Document:

EXHIBIT
4.5

     

    THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") NOR
UNDER ANY STATE SECURITIES LAW AND MAY NOT BE PLEDGED, SOLD, ASSIGNED OR
OTHERWISE TRANSFERRED UNTIL (1) A REGISTRATION STATEMENT UNDER THE ACT AND ANY
APPLICABLE STATE SECURITIES LAW HAS BECOME EFFECTIVE WITH RESPECT THERETO, OR
(2)RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL TO THE COMPANY TO THE EFFECT
THAT REGISTRATION UNDER THE ACT OR APPLICABLE STATE SECURITIES LAW IS NOT
REQUIRED IN CONNECTION WITH THE PROPOSED TRANSFER.

     

    Void
after 5:00 p.m. Central Standard Time, on ____________  ___,
20__

     

    Warrant
to Purchase ____________Shares of Common Stock.

     

    FORM OF
WARRANT TO PURCHASE COMMON STOCK

    OF

    SPECTRASCIENCE, INC.

     

    This is
to Certify That, FOR VALUE RECEIVED, _____________________("Holder") is entitled
to purchase, subject to the provisions of this Warrant, from SpectraScience, Inc., a
Minnesota corporation ("Company"), _______________fully paid, validly issued and
nonassessable shares of Common Stock, $0.01 par value per share, of the Company
("Common Stock") at an initial price of $0.30 per share at any time or from time
to time during the period from the date hereof to 5:00 p.m. Central Standard
Time, on _____________ __, 20__. The number of shares of Common Stock to be
received upon the exercise of this Warrant and the price to be paid for each
share of Common Stock may be adjusted from time to time as hereinafter set
forth. The exercise price and the number of shares issuable upon exercise of the
Warrants will be proportionately adjusted for stock splits, stock dividends,
recapitalizations and similar transactions. The shares of Common Stock
deliverable upon such exercise, and as adjusted from time to time, are
hereinafter sometimes referred to as "Warrant Shares" and the exercise price of
a share of Common Stock in effect at any time and as adjusted from time to time
is hereinafter sometimes referred to as the "Exercise Price".

     

    
      	
               
      

            	
              (a)

            	
              EXERCISE
      OF WARRANT.

            

    

    

    (1)           This
Warrant may be exercised in whole or in part at any time or from time to time on
or after the date hereof and until 5:00 p.m. Central Standard Time on
___________ __, 20__; provided, however, that if either such day is a day on
which banking institutions in the State of California are authorized by law to
close, then on the next succeeding day which shall not be such a day. This
Warrant may be exercised by presentation and surrender hereof to the Company at
its principal office with the Purchase Form annexed hereto duly executed and
accompanied by payment of the Exercise Price for the number of Warrant Shares
specified in such form. The Exercise Price may be paid in cash or in Common
Stock of the Company (cashless exercise). As soon as practicable after each such
exercise of the warrants, but not later than seven (7) days from the date of
such exercise, the Company shall issue and deliver to the Holder a certificate
or certificate for the Warrant Shares issuable upon such exercise, registered in
the name of the Holder or its designee. If this Warrant should be exercised in
part only, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder thereof to
purchase the balance of the Warrant Shares purchasable thereunder. Upon receipt
by the Company of this Warrant at its office in proper form for exercise, the
Holder shall be deemed to be the holder of record of the shares of Common Stock
issuable upon such exercise, notwithstanding that the stock transfer books of
the Company shall then be closed or that certificates representing such shares
of Common Stock shall not then be physically delivered to the
Holder.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              RESERVATION
      OF SHARES. The Company shall at all times reserve for issuance and/or
      delivery upon exercise of this Warrant such number of shares of its Common
      Stock as shall be required for issuance and delivery upon exercise of the
      Warrants.

            

    

     

    
      	
               
      

            	
              (c)

            	
              FRACTIONAL
      SHARES. No fractional shares or scrip representing fractional shares shall
      be issued upon the exercise of this Warrant. With respect to any fraction
      of a share called for upon any exercise hereof, the Company shall pay to
      the Holder an amount in cash equal to such fraction multiplied by the
      current market value of a share, determined as
  follows:

            

    

     

    (1)           If
the Common Stock (or the common stock of the Company that would be exchanged or
admitted to unlisted trading privileges on such exchange or listed for trading
on the NASDAQ system, the current market value shall be the last reported sale
price of the Common Stock on such exchange or system on the last business day
prior to the date of exercise of this Warrant or if no such sale is made on such
day, the average closing bid and asked prices for such day on such exchange or
system; or

     

    (2)           
If the Common Stock is not so listed or admitted to unlisted trading privileges,
the current market value shall be the mean of the last reported bid and asked
prices reported by the National Quotation Bureau, Inc. on the last business day
prior to the date of the exercise of this Warrant; or

     

    (3)           
If the Common Stock is not so listed or admitted to unlisted trading privileges
and bid and asked prices are not so reported, the current market value shall be
an amount, not less than the book value thereof as at the end of the most recent
fiscal year of the Company ending prior to the date of the exercise of the
Warrant, determined in such reasonable manner as may be prescribed by the Board
of Directors of the Company.

     

    
      	
               
      

            	
              (d)

            	
              EXCHANGE,
      TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable,
      without expense, at the option of the Holder, upon presentation and
      surrender hereof to the Company for other warrants of different
      denominations entitling the holder thereof to purchase in the aggregate
      the same number of shares of Common Stock purchasable hereunder. Upon
      surrender of this Warrant to the Company at its principal office with the
      Assignment Form annexed hereto duly executed and funds sufficient to pay
      any transfer tax, the Company shall, without charge, execute and deliver a
      new Warrant in the name of the assignee named in such instrument of
      assignment and this Warrant shall promptly be cancelled. This Warrant may
      be divided or combined with other warrants which carry the same rights
      upon presentation hereof at the principal office of the Company together
      with a written notice specifying the names and denominations in which new
      Warrants are to be issued and signed by the Holder hereof. The term
      "Warrant" as used herein includes any Warrants into which this Warrant may
      be divided or exchanged. Upon receipt by the Company of evidence
      satisfactory to it of the loss, theft, destruction or mutilation of this
      Warrant, and (in the case of loss, theft or destruction) of reasonably
      satisfactory indemnification, and upon surrender and cancellation of this
      Warrant, if mutilated, the Company will execute and deliver a new Warrant
      of like tenor and date. Any such new Warrant executed and delivered shall
      constitute an additional contractual obligation on the part of the
      Company, whether or not this Warrant so lost, stolen, destroyed, or
      mutilated shall be at any time enforceable by
  anyone.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              RIGHTS
      OF THE HOLDER. The Holder shall not, by virtue hereof, be entitled to any
      rights of a shareholder in the Company, either at law or equity, and the
      rights of the Holder are limited to those expressed in the Warrant and are
      not enforceable against the Company except to the extent set forth
      herein.

            

    

     

    
      	
               
      

            	
              (f)

            	
              ANTI-DILUTION
      PROVISIONS. The Exercise Price in effect at any time and the number and
      kind of securities purchasable upon the exercise of the Warrants shall be
      subject to adjustment from time to time upon the happening of certain
      events as follows:

            

    

     

    
      	
               
      

            	
              (1)

            	
              In
      case the Company shall (i) declare a dividend or make a distribution on
      its outstanding shares of Common Stock in shares of Common Stock, (ii)
      subdivide or reclassify its outstanding shares of Common Stock into a
      greater number of shares, or (iii) combine or reclassify its outstanding
      shares of Common Stock into a smaller number of shares, the Exercise Price
      in effect at the time of the record date for such dividend or distribution
      or of the effective date of such subdivision, combination or
      reclassification shall be adjusted so that the Exercise Price shall be
      proportionately increased (as in the case of (iii), above) or decreased
      (as in the case of (i) or (ii), above). Such adjustment shall be made
      successively whenever any event listed above shall
  occur.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Whenever
      the Exercise Price payable upon exercise of each Warrant is adjusted
      pursuant to Subsections (1) above, the number of Shares purchasable upon
      exercise of this Warrant shall simultaneously be adjusted by multiplying
      the number of Shares initially issuable upon exercise of this Warrant by
      the Exercise Price in effect on the date hereof and dividing the product
      so obtained by the Exercise Price, as
adjusted.

            

    

     

    
      	
               
      

            	
              (3)

            	
              No
      adjustment in the Exercise Price shall be required unless such adjustment
      would require an increase or decrease of at least two cents ($0.02) in
      such price; provided, however, that any adjustments which by reason of
      this Subsection (5) are not required to be made shall be carried forward
      and taken into account in and subsequent adjustment required to be made
      hereunder. All calculations under this Section (f) shall be made to the
      nearest cent or to the nearest one-hundredth of a share, as the case may
      be. Anything in this Section (f) to the contrary notwithstanding, the
      Company shall be entitled, but shall not be required, to make such changes
      in the Exercise Price, in addition to those required by this Section (f),
      as it shall determine, in its sole discretion, to be advisable in order
      that any dividend or distribution in shares of Common Stock, or any
      subdivision, reclassification or combination of Common Stock, hereafter
      made by the Company shall not result in any Federal income tax liability
      to the holders of Common Stock or securities convertible into Common or
      Common Stock (including Warrants).

            

    

     

    
      	
               
      

            	
              (4)

            	
              Whenever
      the Exercise Price is adjusted, as herein provided, the Company shall
      promptly but no later than 20 days after any request for such an
      adjustment by the Holder, cause a notice setting forth the adjusted
      Exercise Price and adjusted number of Shares issuable upon exercise of
      each Warrant, and, if requested, information describing the transactions
      giving rise to such adjustments, to be mailed to the Holder at his last
      address appearing in the Warrant Register, and shall cause a certified
      copy thereof to be mailed to its transfer agent, if any. The Company may
      retain a firm of independent certified public accountants selected by the
      Board of Directors (who may be the regular accountants employed by the
      Company) to make any computation required by this Section (t), and a
      certificate signed by such firm shall be conclusive evidence of the
      correctness of such adjustment.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (5)

            	
              In
      the event that at any time, as a result of an adjustment made pursuant to
      Subsection (1) above, the Holder of this Warrant thereafter shall become
      entitled to receive any shares of the Company, other than Common Stock,
      thereafter the number of such other shares so receivable upon exercise of
      this Warrant shall be subject to adjustment from time to time in a manner
      and on terms as nearly equivalent as practicable to the provisions with
      respect to the Common Stock contained in Subsections (1) to (4), inclusive
      above.

            

    

     

    
      	
               
      

            	
              (6)

            	
              Irrespective
      of any adjustments in the Exercise Price or the number or kind of shares
      purchasable upon exercise of this Warrant, Warrants theretofore or
      thereafter issued may continue to express the same price and number and
      kind of shares as are stated in the similar Warrants initially issuable
      pursuant to this Agreement.

            

    

     

    
      	
               
      

            	
              (g)

            	
              OFFICER'S
      CERTIFICATE. Whenever the Exercise Price shall be adjusted as required by
      the provisions of the foregoing Section, the Company shall forthwith file
      in the custody of its Secretary or an Assistant Secretary at its principal
      office an officer's certificate showing the adjusted Exercise Price
      determined as herein provided, setting forth in reasonable detail the
      facts requiring such adjustment, including a statement of the number of
      additional shares of Common Stock, if any, and such other facts as shall
      be necessary to show the reason for and the manner of computing such
      adjustment. Each such officer's certificate shall be made available at all
      reasonable times for inspection by the Holder or any holder of a Warrant
      executed and delivered pursuant to Section (a) and the Company shall,
      forthwith after each such adjustment, mail a copy by certified mail of
      such certificate to the Holder or any such
  holder.

            

    

     

    
      	
               
      

            	
              (h)

            	
              NOTICES
      TO WARRANT HOLDERS. So long as this Warrant shall be outstanding, (i) if
      the Company shall pay any dividend or make any distribution upon the
      Common Stock  or (ii) if the Company shall offer to the holders
      of Common Stock for subscription or purchase by them any share of any
      class or any other rights or (iii) if any capital reorganization of the
      Company, reclassification of the capital stock of the Company,
      consolidation or merger of the Company with or into another corporation,
      sale, lease or transfer of all or substantially all of the property and
      assets of the Company to another corporation, or voluntary or involuntary
      dissolution, liquidation or winding up of the Company shall be effected,
      then in any such case, the Company shall cause to be mailed by certified
      mail to the Holder, at least fifteen days prior to the date specified in
      (x) or (y) below, as the case may be, a notice containing a brief
      description of the proposed action and stating the date on which (x) a
      record is to be taken for the purpose of such dividend, distribution or
      rights, or (y) such reclassification, reorganization, consolidation,
      merger, conveyance, lease, dissolution, liquidation or winding up is to
      take place and the date, if any is to be fixed, as of which the holders of
      Common Stock or other securities shall receive cash or other property
      deliverable upon such reclassification, reorganization, consolidation,
      merger, conveyance, dissolution, liquidation or winding
  up.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (i)

            	
              RECLASSIFICATION,
      REORGANIZATION OR MERGER. In case of any reclassification, capital
      reorganization or other change of outstanding shares of Common Stock of
      the Company, or in case of any consolidation or merger of the Company with
      or into another corporation (other than a merger with a subsidiary in
      which merger the Company is the continuing corporation and which does not
      result in any reclassification, capital reorganization or other change of
      outstanding shares of Common Stock of the class issuable upon exercise of
      this Warrant) or in case of any sale, lease or conveyance to another
      corporation of the property of the Company as an entirety, the Company
      shall, as a condition precedent to such transaction, cause effective
      provisions to be made so that the Holder shall have the right thereafter
      by exercising this Warrant at any time prior to the expiration of the
      Warrant, to purchase the kind and amount of shares of stock and other
      securities and property receivable upon such reclassification, capital
      reorganization and other change, consolidation, merger, sale or conveyance
      by a holder of the number of shares of Common Stock which might have been
      purchased upon exercise of this Warrant immediately prior to such
      reclassification, change, consolidation, merger, sale or conveyance. Any
      such provision shall include provision for adjustments which shall be as
      nearly equivalent as may be practicable to the adjustments provided for in
      this Warrant. The foregoing provisions of this Section (i) shall similarly
      apply to successive reclassifications, capital reorganizations and changes
      of shares of Common Stock and to successive consolidations, mergers, sales
      or conveyances. In the event that in connection with any such capital
      reorganization or reclassification, consolidation, merger, sale or
      conveyance, additional shares of Common Stock shall be issued in exchange,
      conversion, substitution or payment, in whole or in part, for a security
      of the Company other than Common Stock, any such issue shall be treated as
      an issue of Common Stock covered by the provisions of Subsection (1) of
      Section (f) hereof.

            

    

     

    
      	
               
      

            	
              (k)

            	
              RESTRICTIVE
      LEGEND. Each Warrant Share, when issued, shall include a legend in
      substantially the following form:

            

    

     

    
      	
               
      

            	
              THESE
      SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
      "ACT") NOR UNDER ANY STATE SECURITIES LAW AND MAY NOT BE PLEDGED, SOLD,
      ASSIGNED OR OTHERWISE TRANSFERRED UNTIL A (1) REGISTRATION STATEMENT UNDER
      THE ACT AND ANY APPLICABLE STATE SECURITIES LAW HAS BECOME EFFECTIVE WITH
      RESPECT THERETO, OR (2) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL TO
      THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT OR APPLICABLE
      STATE SECURITIES LAW IS NOT REQUIRED IN CONNECTION WITH THE PROPOSED
      TRANSFER.

            

    

    

    The Company will not, by amendment of
its charter or through reorganization, consolidation, merger, dissolution, sale
of assets or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the Holder of this Warrant against impairment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Dated:  ____________,
2010

     

    
      
        	 	SPECTRASCIENCE,
      INC.	 
	 	 	 
	Attest:	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	 	 
	James
      Hitchin	 	James
      Hitchin	 
	 	 	 	 
	Title:
      Chairman and CEO	 	Title:  Secretary	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    PURCHASE
FORM

     

    Dated  _____________
20__

    

     

    The
undersigned hereby irrevocably elects to exercise the within Warrant to the
extent of Purchasing ________ shares of Common Stock and hereby makes payment of
______________ in payment of the actual exercise price thereof.

     

    ___________________

    

     

    INSTRUCTIONS FOR
REGISTRATION OF STOCK

    

     

    Name
________________________________________________________________________

    

     

    (Please
typewrite or print in block letters)

     

     

    Address
________________________________________________________________________

     

    

     

    Signature
________________________________________________________________________

     

     

    ________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
FORM

     

    

     

    FOR VALUE
RECEIVED, _____________________________________ hereby sells, assigns and
transfers unto

    

     

    Name
________________________________________________________________________

     

     

    (Please
typewrite or print in block letters)

    

     

    Address
___________________________________________________________________________

     

    the right
to purchase Common Stock represented by this Warrant to the extent of _________
shares as to which such right is exercisable and does hereby irrevocably
constitute and appoint ______________ Attorney, to transfer the same on the
books of the Company with full power of substitution in the
premises.

     

     

    Date
_________, 20___

    

     

    Signature
_______________________EXHIBIT
4.6

     

    CERTIFICATE
OF DESIGNATION

    OF
RIGHTS AND PREFERENCES OF

    SERIES
C PREFERRED STOCK

    OF
SPECTRASCIENCE, INC.

     

    (PURSUANT
TO MINNESOTA STATUTES, SECTION 302A.401, SUBD. 3(B))

     

    The
undersigned, being the Secretary of SpectraScience, Inc., a corporation
organized and existing under the laws of the State of Minnesota (the “Company”), in
accordance with the provisions of Minnesota Statutes, Section 302A.401, Subd.
3(b), does hereby certify that pursuant to the authority vested in the Company’s
Board of Directors by the Company’s Amended and Restated Articles of
Incorporation (the “Articles”), the Board
of Directors on April 9, 2010, in accordance with Minnesota Statutes, Section
302A.401, Subd. 3 and Section 2.01 of the Articles duly adopted the following
resolution establishing the Series C Preferred Stock of the
Company:

     

    RESOLVED,
that pursuant to the authority vested in the Board of Directors of the Company
by the Articles, the Board of Directors hereby establishes a class of preferred
stock entitled the Series C Preferred Stock, and hereby states the designation
and number of shares, and fixes the relative rights and preferences, of the
Series C Preferred Stock as follows:

     

     Designation and
Rank.

     

    Twenty-Five
Million (25,000,000) shares of the Company’s undesignated stock authorized by
Article 2.01 of the Articles are designated as Series C Preferred Stock, par
value $0.01 per share, (the “Series C Stock”). The
Series C Stock shall rank, with respect to dividends and rights upon
liquidation, winding up and dissolution, senior to the Common Stock of the
Company.

     

    1.           Definitions

     

     For
purposes of this Certificate of Designation (“Certificate”) the
following definitions shall apply and shall be equally applicable to both the
singular and plural forms of the defined terms:

     

    1.1           “Conversion Shares”
shall mean the securities issued or issuable upon conversion of the Series C
Stock.

     

    1.2           “Free Trading” shall
mean that (i) Conversion Shares consist of Common Stock and are freely tradable
by non-affiliates of the Company (subject only to the volume limitations imposed
by Rule 144 under the Securities Act of 1933) and (ii) over a period of ten
consecutive trading days immediately prior to the Mandatory Conversion Date (as
defined in Section 5.2 hereof) the Common Stock has had (A) an average closing
price not less than the Conversion Price then in effect and (B) average daily
trading volume of not less than 50,000 shares.

     

    1.3           “Original Issue Price”
shall mean $.20 per share of Series C Stock (subject to appropriate adjustments
for stock splits and other combinations of the Series C Stock in the same manner
as set forth in Section 5.6).

     

    1.4           “Person” shall include
all natural persons, corporations, business trusts, associations, limited
liability companies, partnerships, joint ventures and other entities,
governments, agencies and political subdivisions.

     

    1.5           “Qualified Public
Offering” shall mean the closing of the first underwritten public
offering pursuant to an effective registration statement filed under the
Securities Act after April 10, 2010 covering the offering and sale of Common
Stock for the account of the Company on a firm commitment basis in which (i) the
aggregate gross proceeds to the Company arising from the sale of securities
solely for cash is at least $10,000,000 before deduction of underwriters’
commissions and expenses and (ii) prior to or as a result of such offering, the
Common Stock is listed for trading on the New York Stock Exchange, the American
Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market, the
Nasdaq Capital Market, or any other “exchange” recognized by rule of the
Securities and Exchange Commission.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.6           “Series C Stock” shall
mean Series C Preferred Stock of the Company.

     

    2.    Voting
Rights.

     

    2.1           General.  At
all meetings of the shareholders of the Company and in the case of any actions
of shareholders in lieu of a meeting, each holder of the Series C Stock shall
have that number of votes on all matters submitted to the shareholders that is
equal to the number of whole shares of Common Stock into which such holder’s
shares of Series C Stock are then convertible, as provided in Section 5 hereof,
at the record date for the determination of the shareholders entitled to vote on
such matters or, if no such record date is established, at the date such vote is
taken or any written consent of such shareholders is effected.  Except
as may be otherwise provided in this Certificate, by agreement, or by law, the
holders of the Common Stock and the holders of the Series C Stock shall vote
together as a single class on all actions to be taken by the shareholders of the
Company.

     

    2.2           Additional Class Votes by
the Series C Stock.  For so long as at least 35% of the shares
of Series C Stock originally issued remain outstanding, the Company shall not,
without the affirmative vote of at least 67% of the then outstanding shares of
the Series C Stock, with each share of the Series C Stock entitled to one vote
in each instance:

     

    (i)           Take
any action, including, without limitation, any action that constitutes or
results in an amendment or waiver of any provision of the Company’s Articles of
Incorporation or Bylaws, if such action in any way affects, alters or changes
any existing rights, preferences, privileges or provisions relating to the
Series C Stock or the holders thereof, or results in any increase or decrease in
the authorized number of shares of the Series C Stock;

     

    (ii)           Authorize,
issue or otherwise create (by reclassification or otherwise) any new class of
additional shares of capital stock of the Company having rights, preferences or
privileges that are senior to or on priority with the Series C Stock (including
any additional shares of the Series C Stock).

     

    3.    Dividends.

     

    3.1           Dividends.  Holders
of Series C Stock shall not be entitled to the payment of dividends, except at
the discretion of the Company’s Board.

     

    3.2           Non-Cash
Dividends.  Whenever a dividend provided for in this Section 3
shall be payable in property other than cash (including without limitation
Common Stock), the value of such dividend shall be deemed to be the fair market
value of such property as determined in good faith by the Board.

     

    3.3           Payments on
Conversion.  If the Company shall have accrued but unpaid cash
dividends with respect to any of the Series C Stock upon its conversion as
provided in Section 5 hereof, then all such accrued but unpaid dividends on such
converted shares shall be canceled.

     

    4.    Liquidation
Rights.

     

    4.1           Preference of the Series C
Stock.  In the event of any liquidation, dissolution or winding
up of the Company, whether voluntary or involuntary, the holders of the Series C
Stock then outstanding shall be entitled to be paid out of the assets of the
Company available for distribution to its shareholders, whether such assets are
capital, surplus, or earnings, before any payment or declaration and setting
apart for payment of any amount shall be made in respect of the Common Stock or
any other class or series of shares ranking junior to the Series C Stock, an
amount equal to (a) the Original Issue Price (subject to appropriate adjustments
for stock splits, stock dividends, recapitalizations and other combinations in
the same manner as set forth in Section 5) plus (b) declared but unpaid
dividends to and including the date full payment shall be tendered to the
holders of the Series C Stock (the “Liquidation Price”) with respect to such
liquidation, dissolution or winding up.  If, upon any liquidation,
dissolution, or winding up of the Company, whether voluntary or involuntary, the
assets to be distributed to the holders of the Series C Stock shall be
insufficient to permit the payment to such shareholders of the full preferential
amounts aforesaid, then all of the assets of the Company shall be distributed
ratably to the holders of the Series C Stock based upon the full Liquidation
Price payable with respect to such shares of the Series C Stock if such
liquidation preference was paid in full.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.2           Reorganization; Sale of
Assets.  The merger, acquisition or consolidation of the
Company into or with any other entity or entities which results in the exchange
of outstanding shares of the Company for securities or other consideration
issued or paid or caused to be issued or paid by any such entity or affiliate
thereof pursuant to which the shareholders of the Company immediately prior to
the transaction do not own a majority of the outstanding shares of the surviving
corporation immediately after the transaction, or any sale, lease, license (on
an exclusive basis) or transfer by the Company of all or substantially all its
assets, shall be deemed to be a liquidation, dissolution or winding up of the
Company within the meaning of the provisions of this Section 5 unless this
provision is waived by the affirmative vote of the holders of at least 50% of
the Series C Stock then outstanding.

     

    4.3           Notice.  Written
notice of such liquidation, dissolution or winding up, stating a payment date
and the place where said payments shall be made, shall be given by mail, postage
prepaid, or by telephone facsimile to non-U.S. residents, not less than 20 days
prior to the earlier of (i) the shareholders’ meeting called to approve such
transaction or (ii) the closing of such transaction, to the holders of record of
the Series C Stock, such notice to be addressed to each such holder at its
address as shown by the records of the Company.  The first of such
notices shall describe all material terms and conditions of the transaction and
of Section 4.2 hereof (including, without limiting the generality of the
foregoing, a description of the value of the consideration, if any, being
offered to the holders of the Series C Stock in the transaction and the amount
to which such holders would be entitled if such transaction were (as described
in Section 4.2 hereof) to be deemed a liquidation, dissolution or winding up of
the Company) and the Company shall thereafter give such holders prompt notice of
any material changes to such terms and conditions.  The transaction
shall in no event take place sooner than 20 days after the mailing by the
Company of the first notice provided for herein or sooner than 10 days after the
mailing by the Company of any notice of material changes as provided for herein;
provided that such periods may be reduced upon the written consent of the
holders of a majority in interest of the Series C Stock then outstanding, voting
together as a single class on an as-if-converted basis.

     

    5.    Conversion.  The
holders of the Series C Stock shall have the following conversion rights (the
“Conversion
Rights”):

     

    5.1           Optional Conversion of the
Series C Stock.  The Series C Stock shall be convertible, in
whole or in part, without the payment of any additional consideration by the
holder thereof and at the option of the holder thereof, at any time after the
date of this Certificate at the office of the Company into that number of shares
of Common Stock as is determined by dividing $.20 by the Conversion Price (as
defined below) in effect at the time of conversion and then multiplying such
quotient by each share of the Series C Stock to be converted.  The
price at which the shares of Common Stock shall be deliverable upon conversion
without payment of any additional consideration by the holder thereof shall be
initially $.20 per share (the “Conversion Price”).  The Conversion
Price shall be subject to adjustment, in order to adjust the number of shares of
the Common Stock into which the Series C Stock is convertible, as hereinafter
provided.

     

    5.2           Automatic Conversion of the
Series C Stock.  If at any time (a) the Company shall complete
a Qualified Public Offering, or (b) the holders of at least 67% of the
outstanding Series C Stock shall consent in writing to the conversion of the
Series C Stock into shares of the Common Stock, or (c) the Conversion Shares
upon issuance will be Free Trading, then effective upon (i) the closing of the
sale of such shares by the Company pursuant to such Qualified Public Offering,
(ii) such consent of the holders of the Series C Stock, or (iii) notice by the
Company to the holders of the Series C Stock that the Conversion Shares are Free
Trading, as the case may be, all outstanding shares of Series C Stock shall
automatically convert into shares of the Common Stock at the Conversion Price as
of a date specified by the Company (the “Mandatory Conversion
Date”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.3           Fractional
Shares.  No fractional shares of Common Stock shall be issued
upon conversion of the Series C Stock.  In lieu of any fractional
share to which any holder would otherwise be entitled upon conversion of some or
all of the Series C Stock owned by such holder, the Company shall, at the
discretion of the Board, pay cash equal to such fraction multiplied by the then
effective Conversion Price or round up to the nearest whole share.

     

    5.4           Mechanics of Optional
Conversion.  Before any holder of the Series C Stock shall be
entitled to convert the same into full shares of Common Stock, such holder shall
surrender the certificate or certificates therefore, endorsed or accompanied by
written instrument or instruments of transfer, in form satisfactory to the
Company, duly executed by the registered holder or by such holder’s attorney
duly authorized in writing, at the office of the Company and shall give written
notice to the Company at such office that such holder elects to convert the same
and shall state therein such holder’s name or the name of the nominees in which
such holder wishes the certificate or certificates for shares of the Common
Stock to be issued.  The Company shall, as soon as practicable
thereafter, issue and deliver at such office to such holder of the Series C
Stock, or to such holder’s nominee or nominees, a certificate or certificates
for the number of shares of the Common Stock to which such holder shall be
entitled as aforesaid, together with cash if any, to be delivered in lieu of any
fraction of a share.  Such conversion shall be deemed to have been
made immediately prior to the close of business on the date of such surrender of
the shares of the Series C Stock to be converted, and the person or persons
entitled to receive the shares of the Common Stock issuable upon conversion
shall be treated for all purposes as the record holder or holders of such shares
of the Common Stock on such date.  From and after such date, all
rights of the holder with respect to the Series C Stock so converted shall
terminate, except only the right of such holder, upon the surrender of his, her
or its certificate or certificates therefore, to receive certificates for the
number of shares of the Common Stock issuable upon conversion thereof,
certificates for the number of shares of the Series C Stock remaining and cash
for fractional shares.

     

    5.5           Mechanics of Automatic
Conversion.  All holders of record of shares of the Series C
Stock will be given at written notice of the date of any automatic conversion
pursuant to Section 5.2 hereof not later than three business days’ following the
actual date of such automatic conversion.  Each such notice shall
designate a place for exchange of all of the shares of such Series C
Stock.  Such notices will be sent by mail, first class, postage
prepaid to each record holder of the Series C Stock at such holder’s address
appearing on the Company’s stock register, or by overnight courier service in
the case of the notice prior to the actual date of conversion.  Each
holder of shares of the Series C Stock shall surrender such holder’s certificate
or certificates for all such shares to the Company at the place designated in
such notice, and shall thereafter receive certificates for the number of shares
of the Common Stock or other securities to which such holder is
entitled.  Failure to provide such notice or untimely notice shall not
affect the validity of automatic conversion hereunder.  On the date
fixed for conversion, all rights with respect to the Series C Stock will
terminate, except only the rights of the holders thereof, upon surrender of
their certificate or certificates therefore, to receive certificates for the
number of shares of the Common Stock or other securities into which such Series
C Stock has been converted and cash for fractional shares.  If so
required by the Company, certificates surrendered for conversion shall be
endorsed or accompanied by a written instrument or instruments of transfer, in
form satisfactory to the Company, duly executed by the registered holder or by
her, his or its attorney duly authorized in writing.  All certificates
evidencing shares of the Series C Stock which are required to be surrendered for
conversion in accordance with the provisions hereof shall, from and after the
date such certificates are so required to be surrendered, be deemed to have been
retired and canceled and the shares of the Series C Stock represented thereby
converted into the Common Stock for all purposes, notwithstanding the failure of
the holder or holders thereof to surrender such certificates on or prior to such
date; provided that the Company may require the holder to provide adequate
protection to the Company for the loss of such certificate(s) prior to issuing
certificates for shares of Common Stock to such holder.  As soon as
practicable after the date of such automatic conversion and the surrender of the
certificate or certificates for the Series C Stock as aforesaid, the Company
shall cause to be issued and delivered to such holder, or to her, his or its
written order, a certificate or certificates for the number of full shares of
the Common Stock or other securities issuable on such conversion in accordance
with the provisions hereof and cash as provided in Section 5.3 hereof in respect
of any fraction of a share of Common Stock otherwise issuable upon such
conversion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.6           Certain Adjustments to
Conversion Price for Stock Splits, Dividends, Mergers, Reorganizations,
Etc.

     

    (a)           Adjustment for Stock Splits,
Stock Dividends and Combinations of Common Stock.  In the event
the outstanding shares of Common Stock shall, after the filing of this
Certificate, be further subdivided (split), or combined (reverse split), by
reclassification or otherwise, or in the event of any dividend or other
distribution payable on the Common Stock in shares of Common Stock, the
applicable Conversion Price in effect immediately prior to such subdivision,
combination, dividend or other distribution shall, concurrently with the
effectiveness of such subdivision, combination, dividend or other distribution,
be proportionately adjusted.

     

    (b)           Adjustment for Merger or
Reorganization, etc.  In the event of a reclassification,
reorganization or exchange (other than described in Section 5.6(a) above) or any
merger, acquisition, consolidation or reorganization of the Company with another
company or entity (other than a merger, acquisition or other consolidation or
reorganization as defined in Section 4.2 hereof, which is considered a
liquidation pursuant to Section 4 above), each share of the Series C Stock shall
thereafter be convertible into the number of shares of stock or other securities
or property to which a holder of the number of shares of the Common Stock of the
Company deliverable upon conversion of the Series C Stock would have been
entitled upon such reclassification, reorganization, exchange, consolidation,
merger or conveyance had the conversion occurred immediately prior to the event;
and, in any such case, appropriate adjustment (as determined by the Board) shall
be made in the application of the provisions herein set forth with respect to
the rights and interests thereafter of the holders of the Series C Stock, to the
end that the provisions set forth herein (including provisions with respect to
changes in and other adjustments of the applicable Conversion Price) shall
thereafter be applicable, as nearly as reasonably may be, in relation to any
shares of stock or other property thereafter deliverable upon the conversion of
the Series C Stock.

     

    (c)           Duration of Adjusted
Conversion Price.  Following each computation or readjustment
of an adjusted Conversion Price as provided above in this Section 5, the new
adjusted Conversion Price shall remain in effect until a further computation or
readjustment thereof is required by this Section 5.

     

    (d)           Other Action Affecting the
Common Stock.  In case, after the filing of this Certificate,
the Company shall take any action affecting the Common Stock, other than an
action described above in this Section 5, which in the good faith opinion of the
Board would have a materially adverse effect upon the Conversion Rights of the
Series C Stock granted herein, the Conversion Price shall be adjusted in such
manner and at such time as the Board may in good faith determine to be equitable
in the circumstances.

     

    (e)           Certificate as to
Adjustments.  Upon the occurrence of each adjustment or
readjustment of the Conversion Price pursuant to this Section 5, the Company at
its expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each holder of the applicable Series C
Stock a certificate setting forth such adjustment or readjustment and showing in
reasonable detail the facts upon which such adjustment or readjustment is
based.  The Company shall, upon the written request, at any time, of
any holder of the Series C Stock, furnish or cause to be furnished to such
holder a like certificate setting forth: (i) such adjustments and readjustments;
(ii) the applicable Conversion Price at the time in effect; and (iii) the number
of shares of the Common Stock and the amount, if any, of other property which at
the time would be received upon the conversion of such Series C
Stock.

     

    5.7           Notices of Record
Date.  In the event of any taking by the Company of a record of
the holders of any class of securities for the purpose of determining the
holders thereof who are entitled to receive any dividend (other than a cash
dividend which is the same as cash dividends paid in previous quarters) or other
distribution, any capital reorganization of the Company, any reclassification or
recapitalization of the Company’s capital stock, any consolidation or merger
with or into another Company, any transfer of all or substantially all of the
assets of the Company or any dissolution, liquidation or winding up of the
Company, the Company shall mail to each holder of the Series C Stock at least 10
days prior to the date specified for the taking of a record, a notice specifying
the date on which any such record is to be taken for the purpose of such
dividend or distribution.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.8           Common Stock
Reserved.  The Company shall reserve and keep available out of
its authorized but unissued Common Stock such number of shares of the Common
Stock as shall from time to time be sufficient to effect conversion of the
Series C Stock.

     

    5.9           Payment of
Taxes.  The Company will pay all taxes (other than taxes based
upon income) and other governmental charges that may be imposed with respect to
the issue or delivery of shares of the Common Stock upon conversion of shares of
the Series C Stock, other than any tax or other charge imposed in connection
with any transfer involved in the issue and delivery of shares of the Common
Stock in a name other than that in which the shares of the Series C Stock so
converted were registered.

     

    5.10           No
Impairment.  The Company will not through any reorganization,
transfer of assets, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed hereunder by the Company but will
at all times in good faith assist in the carrying out of all the provisions of
this Section 5 and in taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of the
Series C Stock against impairment.  Notwithstanding the foregoing,
nothing in this Section 5.10 shall prohibit the Company from amending its
Articles with the requisite consent of its shareholders and the Board of
Directors.

     

    6.           Status of Series C Stock
Upon Retirement.

     

    Shares of
Series C Stock which are acquired or redeemed by the Company or converted
pursuant to Section 5 shall become authorized undesignated shares and may be
redesignated and reissued by the Board of Directors as provided in the
Articles.

     

    IN
WITNESS WHEREOF, the Company has caused this Certificate to be signed by Jim
Hitchin, its Secretary, this 29 day of April, 2010.

     

     

    
      	 
      	
              SPECTRASCIENCE,
      INC.

               

              By:          
      /s/ Jim
      Hitchin

               

              Name:     
      Jim Hitchin

               

              Its:           Secretary

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