Document:

EX-10.2

 Exhibit 10.2 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) dated May 25, 2017 (the “Effective Date”) by and
between Chart Industries, Inc. (the “Company”) and William C. Johnson (the “Executive”) amends and restates the Employment Agreement between Executive and the Company, dated July 13, 2016 (the “Original Employment
Agreement”). 
 WHEREAS, Executive currently serves as the President and Chief Operating Officer of the Company pursuant to his
Original Employment Agreement; 
 WHEREAS, as part of the Company’s executive succession plan, the Board of Directors has
previously elected the Executive, effective as of the May 25, 2017 Annual Meeting of Stockholders, to the position of Chief Executive Officer and President of the Company; and 

WHEREAS, Executive and the Company desire to amend the Original Employment Agreement to reflect revised terms in connection with his new
position. 
 In consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree
to amend and restate the Original Employment Agreement as follows: 
 1.    Term of Employment. Subject to the
provisions of Section 8 of this Agreement, Executive shall be employed by the Company, on the terms and subject to the conditions set forth in this Agreement, for the period commencing on May 25, 2017, and ending on the second anniversary
of said date (the “Employment Term”). Thereafter the Employment Term shall automatically be extended on May 25 of each year for a period of one year from such date. In addition, in the event of a Change in Control, the Employment Term
shall automatically be extended for a period of three years beginning on the date of the Change in Control and ending on the third anniversary of the date of such Change in Control (unless further extended under the immediately preceding sentence).
The Company or Executive may give notice to the other party that the Employment Term shall no longer be extended (the “Non-Renewal Notice”), in which event the Employment Term shall expire on the
latest of: (i) such second anniversary of the original Employment Term commencement date, (ii) such third anniversary of a Change in Control, or (iii) the first anniversary of the delivery of such
Non-Renewal Notice. In any case, the Employment Term may be terminated earlier under the terms and conditions set forth herein. 

2.    Position. 

a.    Title. During the Employment Term, Executive shall serve as the Company’s Chief Executive Officer and
President. In such position, Executive shall have such duties, authority and responsibility as shall be determined from time to time by the Board of Directors of the Company (the “Board”), which duties, authority and responsibility are
consistent with the position of Chief Executive Officer and President of the Company. 
 b.    Best Efforts.
During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation for
compensation or otherwise which 

 
would conflict or interfere with the rendition of such services either directly or indirectly, without the prior written consent of the Board; provided that nothing herein shall preclude
Executive, subject to the prior approval of the Board, from accepting appointment to or continue to serve on any board of directors or trustees of any business corporation or any charitable organization; provided in each case, and in the aggregate,
that such activities do not conflict or interfere with the performance of Executive’s duties hereunder or conflict with Section 10. 

c.    Place of Employment. In connection with Executive’s employment by the Company, Executive shall
not be required to relocate or move from Executive’s existing principal residence in Alpharetta, Georgia, and shall not be required to perform services which would make the continuance of Executive’s principal residence in Alpharetta,
Georgia, unreasonably difficult or inconvenient for Executive. The Company shall give Executive at least six months’ advance notice of any proposed relocation of its offices in Ball Ground, Georgia at which Executive’s present principal
office is located to a location more than 50 miles from such present location, and, if Executive in Executive’s sole discretion chooses to relocate Executive’s principal residence as a result of such office relocation, the Company shall
promptly pay (or reimburse Executive for) all reasonable relocation expenses (consistent with the Company’s past practice for similarly situated senior executive officers) incurred by Executive relating to a change of Executive’s principal
residence in connection with any such relocation of the Company’s offices from such present location. 

3.    Base Salary. During the Employment Term, the Company shall pay Executive a base salary at the annual rate of
$710,000, payable in regular installments in accordance with the Company’s usual payment practices. Executive shall be entitled to such increases in Executive’s base salary, if any, as may be determined from time to time in the sole
discretion of the Board or any duly authorized committee thereof. Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the “Base Salary.” 

4.    Annual Bonus. With respect to each full fiscal year during the Employment Term (commencing with the 2018
fiscal year), Executive shall be eligible to earn an annual bonus award (an “Annual Bonus”) of an amount, expressed as a percentage of Executive’s Base Salary, as determined by the Board, or any duly authorized committee thereof,
within the first three months of each fiscal year of the Employment Term (with it being understood that such percentage of Executive’s Base Salary is the “Target”) based upon the achievement of the performance targets established by
the Board, or any duly authorized committee thereof, within the first three months of each fiscal year during the Employment Term. Executive acknowledges that the amount of his Annual Bonus for fiscal year 2017 will be calculated in two parts. The
first part shall use a Target amount of 100 % of his salary rate in effect immediately prior to this Agreement’s Effective Date. The second part shall use a Target amount of 100% of his Base Salary rate as of the Effective Date. The
Annual Bonus, if any, shall be paid to Executive within two and one-half (2.5) months after the end of the applicable fiscal year. Any Annual Bonus payable hereunder shall be determined in accordance with the
terms of the Company’s Incentive Compensation Plan, as currently in effect and as it may be amended from time to time, including any successor plan (the “Incentive Compensation Plan”). In the event of a Change In Control as defined in
the Incentive Compensation Plan, the Annual Bonus may be pro-rated in accordance with the terms of the Incentive Compensation Plan. 

  
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 5.    Employee Benefits. During the Employment Term, Executive shall
be entitled to participate in the Company’s employee benefit plans (other than annual bonus and incentive plans) providing for health, life and disability insurance, retirement, deferred compensation and fringe benefits, as well as any equity
compensation plans, as in effect from time to time (collectively “Employee Benefits”), on the same basis as those benefits are generally made available to other senior executives of the Company. Executive’s right to participate in any
Employee Benefits shall be subject to the applicable eligibility criteria for participation and Executive shall not be entitled to any benefits under, or based on, any Employee Benefits for any purposes of this Agreement if Executive does not during
the Employment Term satisfy the eligibility criteria for participation in such Employee Benefits. Any equity incentive granted, awarded and held by the Executive shall be governed by the applicable terms of any such grant and award, and shall not be
impacted by the terms of this Agreement, except to the extent taken into account in determinations under Section 9. 

6.    Vacation. During the Employment Term, Executive shall be entitled to five (5) weeks of paid vacation and
other paid time off benefits in accordance with applicable Company policies, and to be taken at such times as chosen by Executive. 

7.    Business Expenses and Perquisites. 

a.    Expenses. During the Employment Term, reasonable business expenses incurred by Executive in the performance of
Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies. 

b.    Perquisites. During the Employment Term, Executive shall be eligible for an automobile allowance
of up to $1,000 per month, consistent with the Company’s current practices. 
 8.    Termination. The
Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason; provided that Executive will be required to give the Company at least 60 days advance written notice of any resignation of
Executive’s employment. The provisions of this Section 8 govern Executive’s rights upon Termination of Employment with the Company and its affiliates. “Termination of Employment” as used in this Agreement means the
separation from service, within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended from time to time (“Code”, any reference in this Agreement to a Section of the Code shall include all lawful regulations and
pronouncements promulgated thereunder, as well as any successor Sections of the Code having the same or similar purpose), of Executive with the Company and all of its affiliates, for any reason, including without limitation, quit, discharge, or
retirement, or a leave of absence (including military leave, sick leave, or other bona fide leave of absence such as temporary employment by the government if the period of such leave exceeds the greater of six months, or the period for which
Executive’s right to reemployment is provided either by statute or by contract) or permanent decrease in service to a level that is no more than Twenty Percent (20%) of its prior level. For this purpose, whether a Termination of Employment has
occurred is determined based on whether it is reasonably anticipated that no further services will be performed by Executive after a certain date or that the level of bona fide services Executive will perform after such date (whether as an employee
or as an independent contractor) would 

  
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permanently decrease to no more than Twenty Percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding
36-month period (or the full period of services if Executive has been providing services less than 36 months). The terms “Terminate” or “Terminated,” when used in reference to
Executive’s employment or the Employment Period, shall refer to a Termination of Employment as set forth in this paragraph. “Date of Termination” refers to the effective date of Executive’s Termination of Employment. 

a.    Termination By the Company For Cause or By Executive’s Resignation Without Good Reason. 

(i)    Events. The Employment Term and Executive’s employment hereunder may be terminated by the Company for
Cause (as defined below) and shall terminate automatically upon Executive’s resignation without Good Reason (as defined in Section 8(c)); provided that Executive will be required to give the Company at least 60 days advance written notice of a
resignation without Good Reason. 
 (ii)    For Cause. For purposes of this Agreement, “Cause” shall
mean the Executive’s (A) willful failure to perform duties which, if curable, is not cured promptly, or in any event within ten (10) days, following the first written notice of such failure from the Company, (B) commission of, or
plea of guilty or no contest to a (x) felony or (y) crime involving moral turpitude, (C) willful malfeasance or misconduct which is demonstrably injurious to the Company or its subsidiaries or affiliates, (D) material breach of
the material terms of this Agreement, including, without limitation, any non-competition, non-solicitation or confidentiality provisions, (E) commission of any act
of gross negligence, corporate waste, disloyalty or unfaithfulness to the Company which adversely affects the business of the Company or its subsidiaries or affiliates, or (F) any other act or course of conduct which will demonstrably have a
material adverse effect on the Company, a subsidiary or affiliate’s business. For the avoidance of doubt, the Company’s failure to achieve its business plan or projections shall not alone be considered “Cause”. 

(iii)    Compensation. If Executive’s employment is terminated by the Company for Cause, or if Executive
resigns without Good Reason, Executive shall be entitled to receive the amounts in clauses (A) through (D) below referred to herein as “Accrued Rights”: 

(A)    the Base Salary through the Date of Termination; 

(B)    any Annual Bonus earned, but unpaid, as of the Date of Termination for the immediately preceding fiscal year, paid
in accordance with Section 4 (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company); 

(C)    reimbursement, within 60 days following submission by Executive to the Company of appropriate supporting
documentation, for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s Termination of Employment; provided claims for such reimbursement (accompanied by
appropriate supporting documentation) are submitted to the Company within 90 days following the date of Executive’s Termination of Employment; and 

  
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 (D)    such Employee Benefits, if any, as to which Executive may be entitled
under the employee benefit plans of the Company, including payment for any accrued but unused vacation within 30 days following the date of Executive’s Date of Termination. 

Following such Termination of Employment by the Company for Cause or resignation by Executive without Good Reason, except as set forth in this
Section 8(a)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 

b.    Disability or Death. 

(i)    Events. The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s
death and may be terminated by the Company if Executive becomes physically or mentally incapacitated and is therefore unable for a period of six (6) consecutive months or for an aggregate of nine (9) months in any twenty-four
(24) consecutive month period to perform Executive’s duties (such incapacity is hereinafter referred to as “Disability”). In no event shall an Executive’s employment be continued beyond the 29th month of absence due to
Executive’s Disability. Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and
the Company. If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of
Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of the Agreement. 

(ii)    Compensation. Upon Executive’s Termination of Employment hereunder for either Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to receive: 
 (A)    the Accrued Rights;
and 
 (B)    a pro rata portion of the Annual Bonus, if any, that Executive would have been entitled to receive
pursuant to Section 4 hereof for such year based upon the Company’s actual results for the year of termination and the percentage of the fiscal year that shall have elapsed through the Executive’s Date of Termination, payable to
Executive pursuant to Section 4 had Executive’s employment not terminated. 
 Following Executive’s Termination of Employment
due to death or Disability, except as set forth in this Section 8(b)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 

  
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 c.    Termination by the Company Without Cause or Resignation by Executive
for Good Reason. 
 (i)    Events. The Employment Term and Executive’s employment hereunder may be
terminated by the Company without Cause or by Executive’s resignation for Good Reason at any time including during the Protected Period. 

(ii)    Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without Executive’s
consent: (i) a material diminution in Executive’s base salary (excluding any general salary reduction similarly affecting substantially all other senior executives of the Company as a result of a material adverse change in the
Company’s prospects or business); (ii) a material diminution in Executive’s authority, duties, or responsibilities (including a change in Executive’s reporting line such that he does not report to the Company’s Board); (iii) a
material change in the geographic location at which Executive must perform services; or (iv) any other action or inaction that constitutes a material breach by the Company of this Agreement; provided, however, that “Good Reason” shall
not be deemed to exist unless: (A) the Executive has provided notice to the Company of the existence of one or more of the conditions listed in (i) through (iv) within 90 days after the initial occurrence of such condition or conditions;
and (B) such condition or conditions have not been cured by the Company within 30 days after receipt of such notice. Simply the receipt by the Executive of a Non-Renewal Notice from the Company shall not,
in and of itself, be deemed to be an event of “Good Reason” under this Agreement. 
 (iii)    Protected
Period. For purposes of this Agreement, “Protected Period” shall mean the period of time commencing on the date of a Change in Control and ending two years after such date. 

(iv)    Change in Control. For purposes of this Agreement, “Change in Control” shall mean, with respect
to the Executive, the happening of any of the following events (but only if with respect to the Executive, such event would constitute a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of
the assets of the corporation, as defined under Section 409A of the Code): 
 (A)    a change in the ownership of the
Company (or any affiliate which either employs the Executive or is a direct or indirect parent of such employer) by which any one person, or more than one person acting as a group, acquires ownership of stock of the Company (or such an affiliate)
that, together with stock held by such person or group, constitutes more than Fifty Percent (50%) of the total fair market value or total voting power of the stock of the Company (or such an affiliate). However, if any one person, or more than one
person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company (or such an affiliate), the acquisition of additional stock by the same person or persons is not considered
to cause a Change in Control. (An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Company (or such an affiliate) acquires its stock in exchange for property will be
treated as an acquisition of stock for purposes of this definition. This parenthetical phrase applies only when there is a transfer of stock of the Company (or issuance of stock of the Company) (or such an affiliate) and stock in the Company (or
such an affiliate) remains outstanding after the transaction.) 

  
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 (B)    a change in effective control of the Company (or any affiliate which
either employs the Executive or is a direct or indirect parent of such employer) by which: 
  

	 	(1)	any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or
persons) ownership of stock of the Company (or such an affiliate) possessing Thirty Percent (30%) or more of the total voting power of the stock of the Company (or such an affiliate); or 

 

	 	(2)	a majority of members of the Board of Directors is replaced during any 12-month period by Directors whose appointment or election is not endorsed by a majority of the members of
the Board of Directors before the date of the appointment or election. 

 (C)    a change in the
ownership of a substantial portion of the assets of the Company (or any affiliate which either employs the Executive or is a direct or indirect parent of such employer) by which any one person, or more than one person acting as a group, acquires (or
has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company (or such an affiliate) that have a total gross fair market value
equal to or more than Forty Percent (40%) of the total gross fair market value of all of the assets of the Company (or such an affiliate) immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the
value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. For purposes of this definition, persons will be considered to be acting as a group if
they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. If a person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders only with respect to the ownership in that corporation before the transaction giving rise
to the change and not with respect to the ownership interest in the other corporation. 
 (v)    Compensation if
Terminated Outside of Protected Period. If, at any time other than during the Protected Period, the Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or if Executive resigns for Good
Reason within 6 months of the condition giving rise to the good reason, Executive shall be entitled to receive: 

(A)    the Accrued Rights; 

  
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 (B)    subject to Executive’s (x) continued compliance with the
provisions of Sections 10 and 11 and (y) execution and delivery of a general release of claims against the Company and its affiliates in a form reasonably acceptable to the Company, payment in one lump sum of: 

 

	 	(1)	200% of the greater of the current Base Salary or Executive’s highest Base Salary paid within the Employment Term; plus 

  

	 	(2)	the greater of (i) 200% of Executive’s Target Annual Bonus for the fiscal year in which Executive’s Termination of Employment occurs or (ii) 200% of Executive’s Target Annual Bonus for the fiscal year
immediately preceding the fiscal year in which Executive’s Termination of Employment occurs; payable to Executive in one lump sum immediately following the expiration of the revocation period provided for in such release, but in no event later
than two and a half (2-1/2) months after the end of the year in which the Executive’s Termination of Employment occurred; and 

(C)     continued coverage under the Company’s group health plans during the twenty-four (24) months following
Executive’s Date of Termination on the same basis as active employees of the Company; provided that during any portion of that period beyond eighteen (18) months following Executive’s Date of Termination, to the extent coverage under
the Company’s group health plans is not permissible under the terms of such plans, the Company may, in lieu of providing such coverage, pay Executive an amount equal to the premium subsidy the Company otherwise would have paid on
Executive’s behalf for such coverage during the balance of such period. 
 (vi)    Compensation if Terminated
during Protected Period. If, during the Protected Period, either the Executive’s employment is Terminated by the Company without Cause (other than by reason of death or Disability) or if Executive resigns for Good Reason, Executive shall be
entitled to receive: 
 (A)    the Accrued Rights; 

(B)    subject to Executive’s (x) continued compliance with the provisions of Sections 10 and 11 and
(y) execution and delivery of a general release of claims against the Company and its affiliates in a form reasonably acceptable to the Company, payment in one lump sum of: 

 

	 	(1)	300% of the greater of the current Base Salary or Executive’s highest Base Salary paid within the Employment Term; plus 

  

	 	(2)	 the greater of (i) 300% of Executive’s Target Annual Bonus for the fiscal year in which Executive’s
Termination of Employment occurs or (ii) 300% of Executive’s Target Annual Bonus for the fiscal year immediately preceding the fiscal year in which the Change in Control occurs; payable generally within ten (10) business days after
Executive’s 

  
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Date of Termination, or, if later, upon the expiration of the revocation period provided for in such release, except when such payment is delayed and paid in accordance with Section 9(b) for a
determination under Section 9, but in no event later than two and a half (2-1/2) months after the end of the year in which the Executive’s Termination of Employment occurred; and 

(C)    continued coverage under the Company’s group health plans during the
thirty-six (36) months following Executive’s Date of Termination on the same basis as active employees of the Company; provided that during any portion of that period beyond eighteen (18) months
following Executive’s Date of Termination, to the extent coverage under the Company’s group health plans is not permissible under the terms of such plans, the Company may, in lieu of providing such coverage, pay Executive an amount equal
to the premium subsidy the Company otherwise would have paid on Executive’s behalf for such coverage during the balance of such period. 

Following Executive’s Termination of Employment by the Company without Cause (other than by reason of Executive’s death or
Disability) or by Executive’s resignation for Good Reason, except as set forth in this Section 8(c), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 

d.    Expiration of Employment Term. 

(i)    Election Not to Renew the Employment Term. In the event either party provides the other with the Non-Renewal Notice pursuant to Section 1, unless Executive’s employment is earlier terminated pursuant to paragraphs (a), (b) or (c) of this Section 8, the expiration of the Employment Term and
the Executive’s Termination of Employment hereunder (whether or not Executive continues as an employee of the Company thereafter) shall be deemed to occur on the close of business on the last day of such Employment Term and Executive shall be
entitled to receive the Accrued Rights. The Company’s providing of a Non-Renewal Notice under Section 1 shall not prejudice in any way Executive’s right to assert an event of Good Reason (as
such term is defined above), whether related to such Non-Renewal Notice or otherwise, at any time during the Employment Term. 

Following such termination of Executive’s employment hereunder, except as set forth in this Section 8(d)(i), Executive shall have no
further rights to any compensation or any other benefits under this Agreement. 
 (ii)    Continued Employment
Beyond the Expiration of the Employment Term. Unless the parties otherwise agree in writing, continuation of Executive’s employment with the Company beyond the expiration of the Employment Term shall be deemed an employment at-will and shall not be deemed to extend any of the provisions of this Agreement and Executive’s employment may thereafter be terminated at will by either Executive or the Company; provided that the provisions
of Sections 10, 11 and 12 of this Agreement shall survive any termination of this Agreement or Executive’s Termination of Employment hereunder. 

  
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 e.    Notice of Termination. Any purported Termination of Employment
by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 13(i) hereof. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for Termination of Employment
under the provision so indicated. 
 f.    Board/Committee Resignation. Upon termination of Executive’s
employment for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, from the Board (and any committees thereof) and the Board of Directors (and any committees thereof) of any of the Company’s
affiliates. 
 9.    Conditional Reduction in Payments. 

a.    Notwithstanding anything in this Agreement to the contrary, in the event that it shall be determined (as hereafter
provided) that any payment or distribution provided for pursuant to the terms of this Agreement for the benefit of Executive, when aggregated with any other payments or benefits received or receivable by Executive (individually and collectively, a
“Payment”), would constitute “parachute payments” within the meaning of Section 280G of the Code, and would be subject to the excise tax imposed by Section 4999 of the Code or to any similar tax imposed by state or local
law, or to any interest or penalties with respect to such taxes (such tax or taxes, together with any such interest and penalties, being hereafter collectively referred to as the “Excise Tax”), then Executive’s payments under
Section 8 hereof shall be either: 
 (i)    delivered in full, or 

(ii)    reduced to the minimum extent necessary so that no portion of the Payment, after such reduction, constitutes an
Excess Parachute Payment (as defined in Section 280G(b) of the Code) (the amount of such reduction shall be referred to as the “Excess Amount”); whichever of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable
under Section 4999 of the Code. 
 b.    All determinations required to be made under this Section 9,
including whether an Excise Tax is payable by Executive and the amount of such Excise Tax and whether a reduction in the Payment is to be made and the amount of such Excess Amount, if any, shall be made by a nationally recognized accounting firm
proposed by the Company and reasonably acceptable to Executive (which accounting firm shall be the “Accounting Firm” hereunder). The Company or Executive shall direct the Accounting Firm to submit its determination and detailed supporting
calculations to both the Company and Executive within 30 calendar days after the Date of Termination, if applicable, and any other time or times as may be requested by the Company or Executive. The Company shall pay Executive’s payments under
Section 8 hereof, as reduced or not reduced pursuant to the final determination of the Accounting Firm and Subsection 9(a) above, no later than the time otherwise required hereunder. If the Accounting Firm determines

  
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that no Excise Tax is payable by Executive, it shall, at the same time as it makes such determination, furnish the Company and Executive an opinion that Executive has substantial authority not to
report any Excise Tax on Executive’s federal, state or local income or other tax return. 
 c.    As a result of
the uncertainty in the application of Section 4999 of the Code and the possibility of similar uncertainty regarding applicable state or local tax law at the time of any determination by the Accounting Firm hereunder, it is possible that,
pursuant to a final determination of a court or an Internal Revenue Service proceeding which has been finally and conclusively resolved, an Excess Parachute Payment was received by Executive which would have been intended to be reduced by the Excess
Amount pursuant to Subsection 9(a) above. In such case, then such amount received by Executive shall be deemed to be an overpayment, and Executive shall repay the amount equal to the Excess Amount (to the extent received by Executive) to the Company
on demand (but no less than ten days after Executive receives written demand). 
 d.    The Company and Executive shall
each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting
Firm in connection with the preparation and issuance of the determinations and calculations contemplated by Subsection 9(b). Any determination by the Accounting Firm as to the amount of any Excess Amount shall be binding upon the Company and
Executive. 
 e.    The fees and expenses of the Accounting Firm for its services in connection with the determinations
and calculations contemplated by Subsection 9(b) shall be borne by the Company. 
 10.    Non-Competition. 
 a.    Executive acknowledges and recognizes the highly
competitive nature of the businesses of the Company and its affiliates and accordingly agrees as follows: 

(i)    During the Employment Term and the twenty-four (24) months following the date of Executive’s Termination
of Employment or, if any benefits are paid to Executive pursuant to subparagraph (vi) of Section 8.c. of this Agreement, the thirty-six (36) months following the date of Executive’s Termination
of Employment (the “Restricted Period”), Executive will not, whether on Executive’s own behalf or on behalf of or in conjunction with any person, firm, partnership, joint venture, association, corporation or other business
organization, entity or enterprise whatsoever (“Person”), directly or indirectly solicit or assist in soliciting in competition with the Company, the business of any client or customer or prospective client or customer: 

(A)    with whom Executive had personal contact or dealings on behalf of the Company during the one year period preceding
the earlier of the Executive’s Termination of Employment or such solicitation; 

  
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 (B)    with whom employees reporting to Executive have had personal contact
or dealings on behalf of the Company during the one year immediately preceding the Executive’s Termination of Employment; or 

(C)    for whom Executive had direct or indirect responsibility during the one year immediately preceding
Executive’s Termination of Employment. 
 (ii)    During the Restricted Period, Executive will not directly or
indirectly: 
 (A)    engage in (1) the business of manufacturing equipment used in (x) the production,
storage and end-use of hydrocarbon and industrial gases business or (y) low temperature and cryogenic applications, (2) any other businesses which the Company or its subsidiaries engage in during the
term of Executive’s employment with the Company and (3) any businesses which, as of the date of Executive’s Termination of Employment, the Company or its subsidiaries both (x) have specific plans to conduct in the future (and as
to which Executive is aware of such planning) and (y) have allocated or invested capital as of the date of such Termination of Employment (a “Competitive Business”); 

(B)    enter the employ of, or render any services to, any Person (or any division or controlled or controlling affiliate
of any Person) who or which engages in a Competitive Business; 
 (C)    acquire a financial interest in, or otherwise
become actively involved with, any Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or 

(D)    interfere with, or attempt to interfere with, business relationships (whether formed before, on or after the date
of this Agreement) between the Company or any of its affiliates and customers, clients, suppliers, partners, members or investors of the Company or its affiliates. 

(iii)    Notwithstanding anything to the contrary in this Agreement, Executive may, directly or indirectly own, solely as
an investment, securities of any Person engaged in the business of the Company or its affiliates which are publicly traded on a national or regional stock exchange or quotation system or on the over-the-counter market if Executive (i) is not a controlling person of, or a member of a group which controls, such person and (ii) does not, directly or indirectly, own 5% or more of any class of
securities of such Person. 
 (iv)    During the Restricted Period, Executive will not, whether on Executive’s own
behalf or on behalf of or in conjunction with any Person, directly or indirectly: 
 (A)    solicit or encourage any
employee of the Company or its affiliates to leave the employment of the Company or its affiliates; or 
 (B)    hire
any such employee who was employed by the Company or its affiliates as of the date of Executive’s Termination of Employment with the Company or who left the employment of the Company or its affiliates coincident with, or within one year prior
to or after, the termination of Executive’s employment with the Company. 

  
 12 

 (v)    During the Restricted Period, Executive will not, directly or
indirectly, solicit or encourage to cease to work with the Company or its affiliates any consultant then under contract with the Company or its affiliates. 

b.    It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in
this Section 10 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive,
the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if
any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other
restrictions contained herein. 
 11.    Confidentiality; Intellectual Property. 

a.    Confidentiality. 

(i)    Executive will not at any time (whether during or after Executive’s employment with the Company) (x)
retain or use for the benefit, purposes or account of Executive or any other Person other than the Company; or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any Person outside the Company (other than its
professional advisers who are bound by confidentiality obligations or other than in performing his or her duties on behalf of the Company consistent with Company policies), any non-public, proprietary or
confidential information—including without limitation trade secrets, know-how, research and development, software, databases, inventions, processes, formulae, technology, designs and other intellectual
property, information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing, promotions,
government and regulatory activities and approvals — concerning the past, current or future business, activities and operations of the Company, its subsidiaries or affiliates and/or any third party that has disclosed or provided any of same to
the Company on a confidential basis (“Confidential Information”) without the prior written authorization of the Board or a duly authorized committee thereof. 

(ii)    “Confidential Information” shall not include any information that is (a) generally known to the
industry or the public other than as a result of Executive’s breach of this covenant or any breach of other confidentiality obligations by third parties; (b) made legitimately available to Executive by a third party without breach of any
confidentiality obligation; or (c) required by law to be disclosed; provided that Executive shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and cooperate with any attempts
by the Company to obtain a protective order or similar treatment. 

  
 13 

 (iii)    Upon termination of Executive’s employment with the Company
for any reason, Executive shall (x) cease and not thereafter commence use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo,
domain name or other source indicator) owned or used by the Company, its subsidiaries or affiliates; (y) immediately destroy, delete, or return to the Company, at the Company’s option, all originals and copies in any form or medium
(including memoranda, books, papers, plans, computer files, letters and other data) in Executive’s possession or control (including any of the foregoing stored or located in Executive’s office, home, laptop or other computer, whether or
not Company property) that contain Confidential Information or otherwise relate to the business of the Company, its affiliates and subsidiaries, except that Executive may retain only those portions of any personal notes, notebooks and diaries that
do not contain any Confidential Information; and (z) notify and fully cooperate with the Company regarding the delivery or destruction of any other Confidential Information of which Executive is or becomes aware. 

b.    Intellectual Property. 

(i)    If Executive has created, invented, designed, developed, contributed to or improved any works of authorship,
inventions, intellectual property, materials, documents or other work product (including without limitation, research, reports, software, databases, systems, applications, presentations, textual works, content, or audiovisual materials)
(“Works”), either alone or with third parties, at any time during Executive’s employment by the Company and within the scope of such employment and/or with the use of any of the Company’s resources (“Company Works”),
Executive shall promptly and fully disclose same, to the best of his or her knowledge, to the Company and hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by applicable law, all rights and intellectual property
rights therein (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition and related laws) to the Company to the extent ownership of any such rights does not vest originally in the Company. 

(ii)    Executive shall take all reasonably requested actions and execute all reasonably requested documents (including
any licenses or assignments required by a government contract) at the Company’s expense (but without further remuneration) to assist the Company in validating, maintaining, protecting, enforcing, perfecting, recording, patenting or registering
any of the Company’s rights in the Company Works. If the Company requests Executive’s assistance pursuant to this paragraph following termination of Executive’s employment, such assistance shall be provided at mutually agreeable times
and locations. 
 (iii)    Executive shall not improperly use for the benefit of, bring to any premises of, divulge,
disclose, communicate, reveal, transfer or provide access to, or share with the Company any confidential, proprietary or non-public information or intellectual property relating to a former employer or other
third party without the prior written permission of such third party. Executive hereby indemnifies, holds harmless and agrees to defend the Company and its officers, directors, partners, employees, agents and representatives from any breach of the
foregoing covenant that occurs with Executive’s knowledge or as a result of Executive’s negligent conduct. Executive shall comply with all relevant policies and guidelines of the Company, including regarding the protection of confidential
information and intellectual 

  
 14 

 
property and potential conflicts of interest. Executive acknowledges that the Company may amend any such policies and guidelines from time to time, and that Executive remains at all times bound
by their most current version. 
 (iv)    The provisions of Section 11 shall survive the Executive’s
Termination of Employment for any reason. 
 12.    Specific Performance. Executive acknowledges and agrees that
the Company’s remedies at law for a breach or threatened breach of any of the provisions of Section 10 or Section 11 would be inadequate and the Company would suffer irreparable damages as a result of such breach or threatened breach.
In recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to cease making any payments or providing any
benefit otherwise required by this Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available. 

13.    Miscellaneous. 

a.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, without regard to conflicts of laws principles thereof. 
 b.    Dispute Resolution. Except as
otherwise provided in Section 12 of this Agreement, any controversy, dispute, or claim arising out of, in connection with, or in relation to, the interpretation, performance or breach of this Agreement, including, without limitation, the
validity, scope, and enforceability of this section, may at the election of any party, be solely and finally settled by arbitration conducted in Cleveland, Ohio, by and in accordance with the then existing rules for commercial arbitration of the
American Arbitration Association, or any successor organization and with the Expedited Procedures thereof (collectively, the “Rules”). Each of the parties hereto agrees that such arbitration shall be conducted by a single arbitrator
selected in accordance with the Rules; provided that such arbitrator shall be experienced in deciding cases concerning the matter which is the subject of the dispute. Any of the parties may demand arbitration by written notice to the other and to
the Arbitrator set forth in this Section 13(b) (“Demand for Arbitration”). Each of the parties agrees that if possible, the award shall be made in writing no more than 30 days following the end of the proceeding. Any award rendered by the
arbitrator(s) shall be final and binding and judgment may be entered on it in any court of competent jurisdiction. Each of the parties hereto agrees to treat as confidential the results of any arbitration (including, without limitation, any findings
of fact and/or law made by the arbitrator) and not to disclose such results to any unauthorized person. The parties intend that this agreement to arbitrate be valid, enforceable and irrevocable. In the event of any arbitration with regard to this
Agreement, each party shall pay its own legal fees and expenses except to the extent set forth in Section 13(p), provided, however, that the Company agrees to pay the cost of the Arbitrator’s fees. 

  
 15 

 c.    Entire Agreement/Amendments. This Agreement amends and restates
the Original Agreement and contains the entire understanding of the parties with respect to the employment of Executive by the Company. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with
respect to the subject matter herein other than those expressly set forth herein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto. 

d.    No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any
occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 

e.    Severability. In the event that any one or more of the provisions of this Agreement shall be or become
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby. 

f.    Assignment. This Agreement, and all of Executive’s rights and duties hereunder, shall not be assignable
or delegable by Executive. Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be assigned by the Company to a person or entity
which is an affiliate or a successor in interest to substantially all of the business operations of the Company. The Company will require any person or entity which is an affiliate or a successor in interest to substantially all of the business
operations of the Company to assume all obligations of the Company under this Agreement. 
 g.    Set Off; No
Mitigation. The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim or recoupment of amounts owed by
Executive to the Company or its affiliates (the “debt”), where such debt is incurred in the ordinary course of the service relationship between Executive and the Company, the entire amount of reduction in any of the Company’s taxable
years does not exceed $5,000 and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from Executive. Executive shall not be required to mitigate the amount of any payment provided for
pursuant to this Agreement by seeking other employment. 
 h.    Successors; Binding Agreement. This Agreement
shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

i.    Notice. For the purpose of this Agreement, notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 

  
 16 

 If to the Company: 

Chart Industries, Inc. 
 2200
Airport Industrial Dr, Ste 500 
 Ball Ground, GA 30107 

Attention: Chief Financial Officer and General Counsel 

If to Executive: 
 To the most
recent address of Executive set forth in the personnel records of the Company. 
 j.    Executive Representation.
Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise
contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound. 

k.    Prior Agreements. This Agreement supercedes all prior agreements (including the Original Agreement) and
understandings (including verbal agreements) between Executive and the Company and/or its affiliates regarding the terms and conditions of Executive’s employment with the Company and/or its affiliates, except that this Agreement does not
supercede any stock option agreement, performance unit agreement, restricted stock unit agreement or indemnification agreement. 

l.    Cooperation. Executive shall provide Executive’s reasonable cooperation in connection with any action or
proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder. This provision shall survive any termination of this Agreement. If the Company requests Executive’s
cooperation pursuant to this paragraph following termination of Executive’s employment, such cooperation shall be provided at mutually agreeable times and locations. 

m.    Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state
and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 

n.    Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. 
 o.     Compliance with
Section 409A. Notwithstanding anything herein to the contrary, (i) if at the time of Executive’s Termination of Employment with the Company Executive is a “specified employee” as defined in Section 409A of the Code, and the
deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such Termination of Employment is necessary in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code,
then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six months following
Executive’s Termination of Employment with the Company (or the earliest date as is permitted under Section 409A of the Code), (ii) any reimbursements provided under the 

  
 17 

 
Agreement, including, but not limited to, in Sections 2.c., 8.a.(iii)(C) and 13(p), shall be made no later than the end of Executive’s taxable year following Executive’s taxable year in
which such expense was incurred; in addition, the amounts eligible for reimbursement, or in-kind benefits to be provided, during any one taxable year under this Agreement may not affect the expenses eligible
for reimbursement in any other taxable year under this Agreement, (iii) if any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code,
such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner,
determined by the Board or any duly authorized committee thereof, that does not cause such an accelerated or additional tax or result in an additional cost to the Company, and (iv) if (x) any payment under this Agreement is subject to Section
409A and is conditioned upon Executive’s signing a release of claims and (y) the period for Executive to sign the release of claims (and any applicable period to revoke the release) starts in one calendar year and ends in the following
calendar year, such payment will be made (or commence) in the second calendar year, subject to any payment terms provided in this Agreement. The Company shall consult with Executive in good faith regarding the implementation of the provisions of
this Section 13(o); provided that neither the Company nor any of its employees or representatives shall have any liability to Executive with respect thereto. 

p.    Enforcement Costs. The Company is aware that upon the occurrence of a Change in Control the Board of
Directors or a shareholder of the Company may then cause or attempt to cause the Company to refuse to comply with its obligations under this Agreement, or may cause or attempt to cause the Company to institute, or may institute, litigation or
arbitration seeking to have this Agreement declared unenforceable, or may take, or attempt to take, other action to deny Executive the benefits intended under this Agreement. In these circumstances, the purpose of this Agreement could be
frustrated. It is the intent of the Company that Executive not be required to incur the expenses associated with the enforcement of Executive’s rights under this Agreement by litigation, arbitration or other legal action because the cost and
expense thereof would substantially detract from the benefits intended to be extended to Executive hereunder, nor be bound to negotiate any settlement of Executive’s rights hereunder under threat of incurring such expenses. Accordingly, if at
any time following a Change in Control, it should appear to Executive that the Company has failed to comply with any of its obligations under this Agreement or the Company or any other person takes any action to declare this Agreement void or
unenforceable, or institutes any litigation, arbitration or other legal action designed to deny, diminish or recover from Executive the benefits intended to be provided to Executive hereunder, and Executive has complied with all of Executive’s
obligations under Sections 10 and 11, then the Company irrevocably authorizes Executive from time to time to retain counsel of Executive’s choice at the expense of the Company as provided in this Section 13(p) to represent Executive in
connection with the initiation or defense of any litigation, arbitration or other legal action, whether by or against the Company or any Director, officer, shareholder or other person affiliated with the Company, in any jurisdiction. The
Company’s obligations under this Section 13(p) shall not be conditioned on Executive’s success in the prosecution or defense of any such litigation, arbitration or other legal action. Notwithstanding any existing or prior attorney-client
relationship between the Company and such counsel, the Company irrevocably consents to Executive entering into an attorney-client relationship with such counsel, and in that connection the Company and Executive agree that a confidential relationship
shall exist between Executive 

  
 18 

 
and such counsel. The reasonable fees and expenses of counsel selected from time to time by Executive as hereinabove provided shall be paid or reimbursed to Executive by the Company on a regular,
periodic basis no later than 30 days after presentation by Executive of a statement or statements prepared by such counsel in accordance with its customary practices, up to a maximum of $250,000 per year for each of the two years following the year
in which the Change in Control occurs, provided that Executive presents such statement(s) no later than 30 days prior to the end of Executive’s taxable year following the year in which such expenses were incurred. Notwithstanding the foregoing,
this Section 13(p) shall not apply at any time unless a Change in Control has occurred. 
 [SIGNATURES ON FOLLOWING PAGE] 

  
 19 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
first above written. 
  

									
	CHART INDUSTRIES, INC.	 		 		 	William C. Johnson
	(“Company”)	 		 		 	(“Executive”)
				
	 /s/ Gerry Vinci
	 		 		 	 /s/ William C. Johnson

	Name:	 	Gerry Vinci	 		 		 	
	Title:	 	Chief Human Resources Officer	 		 		 	

  
 20CERTIFICATE
OF DESIGNATIONS, PREFERENCES AND RIGHTS OF THE

SERIES C CONVERTIBLE PREFERRED STOCK OF

BTCS INC.

 

I,
Charles Allen, hereby certify that I am the Chief Executive Officer of BTCS Inc. (the “Corporation”), a corporation
organized and existing under the Nevada Revised Statutes (the “NRS”), and further do hereby certify:

 

That
pursuant to the authority expressly conferred upon the Board of Directors of the Corporation (the “Board of Directors”)
by the Corporation’s Articles of Incorporation, as amended (the “Articles of Incorporation”), the Board
of Directors, by unanimous written consent of its directors pursuant to Section 78.315 of the NRS, on May 24, 2017, adopted the
following resolutions in connection with designating shares of stock as Series C Convertible Preferred Stock, none of which shares
have been issued:

 

RESOLVED,
that the Board of Directors designates the Series C Convertible Preferred Stock and the number of shares constituting such series,
and fixes the rights, powers, preferences, privileges and restrictions relating to such series in addition to any set forth in
the Articles of Incorporation as follows:

 

TERMS
OF SERIES C CONVERTIBLE PREFERRED STOCK

 

1. Designation
and Number of Shares. There shall hereby be created and established a series of preferred stock of the
Corporation designated as “Series C Convertible Preferred Stock” (the “Preferred Shares”). The
authorized number of Preferred Shares shall be 175,000 shares. Each Preferred Share shall have a par value of $0.001.
Capitalized terms not defined herein shall have the meaning as set forth in Section 30 below.

 

2. Ranking.
Except to the extent that the holders of at least a majority of the outstanding Preferred Shares which shall include Cavalry
Fund I LP (“Cavalry”) as long as it owns at least five percent (5%) of the Preferred Shares (the
“Required Holders”) expressly consent to the creation of Parity Stock (as defined below) or Senior
Preferred Stock (as defined below) in accordance with Section 15, all shares of capital stock of the Corporation shall be
junior in rank to all Preferred Shares with respect to the preferences as to dividends, distributions and payments upon the
liquidation, dissolution and winding up of the Corporation (such junior stock is referred to herein collectively as
“Junior Stock”). The rights of all such shares of capital stock of the Corporation shall be subject to the
rights, powers, preferences and privileges of the Preferred Shares. Without limiting any other provision of this Certificate
of Designations, without the prior express consent of the Required Holders, voting separate as a single class, the
Corporation shall not hereafter authorize or issue any additional or other shares of capital stock that is (i) of senior rank
to the Preferred Shares in respect of the preferences as to dividends, distributions and payments upon the liquidation,
dissolution and winding up of the Corporation (collectively, the “Senior Preferred Stock”), (ii) of pari
passu rank to the Preferred Shares in respect of the preferences as to dividends, distributions and payments upon the
liquidation, dissolution and winding up of the Corporation (collectively, the “Parity Stock”) or (iii) any
Junior Stock having a maturity date (or any other date requiring redemption or repayment of such shares of Junior Stock) that
is prior to the date no Preferred Shares remain outstanding. Except as provided for herein, in the event of the merger or
consolidation of the Corporation into another corporation, the Preferred Shares shall maintain their relative rights,
powers, designations, privileges and preferences provided for herein for a period of at least two years following such merger
or consolidation and no such merger or consolidation shall cause result inconsistent therewith.

 

    	 

    	 

    

 

3. Dividends
and Distributions. Each Holder of Preferred Shares shall be entitled to receive dividends or distributions on each
Preferred Share on an “as converted” into Common Stock basis as provided in Section 4 hereof when and if
dividends are declared on the Common Stock by the Board of Directors. Dividends shall be paid in cash or property, as
determined by the Board of Directors.

 

4. Conversion.
At any time after the Subscription Date, each Preferred Share shall be convertible into validly issued, fully paid and
non-assessable shares of Common Stock, on the terms and conditions set forth in this Section 4.

 

(a) Holder’s
Conversion Right. Subject to the provisions of Section 4(d), at any time or times on or after the Subscription Date,
each Holder shall be entitled to convert any portion of the outstanding Preferred Shares held by such Holder into validly
issued, fully paid and non-assessable shares of Common Stock in accordance with Section 4(c) at the Conversion Rate (as
defined below). The Corporation shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance
would result in the issuance of a fraction of a share of Common Stock, the Corporation shall round such fraction of a share
of Common Stock up to the nearest whole share. The Corporation shall pay any and all transfer, stamp, issuance and similar
taxes, costs and expenses (including fees and expenses of the Transfer Agent (as defined below)) that may be payable with
respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount (as defined below).

 

(b) Conversion
Rate. The number of shares of Common Stock issuable upon conversion of any Preferred Share pursuant to Section 4(a)
shall be determined by dividing (x) the Conversion Amount of such Preferred Share by (y) the Conversion Price and multiplying
the quotient by two hundred (200) (the “Conversion Rate”):

 

(i)
“Conversion Amount” means, with respect to each Preferred Share,
as of the applicable date of determination, the sum of (1) the Stated Value thereof plus (2) the Additional Amount thereon and
any accrued and unpaid Late Charges with respect to such Stated Value and Additional Amount as of such date of determination.

 

(ii)
“Conversion Price” means, with respect to each Preferred Share, as
of any Conversion Date or other date of determination, $0.07, subject to adjustment as provided herein.

 

(c) Mechanics
of Conversion. The conversion of each Preferred Share shall be conducted in the following manner:

 

    	2

    	 		 

    

 

(i)
Optional Conversion. To convert a Preferred Share into shares of Common Stock
on any date (a “Conversion Date”), a Holder shall deliver (via, electronic mail or otherwise), for receipt
on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion of the share(s) of Preferred
Shares subject to such conversion in the form attached hereto as Exhibit I (the “Conversion Notice”)
to the Corporation. If required by Section 4(c)(iii), within three (3) Trading Days following a conversion of any such Preferred
Shares as aforesaid, such Holder shall surrender to a nationally recognized overnight delivery service for delivery to the Corporation
the original certificates representing the Preferred Shares (the “Preferred Share Certificates”) so converted
as aforesaid (or an indemnification undertaking with respect to the Preferred Shares in the case of its loss, theft or destruction
as contemplated by Section 16). On or before the first (1st) Trading Day following the date of receipt of a Conversion
Notice, the Corporation shall transmit by electronic mail an acknowledgment of confirmation, in the form attached hereto as Exhibit
II, of receipt of such Conversion Notice to such Holder and the Corporation’s transfer agent (the “Transfer
Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such Conversion Notice
in accordance with the terms herein. On or before the third (3rd) Trading Day following the date of receipt of a Conversion
Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement
of a trade initiated on the applicable Conversion Date of such shares of Common Stock issuable pursuant to such Conversion Notice)
(the “Share Delivery Deadline”), the Corporation shall (1) provided that the Transfer Agent is participating
in The Depository Trust Corporation’s (“DTC”) Fast Automated Securities Transfer Program, credit such
aggregate number of shares of Common Stock to which such Holder shall be entitled to such Holder’s or its designee’s
balance account with DTC through its Deposit/Withdrawal at Custodian system, or (2) if the Transfer Agent is not participating
in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the address as specified
in such Conversion Notice, a certificate, registered in the name of such Holder or its designee, for the number of shares of Common
Stock to which such Holder shall be entitled. If the number of Preferred Shares represented by the Preferred Share Certificate(s)
submitted for conversion pursuant to Section 4(c)(iii) is greater than the number of Preferred Shares being converted, then the
Corporation shall, as soon as practicable and in no event later than three (3) Trading Days after receipt of the Preferred Share
Certificate(s) and at its own expense, issue and deliver to such Holder (or its designee) a new Preferred Share Certificate (in
accordance with Section 17(d)) representing the number of Preferred Shares not converted. The Person or Persons entitled to receive
the shares of Common Stock issuable upon a conversion of Preferred Shares shall be treated for all purposes as the record holder
or holders of such shares of Common Stock on the Conversion Date.

 

    	3

    	 		 

    

 

(ii)
Corporation’s Failure to Timely Convert. If the Corporation shall fail, for any
reason or for no reason, on or prior to the applicable Share Delivery Deadline, to issue to such Holder a certificate for the
number of shares of Common Stock to which such Holder is entitled and register such shares of Common Stock on the Corporation’s
share register or to credit such Holder’s or its designee’s balance account with DTC for such number of shares of
Common Stock to which such Holder is entitled upon such Holder’s conversion of any Conversion Amount (as the case may be)
(a “Conversion Failure”), then, in addition to all other remedies available to such Holder, (X) the Corporation
shall pay in cash to such Holder on each day after the Share Delivery Deadline and during such Conversion Failure an amount equal
to 2% of the product of (A) the sum of the number of shares of Common Stock not issued to such Holder on or prior to the Share
Delivery Deadline and to which such Holder is entitled, multiplied by (B) the closing price of the Common Stock on the applicable
Conversion Date and ending on the applicable Share Delivery Deadline, and (Y) such Holder, upon written notice to the Corporation,
may void its Conversion Notice with respect to, and retain or have returned, as the case may be, all, or any portion, of such
Preferred Shares that has not been converted pursuant to such Conversion Notice; provided that the voiding of an Conversion Notice
shall not affect the Corporation’s obligations to make any payments which have accrued prior to the date of such notice
pursuant to this Section 4(c)(ii) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Deadline the
Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, the Corporation shall fail to issue
and deliver to such Holder (or its designee) a certificate and register such shares of Common Stock on the Corporation’s
share register or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, the Transfer
Agent shall fail to credit the balance account of such Holder or such Holder’s designee with DTC for the number of shares
of Common Stock to which such Holder is entitled upon such Holder’s exercise hereunder or pursuant to the Corporation’s
obligation pursuant to clause (II) below and if on or after such Share Delivery Deadline such Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Holder of all or any portion of
the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number
of shares of Common Stock, issuable upon such conversion that such Holder so is entitled to receive from the Corporation, then,
in addition to all other remedies available to such Holder, the Corporation shall, within three (3) Business Days after receipt
of such Holder’s request and in such Holder’s discretion, either: (I) pay cash to such Holder in an amount equal to
such Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares
of Common Stock so purchased (including by any other Person in respect, or on behalf, of such Holder) (the “Buy-In Price”),
at which point the Corporation’s obligation to so issue and deliver such certificate or credit such Holder’s balance
account with DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion
hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its obligation
to so issue and deliver to such Holder a certificate or certificates representing such shares of Common Stock or credit such Holder’s
balance account with DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion
hereunder (as the case may be) and pay cash to such Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (x) such number of shares of Common Stock multiplied by (y) the lowest Closing Sale Price of the Common Stock on
any Trading Day during the period commencing on the date of the applicable Conversion Notice and ending on the date of such issuance
and payment under this clause (II).

 

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(iii)
Registration; Book-Entry. The Corporation shall maintain a register (the “Register”)
for the recordation of the names and addresses of the Holders of each Preferred Share and the Stated Value of the Preferred Shares
(the “Registered Preferred Shares”). The entries in the Register shall be conclusive and binding for all purposes
absent manifest error. The Corporation and each Holder of the Preferred Shares shall treat each Person whose name is recorded
in the Register as the owner of a Preferred Share for all purposes (including the right to receive payments and dividends hereunder)
notwithstanding notice to the contrary. A Registered Preferred Share may be assigned, transferred or sold only by registration
of such assignment or sale on the Register. Upon its receipt of a written request to assign, transfer or sell one or more Registered
Preferred Shares by such Holder thereof, the Corporation shall record the information contained therein in the Register and issue
one or more new Registered Preferred Shares in the same aggregate Stated Value as the Stated Value of the surrendered Registered
Preferred Shares to the designated assignee or transferee pursuant to Section 17, provided that if the Corporation does not so
record an assignment, transfer or sale (as the case may be) of such Registered Preferred Shares within two (2) Business Days of
such a request, then the Register shall be automatically deemed updated to reflect such assignment, transfer or sale (as the case
may be). Notwithstanding anything to the contrary set forth in this Section 4, following conversion of any Preferred Shares in
accordance with the terms hereof, the applicable Holder shall not be required to physically surrender such Preferred Shares to
the Corporation unless (A) the full or remaining number of Preferred Shares represented by the applicable Preferred Share Certificate
are being converted (in which event such certificate(s) shall be delivered to the Corporation as contemplated by this Section
4(c)(iii)) or (B) such Holder has provided the Corporation with prior written notice (which notice may be included in a Conversion
Notice) requesting reissuance of Preferred Shares upon physical surrender of the applicable Preferred Share Certificate. Each
Holder and the Corporation shall maintain records showing the Stated Value, dividends and Late Charges converted and/or paid (as
the case may be) and the dates of such conversions and/or payments (as the case may be) or shall use such other method, reasonably
satisfactory to such Holder and the Corporation, so as not to require physical surrender of a Preferred Share Certificate upon
conversion. If the Corporation does not update the Register to record such Stated Value, dividends and Late Charges converted
and/or paid (as the case may be) and the dates of such conversions and/or payments (as the case may be) within two (2) Business
Days of such occurrence, then the Register shall be automatically deemed updated to reflect such occurrence. In the event of any
dispute or discrepancy, such records of such Holder establishing the number of Preferred Shares to which the record holder is
entitled shall be controlling and determinative in the absence of manifest error. A Holder and any transferee or assignee, by
acceptance of a certificate, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of
any Preferred Shares, the number of Preferred Shares represented by such certificate may be less than the number of Preferred
Shares stated on the face thereof. Each Preferred Share Certificate shall bear the following legend:

 

    	5

    	 		 

    

 

ANY
TRANSFEREE OR ASSIGNEE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE CORPORATION’S CERTIFICATE OF DESIGNATIONS
RELATING TO THE SHARES OF SERIES C PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 4(c)(iii) THEREOF. THE NUMBER
OF SHARES OF SERIES C PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SHARES OF SERIES C PREFERRED
STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION 4(c)(iii) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE SHARES OF SERIES
C PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE.

 

(iv)
       Pro Rata Conversion; Disputes. In the event that the Corporation receives a Conversion
Notice from more than one Holder for the same Conversion Date and the Corporation can convert some, but not all, of such Preferred
Shares submitted for conversion, the Corporation shall convert from each Holder electing to have Preferred Shares converted on
such date a pro rata amount of such Holder’s Preferred Shares submitted for conversion on such date based on the number
of Preferred Shares submitted for conversion on such date by such Holder relative to the aggregate number of Preferred Shares
submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to a Holder
in connection with a conversion of Preferred Shares, the Corporation shall issue to such Holder the number of shares of Common
Stock not in dispute and resolve such dispute in accordance with Section 21.

 

    	6

    	 		 

    

 

(d) Limitation
on Beneficial Ownership. The Corporation shall not effect the conversion of any of the Preferred Shares held by a
Holder, and such Holder shall not have the right to convert any of the Preferred Shares held by such Holder pursuant to the
terms and conditions of this Certificate of Designations and any such conversion shall be null and void and treated as if
never made, to the extent that after giving effect to such conversion, such Holder together with the other Attribution
Parties collectively would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of
Common Stock outstanding immediately after giving effect to such conversion (which provision may be waived by such Holder by
written notice from such Holder to the Corporation, which notice shall be effective 61 calendar days after the date of such
notice). For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such
Holder and the other Attribution Parties shall include the number of shares of Common Stock held by such Holder and all other
Attribution Parties plus the number of shares of Common Stock issuable upon conversion of the Preferred Shares with respect
to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable
upon (A) conversion of the remaining, nonconverted Preferred Shares beneficially owned by such Holder or any of the other
Attribution Parties and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the
Corporation (including any convertible notes, convertible preferred stock or warrants, including the Warrants) beneficially
owned by such Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the
limitation contained in this Section 4(d). For purposes of this Section 4(d), beneficial ownership shall be calculated in
accordance with Section 13(d) of the 1934 Act. For purposes of determining the number of outstanding shares of Common Stock a
Holder may acquire upon the conversion of such Preferred Shares without exceeding the Maximum Percentage, such Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x) the Corporation’s most recent Annual
Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the SEC, as the
case may be, (y) a more recent public announcement by the Corporation or (z) any other written notice by the Corporation
or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported
Outstanding Share Number”). If the Corporation receives a Conversion Notice from a Holder at a time when the actual
number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Corporation shall notify
such Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that such Conversion
Notice would otherwise cause such Holder’s beneficial ownership, as determined pursuant to this Section 4(d), to exceed
the Maximum Percentage, such Holder must notify the Corporation of a reduced number of shares of Common Stock to be purchased
pursuant to such Conversion Notice. For any reason at any time, upon the written or oral request of any Holder, the
Corporation shall within one (1) Business Day confirm orally and in writing or by electronic mail to such Holder the number
of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Corporation, including such Preferred Shares, by such
Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the
event that the issuance of shares of Common Stock to a Holder upon conversion of such Preferred Shares results in such Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the
number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so
issued by which such Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the
Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled ab initio,
and such Holder shall not have the power to vote or to transfer the Excess Shares. For purposes of clarity, the shares of
Common Stock issuable to a Holder pursuant to the terms of this Certificate of Designations in excess of the Maximum
Percentage shall not be deemed to be beneficially owned by such Holder for any purpose including for purposes of Section
13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to convert such Preferred Shares pursuant to this paragraph
shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent
determination of convertibility. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 4(d) to the extent necessary to correct this paragraph (or any
portion of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained
in this Section 4(d) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitation contained in this paragraph may not be waived and shall apply to a successor holder of such Preferred Shares. The
provisions of this Section 4(e) shall be of no further force or effect if the Holder participates in a subsequent transaction
with the Corporation which results in the Holder beneficially owning in excess of 4.99% of the number of shares of the Common
Stock outstanding which shall included securities convertible into Common Stock which do not contain a beneficial ownership
limitation.

 

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(e) Triggering
Event Conversion.

 

(i)
General. Subject to Section 4(d), at any time during the period commencing on the date
of the occurrence of a Triggering Event and ending on the earlier to occur of (x) the date of the cure of such Triggering Event
and (y) twenty (20) Trading Days after the date the Corporation delivers written notice to the Holder of such Triggering Event,
a Holder may, at such Holder’s option, by delivery of a Conversion Notice to the Corporation (the date of any such Conversion
Notice, each a “Triggering Event Conversion Date”), convert all, or any number of Preferred Shares (such Conversion
Amount of the Preferred Shares to be converted pursuant to this Section 4(e), the “Triggering Event Conversion Amount”)
into shares of Common Stock at the Triggering Event Conversion Price (each, a “Triggering Event Conversion”).

 

(ii)
Mechanics of Triggering Event Conversion. On any Triggering Event Conversion Date,
a Holder may voluntarily convert any Triggering Event Conversion Amount pursuant to Section 4(c) (with “Triggering Event
Conversion Price” replacing “Conversion Price” for all purposes hereunder with respect to such Triggering Event
Conversion and “Redemption Premium of the Conversion Amount” replacing “Conversion Amount” in clause (x)
of the definition of Conversion Rate above with respect to such Triggering Event Conversion) by designating in the Conversion
Notice delivered pursuant to this Section 4(e) of this Certificate of Designations that such Holder is electing to use the Triggering
Event Conversion Price for such conversion. Notwithstanding anything to the contrary in this Section 4(e), but subject to Section
4(d), until the Corporation delivers shares of Common Stock representing the applicable Triggering Event Conversion Amount to
such Holder, such Triggering Event Conversion Amount may be converted by such Holder into shares of Common Stock pursuant to Section
4(c) without regard to this Section 4(e).

 

    	8

    	 		 

    

 

5. Reserved.

 

6. Redemptions.

 

(a) Mandatory
Redemption upon Bankruptcy Triggering Event. Notwithstanding anything to the contrary herein, and notwithstanding any
conversion that is then required or in process, upon any Bankruptcy Triggering Event, the Corporation shall immediately
redeem, in cash, each of the Preferred Shares then outstanding at a redemption price (the “Bankruptcy Redemption
Price”) equal to the greater of (i) the product of (A) the Conversion Amount to be redeemed multiplied by (B) the
Redemption Premium and (ii) the product of (X) the Conversion Rate then in effect with respect to the Conversion Amount
multiplied by (Y) the product of (1) the Redemption Premium multiplied by (2) the greatest closing sale price of the Common
Stock on any Trading Day during the period commencing on the date immediately preceding such Bankruptcy Triggering Event and
ending on the date the Corporation makes the entire payment required to be made under this Section 6(a), without the
requirement for any notice or demand or other action by any Holder or any other person or entity, provided that a Holder may,
in its sole discretion, waive such right to receive payment upon a Bankruptcy Triggering Event, in whole or in part, and any
such waiver shall not affect any other rights of such Holder or any other Holder hereunder, including any other rights in
respect of such Bankruptcy Triggering Event, any right to conversion, and any right to payment of such Triggering Event
Redemption Price or any other Redemption Price, as applicable.

 

(b) Redemption
Mechanics. Notwithstanding anything herein to the contrary, in connection with any redemption hereunder at a time a
Holder is entitled to receive a cash payment under any of the other Transaction Documents, at the option of such Holder
delivered in writing to the Corporation, the applicable Redemption Price hereunder shall be increased by the amount of such
cash payment owed to such Holder under such other Transaction Document and, upon payment in full or conversion in accordance
herewith, shall satisfy the Corporation’s payment obligation under such other Transaction Document. In the event of a
redemption of less than all of the Preferred Shares, the Corporation shall promptly cause to be issued and delivered to such
Holder a new Preferred Share Certificate (in accordance with Section 17) representing the number of Preferred Shares which
have not been redeemed. In the event that the Corporation does not pay the applicable Redemption Price to a Holder within the
time period required for any reason (including to the extent such payment is prohibited pursuant to the NRS), at any time
thereafter and until the Corporation pays such unpaid Redemption Price in full, such Holder shall have the option, in lieu of
redemption, to require the Corporation to promptly return to such Holder all or any of the Preferred Shares that were
submitted for redemption and for which the applicable Redemption Price (together with any Late Charges thereon) has not been
paid. Upon the Corporation’s receipt of such notice, (x) the applicable Redemption Notice shall be null and void with
respect to such Preferred Shares, and (y) the Corporation shall immediately return the applicable Preferred Share
Certificate, or issue a new Preferred Share Certificate (in accordance with Section 17(d)), to such Holder, and in each case
the Additional Amount of such Preferred Shares shall be increased by an amount equal to the difference between (1) the
applicable Redemption Price (as the case may be, and as adjusted pursuant to this Section 6(b), if applicable) minus (2) the
Stated Value portion of the Conversion Amount submitted for redemption.

 

    	9

    	 		 

    

 

(c) Redemption
by Multiple Holders. Upon the Corporation’s receipt of a Redemption Notice from any Holder for redemption or
repayment as a result of an event or occurrence substantially similar to the events or occurrences described in this Section 6(a),
the Corporation shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to each other
Holder by electronic mail a copy of such notice. If the Corporation receives one or more Redemption Notices, during the seven
(7) Business Day period beginning on and including the date which is three (3) Business Days prior to the Corporation’s
receipt of the initial Redemption Notice and ending on and including the date which is three (3) Business Days after the
Corporation’s receipt of the initial Redemption Notice and the Corporation is unable to redeem all principal, interest
and other amounts designated in such initial Redemption Notice and such other Redemption Notices received during such seven
(7) Business Day period, then the Corporation shall redeem a pro rata amount from each Holder based on the principal amount
of the Preferred Shares submitted for redemption pursuant to such Redemption Notices received by the Corporation during such
seven (7) Business Day period.

 

7. Rights
Upon Issuance of Purchase Rights and Other Corporate Events.

 

(a) Purchase
Rights. In addition to any adjustments pursuant to Section 8 and 9 below, if at any time the Corporation grants, issues
or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to
all or substantially all of the record holders of any class of Common Stock (the “Purchase Rights”), then
each Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete
conversion of all the Preferred Shares (without taking into account any limitations or restrictions on the convertibility of
the Preferred Shares) held by such Holder immediately prior to the date on which a record is taken for the grant, issuance or
sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that such
Holder’s right to participate in any such Purchase Right would result in such Holder and the other Attribution Parties
exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such Purchase Right to the extent
of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of
such Purchase Right (and beneficial ownership) to the extent of any such excess) and such Purchase Right to such extent shall
be held in abeyance for such Holder until such time or times , if ever, as its right thereto would not result in such Holder
and the other Attribution Parties exceeding the Maximum Percentage), at which time or times such Holder shall be granted such
right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right to
be held similarly in abeyance) to the same extent as if there had been no such limitation.

 

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(b) Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of
any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other
assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Corporation
shall make appropriate provision to insure that each Holder will thereafter have the right to receive upon a conversion of
all the Preferred Shares held by such Holder (i) in addition to the shares of Common Stock receivable upon such conversion,
such securities or other assets to which such Holder would have been entitled with respect to such shares of Common Stock had
such shares of Common Stock been held by such Holder upon the consummation of such Corporate Event (without taking into
account any limitations or restrictions on the convertibility of the Preferred Shares contained in this Certificate of
Designations) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or
other assets received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event in
such amounts as such Holder would have been entitled to receive had the Preferred Shares held by such Holder initially been
issued with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate
for such consideration commensurate with the Conversion Rate. Provision made pursuant the proceeding sentence shall be in a
form and substance satisfactory to the Holder. The provisions of this Section 7 shall apply similarly and equally to
successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of the
Preferred Shares contained in this Certificate of Designations. “Fundamental Transaction” means the
occurrence of the Corporation (i) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or
more related transactions, (A) consolidating or merging with or into (whether or not the Corporation is the surviving
corporation) another Person, (B) selling, assigning, transferring, conveying or otherwise disposing of all or substantially
all of the properties or assets of the Corporation or any of its “significant subsidiaries” (as defined in Rule
1-02 of Regulation S-X) to one or more Persons, (C) making, or allowing one or more Persons to make, or allowing the
Corporation to be subject to or have its Common Stock be subject to or party to one or more Persons making, a purchase,
tender or exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common
Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Persons
making or party to, or Affiliated with any Persons making or party to, such purchase, tender or exchange offer were not
outstanding; or (z) such number of shares of Common Stock such that all Persons making or party to, or Affiliated with any
Person making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in
Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, (D) consummating a stock or share
purchase agreement or other business combination (including a reorganization, recapitalization, spin-off or scheme of
arrangement) with one or more Persons whereby all such Persons, individually or in the aggregate, acquire, either (x) at
least 50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as
if any shares of Common Stock held by all the Persons making or party to, or Affiliated with any Persons making or party to,
such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common
Stock such that the Persons become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at
least 50% of the outstanding shares of Common Stock, or (E) reorganize, recapitalize or reclassify its
Common Stock;

 

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8. Rights
Upon Issuance of Other Securities.

 

(a) Adjustment
of Conversion Price upon Issuance of Common Stock. If on or after the Subscription Date the Corporation issues or
sells, or in accordance with this Section 8(a) is deemed to have issued or sold, any shares of Common Stock, including
the issuance or sale of shares of Common Stock owned or held by or for the account of the Corporation, but excluding any
Excluded Securities (issued or sold or deemed to have been issued or sold) for a consideration per share (the “New
Issuance Price”) less than a price equal to the Conversion Price in effect immediately prior to such issue or sale
or deemed issuance or sale (such Conversion Price then in effect is referred to herein as the “Applicable
Price”) (the foregoing a “Dilutive Issuance”), then, immediately after such Dilutive Issuance,
the Conversion Price then in effect shall be reduced to the New Issuance Price. For all purposes of the foregoing (including
determining the adjusted Conversion Price and the New Issuance Price under this Section 8(a)), the following shall
be applicable:

 

(i)
Issuance of Options. If the Corporation in any manner grants or sells any Options and
the lowest price per share for which one share of Common Stock is at any time issuable upon the exercise of any such Option or
upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant
to the terms thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and
to have been issued and sold by the Corporation at the time of the granting or sale of such Option for such price per share. For
purposes of this Section 8(a)(i), the “lowest price per share for which one share of Common Stock is issuable upon the exercise
of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option
or otherwise pursuant to the terms thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration
(if any) received or receivable by the Corporation with respect to any one share of Common Stock upon the granting or sale of
such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon
exercise of such Option or otherwise pursuant to the terms thereof and (y) the lowest exercise price set forth in such Option
for which one share of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange
of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof minus (2) the
sum of all amounts paid or payable to the holder of such Option (or any other Person) upon the granting or sale of such Option,
upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such
Option or otherwise pursuant to the terms thereof plus the value of any other consideration received or receivable by, or benefit
conferred on, the holder of such Option (or any other Person). Except as contemplated below, no further adjustment of the Conversion
Price shall be made upon the actual issuance of such share of Common Stock or of such Convertible Securities upon the exercise
of such Options or otherwise pursuant to the terms thereof or upon the actual issuance of such share of Common Stock upon conversion,
exercise or exchange of such Convertible Securities.

 

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(ii)
Issuance of Convertible Securities. If the Corporation in any manner issues or sells
any Convertible Securities and the lowest price per share for which one share of Common Stock is at any time issuable upon the
conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof is less than the Applicable Price, then such
share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Corporation at the time of the
issuance or sale of such Convertible Securities for such price per share. For purposes of this Section 8(a)(ii), the “lowest
price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof or otherwise
pursuant to the terms thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if
any) received or receivable by the Corporation with respect to one share of Common Stock upon the issuance or sale of the Convertible
Security and upon conversion, exercise or exchange of such Convertible Security or otherwise pursuant to the terms thereof and
(y) the lowest conversion price set forth in such Convertible Security for which one share of Common Stock is issuable upon conversion,
exercise or exchange thereof or otherwise pursuant to the terms thereof minus (2) the sum of all amounts paid or payable to the
holder of such Convertible Security (or any other Person) upon the issuance or sale of such Convertible Security plus the value
of any other consideration received or receivable by, or benefit conferred on, the holder of such Convertible Security (or any
other Person). Except as contemplated below, no further adjustment of the Conversion Price shall be made upon the actual issuance
of such share of Common Stock upon conversion, exercise or exchange of such Convertible Securities or otherwise pursuant to the
terms thereof, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment
of the Conversion Price has been or is to be made pursuant to other provisions of this Section 8(a), except as contemplated below,
no further adjustment of the Conversion Price shall be made by reason of such issue or sale.

 

(iii)
Change in Option Price or Rate of Conversion. If the purchase or exercise price provided
for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible
Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of
Common Stock increases or decreases at any time, the Conversion Price in effect at the time of such increase or decrease shall
be adjusted to the Conversion Price which would have been in effect at such time had such Options or Convertible Securities provided
for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate (as the case
may be) at the time initially granted, issued or sold. For purposes of this Section 8(a)(iii), if the terms of any Option or Convertible
Security that was outstanding as of the Subscription Date are increased or decreased in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion
or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to
this Section 8(a) shall be made if such adjustment would result in an increase of the Conversion Price then in effect.

 

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(iv)
Calculation of Consideration Received. If any Option and/or Convertible Security is
issued in connection with the issuance or sale or deemed issuance or sale of any other securities of the Corporation (as determined
by the Required Holders, the “Primary Security”, and such Option and/or Convertible Security, the “Secondary
Securities”), together comprising one integrated transaction (or one or more transactions if such issuances or sales
or deemed issuances or sales of securities of the Corporation either (A) have at least one investor or purchaser in common, (B)
are consummated in reasonable proximity to each other and/or (C) are consummated under the same plan of financing), the consideration
per share of Common Stock with respect to such Primary Security shall be deemed to be equal to the difference of (x) the lowest
price per share for which one share of Common Stock was issued in such integrated transaction (or was deemed to be issued pursuant
to Section 8(a)(i) or 8(a)(ii) above, as applicable) solely with respect to such Primary Security, minus (y) with respect to such
Secondary Securities, the sum of (A) the Consideration Value of each such Option, if any, (B) the fair market value (as determined
by the Required Holders in good faith) or the Consideration Value, as applicable, and (C) the fair market value (as determined
by the Required Holder) of such Convertible Security, if any, in each case, as determined on a per share basis in accordance with
this Section 8(a)(iv). If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor (for the purpose of determining the consideration paid for such Common
Stock, Option or Convertible Security) will be deemed to be the net amount of consideration received by the Corporation therefor.
If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash (for the
purpose of determining the consideration paid for such Common Stock, Option or Convertible Security), the amount of such consideration
received by the Corporation will be the fair value of such consideration, except where such consideration consists of publicly
traded securities, in which case the amount of consideration received by the Corporation for such securities will be the average
VWAP of such security for the five (5) Trading Day period immediately preceding the date of receipt. The fair value of any consideration
other than cash or publicly traded securities will be determined jointly by the Corporation and the Required Holders. If such
parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation
Event”), the fair value of such consideration will be determined within five (5) Trading Days after the tenth (10th)
day following such Valuation Event by an independent, reputable appraiser jointly selected by the Corporation and the Required
Holders. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and
expenses of such appraiser shall be borne by the Holders.

 

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(v)
Record Date. If the Corporation takes a record of the holders of shares of Common Stock
for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or
in Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then
such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right
of subscription or purchase (as the case may be).

 

(b) Holder’s
Right of Adjusted Conversion Price. In addition to and not in limitation of the other provisions of this Section 8(b) or
the Securities Purchase Agreement, if the Corporation in any manner issues or sells
or enters into any agreement to issue or sell, any Common Stock, Options or Convertible Securities (any such securities,
“Variable Price Securities”) that are issuable pursuant to such agreement or convertible into or
exchangeable or exercisable for shares of Common Stock pursuant to such Options or Convertible Securities, as applicable, at
a price which varies with the market price of the shares of Common Stock (the “Variable Price”), the
Corporation shall provide written notice thereof via (i) electronic mail or (ii) overnight courier to each Holder on the date
of such agreement and/or the issuance of such shares of Common Stock, Convertible Securities or Options, as applicable. From
and after the date the Corporation enters into such agreement or issues any such Variable Price Securities, each Holder shall
have the right, but not the obligation, in its sole discretion to substitute the Variable Price for the Conversion Price upon
conversion of the Preferred Shares by designating in the Conversion Notice delivered upon any conversion of Preferred Shares
that solely for purposes of such conversion such Holder is relying on the Variable Price rather than the Conversion Price
then in effect. A Holder’s election to rely on a Variable Price for a particular conversion of Preferred Shares shall
not obligate such Holder to rely on a Variable Price for any future conversions of Preferred Shares. Provided; further, that
the provisions of this Section 8(b) shall not apply to any Excluded Securities.

 

(c) Calculations.
All calculations under this Section 8 shall be made by rounding to the nearest cent or the nearest 1/100th
of a share, as applicable. 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 Corporation, and the disposition of any such shares shall be considered an issue or sale
of Common Stock.

 

(d) Voluntary
Adjustment by Corporation. The Corporation may at any time while any Preferred Shares remain outstanding, reduce the
then current Conversion Price to any amount and for any period of time deemed appropriate by the Board of
Directors.

 

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(e) Excluded
Securities. No adjustments contained in this Section 8 shall be made upon the sale or issuance of any Excluded
Securities sold or deemed to have been sold.

 

(f) Termination.
The provisions of this Section 8 shall terminate and be of no further force or effect on the earlier of: (A) the two (2)
year anniversary of the Closing Date and (B) ninety (90) days following the effective date of any transaction resulting in a
merger or consolidation of the Corporation with or into another corporation that is not an Affiliate.

 

9. Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Section 8(a), if
the Corporation at any time on or after the Subscription Date subdivides (by any stock split, stock dividend, stock
combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately
reduced. Without limiting any provision of Section 8(a), if the Corporation at any time on or after the Subscription Date
combines (by any stock split, stock dividend, stock combination, recapitalization or other similar transaction) one or more
classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately
prior to such combination will be proportionately increased. Any adjustment pursuant to this Section 9 shall become effective
immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this
Section 9 occurs during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion
Price shall be adjusted appropriately to reflect such event.

 

10. Noncircumvention.
The Corporation hereby covenants and agrees that the Corporation will not, by amendment of its Articles of Incorporation,
bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, 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
of this Certificate of Designations, and will at all times in good faith carry out all the provisions of this Certificate of
Designations and take all action as may be required to protect the rights of the Holders. Without limiting the generality of
the foregoing or any other provision of this Certificate of Designations or the other Transaction Documents, the Corporation
(a) shall not increase the par value of any shares of Common Stock receivable upon the conversion of any Preferred Shares
above the Conversion Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that
the Corporation may validly and legally issue fully paid and non-assessable shares of Common Stock upon the conversion of
Preferred Shares and (c) shall, so long as any Preferred Shares are outstanding, take all action necessary to reserve and
keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion
of the Preferred Shares, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the
conversion of the Preferred Shares then outstanding (without regard to any limitations on conversion contained
herein).

 

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11. Authorized
Shares.

 

(a) Reservation.
So long as any Preferred Shares remain outstanding, the Corporation shall at all times reserve at least 300% of the number
of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred Shares
then outstanding and the exercise of all warrants then outstanding (without regard to any limitations on conversions) (the
“Required Reserve Amount”). The Required Reserve Amount (including each increase in the number of shares
so reserved) shall be allocated pro rata among the Holders based on the number of the Preferred Shares held by each Holder on
the Subscription Date or increase in the number of reserved shares, as the case may be (the “Authorized Share
Allocation”). In the event that a Holder shall sell or otherwise transfer any of such Holder’s Preferred
Shares, each transferee shall be allocated a pro rata portion of such Holder’s Authorized Share Allocation. Any shares
of Common Stock reserved and allocated to any Person which ceases to hold any Preferred Shares shall be allocated to the
remaining Holders of Preferred Shares, pro rata based on the number of the Preferred Shares then held by the
Holders.

 

(b) Insufficient
Authorized Shares. If, notwithstanding Section 11(a) and not in limitation thereof, while any of the Preferred Shares
remain outstanding the Corporation does not have a sufficient number of authorized and unreserved shares of Common Stock to
satisfy its obligation to reserve for issuance upon conversion of the Preferred Shares at least a number of shares of Common
Stock equal to the Required Reserve Amount (an “Authorized Share Failure”), then the Corporation shall
immediately take all action necessary to increase the Corporation’s authorized shares of Common Stock to an amount
sufficient to allow the Corporation to reserve the Required Reserve Amount for the Preferred Shares then outstanding. Without
limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized
Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the
Corporation shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of
Common Stock. In connection with such meeting, the Corporation shall provide each stockholder with a proxy statement and
shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock
and to cause its Board of Directors to recommend to the stockholders that they approve such proposal. In lieu of a meeting of
stockholders, the Corporation may effect such action by written consent in accordance with Section 14(c) of the 1934 Act.
Except as provided in the first sentence of Section 11(a), in the event that the Corporation is prohibited from issuing
shares of Common Stock to a Holder upon any conversion due to the failure by the Corporation to have sufficient shares of
Common Stock available out of the authorized but unissued shares of Common Stock (such unavailable number of shares of Common
Stock, the “Authorized Failure Shares”), in lieu of delivering such Authorized Failure Shares to such
Holder, the Corporation shall pay cash in exchange for the redemption of such portion of the Conversion Amount convertible
into such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorized Failure
Shares and (y) the average closing sale prices of the Common Stock on the Trading Days during the period commencing on the
date such Holder delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the
Corporation and ending on the date of such issuance under this Section 111(a). Nothing contained in this Section shall limit
any obligations of the Corporation under any provision of the Securities Purchase Agreement.

 

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12. Voting
Rights. Subject to Section 4(d) and the Maximum Percentage, each Holder shall be entitled to the whole number of votes
equal to the number of shares of Common Stock into which such holder’s Preferred Shares would be convertible on the
record date for the vote or consent of stockholders, and shall otherwise have voting rights and powers equal to the voting
rights and powers of the Common Stock. To the extent that under the NRS the vote of the holders of the Preferred Shares,
voting separately as a class or series as applicable, is required to authorize a given action of the Corporation, the
affirmative vote or consent of the holders of all of the shares of the Preferred Shares, voting together in the aggregate and
not in separate series unless required under the NRS, represented at a duly held meeting at which a quorum is presented or by
written consent of the Required Holders (except as otherwise may be required under the NRS), voting together in the aggregate
and not in separate series unless required under the NRS, shall constitute the approval of such action by both the class or
the series, as applicable. Subject to Section 4(d), to the extent that under the NRS holders of the Preferred Shares are
entitled to vote on a matter with holders of shares of Common Stock, voting together as one class, each Preferred Share shall
entitle the holder thereof to cast that number of votes per share as is equal to the number of shares of Common Stock into
which it is then convertible (subject to the ownership limitations specified in Section 4(d) hereof and the Maximum
Percentage) using the record date for determining the stockholders of the Corporation eligible to vote on such matters as the
date as of which the Conversion Price is calculated. Holders of the Preferred Shares shall be entitled to written notice of
all stockholder meetings or written consents (and copies of proxy materials and other information sent to stockholders) with
respect to which they would be entitled by vote, which notice would be provided pursuant to the Corporation’s bylaws
and the NRS.

 

13. Liquidation,
Dissolution, Winding-Up. In the event of a Liquidation Event, the Holders shall be entitled to receive in cash out of
the assets of the Corporation, whether from capital or from earnings available for distribution to its stockholders (the
“Liquidation Funds”), before any amount shall be paid to the holders of any of shares of Junior Stock, but
pari passu with any Parity Stock then outstanding, an amount per Preferred Share equal to the greater of (A) the Conversion
Amount thereof on the date of such payment and (B) the amount per share such Holder would receive if such Holder converted
such Preferred Shares into Common Stock immediately prior to the date of such payment, provided that if the Liquidation Funds
are insufficient to pay the full amount due to the Holders and holders of shares of Parity Stock, then each Holder and each
holder of Parity Stock shall receive a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds
payable to such Holder and such holder of Parity Stock as a liquidation preference, in accordance with their respective
certificate of designations (or equivalent), as a percentage of the full amount of Liquidation Funds payable to all holders
of Preferred Shares and all holders of shares of Parity Stock. To the extent necessary, the Corporation shall cause such
actions to be taken by each of its Subsidiaries so as to enable, to the maximum extent permitted by law, the proceeds of a
Liquidation Event to be distributed to the Holders in accordance with this Section. All the preferential amounts to be paid
to the Holders under this Section shall be paid or set apart for payment before the payment or setting apart for payment of
any amount for, or the distribution of any Liquidation Funds of the Corporation to the holders of shares of Junior Stock in
connection with a Liquidation Event as to which this Section applies.

 

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14. Distribution
of Assets. In addition to any adjustments pursuant to Section 8 and 9, if the Corporation shall declare or make any
dividend or other distributions of its assets (or rights to acquire its assets) to any or all holders of shares of Common
Stock, by way of return of capital or otherwise (including any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar
transaction) (the “Distributions”), then each Holder, as holders of Preferred Shares, will be entitled to
such Distributions as if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of the
Preferred Shares (without taking into account any limitations or restrictions on the convertibility of the Preferred Shares)
immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken, the date as of
which the record holders of Common Stock are to be determined for such Distributions (provided, however, that
to the extent that such Holder’s right to participate in any such Distribution would result in such Holder and the
other Attribution Parties exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such
Distribution to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of
Common Stock as a result of such Distribution (and beneficial ownership) to the extent of any such excess) and the portion of
such Distribution shall be held in abeyance for such Holder until such time or times as its right thereto would not result in
such Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times, if any, such Holder
shall be granted such rights (and any rights under this Section 14 on such initial rights or on any subsequent such rights to
be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

15. Vote
to Change the Terms of or Issue Preferred Shares. Except as may be provided for in the Securities Purchase Agreement,
and in addition to any other rights provided by law, except where the vote or written consent of the holders of a greater
number of shares is required by law or by another provision of the Articles of Incorporation, without first obtaining the
affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the Required Holders,
voting together as a single class, the Corporation shall not: (a) amend or repeal any provision of, or add any provision to,
its Articles of Incorporation or bylaws, or file any certificate of designations or articles of amendment of any series of
shares of preferred stock, if such action would adversely alter or change in any respect the preferences, rights, privileges
or powers, or restrictions provided for the benefit, of the Preferred Shares, regardless of whether any such action shall be
by means of amendment to the Articles of Incorporation or by merger, consolidation or otherwise; (b) increase or decrease
(other than by conversion) the authorized number of Preferred Shares; (c) without limiting any provision of Section 1,
create or authorize (by reclassification or otherwise) any new class or series of shares that has a preference over or is on
a parity with the Preferred Shares with respect to dividends or the distribution of assets on the liquidation, dissolution or
winding up of the Corporation; (d) purchase, repurchase or redeem any shares of capital stock of the Corporation junior in
rank to the Preferred Shares (other than pursuant to equity incentive agreements (that have in good faith been approved by
the Board of Directors) with employees giving the Corporation the right to repurchase shares upon the termination of
services); (e) without limiting any provision of Section 1, pay dividends or make any other distribution on any shares
of any capital stock of the Corporation junior in rank to the Preferred Shares; (f) issue any Preferred Shares or preferred
stock other than as provided in Section 1; (g) until the one year anniversary of the Closing Date, enter into (i) any
mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument, under which there
may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due that involves,
either individually or in aggregate with other such agreements, obligations greater than $75,000.00, and (ii) any equipment
lease, agreement evidencing purchase money security interests, or other similar transaction in the ordinary course of
business that involves, either individually or in aggregate with other such agreements, obligations greater than
$75,000.00 or (h) without limiting any provision of Section 8 and 9, whether or not prohibited by the terms of
the Preferred Shares, circumvent a right of the Preferred Shares.

 

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16. Transfer
of Preferred Shares. A Holder may transfer some or all of its Preferred Shares without the consent of the
Corporation.

 

17. Reissuance
of Preferred Certificates.

 

(a) Transfer.
If any Preferred Shares are to be transferred, the applicable Holder shall surrender the applicable Preferred Share
Certificate to the Corporation, whereupon the Corporation will forthwith issue and deliver upon the order of such Holder a
new Preferred Share Certificate (in accordance with Section 17(d)), registered as such Holder may request, representing the
outstanding number of Preferred Shares being transferred by such Holder and, if less than the entire outstanding number of
Preferred Shares is being transferred, a new Preferred Share Certificate (in accordance with Section 17(d)) to such Holder
representing the outstanding number of Preferred Shares not being transferred. Such Holder and any assignee, by acceptance of
the Preferred Share Certificate, acknowledge and agree that, by reason of the provisions of Section 4(c)(i) following
conversion or redemption of any of the Preferred Shares, the outstanding number of Preferred Shares represented by the
Preferred Shares may be less than the number of Preferred Shares stated on the face of the Preferred Shares.

 

(b) Lost,
Stolen or Mutilated Preferred Share Certificate. Upon receipt by the Corporation of evidence reasonably satisfactory to
the Corporation of the loss, theft, destruction or mutilation of a Preferred Share Certificate (as to which a written
certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or
destruction, of any indemnification undertaking by the applicable Holder to the Corporation in customary and reasonable form
and, in the case of mutilation, upon surrender and cancellation of such Preferred Share Certificate, the Corporation shall
execute and deliver to such Holder a new Preferred Share Certificate (in accordance with Section 17(d)) representing the
applicable outstanding number of Preferred Shares.

 

(c) Preferred
Share Certificate Exchangeable for Different Denominations. Each Preferred Share Certificate is exchangeable, upon the
surrender hereof by the applicable Holder at the principal office of the Corporation, for a new Preferred Share Certificate
or Preferred Share Certificate(s) (in accordance with Section 17(d)) representing in the aggregate the outstanding number of
the Preferred Shares in the original Preferred Share Certificate, and each such new 17(d) will represent such portion of such
outstanding number of Preferred Shares from the original Preferred Share Certificate as is designated by such Holder at the
time of such surrender.

 

    	20

    	 		 

    

 

(d) Issuance
of New Preferred Share Certificate. Whenever the Corporation is required to issue a new Preferred Share Certificate
pursuant to the terms of this Certificate of Designations, such new Preferred Share Certificate (i) shall represent, as
indicated on the face of such Preferred Share Certificate, the number of Preferred Shares remaining outstanding (or in the
case of a new Preferred Share Certificate being issued pursuant to Section 17(a) or Section 17(c), the number of Preferred
Shares designated by such Holder which, when added to the number of Preferred Shares represented by the other new Preferred
Share Certificates issued in connection with such issuance, does not exceed the number of Preferred Shares remaining
outstanding under the original Preferred Share Certificate immediately prior to such issuance of new Preferred Share
Certificate), and (ii) shall have an issuance date, as indicated on the face of such new Preferred Share Certificate, which
is the same as the issuance date of the original Preferred Share Certificate.

 

18. Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of
Designations shall be cumulative and in addition to all other remedies available under this Certificate of Designations and
any of the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other
injunctive relief), and nothing herein shall limit any Holder’s right to pursue actual and consequential damages for
any failure by the Corporation to comply with the terms of this Certificate of Designations. The Corporation covenants to
each Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof)
shall be the amounts to be received by a Holder and shall not, except as expressly provided herein, be subject to any other
obligation of the Corporation (or the performance thereof). The Corporation acknowledges that a breach by it of its
obligations hereunder will cause irreparable harm to the Holders and that the remedy at law for any such breach may be
inadequate. The Corporation therefore agrees that, in the event of any such breach or threatened breach, each Holder shall be
entitled, in addition to all other available remedies, to specific performance and/or temporary, preliminary and permanent
injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of
proving actual damages and without posting a bond or other security. The Corporation shall provide all information and
documentation to a Holder that is requested by such Holder to enable such Holder to confirm the Corporation’s
compliance with the terms and conditions of this Certificate of Designations.

 

19. Payment
of Collection, Enforcement and Other Costs. If (a) any Preferred Shares are placed in the hands of an attorney for
collection or enforcement or is collected or enforced through any legal proceeding or a Holder otherwise takes action to
collect amounts due under this Certificate of Designations with respect to the Preferred Shares or to enforce the provisions
of this Certificate of Designations or (b) there occurs any bankruptcy, reorganization, receivership of the Corporation or
other proceedings affecting Corporation creditors’ rights and involving a claim under this Certificate of Designations,
then the Corporation shall pay the costs incurred by such Holder for such collection, enforcement or action or in connection
with such bankruptcy, reorganization, receivership or other proceeding, including attorneys’ fees and
disbursements.

 

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20. Construction;
Headings. This Certificate of Designations shall be deemed to be jointly drafted by the Corporation and the Holders and
shall not be construed against any such Person as the drafter hereof. The headings of this Certificate of Designations are
for convenience of reference and shall not form part of, or affect the interpretation of, this Certificate of Designations.
Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine,
neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms
“herein,” “hereunder,” “hereof” and words of like import refer to this entire Certificate
of Designations instead of just the provision in which they are found. Unless expressly indicated otherwise, all section
references are to sections of this Certificate of Designations. Terms used in this Certificate of Designations and not
otherwise defined herein, but defined in the other Transaction Documents, shall have the meanings ascribed to such terms on
the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Required
Holders.

 

21. Failure
or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it
is in writing and signed by an authorized representative of the waiving party. This Certificate of Designations shall be
deemed to be jointly drafted by the Corporation and all Holders and shall not be construed against any Person as the drafter
hereof. Notwithstanding the foregoing, nothing contained in this Section 21 shall permit any waiver of any provision of
Section 20.

 

22. Dispute
Resolution.

 

(a) Submission
to Dispute Resolution.

 

(i)
In the case of a dispute relating to the closing sale price, a Conversion Price, Triggering
Event Conversion Price, a VWAP or a fair market value or the arithmetic calculation of a Conversion Rate, or the applicable Redemption
Price (as the case may be) (including a dispute relating to the determination of any of the foregoing), the Corporation or the
applicable Holder (as the case may be) shall submit the dispute to the other party via electronic mail (A) if by the Corporation,
within two (2) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if by such Holder at
any time after such Holder learned of the circumstances giving rise to such dispute. If such Holder and the Corporation are unable
to promptly resolve such dispute relating to such closing bid price, such closing sale price, such Conversion Price, such Triggering
Event Conversion Price, such VWAP or such fair market value, or the arithmetic calculation of such Conversion Rate or such applicable
Redemption Price (as the case may be), at any time after the second (2nd) Business Day following such initial notice
by the Corporation or such Holder (as the case may be) of such dispute to the Corporation or such Holder (as the case may be),
then such Holder may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

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(ii)
Such Holder and the Corporation shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered
in accordance with the first sentence of this Section 21(a) and (B) written documentation supporting its position with respect
to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately
following the date on which such Holder selected such investment bank (the “Dispute Submission Deadline”) (the
documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required
Dispute Documentation”) (it being understood and agreed that if either such Holder or the Corporation fails to so deliver
all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the
Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation
or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based
solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline).
Unless otherwise agreed to in writing by both the Corporation and such Holder or otherwise requested by such investment bank,
neither the Corporation nor such Holder shall be entitled to deliver or submit any written documentation or other support to such
investment bank in connection with such dispute (other than the Required Dispute Documentation).

 

(iii)
The Corporation and such Holder shall cause such investment bank to determine the resolution of such dispute and notify the Corporation
and such Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline.
The fees and expenses of such investment bank shall be borne solely by the Corporation, and such investment bank’s resolution
of such dispute shall be final and binding upon all parties absent manifest error.

 

(b) Miscellaneous.
The Corporation expressly acknowledges and agrees that (i) this Section 22 constitutes an agreement to arbitrate between the
Corporation and each Holder (and constitutes an arbitration agreement) under § 7501, et seq. of the New York Civil
Practice Law and Rules (“CPLR”) and that any Holder is authorized to apply for an order to compel
arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 22, (ii) a dispute relating to a
Conversion Price includes disputes as to (A) whether an issuance or sale or deemed issuance or sale of Common Stock occurred
under Section 8(a), (B) the consideration per share at which an issuance or deemed issuance of Common Stock occurred, (C)
whether any issuance or sale or deemed issuance or sale of Common Stock was an issuance or sale or deemed issuance or sale of
Excluded Securities, (D) whether an agreement, instrument, security or the like constitutes and Option or Convertible
Security and (E) whether a Dilutive Issuance occurred, (iii) the terms of this Certificate of Designations and each other
applicable Transaction Document shall serve as the basis for the selected investment bank’s resolution of the
applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings,
determinations and the like that such investment bank determines are required to be made by such investment bank in
connection with its resolution of such dispute and in resolving such dispute such investment bank shall apply such
findings, determinations and the like to the terms of this Certificate of Designations and any other applicable Transaction
Documents, (iv) the applicable Holder (and only such Holder with respect to disputes solely relating to such Holder), in its
sole discretion, shall have the right to submit any dispute described in this Section 22 to any state or federal court
sitting in The City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 22 and
(v) nothing in this Section 22 shall limit such Holder from obtaining any injunctive relief or other equitable remedies
(including with respect to any matters described in this Section 22).

 

    	23

    	 		 

    

 

23. Notices;
Currency; Payments.

 

(a) Notices.
The Corporation shall provide each Holder of Preferred Shares with prompt written notice of all actions taken pursuant to
the terms of this Certificate of Designations, including in reasonable detail a description of such action and the reason
therefor. Whenever notice is required to be given under this Certificate of Designations, unless otherwise provided herein,
such notice must be in writing and shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The
Corporation shall provide each Holder with prompt written notice of all actions taken pursuant to this Certificate of
Designations, including in reasonable detail a description of such action and the reason therefore. Without limiting the
generality of the foregoing, the Corporation shall give written notice to each Holder (i) immediately upon any adjustment of
the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at
least fifteen (15) days prior to the date on which the Corporation closes its books or takes a record (A) with respect to any
dividend or distribution upon the Common Stock, (B) with respect to any grant, issuances, or sales of any Options,
Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common
Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided
in each case that such information shall be made known to the public prior to or in conjunction with such notice being
provided to such Holder.

 

(b) Currency.
All dollar amounts referred to in this Certificate of Designations are in United States Dollars (“U.S.
Dollars”), and all amounts owing under this Certificate of Designations shall be paid in U.S. Dollars. All amounts
denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the
Exchange Rate on the date of calculation. “Exchange Rate” means, in relation to any amount of currency to
be converted into U.S. Dollars pursuant to this Certificate of Designations, the U.S. Dollar exchange rate as published in
the Wall Street Journal on the relevant date of calculation (it being understood and agreed that where an amount is
calculated with reference to, or over, a period of time, the date of calculation shall be the final date of such period of
time).

 

(c) Payments.
Whenever any payment of cash is to be made by the Corporation to any Person pursuant to this Certificate of Designations,
unless otherwise expressly set forth herein, such payment shall be made in lawful money of the United States of America by a
certified check drawn on the account of the Corporation and sent via overnight courier service to such Person at such address
as previously provided to the Corporation in writing (which address, in the case of each of the Buyers (as defined in the
Securities Purchase Agreement), shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase
Agreement), provided that such Holder may elect to receive a payment of cash via wire transfer of immediately available funds
by providing the Corporation with prior written notice setting out such request and such Holder’s wire transfer
instructions. Whenever any amount expressed to be due by the terms of this Certificate of Designations is due on any day
which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day. Any amount due
under the Transaction Documents which is not paid when due shall result in a late charge being incurred and payable by the
Corporation in an amount equal to interest on such amount at the rate of eight percent (8%) per annum from the date such
amount was due until the same is paid in full (“Late Charge”).

 

    	24

    	 		 

    

 

24. Waiver
of Notice. To the extent permitted by law, the Corporation hereby irrevocably waives demand, notice, presentment,
protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of
this Certificate of Designations and the Securities Purchase Agreement.

 

25. Governing
Law. This Certificate of Designations shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Certificate of Designations shall be governed by, the
internal laws of the State of Nevada, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Nevada or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Nevada. Except as otherwise required by Section 22 above, the Corporation hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein (i) shall be deemed or operate to
preclude any Holder from bringing suit or taking other legal action against the Corporation in any other jurisdiction to
collect on the Corporation’s obligations to such Holder, to realize on any collateral or any other security for such
obligations, or to enforce a judgment or other court ruling in favor of such Holder or (ii) shall limit, or shall be deemed
or construed to limit, any provision of Section 22. THE CORPORATION HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF
THIS CERTIFICATE OF DESIGNATIONS OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	25

    	 		 

    

 

26. Judgment
Currency.

 

(a)
If for the purpose of obtaining or enforcing judgment against the Corporation in any court in any jurisdiction it becomes
necessary to convert into any other currency (such other currency being hereinafter in this Section 2525 referred to as the
“Judgment Currency”) an amount due in U.S. dollars under this Certificate of Designations, the conversion
shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:

 

(i)
the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other
jurisdiction that will give effect to such conversion being made on such date: or

 

(ii)
the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date
as of which such conversion is made pursuant to this Section 26(a)(ii) being hereinafter referred to as the “Judgment
Conversion Date”).

 

(b)
If in the case of any proceeding in the court of any jurisdiction referred to in Section 26(a)(ii) above, there is a change
in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the
applicable party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency,
when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of US dollars which could have
been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate
prevailing on the Judgment Conversion Date.

 

(c)
Any amount due from the Corporation under this provision shall be due as a separate debt and shall not be affected
by judgment being obtained for any other amounts due under or in respect of this Certificate of Designations.

 

27. Severability.
If any provision of this Certificate of Designations is prohibited by law or otherwise determined to be invalid or
unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or
unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the
invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this
Certificate of Designations so long as this Certificate of Designations as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal
obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.
The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a
valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

28. Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other
charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or
other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited
against amounts owed by the Corporation to the applicable Holder and thus refunded to the Corporation.

 

    	26

    	 		 

    

 

29. Stockholder
Matters; Amendment.

 

(a)
Stockholder Matters. Any stockholder action, approval or consent required, desired or otherwise sought by the Corporation
pursuant to the NRS, the Articles of Incorporation, this Certificate of Designations or otherwise with respect to the
issuance of Preferred Shares may be effected by written consent of the Corporation’s stockholders or at a duly called
meeting of the Corporation’s stockholders, all in accordance with the applicable rules and regulations of the NRS. This
provision is intended to comply with the applicable sections of the NRS permitting stockholder action, approval and consent
affected by written consent in lieu of a meeting.

 

(b) Amendment.
This Certificate of Designations or any provision hereof (other than Section 4(d)) may be modified or amended or the
provisions hereof waived with the written consent of the Company and either (i) a majority of the Holders of the Preferred
Shares issued pursuant to the Securities Purchase Agreement, which must include Cavalry as long as Cavalry (or any of its
Affiliates) owns at least five percent (5%) of the Preferred Shares issued pursuant to the SPA, or (ii) Cavalry as long as
Cavalry (or any of its Affiliates) owns at least five percent (5%) of the Preferred Shares issued pursuant to the Securities
Purchase Agreement. No consideration (other than reimbursement of legal fees) shall be offered or paid to any Person to amend
or consent to a waiver or modification of any provision of any of the Transaction Documents (as defined in the Purchase
Agreement) unless the same consideration also is offered to all of the parties to the Transaction Documents. No waiver shall
be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

30. Certain
Defined Terms. For purposes of this Certificate of Designations, the following terms shall have the following
meanings:

 

(a)
“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder.

 

(b)
“Additional Amount” means, as of the applicable date of determination, with respect to each Preferred
Share, all declared and unpaid dividends on such Preferred Share.

 

(c)
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person, it being understood for purposes of this definition that
“control” of a Person means the power directly or indirectly either to vote 10% or more of the stock having
ordinary voting power for the election of directors of such Person or direct or cause the direction of the management and
policies of such Person whether by contract or otherwise.

 

(d)
“Attribution Parties” means, collectively, the following Persons and entities: (i) any investment
vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after the Subscription Date,
directly or indirectly managed or advised by a Holder’s investment manager or any of its Affiliates or principals, (ii)
any direct or indirect Affiliates of such Holder or any of the foregoing, (iii) any Person acting or who could be deemed to
be acting as a Group together with such Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership
of the Corporation’s Common Stock would or could be aggregated with such Holder’s and the other Attribution
Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively
such Holder and all other Attribution Parties to the Maximum Percentage.

 

    	27

    	 		 

    

 

(e)
“Bankruptcy Triggering Events” means each of the following events:

 

(i)
bankruptcy, reorganization or liquidation proceedings or other proceedings for the relief
of debtors shall be instituted by or against the Corporation or any Subsidiary and, if instituted against the Corporation or any
Subsidiary by a third party, shall not be dismissed within thirty (30) days of their initiation;

 

(ii)
the commencement by the Corporation or any Subsidiary of a voluntary case or proceeding
under any applicable federal, state or foreign bankruptcy, reorganization or other similar law or of any other case or proceeding
to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document
in respect of the Corporation or any Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding
against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal,
state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Corporation or any Subsidiary or of any
substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition
of debts, or the occurrence of any other similar federal, state or foreign proceeding, the taking of corporate action by the Corporation
or any Subsidiary in furtherance of any such action or the taking of any action by any Person to commence a Uniform Commercial
Code foreclosure sale or any other similar action under federal, state or foreign law;

 

(f)
the entry by a court of (A) a decree, order, judgment or other similar document in respect of the Corporation or any Subsidiary
of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or (B) a decree, order, judgment or other similar document adjudging the Corporation or any Subsidiary as
bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment
or composition of or in respect of the Corporation or any Subsidiary under any applicable federal, state or foreign law or (C)
a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Corporation or any Subsidiary or of any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such
other decree, order, judgment or other similar document unstayed and in effect for a period of thirty (30) consecutive days;

 

    	28

    	 		 

    

 

(g)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the
City of New York are authorized or required by law to remain closed.

 

(h)
“Closing Date” shall have the meaning set forth in the Securities Purchase Agreement, which date is the
date the Corporation initially issued the Preferred Shares and the Warrants pursuant to the terms of the Securities Purchase
Agreement.

 

(i)
“Common Stock” means (i) the Corporation’s shares of common stock, $0.001 par value per share, and
(ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a
reclassification of such common stock.

 

(j)
“Consideration Value” means the value of the applicable Option, Convertible Security as of the date of
issuance thereof (as determined by the Board of Directors in good faith).

 

(k)
“Convertible Securities” means any stock or other security (other than Options) that is at any time and
under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise
entitles the holder thereof to acquire, any shares of Common Stock.

 

(l)
“Excluded Securities” means those securities identified and defined as such in the Securities Purchase Agreement.

 

(m)
“Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined
in Rule 13d-5 thereunder.

 

(n)
“Holder” or “Holders” means a holder of Preferred Shares.

 

(o)
“Liquidation Event” means, whether in a single transaction or series of transactions, the voluntary or
involuntary liquidation, dissolution or winding up of the Corporation or such Subsidiaries the assets of which constitute all
or substantially all of the assets of the business of the Corporation and its Subsidiaries, taken as a whole.

 

(p)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

 

(q)
“OTC Markets” means OTC Markets Inc.

 

    	29

    	 		 

    

 

(r)
“Person” means an individual, a limited liability Corporation, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency
thereof.

 

(s)
“Principal Market” means The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the
Nasdaq Global Market, the Nasdaq Capital Market, OTCPink, OTCQB, or OTCQX and any successor markets thereto.

 

(t)
“Redemption Notices” means, the Triggering Events Redemption Notices.

 

(u)
“Redemption Premium” means 120%.

 

(v)
“Redemption Prices” means Triggering Event Redemption Prices.

 

(w)
“SEC” means the Securities and Exchange Commission or the successor thereto.

 

(x)
“Securities Purchase Agreement” means that certain securities purchase agreement by and among the
Corporation and the holders of Preferred Shares, dated as of the Subscription Date, as may be amended from time in accordance
with the terms thereof.

 

(y)
“Stated Value” shall mean $0.07 per share, subject to adjustment for stock splits, stock dividends,
recapitalizations, reorganizations, reclassifications, combinations, subdivisions or other similar events occurring after the
Subscription Date with respect to the Preferred Shares.

 

(z)
“Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person,
Persons or Group.

 

(aa)
“Subscription Date” with respect to any Holder means the date as of which both the Holder and the Corporation
have executed the Securities Purchase Agreement.

 

(bb)
“Subsidiary” when used with respect to any Person, means any corporation or other organization, whether incorporated
or unincorporated, of which (A) at least a majority of the securities or other interests having by their terms ordinary voting
power to elect a majority of the board of directors or others performing similar functions with respect to such corporation or
other organization is directly or indirectly owned or controlled by such Person (through ownership of securities, by contract
or otherwise) or (B) such Person or any subsidiary of such Person is a general partner of any general partnership or a manager
of any limited liability company.

 

(cc)
“Trading Day” means any day on which the Common Stock is eligible to be traded on the Principal Market or securities
market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the
Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended
from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in
advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless
such day is otherwise designated as a Trading Day in writing by the Holder.

 

    	30

    	 		 

    

 

(dd)
“Transaction Documents” means the Securities Purchase Agreement, this Certificate of Designations, the Warrants
and each of the other agreements and instruments entered into or delivered by the Corporation or any of the Holders in connection
with the transactions contemplated by the Securities Purchase Agreement, all as may be amended from time to time in accordance
with the terms thereof.

 

(ee)
“Triggering Event Conversion Price” means, as of any Triggering Event Conversion Date, 75% of the lowest VWAP
of the Common Stock during the five (5) consecutive Trading Day period immediately prior to such Triggering Event Conversion Date.
All such determinations to be appropriate adjusted for any stock split, stock dividend, stock combination or other similar transaction
during such measuring period.

 

(ff)
“Triggering Events” means each of the following events:

 

(i)
the suspension from trading or failure of the Common Stock to be trading, listed or quoted (as applicable) on the Principal
Market for a period of twenty (20) consecutive Trading Days;

 

(ii) except as otherwise provided herein, at any time following the tenth (10th)
consecutive day that a Holder’s Authorized Share Allocation (as defined in Section 11(a) above) is less than 300% of the
number of shares of Common Stock that such Holder would be entitled to receive upon a conversion, in full, of all of the Preferred
Shares then held by such Holder (without regard to any limitations on conversion set forth in this Certificate of Designations);

 

(iii)
any Bankruptcy Triggering Event occurs;

 

(iv) other than as specifically set forth in another clause of this definition, the Corporation
or any Subsidiary breaches any material representation or warranty in any material respect (other than representations or warranties
subject to material adverse effect or materiality, which may not be breached in any respect) or any material covenant or other
material term or material condition of any Transaction Document, except, in the case of a breach of a material covenant or other
material term or material condition that is curable, only if such breach remains uncured for a period of five (5) consecutive
Trading Days;

 

(v) a false or inaccurate certification (including a false or inaccurate deemed certification)
by the Corporation as to whether any Triggering Event has or has not occurred;

 

(vi)
the Corporation’s failure to pay any amount when and as due under this Certificate
of Designations (including the Corporation’s failure to pay any redemption payments or amounts hereunder), the Securities
Purchase Agreement or any other Transaction Document or any other agreement, document, certificate or other instrument delivered
in connection with the transactions contemplated hereby and thereby (in each case, whether or not permitted pursuant to the NRS),
except, in the case of a failure to pay Late Charges when and as due, in each such case only if such failure remains uncured for
a period of at least thirty (30) Trading Days;

 

    	31

    	 		 

    

 

(gg)
“VWAP” means, for any date, the price determined by the daily volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the Principal Market on which the Common Stock is then listed or quoted (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)).

 

(hh)
“Warrants” has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include all
warrants issued in exchange therefor or replacement thereof.

 

(ii)
“Warrant Shares” means, collectively, the shares of Common Stock issuable upon exercise of the
Warrants.

 

31. Disclosure.
Upon receipt or delivery by the Corporation of any notice in accordance with the terms of this Certificate of Designations,
unless the Corporation has in good faith determined that the matters relating to such notice do not constitute material,
non-public information relating to the Corporation or any of its Subsidiaries, the Corporation shall within one (1) Business
Day after any such receipt or delivery publicly disclose such material, non-public information on a Current Report on Form
8-K or otherwise. In the event that the Corporation believes that a notice contains material, non-public information relating
to the Corporation or any of its Subsidiaries, the Corporation so shall indicate to such Holder contemporaneously with
delivery of such notice, and in the absence of any such indication, such Holder shall be allowed to presume that all matters
relating to such notice do not constitute material, non-public information relating to the Corporation or any of its
Subsidiaries. If the Corporation or any of its Subsidiaries provides material non-public information to a Holder that is not
simultaneously filed in a Current Report on Form 8-K and such Holder has not agreed to receive such material non-public
information, the Corporation hereby covenants and agrees that such Holder shall not have any duty of confidentiality to the
Corporation, any of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents with
respect to, or a duty to any of the foregoing not to trade on the basis of, such material non-public information. Nothing
contained in this Section 31 shall limit any obligations of the Corporation, or any rights of any Holder, under the
Securities Purchase Agreement.

 

*
* * * *

    	32

    	 		 

    

 

IN
WITNESS WHEREOF, the Corporation has caused this Certificate of Designations of Series C Convertible Preferred Stock of BTCS Inc.
to be signed by its Chief Executive Officer and Secretary on this 24th day of May, 2017.

 

	 	BTCS
    INC
	 	 	 
	 	By:	 
	 	 	Charles
    Allen, Chief Executive Officer

 

    	33

    	 		 

    

 

EXHIBIT
I

 

BTCS
INC.

 

CONVERSION
NOTICE

 

Reference
is made to the Certificate of Designations, Preferences and Rights of the Series C Convertible Preferred Stock of BTCS Inc. (the
“Certificate of Designations”). In accordance with and pursuant to the Certificate of Designations, the undersigned
hereby elects to convert the number of shares of Series C Convertible Preferred Stock, $0.001 par value per share (the “Preferred
Shares”), of BTCS Inc., a Delaware corporation (the “Corporation”), indicated below into shares of
common stock, $0.001 par value per share (the “Common Stock”), of the Corporation, as of the date specified
below.

 

	Date
    of Conversion:	 
	 	 
	Aggregate
    number of Preferred Shares to be converted	 
	 	 
	Aggregate
    Stated Value of such Preferred Shares to be converted:	 
	 	 
	Aggregate
    accrued and unpaid dividends and accrued and unpaid Late Charges with respect to such Preferred Shares and such aggregate
    dividends to be converted:	 
	 	 
	AGGREGATE
    CONVERSION AMOUNT TO BE CONVERTED:	 
	 
	Please
    confirm the following information:
	 	 
	Conversion
    Price:	 
	 	 
	Number
    of shares of Common Stock to be issued:	 
	 
	Please
                                         issue the Common Stock into which the applicable Preferred Shares are being converted
                                         to Holder, or for its benefit, as follows:

         

        [  ]     Check
        here if requesting delivery as a certificate to the following name and to the following address:

	 
	Issue
    to:	 
	 	 
	 	 
	 	 
	      [  ]
            Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:
    
	 
	DTC
    Participant:	 
	 	 
	DTC
    Number:	 
	 	 
	Account
    Number:	 
	 	 	 	 	 	 	 

Date:
_____________ __, ____

 

	 	 
	Name
    of Registered Holder	 
	 	 	 
	 	 	 
	By:	          	 
	 	Name:	 
	 	Title:	 

 

	 	Tax
    ID:	 	 
	 	 	 	 
	 	Facsimile:	 	 
	 	 	 	 
	E-mail
    Address:	 

 

    	34

    	 		 

    

 

EXHIBIT
II

 

ACKNOWLEDGMENT

 

The
Corporation hereby acknowledges this Conversion Notice and hereby directs _________________ to issue the above indicated number
of shares of Common Stock in accordance with the Transfer Agent Instructions dated _____________, 20__ from the Corporation and
acknowledged and agreed to by ________________________.

 

	 	BTCS INC
	 	 	 
	 	By:	
	 		Title:
	 	 	Name:

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