Document:

ps_ex4-3.htm

    

      EXHIBIT
4.3

      

       

      CERTIFICATE
OF DESIGNATIONS, PREFERENCES

      AND
RIGHTS OF SERIES D CONVERTIBLE PREFERRED STOCK

      OF

      POWERSAFE
TECHNOLOGY CORP.

       

      POWERSAFE
TECHNOLOGY CORP., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the “Corporation”), DOES
HEREBY CERTIFY THAT:

       

      A.           Pursuant
to authority conferred upon the Board of Directors of the Corporation (the
“Board”) by
Article FOURTH of the Certificate of Incorporation of the Corporation (the
“Certificate of
Incorporation”) and pursuant to the provisions of §151 of the General
Corporation Law of the State of Delaware, the Board adopted and approved the
following resolution providing for the designations, preferences and relative,
participating, optional and other rights, and the qualifications, limitations
and restrictions of the Series D Convertible Preferred Stock.

       

      B.           The
Certificate of Incorporation provides for two classes of
shares,  common stock, $.01 par value per share (the “Common Stock”), and
preferred stock, $.01 par value per share (the “Preferred
Stock”).

       

      C.           The
Board is authorized by the Certificate of Incorporation to provide for the
issuance of the shares of Preferred Stock in series and, by filing a certificate
pursuant to the applicable law of the State of Delaware, to establish from time
to time the number of shares to be included in such series and to fix the
designations, preferences and rights of the shares of each such series and the
qualifications, limitations and restrictions thereof.

       

      NOW, THEREFORE, BE IT
RESOLVED, that the Board deems it advisable to, and hereby does,
designate a Series D Convertible Preferred Stock and fixes and determines the
rights, preferences, qualifications, limitations and restrictions relating to
such Preferred Stock as follows:

       

      1.           Designation and
Amount. The shares of such series of Preferred Stock shall be designated
Series D Preferred Stock (the “Series D Preferred
Stock”). The number of shares constituting Series D Preferred Stock shall
be fifty thousand (50,000). No other shares of preferred stock shall be
designated as Series D Preferred Stock

       

      2.           Dividends.

       

      (a)           Commencing
on the Original Issuance Date (as defined in Section 8(e) below), cumulative
dividends (“Series D
Dividends”) shall accrue on each share of Series D Preferred Stock, at
the rate of eight percent (8%) of the Liquidation Amount (as defined in Section
3(a) below) per annum (accrued daily, from but not including the next preceding
Dividend Payment Date (as defined in Section 1(b) below), or, in the case of the
first Dividend Payment Date, from the Original Issuance Date, to and including
the respective Dividend Payment Date, on a 30/360 basis).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)           The
Series D Dividends shall be payable quarterly, beginning on June 30, 2009 and
thereafter on September 30, December 31, March 31, and June 30 of each calendar
year (each a “Dividend
Payment Date”), or if such day is not a Business Day (as defined in
Section 9 below), on the next succeeding Business Day, to holders of record as
of the tenth (10th)
Business Day next preceding the respective Dividend Payment
Date.  Series D Dividends shall be payable in shares of Series D
Preferred Stock (a “PIK Dividend”), thru
December 31, 2010, and in cash thereafter.  If necessary, fractional
shares of Series D Preferred Stock may be issued in connection with any PIK
Dividend so that exact payment can be made to each holder of Series D Preferred
Stock of all accrued and unpaid dividends that are payable on any Dividend
Payment Date in respect of such holder’s shares of Series D Preferred Stock,
provided that any such fractional shares shall be rounded to the nearest
one-hundredth of a share.  All shares (including any fractional
shares) of Series D Preferred Stock issued pursuant to a PIK Dividend will
thereupon be duly authorized, validly issued, fully paid and
non-assessable.  Dividends with respect to such additional shares of
Series D Preferred Stock issued as a PIK Dividend shall (a) be due and payable
on each Dividend Payment Date following the payment date on which such PIK
Dividend was declared (or accrued, if not declared and paid on a Dividend
Payment Date) and (b) accrue at the rate set forth in this Section 2 commencing
on the day immediately following the Dividend Payment Date on which such PIK
Dividends were due and payable (regardless of whether the PIK Dividend was
declared or whether the shares of Series D Preferred Stock constituting the PIK
Dividends were actually issued).The Series D Dividends shall accrue and
accumulate whether or not they have been declared and whether or not there are
profits, surplus or other funds of the Corporation legally available for the
payment of dividends.

       

      (c)           Series
D Dividends shall be declared pro rata per share.

       

      3.           Liquidation
Preference.

       

      (a)           In
the event of any liquidation, dissolution or winding up of the Corporation (a
“Liquidation
Event”), no distribution shall be made to holders of shares of capital
stock of the Corporation ranking junior to the Series D Preferred Stock upon
liquidation, dissolution or winding up of the Corporation, including the Common
Stock (as defined in Section 9(d) below), unless, prior thereto, the holders of
shares of Series D Preferred Stock shall have received an amount per share equal
to $75.00  (the “Liquidation Amount”)
per share plus any accrued or declared and unpaid dividends owed to holders of
shares of the Series D Preferred Stock.

       

      (b)           The
holders of the Series D Preferred Stock shall be entitled to receive on a pari
passu basis with any other series of stock in parity with the Series D Preferred
Stock distributions out of the assets legally available for such distributions,
including without limitation, the outstanding Series D Preferred
Stock.  In the event the assets of the Corporation are insufficient to
pay the amounts owed to holders of Series D Preferred Stock and any other parity
stock upon liquidation, all available assets shall be paid ratably to the
holders of Series D Preferred Stock and any parity stock, on a pari passu basis
in accordance with their respective liquidation preferences, and the holders of
Common Stock and any other junior stock shall receive nothing.

       

      4.           Voting
Rights.

       

      
        
           

        

        
          C-2

          
            

          

        

        
           

        

      

      (a)           Except
as otherwise provided in this Certificate of Designation or in the Certificate
of Incorporation, as amended (the “Certificate of
Incorporation”), of the Corporation, as expressly required by law or as
provided herein, a holder of Series D Preferred Stock shall be entitled to a
number of votes per share equal to the number of whole shares of Common Stock
into which such Series D Preferred Stock is convertible, subject to adjustment
as set forth in Section 6 below, as of the record date for the determination of
stockholders entitled to vote and to notice of any stockholders’ meeting in
accordance with the By-laws (the “By-laws”) of the
Corporation.  Fractional votes shall not be permitted and any
fractional voting rights resulting from the above formula (after aggregating all
shares of Series D Preferred Stock held by each holder) shall be rounded to the
nearest whole number (with one-half being rounded upward).

       

      (b)           Except
as otherwise provided in this Certificate of Designation or in the Certificate
of Incorporation or as expressly required by law, the holders of Series D
Preferred Stock and the holders of Common Stock shall vote together as a single
class on all matters presented to stockholders, and not as separate classes. The
Holders of Series D Preferred Stock shall votes on an as converted
basis.

       

      (c)           The
Corporation shall not effect, or agree to effect, any amendment of this
Certificate of Designation without the consent of the holder or holders of at
least two-thirds of the shares of Series D Preferred Stock then
outstanding.

       

      (d)           In
the event that there is a default in the payment of Series D Dividends for any
two (2) quarters (“Dividend Default”),
or a default in any other covenant or agreement of the Corporation contained
herein that continues for 15 calendar days, then the holder or holders of a
majority of the shares of Series D Preferred Stock, voting as a class with the
holders of any other class of capital stock of the Corporation which is pari
passu with the Series D Preferred Stock, from time to time outstanding (all
holders of the Series D Preferred Stock and pari passu classes being referred to
as “Series D Holders” and such votes by Series D Holders to be weighted by
liquidation preference), shall have the right to elect members to the Board
constituting a majority of the directors then on the Board (each a “Series D Director”);
provided that the right to elect directors provided in this paragraph shall
persist only for so long as the Dividend Default or such other default
continues.  The Corporation shall reimburse all Series D Directors for
expenses incurred by them in connection with their attendance at meetings of the
Board.

       

      The
election of the Series D Directors may occur as provided herein or at any
special meeting of holders of Series D Holders called by not less than twenty
five percent (25%) of the Series D Holders or by the written consent of the
same.  Any Series D Director may be removed, with or without cause, at
any time by and only by the vote or written consent of the holder or holders of
a majority of the  Series D Holders.  If any Series D
Director should cease to be a director for any reason, the vacancy shall be
filled only upon the vote or written consent of the holder or holders of a
majority of the Series D Holders, voting separately as a class, in the manner
specified above.

       

      (e)           Meetings
of the Series D Holders shall be held whenever called in the manner required by
the laws of the State of Delaware for purposes as to which there are special
statutory provisions, and for other purposes whenever called by resolution of
the Board of Directors, or by the President, or by the holders of twenty five
(25%) of the outstanding shares of the Series D Holders.  Any such
meetings of stockholders may be held at the principal business office of the
Corporation or at such other place or places, 

      
        
           

        

        
          C-3

          
            

          

        

        
           

        

      

      either
within or without the State of Delaware, as may be specified in the notice
thereof.  Notice of a special meeting also shall state the purpose or
purposes for which the meeting is called.  A copy of the notice of any
meeting shall be delivered personally or shall be mailed, not less than ten
(10), nor more than sixty (60) days, before the date of the meet­ing, to
each stockholder of record entitled to vote at the meeting.  At any
and all meet­ings of the Series D Holders there must be present, either in
person or by proxy, at least twenty five percent (25%) of the issued and
out­standing shares of the Series D Holders entitled to vote at said
meeting. Any action of
the Series D Holders may be taken without a meeting, without prior notice and
without a vote, if a consent in writing, setting forth the action so taken,
shall be signed, in person or by proxy, by the holders of outstanding stock
having not less than the minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all shares entitled to vote
there­on were present and voted in person or by proxy.  Prompt
notice of the taking of the corporate action without a meet­ing by less than
unanimous written consent shall be given to those stockholders who have not
consented in writing, but who were entitled to vote on the matter.

      

      5.           Conversion.

       

      (a)           The
holder of any shares of Series D Preferred Stock shall have the right, at such
holder’s option, at any time or from time to time, to convert such shares into
Common Stock, in a conversion ratio of one hundred shares of Common Stock for
each share of Series D Preferred Stock, subject to adjustment as set forth in
Section 5 below, for each share of Series D Preferred Stock to be converted
(such conversion ratio in effect from time to time, the “Conversion
Ratio”).

       

      (b)           The
holder of any shares of Series D Preferred Stock may exercise the conversion
rights set forth herein by delivering to the Corporation or any transfer agent
of the Corporation for the Series D Preferred Stock as may be designated by the
Corporation, the certificate or certificates for the shares to be converted,
duly endorsed or assigned in blank to the Corporation (if required by it) (or
such holder shall notify the Corporation or any transfer agent that such
certificate(s) have been lost, stolen or destroyed and shall execute an
agreement reasonably satisfactory to the Corporation to indemnify the
Corporation from any loss incurred by it in connection therewith), accompanied
by written notice stating that the holder elects to convert such shares and
stating the name or names (with address) in which the certificate or
certificates for the shares of Common Stock are to be
issued.  Conversion shall be deemed to have been effected on the date
when the aforesaid delivery is made or as provided below in Section 4(g)
(the “Conversion
Date”).

       

      (c)           As
promptly as practicable thereafter, the Corporation shall issue and deliver to
or upon the written order of such holder, to the place designated by such
holder, a certificate to which such holder is entitled.  The person in
whose name the certificate or certificates for Common Stock are to be issued
shall be deemed to have become a Common Stock holder of record on the applicable
Conversion Date.  The Corporation shall not close its books against
the transfer of shares of Series D Preferred Stock in any manner that would
interfere with the timely conversion of any shares of Series D Preferred
Stock.  Upon conversion of only a portion of the number of shares
covered by a certificate representing shares of Series D Preferred Stock
surrendered for conversion, the Corporation shall issue and deliver to or upon
the written order of the holder of the certificate so 

       

      
        
           

        

        
          C-4

          
            

          

        

        
           

        

      

      surrendered
for conversion, at the expense of the Corporation, a new certificate covering
the number of shares of the Series D Preferred Stock representing the
unconverted portion of the certificate so surrendered.

       

      (d)           No
fractional shares of Common Stock or scrip shall be issued upon conversion of
shares of Series D Preferred Stock.  If more than one share of Series
D Preferred Stock shall be surrendered, or deemed surrendered, pursuant to
subsection (c) above, for conversion at any one time by the same holder, the
number of full shares of Common Stock issuable upon conversion thereof shall be
computed on the basis of the aggregate number of shares of such Series D
Preferred Stock so surrendered.  Any fractional share which would
otherwise be issuable upon conversion of any shares of Series D Preferred Stock
(after aggregating all shares of Series D Preferred Stock held by each holder)
shall be rounded to the nearest whole number (with one-half being rounded
upward).

       

      (e)           The
Corporation shall reserve, free from preemptive rights, out of its authorized
but unissued shares of Common Stock solely for the purpose of effecting the
conversion of the shares of Series D Preferred Stock sufficient shares to
provide for the conversion of all outstanding shares of Series D Preferred
Stock.

       

      (f)           All
shares of Common Stock which may be issued in connection with the conversion
provisions set forth herein will, upon issuance by the Corporation, be validly
issued, fully paid and nonassessable, with no personal liability attaching to
the ownership thereof, and free from all taxes, liens or charges with respect
thereto.

       

      (g)           Each
holder of shares of Series D Preferred Stock shall be entitled to receive
written notice from the Corporation, by overnight delivery or first class mail,
postage prepaid, addressed to such holder at the last address of such holder as
shown by the records of the Corporation, of any proposed dividend or
distribution, liquidation, dissolution or winding up of the Corporation, or any
Business Combination (as defined in Section 8(b) below), at least ten (10)
days prior to the date on which any such event is scheduled to occur, and, at
any time prior to, or conditioned upon the consummation of and to occur
immediately prior to, such liquidation, dissolution or winding up or Business
Combination, to convert any or all of such holder’s shares of Series D Preferred
Stock into shares of Common Stock pursuant to this
Section 4.  The notice of any such event shall at a minimum
specify the consideration to be received by stockholders in such event in the
aggregate, the consideration to be received on a per share basis by the holders
of Common Stock and the consideration to be received on a per share basis by the
holders of Series D Preferred Stock.

       

      6.           Conversion
Adjustment.

       

      (a)           In
the event the Corporation shall, at any time after the issuance of any share of
Series D Preferred Stock, declare or pay any dividend or make any distribution
on Common Stock payable in shares of Common Stock, or effect a subdivision or
split or a combination, consolidation or reverse split of the outstanding shares
of Common Stock into a greater or lesser number of shares of Common Stock, then
in each such case the Conversion Ratio shall be adjusted, so that the holder of
any shares of Series D Preferred Stock shall be entitled to receive upon
conversion thereof the number of shares of Common Stock or other securities or
property that such holder would have owned or have been 

       

      
        
           

        

        
          C-5

          
            

          

        

        
           

        

      

      entitled
to receive upon the happening of such event had such Series D Preferred Stock
been converted immediately prior to the relevant record date or, if there is no
such record date, the effective date of such event.

       

      (b)           The
“Conversion
Price” shall initially be $75.00 and shall be adjusted from time to time
as provided in this subsection (b).  If the Conversion Ratio shall be
adjusted pursuant to subsection (a) above, then in each such case, a
corresponding adjustment shall be made to the Conversion Price in accordance
with the following formula:

       

      P           =           Po x Ro
          R

       

      where:

       

      P  =           the
adjusted Conversion Price in effect immediately following such
adjustment.

       

      Po
=           the
Conversion Price in effect immediately prior to such adjustment.

       

      Ro
=           the
Conversion Ratio in effect immediately prior to the adjustment.

       

      R
=           the
Conversion Ratio in effect immediately following the adjustment.

       

      (c)           The
provisions of this Section 6 shall be applied successively each time there shall
occur any event for which an adjustment is required to be made pursuant to
subsection (a) above.

       

      (d)           Subject
to the restrictions contained in Section 8(a)(iv) below, in the event the
Corporation shall, at any time after the issuance of any share of Series D
Preferred Stock, declare or pay any dividend or make any distribution on Common
Stock payable in securities or other property of the Corporation other than
shares of Common Stock or cash, in which dividend or distribution the holders of
Series D Preferred Stock do not otherwise participate, then provision shall be
made so that the holders of Series D Preferred Stock shall receive upon
conversion thereof in addition to the number of shares of Common Stock
receivable thereupon, the amount of such securities of the Corporation or value
of such other property that they would have received had their Series D
Preferred Stock been converted into Common Stock on the date of such event and
had they thereafter, during the period from the date of such event to and
including the conversion date, retained such securities and other property
receivable by them as aforesaid during such period, giving application during
such period to all adjustments called for herein.

       

      (e)           Upon
a Business Combination (as defined below), each share of Series D Preferred
Stock shall remain outstanding and shall thereafter be convertible into, or
shall be converted into a security which shall be convertible into, the kind and
amount of securities or other property to which a holder of the number of shares
of Common Stock of the Corporation deliverable upon conversion of such share of
Series D Preferred Stock immediately prior to such Business Combination
would have been entitled upon such Business Combination, all subject to further
adjustment as provided herein and in the Certificate of
Incorporation.

       

      
        
           

        

        
          C-6

          
            

          

        

        
           

        

      

       

      7.           Redemption.

       

      (a)           Optional
Redemption.  The Corporation, at its option, may redeem (an
“Optional
Redemption”) all, but not less than all, shares of the Series D Preferred
Stock then outstanding for cash in an amount equal to the Series D Liquidation
Amount thereof, (a) at any time beginning March  31, 2012, and (b) at
any time after Dec 31, 2009 if (i) the Common Stock is at the time listed for
trading on a national securities exchange, an inter-dealer automated quotation
system of a national association of securities dealers or listed on the Over the
Counter Bulletin Board and (ii) during any preceding period of twenty (20)
consecutive Trading Days (as defined in Section 9(g) below), (I) the average
daily dollar volume of shares of Common Stock traded equals or exceeds twenty
five thousand dollars ($25,000), and (II) the Closing Price (as defined in
Section 8(c) below) equals or exceeds the quotient of (u) $1.15 divided by (v)
the Conversion Ratio then in effect (such conditions, the “Optional Redemption
Conditions”).

       

      The
procedures for an Optional Redemption occurring because of the existence of the
Optional Redemption Conditions shall be the same as the procedures set forth in
Section 7(c) below, except that the notice of redemption shall be sent within
five (5) Trading Days following any day on which the Optional Redemption
Conditions are satisfied and the notice of redemption shall demonstrate
satisfaction of the Optional Redemption Conditions.

       

      (b)           Mandatory
Redemption.  The Corporation shall redeem (a “Mandatory
Redemption”) all, but not less than all, shares of the Series D Preferred
Stock then outstanding for cash in an amount equal to the Series D Liquidation
Amount thereof on March 31, 2014

       

      (c)           Redemption
Procedures.  No greater than sixty (60) nor fewer than thirty
(30) days prior to the date of any Optional Redemption or Mandatory Redemption
(a “Redemption”), notice
by first class mail, postage prepaid, shall be given to the Registered Holders
(as defined in Section 9(f) below) of the Series D Preferred Stock to be
redeemed, addressed to such holders at their last addresses as shown on the
stock transfer books of the Corporation.  Each such notice shall
specify the date fixed for Redemption, the then applicable Liquidation Amount
per share, the place or places for surrender of shares of Series D Preferred
Stock and the then effective Conversion Ratio and effective Conversion Price.
Any notice which is mailed by the Corporation as herein provided shall be
conclusively presumed to have been duly given by the Corporation on the date
deposited in the mail, whether or not the holder of the Series D Preferred Stock
receives such notice; and failure properly to give such notice by mail, or any
defect in such notice, to the holders of the shares to be redeemed shall not
affect the validity of the proceedings for the redemption of any other shares of
Series D Preferred Stock.

       

      On or
after the date fixed for any Redemption, each holder of shares called to be
redeemed shall surrender the certificate evidencing such shares to the
Corporation at the place designated in the notice of such
redemption.  On or after the date fixed for Redemption,
notwithstanding that the certificates evidencing any shares properly called for
redemption shall not have been surrendered, such shares shall no longer be
deemed outstanding and all rights whatsoever with respect to the shares so
called for Redemption (except the right of the Registered
Holder thereof to have such shares redeemed and to receive the redemption price
upon surrender of their certificates therefor, pursuant to this Section 7) shall
terminate.

       

      
        
           

        

        
          C-7

          
            

          

        

        
           

        

      

       

      8.           Covenants of the
Corporation.

       

      (a)           Restricted
Issuances.  For so long as any shares of Series D Preferred
Stock shall remain outstanding, the Corporation shall not effect, or agree to
effect, any of the following:

       

      (i)           issue
any debt or allow any subsidiary of the Corporation to issue any debt, including
debt convertible into equity, other than ordinary course working capital
facilities, and certain ordinary course debt in connection with the acquisition
of property, plant and/or equipment;

       

      (ii)           the
authorization, designation, reclassification, creation or issuance of any other
class or series of capital stock, in any case, ranking senior to the Series D
Preferred Stock in any respect (including, without limitation, as to preferences
upon liquidation, dissolution, winding up of the Corporation or upon a Business
Combination or redemption or dividend rights, or with any special voting
rights);

       

      (iii)           the
issuance of any other class or series of capital stock ranking in parity with
the Series D Preferred Stock, except that the Corporation shall be permitted to
issue securities which have a liquidation preference in parity with the Series D
Preferred Stock (including the outstanding Series D Preferred Stock) of up to
$4,000,000.

       

      (iv)           pay
any dividend on shares of Common Stock, except (x) dividends payable in shares
of Common Stock and (y) dividends in an amount that, together with the amounts
of all dividends previously paid by the Corporation (other than dividends
payable pursuant to clause (x) above), does not exceed fifty percent (50%) of
the Corporation’s retained earnings through the date of distribution, determined
in accordance with generally accepted accounting principles (and without giving
effect to any distributions previously made pursuant to this clause (y)) and
with the amount of any non-cash dividend being the fair market value thereof as
determined in good faith by the board of directors of the Corporation;
or

       

      (v)           allow
any subsidiary of the Corporation to issue any equity security, including any
security convertible into or exercisable for any equity security. The forgoing
sentence shall not apply to the issuance of any securities in connection with
the establishment of joint ventures or similar arrangements with strategic
partners.

       

      (b)           Reports.  The
Corporation shall deliver to Registered Holders all of the same reports and
other periodic information provided to the holders of Common Stock.

       

      
        
           

        

        
          C-8

          
            

          

        

        
           

        

      

      9.           Definitions.  For
purposes of this Certificate of Designation, the following terms shall have the
following definitions:

       

      Business
Day.  The term “Business Day” shall
mean any day, other than a Saturday or Sunday or a day on which banking
institutions in The City of New York are authorized or obligated by law or
executive order to close.

       

      Business
Combination.  The term “Business Combination”
shall mean (x) a merger, share exchange or consolidation of the Corporation with
any other corporation or entity; (y) the sale, lease, exchange, mortgage,
pledge, transfer or other disposition or encumbrance, whether in one transaction
or a series of transactions, by the Corporation of all or substantially all of
the Corporation’s assets; or (z) any agreement, contract or other arrangement
providing for any of the foregoing transactions.

       

      Closing
Price.  The term, “Closing Price” shall
mean, with respect to any shares of Common Stock, on any Trading Day, the
reported last sale price per share on the principal national securities exchange
or inter-dealer quotation system on which such stock or security is listed or
admitted to trading.

       

      Common
Stock.  The term “Common Stock” shall
mean the common stock of the Corporation, par value $0.01 per share, or any
other security or property as the aforesaid common stock shall be converted into
or exchanged for in any merger, consolidation, combination, recapitalization,
share exchange or other similar or successive business transactions occurring
after the date hereof, provided that as a condition of any such transaction, the
holder of each share of Series D Preferred Stock shall have the right thereafter
to convert such share into the kind and amount of shares of securities and
property receivable upon such event by a holder of the number of shares of
Common Stock into which such share of Series D Preferred Stock might have been
converted immediately prior to such event, all subject to further adjustment as
provided herein and in the Certificate of Incorporation, and appropriate
provisions shall be made with respect to the rights and interests of such holder
to the end that the adjustments and other provisions hereof and thereof shall
thereafter be applicable, as nearly as may be, in relation to any shares of
securities or property thereafter deliverable upon the exercise of such
conversion rights.

       

      Original Issuance
Date.  The term “Original Issuance
Date” shall mean March 31, 2009.

       

      Registered
Holder.  The term “Registered Holder”
shall mean, at any time, the holder of record of shares of Series D Preferred
Stock.

       

      Trading
Day.  The term “Trading Day” shall
mean (i) if the Common Stock is listed for trading on a national securities
exchange, a day on which such exchange is open for business; or (ii) if the
Common Stock is quoted on inter-dealer automated quotation system of a national
association of securities dealers, a day on which trades may be effected through
such system.

       

      10           No
Impairment.  The Corporation shall not enter into any contract,
agreement or other legally enforceable arrangement which shall have the effect
of impairing in any material respect the rights, powers or preferences of the
holders of the Series D Preferred Stock granted pursuant to this Certificate of
Designation, without the consent of the holders of not less than two-thirds of
the outstanding shares of Series D Preferred Stock.

       

      
        
           

        

        
          C-9

          
            

          

        

        
           

        

      

      11           Waiver.  The
holder or holders of not less than two-thirds of the outstanding shares of
Series D Preferred Stock may, at any time upon written notice to the
Corporation, or by vote at a meeting called for such purpose, waive compliance
by the Corporation with any term or provision herein, provided that any such
waiver does not affect any holder of outstanding shares of Series D Preferred
Stock in a manner materially different than any other holder, and any such
waiver shall be binding upon all holders of Series D Preferred Stock and their
respective transferees.

       

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
           

        

        
          C-10

          
            

          

        

        
           

        

      

      

       

      IN WITNESS WHEREOF, the
undersigned has executed this Certificate this 3rd day of April,
2009

       

      

       

      
        
          	 
      	 
      	
                  POWERSAFE
      TECHNOLOGY CORP.

                
	 
      	 
      	 
      
	 
      	 
      	
                  By.

                	/s/
      Jack N. Mayer 
	 
      	 
      	
                  Name:

                	Jack
      N. Mayer
	 
      	 
      	
                  Title:

                	President

        

      

      

       
C-11ps_ex4-4.htm

    EXHIBIT
4.4

    

     

    CERTIFICATE
OF DESIGNATIONS, PREFERENCES

    AND
RIGHTS OF SERIES D-1 CONVERTIBLE PREFERRED STOCK

    OF

    POWERSAFE
TECHNOLOGY CORP.

     

    POWERSAFE
TECHNOLOGY CORP., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the “Corporation”), DOES
HEREBY CERTIFY THAT:

     

    A.           Pursuant
to authority conferred upon the Board of Directors of the Corporation (the
“Board”) by
Article FOURTH of the Certificate of Incorporation of the Corporation (the
“Certificate of
Incorporation”) and pursuant to the provisions of §151 of the General
Corporation Law of the State of Delaware, the Board adopted and approved the
following resolution providing for the designations, preferences and relative,
participating, optional and other rights, and the qualifications, limitations
and restrictions of the Series D-1 Convertible Preferred Stock.

     

    B.           The
Certificate of Incorporation provides for two classes of
shares,  common stock, $.01 par value per share (the “Common Stock”), and
preferred stock, $.01 par value per share (the “Preferred
Stock”).

     

    C.           The
Board is authorized by the Certificate of Incorporation to provide for the
issuance of the shares of Preferred Stock in series and, by filing a certificate
pursuant to the applicable law of the State of Delaware, to establish from time
to time the number of shares to be included in such series and to fix the
designations, preferences and rights of the shares of each such series and the
qualifications, limitations and restrictions thereof.

     

    NOW, THEREFORE, BE IT
RESOLVED, that the Board deems it advisable to, and hereby does,
designate a Series D-1 Convertible Preferred Stock and fixes and determines the
rights, preferences, qualifications, limitations and restrictions relating to
such Preferred Stock as follows:

     

    1.           Designation and
Amount. The shares of such series of Preferred Stock shall be designated
Series D-1 Preferred Stock (the “Series D-1 Preferred
Stock”). The number of shares constituting Series D-1 Preferred Stock
shall be twenty thousand (20,000). No other shares of preferred stock shall be
designated as Series D-1 Preferred Stock

     

    2.           Dividends.

     

    (a)           Commencing
on the Original Issuance Date (as defined in Section 8(e) below), cumulative
dividends (“Series D-1
Dividends”) shall accrue on each share of Series D-1 Preferred Stock, at
the rate of eight percent (8%) of the Liquidation Amount (as defined in Section
3(a) below) per annum (accrued daily, from but not including the next preceding
Dividend Payment Date (as defined in Section 1(b) below), or, in the case of the
first Dividend Payment Date, from the Original Issuance Date, to and including
the respective Dividend Payment Date, on a 30/360 basis).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
Series D-1 Dividends shall be payable quarterly, beginning on June 30, 2009 and
thereafter on September 30, December 31, March 31, and June 30 of each calendar
year (each a “Dividend
Payment Date”), or if such day is not a Business Day (as defined in
Section 9 below), on the next succeeding Business Day, to holders of record as
of the tenth (10th)
Business Day next preceding the respective Dividend Payment
Date.  Series D-1 Dividends shall be payable in cash.

     

    (b)           Series
D-1 Dividends shall be declared pro rata per share.

     

    3.           Liquidation
Preference.

     

    (a)           In
the event of any liquidation, dissolution or winding up of the Corporation (a
“Liquidation
Event”), no distribution shall be made to holders of shares of capital
stock of the Corporation ranking junior to the Series D-1 Preferred Stock upon
liquidation, dissolution or winding up of the Corporation, including the Common
Stock (as defined in Section 9(d) below), unless, prior thereto, the holders of
shares of Series D-1 Preferred Stock shall have received an amount per share
equal to $70.00  (the “Liquidation Amount”)
per share plus any accrued or declared and unpaid dividends owed to holders of
shares of the Series D-1 Preferred Stock.

     

    (b)           The
holders of the Series D-1 Preferred Stock shall be entitled to receive on a pari
passu basis with any other series of stock in parity with the Series D-1
Preferred Stock distributions out of the assets legally available for such
distributions, including without limitation, the outstanding Series D-1
Preferred Stock.  In the event the assets of the Corporation are
insufficient to pay the amounts owed to holders of Series D-1 Preferred Stock
and any other parity stock upon liquidation, all available assets shall be paid
ratably to the holders of Series D-1 Preferred Stock and any parity stock, on a
pari passu basis in accordance with their respective liquidation preferences,
and the holders of Common Stock and any other junior stock shall receive
nothing.

     

    4.           Voting
Rights.

     

    (a)           Except
as otherwise provided in this Certificate of Designation or in the Certificate
of Incorporation, as amended (the “Certificate of
Incorporation”), of the Corporation, as expressly required by law or as
provided herein, a holder of Series D-1 Preferred Stock shall be entitled to a
number of votes per share equal to the number of whole shares of Common Stock
into which such Series D-1 Preferred Stock is convertible, subject to adjustment
as set forth in Section 6 below, as of the record date for the determination of
stockholders entitled to vote and to notice of any stockholders’ meeting in
accordance with the By-laws (the “By-laws”) of the
Corporation.  Fractional votes shall not be permitted and any
fractional voting rights resulting from the above formula (after aggregating all
shares of Series D-1 Preferred Stock held by each holder) shall be rounded to
the nearest whole number (with one-half being rounded upward).

     

    (b)           Except
as otherwise provided in this Certificate of Designation or in the Certificate
of Incorporation or as expressly required by law, the holders of Series D-1
Preferred Stock and the holders of Common Stock shall vote together as a single
class on all matters presented
to stockholders, and not as separate classes. The Holders of Series D-1
Preferred Stock shall votes on an as converted basis.

     

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

     

    (c)           The
Corporation shall not effect, or agree to effect, any amendment of this
Certificate of Designation without the consent of the holder or holders of at
least two-thirds of the shares of Series D-1 Preferred Stock then
outstanding.

     

    (d)           In
the event that there is a default in the payment of Series D-1 Dividends for any
two (2) quarters (“Dividend Default”),
or a default in any other covenant or agreement of the Corporation contained
herein that continues for 15 calendar days, then the holder or holders of a
majority of the shares of Series D-1 Preferred Stock, voting as a class with the
holders of any other class of capital stock of the Corporation which is pari
passu with the Series D-1 Preferred Stock, from time to time outstanding (all
holders of the Series D-1 Preferred Stock and pari passu classes being referred
to as “Series D Holders” and such votes by Series D Holders to be weighted by
liquidation preference), shall have the right to elect members to the Board
constituting a majority of the directors then on the Board (each a “Series D Director”);
provided that the right to elect directors provided in this paragraph shall
persist only for so long as the Dividend Default or such other default
continues.  The Corporation shall reimburse all Series D Directors for
expenses incurred by them in connection with their attendance at meetings of the
Board.

     

    The
election of the Series D Directors may occur as provided herein or at any
special meeting of holders of Series D Holders called by not less than twenty
five percent (25%) of the Series D Holders or by the written consent of the
same.  Any Series D Director may be removed, with or without cause, at
any time by and only by the vote or written consent of the holder or holders of
a majority of the Series D Holders.  If any Series D Director should
cease to be a director for any reason, the vacancy shall be filled only upon the
vote or written consent of the holder or holders of a majority of the Series D
Holders, voting separately as a class, in the manner specified
above.

     

    (e)           Meetings
of the Series D Holders shall be held whenever called in the manner required by
the laws of the State of Delaware for purposes as to which there are special
statutory provisions, and for other purposes whenever called by resolution of
the Board of Directors, or by the President, or by the holders of twenty five
(25%) of the outstanding shares of the Series D Holders.  Any such
meetings of stockholders may be held at the principal business office of the
Corporation or at such other place or places, either within or without the State
of Delaware, as may be specified in the notice thereof.  Notice of a
special meeting also shall state the purpose or purposes for which the meeting
is called.  A copy of the notice of any meeting shall be delivered
personally or shall be mailed, not less than ten (10), nor more than sixty (60)
days, before the date of the meet­ing, to each stockholder of record
entitled to vote at the meeting.  At any and all meet­ings of the
Series D Holders there must be present, either in person or by proxy, at least
twenty five percent (25%) of the issued and out­standing shares of the
Series D Holders entitled to vote at said meeting. Any action of
the Series D Holders may be taken without a meeting, without prior notice and
without a vote, if a consent in writing, setting forth the action so taken,
shall be signed, in person or by proxy, by the holders of outstanding stock
having not less than the minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all shares entitled to vote
there­on were present and voted in person or by proxy.

    
      
         

      

      
        C-3

        
          

        

      

      
         

      

    

    Prompt
notice of the taking of the corporate action without a meet­ing by less than
unanimous written consent shall be given to those stockholders who have not
consented in writing, but who were entitled to vote on the matter.

    

    5.           Conversion.

     

    (a)           The
holder of any shares of Series D-1 Preferred Stock shall have the right, at such
holder’s option, at any time or from time to time, to convert such shares into
Common Stock, in a conversion ratio of one hundred shares of Common Stock for
each share of Series D-1 Preferred Stock, subject to adjustment as set forth in
Section 5 below, for each share of Series D-1 Preferred Stock to be converted
(such conversion ratio in effect from time to time, the “Conversion
Ratio”).

     

    (b)           The
holder of any shares of Series D-1 Preferred Stock may exercise the conversion
rights set forth herein by delivering to the Corporation or any transfer agent
of the Corporation for the Series D-1 Preferred Stock as may be designated by
the Corporation, the certificate or certificates for the shares to be converted,
duly endorsed or assigned in blank to the Corporation (if required by it) (or
such holder shall notify the Corporation or any transfer agent that such
certificate(s) have been lost, stolen or destroyed and shall execute an
agreement reasonably satisfactory to the Corporation to indemnify the
Corporation from any loss incurred by it in connection therewith), accompanied
by written notice stating that the holder elects to convert such shares and
stating the name or names (with address) in which the certificate or
certificates for the shares of Common Stock are to be
issued.  Conversion shall be deemed to have been effected on the date
when the aforesaid delivery is made or as provided below in Section 4(g)
(the “Conversion
Date”).

     

    (c)           As
promptly as practicable thereafter, the Corporation shall issue and deliver to
or upon the written order of such holder, to the place designated by such
holder, a certificate to which such holder is entitled.  The person in
whose name the certificate or certificates for Common Stock are to be issued
shall be deemed to have become a Common Stock holder of record on the applicable
Conversion Date.  The Corporation shall not close its books against
the transfer of shares of Series D-1 Preferred Stock in any manner that would
interfere with the timely conversion of any shares of Series D-1 Preferred
Stock.  Upon conversion of only a portion of the number of shares
covered by a certificate representing shares of Series D-1 Preferred Stock
surrendered for conversion, the Corporation shall issue and deliver to or upon
the written order of the holder of the certificate so surrendered for
conversion, at the expense of the Corporation, a new certificate covering the
number of shares of the Series D-1 Preferred Stock representing the unconverted
portion of the certificate so surrendered.

     

    (d)           No
fractional shares of Common Stock or scrip shall be issued upon conversion of
shares of Series D-1 Preferred Stock.  If more than one share of
Series D-1 Preferred Stock shall be surrendered, or deemed surrendered, pursuant
to subsection (c) above, for conversion at any one time by the same holder, the
number of full shares of Common Stock issuable upon conversion thereof shall be
computed on the basis of the aggregate number of shares of such Series D-1
Preferred Stock so surrendered.  Any fractional share which would
otherwise be issuable upon conversion of any shares of Series D-1 Preferred
Stock (after aggregating
all shares of Series D-1 Preferred Stock held by each holder) shall be rounded
to the nearest whole number (with one-half being rounded
upward).

     

    
      
         

      

      
        C-4

        
          

        

      

      
         

      

    

     

    (e)           The
Corporation shall reserve, free from preemptive rights, out of its authorized
but unissued shares of Common Stock solely for the purpose of effecting the
conversion of the shares of Series D-1 Preferred Stock sufficient shares to
provide for the conversion of all outstanding shares of Series D-1 Preferred
Stock.

     

    (f)           All
shares of Common Stock which may be issued in connection with the conversion
provisions set forth herein will, upon issuance by the Corporation, be validly
issued, fully paid and nonassessable, with no personal liability attaching to
the ownership thereof, and free from all taxes, liens or charges with respect
thereto.

     

    (g)           Each
holder of shares of Series D-1 Preferred Stock shall be entitled to receive
written notice from the Corporation, by overnight delivery or first class mail,
postage prepaid, addressed to such holder at the last address of such holder as
shown by the records of the Corporation, of any proposed dividend or
distribution, liquidation, dissolution or winding up of the Corporation, or any
Business Combination (as defined in Section 8(b) below), at least ten (10)
days prior to the date on which any such event is scheduled to occur, and, at
any time prior to, or conditioned upon the consummation of and to occur
immediately prior to, such liquidation, dissolution or winding up or Business
Combination, to convert any or all of such holder’s shares of Series D-1
Preferred Stock into shares of Common Stock pursuant to this
Section 4.  The notice of any such event shall at a minimum
specify the consideration to be received by stockholders in such event in the
aggregate, the consideration to be received on a per share basis by the holders
of Common Stock and the consideration to be received on a per share basis by the
holders of Series D-1 Preferred Stock.

     

    6.           Conversion
Adjustment.

     

    (a)           In
the event the Corporation shall, at any time after the issuance of any share of
Series D-1 Preferred Stock, declare or pay any dividend or make any distribution
on Common Stock payable in shares of Common Stock, or effect a subdivision or
split or a combination, consolidation or reverse split of the outstanding shares
of Common Stock into a greater or lesser number of shares of Common Stock, then
in each such case the Conversion Ratio shall be adjusted, so that the holder of
any shares of Series D-1 Preferred Stock shall be entitled to receive upon
conversion thereof the number of shares of Common Stock or other securities or
property that such holder would have owned or have been entitled to receive upon
the happening of such event had such Series D-1 Preferred Stock been converted
immediately prior to the relevant record date or, if there is no such record
date, the effective date of such event.

     

    (b)           The
“Conversion
Price” shall initially be $75.00 and shall be adjusted from time to time
as provided in this subsection (b).  If the Conversion Ratio shall be
adjusted pursuant to subsection (a) above, then in each such case, a
corresponding adjustment shall be made to the Conversion Price in accordance
with the following formula:

     

    
      
         

      

      
        C-5

        
          

        

      

      
         

      

    

    

     

    P           =           Po x Ro
          R

     

    where:

     

    P  =           the
adjusted Conversion Price in effect immediately following such
adjustment.

     

    Po
=           the
Conversion Price in effect immediately prior to such adjustment.

     

    Ro
=           the
Conversion Ratio in effect immediately prior to the adjustment.

     

    R
=            the
Conversion Ratio in effect immediately following the adjustment.

     

    (c)           The
provisions of this Section 6 shall be applied successively each time there shall
occur any event for which an adjustment is required to be made pursuant to
subsection (a) above.

     

    (d)           Subject
to the restrictions contained in Section 8(a)(iv) below, in the event the
Corporation shall, at any time after the issuance of any share of Series D-1
Preferred Stock, declare or pay any dividend or make any distribution on Common
Stock payable in securities or other property of the Corporation other than
shares of Common Stock or cash, in which dividend or distribution the holders of
Series D-1 Preferred Stock do not otherwise participate, then provision shall be
made so that the holders of Series D-1 Preferred Stock shall receive upon
conversion thereof in addition to the number of shares of Common Stock
receivable thereupon, the amount of such securities of the Corporation or value
of such other property that they would have received had their Series D-1
Preferred Stock been converted into Common Stock on the date of such event and
had they thereafter, during the period from the date of such event to and
including the conversion date, retained such securities and other property
receivable by them as aforesaid during such period, giving application during
such period to all adjustments called for herein.

     

    (e)           Upon
a Business Combination (as defined below), each share of Series D-1 Preferred
Stock shall remain outstanding and shall thereafter be convertible into, or
shall be converted into a security which shall be convertible into, the kind and
amount of securities or other property to which a holder of the number of shares
of Common Stock of the Corporation deliverable upon conversion of such share of
Series D-1 Preferred Stock immediately prior to such Business Combination would
have been entitled upon such Business Combination, all subject to further
adjustment as provided herein and in the Certificate of
Incorporation.

     

    7.           Redemption.

     

    (a)           Optional
Redemption.  The Corporation, at its option, may redeem (an
“Optional
Redemption”) all, but not less than all, shares of the Series D-1
Preferred Stock then outstanding for cash in an amount equal to the Series D-1
Liquidation Amount thereof, (a) at any time beginning March  31, 2012,
and (b) at any time after Dec 31, 2009 if (i) the Common Stock is at the time
listed for trading on a national securities exchange, an inter-dealer automated
quotation system of a national association of securities dealers or listed on
the Over the Counter Bulletin Board and (ii) during any preceding period of
twenty (20) consecutive Trading Days (as defined in Section 9(g) below), (I) the
average daily dollar volume of shares of Common Stock traded equals or
exceeds twenty five thousand dollars ($25,000), and (II) the Closing Price (as
defined in Section 8(c) below) equals or exceeds the quotient of (u) $1.15
divided by (v) the Conversion Ratio then in effect (such conditions, the “Optional Redemption
Conditions”).

     

    
      
         

      

      
        C-6

        
          

        

      

      
         

      

    

     

    The
procedures for an Optional Redemption occurring because of the existence of the
Optional Redemption Conditions shall be the same as the procedures set forth in
Section 7(c) below, except that the notice of redemption shall be sent within
five (5) Trading Days following any day on which the Optional Redemption
Conditions are satisfied and the notice of redemption shall demonstrate
satisfaction of the Optional Redemption Conditions.

     

    (b)           Mandatory
Redemption.  The Corporation shall redeem (a “Mandatory
Redemption”) all, but not less than all, shares of the Series D-1
Preferred Stock then outstanding for cash in an amount equal to the Series D-1
Liquidation Amount thereof on March 31, 2014

     

    (c)           Redemption
Procedures.  No greater than sixty (60) nor fewer than thirty
(30) days prior to the date of any Optional Redemption or Mandatory Redemption
(a “Redemption”), notice
by first class mail, postage prepaid, shall be given to the Registered Holders
(as defined in Section 9(f) below) of the Series D-1 Preferred Stock to be
redeemed, addressed to such holders at their last addresses as shown on the
stock transfer books of the Corporation.  Each such notice shall
specify the date fixed for Redemption, the then applicable Liquidation Amount
per share, the place or places for surrender of shares of Series D-1 Preferred
Stock and the then effective Conversion Ratio and effective Conversion Price.
Any notice which is mailed by the Corporation as herein provided shall be
conclusively presumed to have been duly given by the Corporation on the date
deposited in the mail, whether or not the holder of the Series D-1 Preferred
Stock receives such notice; and failure properly to give such notice by mail, or
any defect in such notice, to the holders of the shares to be redeemed shall not
affect the validity of the proceedings for the redemption of any other shares of
Series D-1 Preferred Stock.

     

    On or
after the date fixed for any Redemption, each holder of shares called to be
redeemed shall surrender the certificate evidencing such shares to the
Corporation at the place designated in the notice of such
redemption.  On or after the date fixed for Redemption,
notwithstanding that the certificates evidencing any shares properly called for
redemption shall not have been surrendered, such shares shall no longer be
deemed outstanding and all rights whatsoever with respect to the shares so
called for Redemption (except the right of the Registered Holder thereof to have
such shares redeemed and to receive the redemption price upon surrender of their
certificates therefor, pursuant to this Section 7) shall terminate.

     

    8.           Covenants of the
Corporation.

     

    (a)           Restricted
Issuances.  For so long as any shares of Series D-1 Preferred
Stock shall remain outstanding, the Corporation shall not effect, or agree to
effect, any of the following:

     

    (i)           issue
any debt or allow any subsidiary of the Corporation to issue any debt, including
debt convertible into equity, other than ordinary course working capital
facilities, and certain ordinary course debt in connection with the acquisition
of property, plant and/or equipment;

     

    
      
         

      

      
        C-7

        
          

        

      

      
         

      

    

    (ii)           the
authorization, designation, reclassification, creation or issuance of any other
class or series of capital stock, in any case, ranking senior to the Series D-1
Preferred Stock in any respect (including, without limitation, as to preferences
upon liquidation, dissolution, winding up of the Corporation or upon a Business
Combination or redemption or dividend rights, or with any special voting
rights);

     

    (iii)           the
issuance of any other class or series of capital stock ranking in parity with
the Series D-1 Preferred Stock, except that the Corporation shall be permitted
to issue securities which have a liquidation preference in parity with the
Series D-1 Preferred Stock (including the outstanding Series D-1 Preferred
Stock) of up to $4,000,000.

     

    (iv)           pay
any dividend on shares of Common Stock, except (x) dividends payable in shares
of Common Stock and (y) dividends in an amount that, together with the amounts
of all dividends previously paid by the Corporation (other than dividends
payable pursuant to clause (x) above), does not exceed fifty percent (50%) of
the Corporation’s retained earnings through the date of distribution, determined
in accordance with generally accepted accounting principles (and without giving
effect to any distributions previously made pursuant to this clause (y)) and
with the amount of any non-cash dividend being the fair market value thereof as
determined in good faith by the board of directors of the Corporation;
or

     

    (v)           allow
any subsidiary of the Corporation to issue any equity security, including any
security convertible into or exercisable for any equity security. The forgoing
sentence shall not apply to the issuance of any securities in connection with
the establishment of joint ventures or similar arrangements with strategic
partners.

     

    (b)           Reports.  The
Corporation shall deliver to Registered Holders all of the same reports and
other periodic information provided to the holders of Common Stock.

     

    9.           Definitions.  For
purposes of this Certificate of Designation, the following terms shall have the
following definitions:

     

    Business
Day.  The term “Business Day” shall
mean any day, other than a Saturday or Sunday or a day on which banking
institutions in The City of New York are authorized or obligated by law or
executive order to close.

     

    Business
Combination.  The term “Business Combination”
shall mean (x) a merger, share exchange or consolidation of the Corporation with
any other corporation or entity; (y) the sale, lease, exchange, mortgage,
pledge, transfer or other disposition or encumbrance, whether in one transaction
or a series of transactions, by the Corporation of all or substantially all of
the Corporation’s assets; or (z) any agreement, contract or other arrangement
providing for any of the foregoing transactions.

     

    
      
         

      

      
        C-8

        
          

        

      

      
         

      

    

    Closing
Price.  The term, “Closing Price” shall
mean, with respect to any shares of Common Stock, on any Trading Day, the
reported last sale price per share on the principal national securities exchange
or inter-dealer quotation system on which such stock or security is listed or
admitted to trading.

     

    Common
Stock.  The term “Common Stock” shall
mean the common stock of the Corporation, par value $0.01 per share, or any
other security or property as the aforesaid common stock shall be converted into
or exchanged for in any merger, consolidation, combination, recapitalization,
share exchange or other similar or successive business transactions occurring
after the date hereof, provided that as a condition of any such transaction, the
holder of each share of Series D-1 Preferred Stock shall have the right
thereafter to convert such share into the kind and amount of shares of
securities and property receivable upon such event by a holder of the number of
shares of Common Stock into which such share of Series D-1 Preferred Stock might
have been converted immediately prior to such event, all subject to further
adjustment as provided herein and in the Certificate of Incorporation, and
appropriate provisions shall be made with respect to the rights and interests of
such holder to the end that the adjustments and other provisions hereof and
thereof shall thereafter be applicable, as nearly as may be, in relation to any
shares of securities or property thereafter deliverable upon the exercise of
such conversion rights.

     

    Original Issuance
Date.  The term “Original Issuance
Date” shall mean March 31, 2009.

     

    Registered
Holder.  The term “Registered Holder”
shall mean, at any time, the holder of record of shares of Series D-1 Preferred
Stock.

     

    Trading
Day.  The term “Trading Day” shall
mean (i) if the Common Stock is listed for trading on a national securities
exchange, a day on which such exchange is open for business; or (ii) if the
Common Stock is quoted on inter-dealer automated quotation system of a national
association of securities dealers, a day on which trades may be effected through
such system.

     

    10           No
Impairment.  The Corporation shall not enter into any contract,
agreement or other legally enforceable arrangement which shall have the effect
of impairing in any material respect the rights, powers or preferences of the
holders of the Series D-1 Preferred Stock granted pursuant to this Certificate
of Designation, without the consent of the holders of not less than two-thirds
of the outstanding shares of Series D-1 Preferred Stock.

     

    11           Waiver.  The
holder or holders of not less than two-thirds of the outstanding shares of
Series D-1 Preferred Stock may, at any time upon written notice to the
Corporation, or by vote at a meeting called for such purpose, waive compliance
by the Corporation with any term or provision herein, provided that any such
waiver does not affect any holder of outstanding shares of Series D-1 Preferred
Stock in a manner materially different than any other holder, and any such
waiver shall be binding upon all holders of Series D-1 Preferred Stock and their
respective transferees.

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
         

      

      
        C-9

        
          

        

      

      
         

      

    

    

     

    IN WITNESS WHEREOF, the
undersigned has executed this Certificate this 3rd day of March,
2009.

     

    
      

       

      
        
          	 
      	 
      	
                  POWERSAFE
      TECHNOLOGY CORP.

                
	 
      	 
      	 
      
	 
      	 
      	
                  By.

                	/s/
      Jack N. Mayer 
	 
      	 
      	
                  Name:

                	Jack
      N. Mayer
	 
      	 
      	
                  Title:

                	President

        

      

      

       

    

     

     

    C-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]