conversion is to be effected, which date may not be prior to the date the Holder delivers such Conversion Notice to the Corporation (the "Conversion Date"). If the holders of the Series C Preferred Stock have not converted or their shares of Series C Preferred Stock have not been redeemed by the Corporation within five years from the date of issuance (the "Mandatory Conversion Date"), then each share of Series C Preferred Stock shall automatically be converted into that number of fully paid and non-assessable shares of Corporation's common stock on terms that are equal to the Conversion Price on the Mandatory Conversion Date.
 
(b) The Shares of common stock to be issued upon any conversion of Series C Preferred Stock shall be rounded to the nearest full share; no fractional shares of common stock shall be issued upon any such conversion.
 
(c) The Corporation shall reserve and keep available out of its authorized but unissued common stock such number of shares of common stock as shall from time to time be sufficient to effect the conversion of the Series C Preferred Stock then outstanding pursuant to the terms of this Certificate of Designation.
 
(d) As a condition to the Corporation's obligation to issue and deliver certificates representing the shares of common stock into which the Series C Preferred Stock is convertible under this Section 6, holders of converted shares of Series C Preferred Stock shall return their certificates representing such preferred stock for cancellation on the Corporation's books.
 
7. Redemption Rights. At any time after the date of issuance of the Series C Preferred Stock until the Mandatory Conversion Date, the Corporation, upon notice delivered to each holder as provided for in this Section 7, may redeem, in cash, the Series C Preferred Stock at 100% of the Stated Value thereof (the "Redemption Price").
 
Notice of redemption pursuant to Section 7 shall be provided by the Corporation to the Holder in writing (by registered mail or overnight courier at the Holders last address appearing in the Corporation's security registry) not less than 10 nor more than 15 days prior to the redemption date, which notice shall specify the redemption date and refer to Section 7. Upon any redemption of the Series C Preferred Stock pursuant to Section 7, each holder shall either deliver the Series C Preferred Stock by hand to the Corporation at its principal executive offices or surrender the same to the Corporation at such address by express courier. Payment of the Redemption Price specified in Section 7 shall be made by the Corporation to each holder against receipt of the Series C Preferred Stock certificate by wire transfer of immediately available funds to such account(s) as the Holder shall specify to the Corporation.
 
8. Loss, Theft, Destruction of Certificates. Upon the Corporation's receipt of evidence of the loss, theft, destruction or mutilation of a certificate representing shares of Series C Preferred Stock (in form reasonable satisfactory to the Corporation) and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to the Corporation, or, in the case of mutilation, upon surrender and cancellation of the mutilated certificate, the Corporation shall make, issue and deliver, in lieu of such lost, stolen, destroyed or mutilated certificate representing shares of Series C Preferred Stock, a new certificate representing shares of Series C Preferred Stock of like tenor.
 
	 
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9. Who Deemed Absolute Owner. The Corporation may deem the holder, whether an individual or an entity, in whose name shares of Series C Preferred Stock is registered upon the Corporation's books to be, and may treat it as, the absolute owner of such shares of Series C Preferred Stock for all purposes, and the Corporation shall not be affected or bound by any notice to the contrary. 
 
10. Stock-Transfer Register. The Corporation shall keep at its principal office an original or copy of a register in which it shall provide for the registration of the Series C Preferred Stock. Upon any transfer of Series C Preferred Stock in accordance with the provisions hereof, the Corporation shall register such transfer on its stock-transfer register.
 
11. Amendments. The Corporation may amend this Certificate of Designation only with the approving vote of holders of a majority of the then-outstanding shares of Series C Preferred Stock.
 
12. Headings. The headings of the sections, subsections and paragraphs of this Certificate of Designation are inserted for the convenience of the reader only and shall not affect the interpretation of the terms and provisions of this Certificate of Designation.
 
13. Severability. If any provision of this Certificate of Designation, or the application thereof to any person or any circumstance, is invalid or unenforceable, (i) a suitable and equitable provision shall be substituted therefore in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision, and (ii) the remainder of this Certificate of Designation and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.
 
14. Governing Law. The terms of this Certificate of Designation shall be governed by the laws of the State of Wyoming, without regard to its conflicts-of-law principles.
 
In Witness Whereof, AlumiFuel Power Corporation has caused this Certificate of Designation to be duly executed in its corporate name on this 16th day of August 2016.
 
 
	 	ALUMIFUEL POWER CORPORATION:
	
	 	 	 	 
		By:	/s/ Henry Fong	
	 
	 
	Henry Fong	 
	 	 	Chief Executive Officer	 

 
 
 
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