Document:

Alpine RSU Agreement (Form) (00179294-3).DOCX

ALPINE 4 TECHNOLOGIES LTD.

NOTICE OF RESTRICTED STOCK UNIT AWARD

 

 

 

	Name:

	Daniel Pepper

	 

	 

	Address:

	 

 

You (“Recipient”) have been granted an award of Restricted Stock Units (“RSUs”) subject to the terms and conditions of this Notice and the attached Award Agreement (Restricted Stock Units) (hereinafter “Agreement”).

 

	        Number of RSUs:

	200,000 shares of Series D Convertible Preferred Stock of Alpine 4 Technologies Ltd., a Delaware corporation (the “Company”).

 

	        Date of Grant:

	December 30, 2020

	 

	 

 

	        Vesting Commencement Date:

	December 30, 2020

	        Vesting:

	Recipient will receive a benefit with respect to an RSU only if it vests on or before the Expiration Date (defined below). Two vesting requirements must be satisfied for an RSU to vest: a time and service-based requirement (the “Service-Based Requirement”); and the “Trigger Event Requirement” (defined below). An RSU shall actually vest (and therefore becomes a “Vested RSU”) on the first date upon which both the Service-Based Requirement and the Trigger Event Requirement are satisfied with respect to that particular RSU (the “Vesting Date”).  The vesting schedule and requirements of the RSUs shall be read consistent with the Employment Agreement between Recipient and Company (“Employment Agreement”), and the rights, preferences and limitation of the Series D Convertible Preferred Stock shall be read consistent with the Certificate of Designation for such shares of preferred stock in the Company (“Certificate of Designation”).

 

	      Trigger Event Requirement:

	The earlier of (1) the registration of the Corporation’s Class A Common Stock after the Date of Grant pursuant to the registration rights set forth in the Certificate of Designation, (2) the fifth day after the date on which (i) the Corporation’s Class A Common Stock first trades on a national securities exchange (including but not limited to NASDAQ, NYSE, or NYSE American, but excluding the OTCQX Market), (ii) the Company’s capital stock has five days of trading volume over >$5 million, and (iii) such shares of capital stock issued upon settlement of the RSUs are registered with the Securities and Exchange Commission, or (3) the closing date of a Change of Control (as such term is defined in the Agreement) (provided that the Change of Control constitutes a “change in ownership or control” within the meaning of Section 409A) (each, a “Trigger Event Requirement”).  

 

	Service-Based Vesting Requirement:

	The Service-Based Requirement will be satisfied in installments over 6 months as follows: 1/6 of the RSUs will have the Service-Based Requirement satisfied in equal monthly installments during the 6 months following the Vesting Commencement Date, subject to the Recipient’s continuous Service during each such period. 

 

If Recipient’s services to the Company are terminated by the Company without Cause after the Initial Period, as defined in the Employment Agreement, or by Consultant for Good Reason, as defined in the Employment Agreement, the vesting of 100% of the then-unvested Service-Based Requirement RSUs shall accelerate and become vested.  

 

In the event of a Change of Control, the vesting of 100% of the then-unvested RSUs shall accelerate and become vested.  

 

Each tranche of RSUs that vests, or is scheduled to vest, pursuant to this Notice is hereby designated as a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

Notwithstanding the above vesting schedules and anything to the contrary in this Notice, the Agreement or any other prior or future agreement that purportedly applies to the RSUs, in no event shall the vesting or settlement of the RSUs be accelerated or deferred in connection with any event or otherwise unless such acceleration or deferral is specifically approved by the Board after taking into account the impact of such acceleration or deferral under the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, the regulations and other guidance there under and any state law of similar effect (collectively, “Section 409A”).

 

	       Settlement:

 

	If an RSU vests as provided for above, the Company will deliver one share of Series D Convertible Preferred Stock (each, a “Share”) for each Vested RSU. The Shares will be issued in accordance with the issuance schedule set forth in Section 1 of the Agreement.

	 

	 

	        Expiration Date:

	If an RSU has not vested (i.e., both the Service-Based Requirement and the Trigger Event Requirement satisfied) on or before 5:00 p.m. Pacific Time on the tenth anniversary of the Date of Grant (the “Expiration Date”), the RSU shall expire on the Expiration Date, unless earlier terminated pursuant to the provisions of this Agreement.  

 

You understand that your employment with the Company is for an unspecified duration, can be terminated at any time (i.e., is “at-will”) subject to the terms of the Employment Agreement, and that nothing in this Notice or the Agreement changes the at-will nature of that relationship, unless otherwise agreed to in the Employment Agreement. You also understand that this Notice is subject to the terms and conditions of the Agreement which is incorporated herein by reference. Recipient has read the Agreement.

 

	RECIPIENT

	 

	ALPINE 4 TECHNOLOGIES LTD.

	 

	 

	 

	 

	 

	Signature: 

	 /s/ Daniel Pepper

	 

	 By: 

	 /s/ Kent B. Wilson

	 

	 

	 

	 

	 

	Print Name: 

	 Daniel Pepper

	 

	Name: 

	 Kent B. Wilson

	 

	 

	 

	 

	 

	 

	 

	 

	Title: 

	 President, CEO

 

AWARD AGREEMENT (RESTRICTED STOCK UNITS)

 

 

You (“Recipient”) have been granted Restricted Stock Units (“RSUs”) subject to the terms, restrictions and conditions of the Notice of Restricted Stock Unit Award (the “Notice”), this Agreement and the Employment Agreement, all of which shall be read together in performing under this Agreement.

 

1. Settlement. Settlement of RSUs shall be made within thirty (30) calendar days following the date that an RSU becomes a Vested RSU under the vesting schedule set forth in the Notice. Settlement of Vested RSUs shall be in shares of Series D Convertible Preferred Stock (the “Preferred Shares”) of Alpine 4 Technologies Ltd. (the “Company”).  

 

2. No Stockholder Rights. Unless and until such time as Preferred Shares are issued in settlement of Vested RSUs, Recipient shall have no ownership of the Preferred Shares allocated to the RSUs and shall have no right to dividends or to vote such Preferred Shares.

 

3. No Dividend Equivalents. Dividends, if any (whether in cash or any securities of the Company), shall not be credited to Recipient on RSUs.

 

4. No Transfer. The RSUs and any interest therein shall not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of.

 

5. Termination. If Recipient’s service with the Company terminates (a) for Cause or (b) for Good Reason prior to the Vesting Date, all unvested RSUs shall be forfeited to the Company forthwith, and all rights of Recipient to such RSUs shall immediately terminate. If the Employment Agreement terminates without Cause after the Initial Period, all unvested RSUs shall remain subject to Vesting under this Agreement and as set forth in the Employment Agreement. 

 

6. Withholding and Net Issuance of the Shares. When, under applicable tax laws, Recipient incurs tax liability in connection with the vesting or settlement of any RSUs or issuance of Preferred Shares in connection therewith that is subject to tax withholding by the Company, the Company shall satisfy the minimum tax withholding obligation on behalf of the Recipient and shall withhold from the Preferred Shares to be issued, the number of Preferred Shares having a Fair Market Value (determined on the date that the amount of tax to be withheld is determined) equal to the amount required to be withheld for income and employment taxes.

 

7. U.S. Tax Consequences. Recipient acknowledges that there will be tax consequences upon settlement of the RSUs or disposition of the Preferred Shares, if any, received in connection therewith, and Recipient should consult a tax adviser regarding Recipient’s tax obligations prior to such settlement or disposition. Upon vesting of each RSU, Recipient will include in income the Fair Market Value of the Preferred Shares subject to such RSU. The included amount will be treated as ordinary income by Recipient and will be subject to withholding by the Company when required by applicable law. Upon disposition of the Preferred Shares, any subsequent increase or decrease in value will be treated as short-term or long-term capital gain or loss, depending on whether the Preferred Shares are held for more than one year from the date of settlement. Further, RSUs may be considered a deferral of compensation that may be subject to Section 409A of the Code. Section 409A of the Code imposes special rules to the timing of making and effecting certain amendments of this Agreement with respect to distribution of any deferred compensation. You should consult your personal tax advisor for more information on the actual and potential tax consequences of this Agreement.

 

8. Acknowledgement. The Company and Recipient agree that the RSUs are granted under and governed by the Notice and this Agreement. Recipient: (i) acknowledges receipt of a copy of the Notice, (ii) represents that Recipient has carefully read and is familiar with its provisions, and (iii) hereby accepts the RSUs subject to all of the terms and conditions set forth herein and those set forth in the Notice.

 

9. Entire Agreement; Enforcement of Rights. This Agreement and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the RSUs granted hereunder are superseded. No 

modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

 

10. Compliance with Laws and Regulations. The issuance of the RSUs and the Preferred Shares in settlement thereof will be subject to and conditioned upon compliance by the Company and Recipient with all applicable state and federal laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Class A Common Stock may be listed or quoted at the time of such issuance or transfer.

 

11. Governing Law; Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law.

 

12. No Rights as Employee, Director or Consultant. Nothing in this Agreement shall confer on Recipient any right to continue in the employ of, or other relationship with, the Company unless otherwise agreed to in the Employment Agreement, or affect in any manner whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to terminate Recipient’s service, for any reason, with or without cause, except as provided for in the Employment Agreement.

 

13. Certificates. All certificates for Preferred Shares or other securities delivered upon settlement of the RSUs will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted. The Company shall issue the Preferred Shares registered in the name of Recipient, Recipient’s authorized assignee, or Recipient’s legal representative.

 

14. Administration. This Agreement and the Notice shall be administered by the Board of Directors of the Company (the “Board”). The Board shall have the authority to (i) construe and interpret the Notice and this Agreement, (ii) prescribe, amend and rescind rules and regulations relating to the RSUs; (iii) grant waivers of conditions subject to the RSUs; (iv) correct any defect, supply any omission or reconcile any inconsistency in this Agreement; and (v) make all other determinations necessary or advisable for the administration of the Notice and this Agreement; provided, however, that the Board will not, without the approval of the Recipient, amend or modify this Agreement in any manner that impairs the rights of Recipient.

 

15. Board Discretion. Any determination made by the Board with respect to the RSUs may be made in its sole discretion at any time, unless in contravention of any express term of this Agreement which requires such determination to be made at the time of grant of the RSUs, and such determination will be final and binding on the Company and the Recipient. Notwithstanding anything to the contrary, administration of the Notice and this Agreement shall at all times be limited by the requirement that any administrative action or exercise of discretion shall be void (or suitably modified when possible) if necessary to avoid the application to Recipient of taxation under Section 409A of the Code.

 

16. Disputes. Any dispute regarding the interpretation of this Agreement shall be submitted by Recipient or the Company to the Board for review. The resolution of such a dispute by the Board shall be final and binding on the Company and Recipient.

 

17. Compliance with Section 409A of the Code. This Award is intended to comply with the “short-term deferral” rule set forth in U.S. Treasury Regulation Section 1.409A- 1(b)(4). Notwithstanding the foregoing, if it is determined that the Award fails to satisfy the requirements of the short-term deferral rule and is otherwise deferred compensation subject to Code Section 409A, and if you are a “Specified Employee” (within the meaning set forth Section 409A(a)(2)(B)(i) of the Code) as of the date of your separation from service (within the meaning of U.S. 

Treasury Regulation Section 1.409A-1(h)), then the issuance of any Shares pursuant to this Award that would otherwise be made upon the date of the separation from service or within the first six months thereafter will not be made on the originally scheduled date(s) and will instead be issued in a lump sum on the date that is six months and one day after the date of the separation from service, with the balance of the Shares issued thereafter in accordance with the original vesting and issuance schedule set forth above, but if and only if such delay in the issuance of the Shares is necessary to avoid the imposition of taxation on you in respect of the Shares under Section 409A of the Code. Each installment of Shares that vests is intended to constitute a “separate payment” for purposes of U.S. Treasury Regulation Section 1.409A-2(b)(2). Notwithstanding any contrary provision of the Notice of Grant or of this Agreement, under no circumstances will the Company reimburse you for any taxes or other costs under Code Section 409A or any other tax law or rule. All such taxes and costs are solely your responsibility.

 

18. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Recipient and Recipient’s heirs, executors, administrators, legal representatives, successors and assigns.

 

19. Amendment of the Agreement. The Board may at any time amend this Agreement in any respect; provided, however, that the Board will not, without the approval of the Recipient, amend this Agreement in any manner that impairs the rights of Recipient.

 

20. Definitions. As used in this Agreement, the following terms will have the following meanings:

 

“Award” means this Restricted Stock Unit Award.  

 

“Board” means the Board of Directors of the Company.

 

“Cause” shall have the meaning set forth in the Employment Agreement. 

 

“Change of Control” means (i) a sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole or (ii) a merger, consolidation or other similar business combination involving the Company, if, upon completion of such transaction the beneficial owners of voting equity securities of the Company immediately prior to the transaction beneficially own less than fifty percent of the successor entity’s voting equity securities; provided, that “Change of Control” shall not include a transaction where the consideration received or retained by the holders of the then outstanding capital stock of the Company does not consist primarily of (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act of 1933, as amended (the “Securities Act”).  

 

 “Common Stock” means Class A Common Stock of the Company, or any common stock of the Company subject to a Trigger Event under the Trigger Event Requirement.

 

“Fair Market Value” means, as of any date, the value of a share of the Company’s Common Stock determined as follows:

(a) if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal;

(b) if such Common Stock is publicly traded but is not quoted on the Nasdaq Stock Market nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal; or

(c) if none of the foregoing is applicable, by the Committee in good faith.

 

 

“Good Reason” shall have the meaning set forth in the Employment Agreement.  

 

 “Termination” or “Terminated” means, for purposes of this Agreement with respect to the Recipient, termination of the Employment Agreement.  In the case of the Recipient is on an approved leave of absence, the 

Committee may make such provisions respecting suspension of vesting of the RSUs while on leave from the employ of the Company or a Subsidiary as it may deem appropriate. 

 

By your signature and the signature of the Company’s representative on the Notice, Recipient and the Company agree that the RSUs are granted under and governed by the terms and conditions of the Notice, this Agreement. Recipient has reviewed the Notice and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement, and fully understands all provisions of the Notice and this Agreement. Recipient hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Notice and this Agreement. Recipient further agrees to notify the Company upon any change in Recipient’s residence address.Exhibit
4.1 

 

CERTIFICATE
OF DESIGNATIONS, PREFERENCES AND RIGHTS OF THE

SERIES
C-2 CONVERTIBLE PREFERRED STOCK OF

BTCS
INC.

 

The
undersigned, Charles Allen, the Chief Executive Officer of BTCS Inc. (the “Corporation”), a corporation organized
and existing under Chapter 78 of the Nevada Revised Statues (the “NRS”), hereby does certify:

 

That
pursuant to the authority expressly conferred upon the Board of Directors of the Corporation by the Corporation’s Articles
of Incorporation, as amended, and Section 78.315 of the NRS, the Board of Directors on January 1, 2021, adopted the following
resolution determining it desirable and in the best interests of the Corporation and its shareholders for the Corporation to create
a series of One Million One Hundred Thousand (1,100,000) shares of preferred stock designated as “Series C-2 Convertible
Preferred Stock”, none of which shares have been issued.

 

RESOLVED,
that the Board of Directors designates the Series C-2 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-2 CONVERTIBLE PREFERRED STOCK

 

1.
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)	“Anti-Dilution
    Amount” means, as of the applicable date of determination, with respect to each share of Series C-2, all additional
    amounts, as set forth in Section 6 hereto, subject to adjustment for stock splits, stock dividends, recapitalizations, reorganizations,
    reclassifications, combinations, subdivisions, or other similar events occurring after the Initial Issuance Date with respect
    to the Series C-2.
	 	 	 
	 	(c)	“Anti-Dilution
    Event” shall have the meaning given to it in Section 6 hereto.
	 	 	 
	 	(d)	“Certificate
    of Designations” means this Certificate of Designations, Preferences and Rights of the Series C-2 Convertible Preferred
    Stock of the Corporation. 
	 	 	 
	 	(e)	“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.
	 	 	 
	 	(f)	“Common
    Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire Common
    Stock at any time, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that
    is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
    Stock. Provide, however, the Corporation’s issuance of Common Stock or the issuances or grants of options to purchase
    Common Stock to employees, and directors, pursuant to a plan, even if funds are received shall be excluded from Common Stock
    Equivalents.
	 	 	 
	 	(g)	“Conversion
    Amount” shall have the meaning given to it in Section 5(c)(i) hereto.
	 	 	 
	 	(h)	“Conversion
    Date” shall have the meaning given to it in Section 5(d)(i) hereto.
	 	 	 
	 	(i)	“Conversion
    Notice” shall have the meaning given to it in Section 5(d)(i) hereto.
	 	 	 
	 	(j)	“Conversion
    Price” shall have the meaning given to it in Section 5(c)(ii) hereto.

 

    	 

     

    

 

	 	(k)	“Conversion
    Rate” shall have the meaning given to it in Section 5(c) hereto.
	 	 	 
	 	(l)	“Corporation”
    shall have the meaning given to it in the preamble hereto. 
	 	 	 
	 	(m)	“Distributions”
    shall have the meaning given to it in Section 12 hereto.
	 	 	 
	 	(n)	“DTC”
    shall have the meaning given to it in Section 5(d)(i) hereto.
	 	 	 
	 	(o)	“Holder”
    or “Holders” means a holder of Series C-2.
	 	 	 
	 	(p)	“Initial
    Issuance Date” means the date the first share of Series C-2 is issued to any Holder hereof.
	 	 	 
	 	(q)	“Junior
    Stock” shall have the meaning given to it in Section 3 hereto.
	 	 	 
	 	(r)	“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.
	 	 	 
	 	(s)	“Liquidation
    Funds” shall have the meaning given to it in Section 11 hereto.
	 	 	 
	 	(t)	“NRS”
    shall have the meaning given to it in the preamble hereto.
	 	 	 
	 	(u)	“Person”
    means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
    organization, any other entity or a government or any department or agency thereof.
	 	 	 
	 	(v)	“Principal
    Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global
    Market, the Nasdaq Capital Market, OTCPink, OTCQB, or OTCQX and any successor markets thereto.
	 	 	 
	 	(w)	“Register”
    shall have the meaning given to it in Section 5(d)(ii) hereto.
	 	 	 
	 	(x)	“Registered
    Series C-2” shall have the meaning given to it in Section 5(d)(ii) hereto.
	 	 	 
	 	(y)	 “Securities
    Purchase Agreement” means that certain securities purchase agreement by and among the Corporation and the Holders
    of Series C-2, dated as of the Subscription Date, as may be amended from time in accordance with the terms thereof.
	 	 	 
	 	(z)	“Series
    C-2” shall have the meaning given to it in Section 2 hereto.
	 	 	 
	 	(aa)	“Series
    C-2 Certificates” shall have the meaning given to it in Section 5(d)(i) hereto.
	 	 	 
	 	(bb)	“Share
    Delivery Deadline” shall have the meaning given to it in Section 5(d)(i) hereto.
	 	 	 
	 	(cc)	“Stated
    Value” shall mean $1 per share of Series C-2, subject to adjustment for stock splits, stock dividends, recapitalizations,
    reorganizations, reclassifications, combinations, subdivisions, or other similar events occurring after the Initial Issuance
    Date with respect to the Series C-2.
	 	 	 
	 	(dd)	“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 p.m., Eastern time)
    unless such day is otherwise designated as a Trading Day in writing by the Holder.

 

    	 

     

    

 

	 	(ee)	“Transfer
    Agent” shall have the meaning given to it in Section 5(d)(i) hereto. 

 

2.
Designation and Number of Shares. There shall hereby be created and established a series of preferred stock of the Corporation
designated as “Series C-2 Convertible Preferred Stock” (the “Series C-2”). The authorized number
of Series C-2 shall be One Million One Hundred Thousand (1,100,000) shares. Each share of Series C-2 shall have a par value of
$0.001.

 

3.
Ranking. The Series C-2 shall rank senior to the Corporation’s Common Stock, and to all other classes and series
of equity securities of the Corporation which by their terms do not rank pari passu or senior to the Series C-2 (“Junior
Stock”). The Series C-2 shall be subordinate to and rank junior to all indebtedness of the Corporation now or hereafter
outstanding.

 

4.
Dividends and Distributions. Each Holder of Series C-2 shall be entitled to receive dividends or distributions on each
share of Series C-2 on an “as converted” into Common Stock basis as provided in Section 5 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.

 

5.
Conversion. Except as provided for in Section 5(b), at any time on or after the two year anniversary of the Initial Issuance
Date, each share of Series C-2 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 5.

 

(a)
Holder’s Conversion Right. At any time or times on or after the two year anniversary of the Initial Issuance Date,
each Holder shall be entitled to convert any portion of the outstanding Series C-2 held by such Holder into validly issued, fully
paid and non-assessable shares of Common Stock in accordance with Section 5(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)
Automatic Conversion. On the earlier of: (i) the four year anniversary of the Initial Issuance Date, and (ii) simultaneous
with the Corporation’s Common Stock being listed on a national securities exchange, Holders of Series C-2 shall be converted
into validly issued, fully paid and non-assessable shares of Common Stock in accordance with Section 5(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).

 

(c)
Conversion Rate. The number of shares of Common Stock issuable upon conversion of any share of Series C-2 pursuant to Section
5 shall be determined by dividing (x) the Conversion Amount of such share of Series C-2 by (y) the Conversion Price (the “Conversion
Rate”):

 

(i)
“Conversion Amount” means, with respect to each share of Series C-2, as of the applicable date of determination,
the sum of (1) the Stated Value thereof plus (2) the aggregate Anti-Dilution Amount thereof if any.

 

(ii)
“Conversion Price” means, $0.17 with respect to each share of Series C-2, as of any Conversion Date or other
date of determination.

 

    	 

     

    

 

(d)
Mechanics of Conversion. The conversion of each share of Series C-2 shall be conducted in the following manner:

 

(i)
Optional Conversion. The Holder may convert shares of Series C-2 into shares of Common Stock on any date on or after the
two year anniversary of the Initial Issuance Date (a “Conversion Date”), a Holder shall deliver, via electronic
mail or otherwise, for receipt on or prior to 11:59 p.m., Eastern time, on such date, a copy of an executed notice of conversion
of the share(s) of Series C-2 subject to such conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) to the Corporation. If required by Section 5(d)(ii), within three Trading Days following a conversion of any
such Series C-2 as aforesaid, such Holder shall surrender to a nationally recognized overnight delivery service for delivery to
the Corporation the original certificates representing the Series C-2 (the “Series C-2 Certificates”) so converted
as aforesaid (or an indemnification undertaking with respect to the Series C-2 in the case of its loss, theft or destruction as
contemplated by Section 15). On or before the first 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 second 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, regulation, Trading Market Rule or other customary applicable
policy 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 Series C-2 represented by the Series
C-2 Certificate(s) submitted for conversion pursuant to Section 5(c)(ii) is greater than the number of Series C-2 being converted,
then the Corporation shall, as soon as practicable and in no event later than two Trading Days after receipt of the Series C-2
Certificate(s) and at its own expense, issue and deliver to such Holder (or its designee) a new Series C-2 Certificate (in accordance
with Section 15(d)) representing the number of Series C-2 not converted. The Person or Persons entitled to receive the shares
of Common Stock issuable upon a conversion of Series C-2 shall be treated for all purposes as the record holder or holders of
such shares of Common Stock on the Conversion Date.

 

(ii)
Registration; Book-Entry. The Corporation shall maintain a register (the “Register”) for the recordation
of the names and addresses of the Holders of each share of Series C-2 and the Stated Value of the Series C-2 (the “Registered
Series C-2”). The entries in the Register shall be conclusive and binding for all purposes absent manifest error. The
Corporation and each Holder of the Series C-2 shall treat each Person whose name is recorded in the Register as the owner of a
share of Series C-2 for all purposes (including the right to receive payments and dividends hereunder) notwithstanding notice
to the contrary. A registered share of Series C-2 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 Series C-2 by
such Holder thereof, the Corporation shall record the information contained therein in the Register and issue one or more new
shares of Series C-2 in the same aggregate Stated Value as the Stated Value of the surrendered Series C-2 to the designated assignee
or transferee pursuant to Section 15, provided that if the Corporation does not so record an assignment, transfer or sale (as
the case may be) of such Series C-2 shares within two Trading 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 5, following conversion of any Series C-2 in accordance with the terms hereof, the applicable Holder shall
not be required to physically surrender such Series C-2 to the Corporation unless (A) the full or remaining number of Series C-2
shares represented by the applicable Series C-2 Certificate are being converted (in which event such certificate(s) shall be delivered
to the Corporation as contemplated by this Section 5(c)(ii)) or (B) such Holder has provided the Corporation with prior written
notice (which notice may be included in a Conversion Notice) requesting reissuance of Series C-2 upon physical surrender of the
applicable Series C-2 Certificate. Each Holder and the Corporation shall maintain records showing the Stated Value and dividends
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 Series
C-2 Certificate upon conversion. If the Corporation does not update the Register to record such Stated Value and dividends 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 Trading 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 Series C-2 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 Series C-2,
the number of Series C-2 represented by such certificate may be less than the number of Series C-2 stated on the face thereof.
Each Series C-2 Certificate shall bear the following legend:

 

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-2 CONVERTIBLE PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 5(c)(ii) THEREOF.
THE NUMBER OF SHARES OF SERIES C-2 CONVERTIBLE PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF
SHARES OF SERIES C-2 CONVERTIBLE PREFERRED STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION 5(c)(ii) OF THE CERTIFICATE OF
DESIGNATIONS RELATING TO THE SHARES OF SERIES C-2 CONVERTIBLE PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE.

 

    	 

     

    

 

6.
Anti-Dilution Events. The following event shall constitute an “Anti-Dilution Event”: If at any time
after the Initial Issuance Date, the Company raises capital equal to or in excess of $5 million by issuing Common Stock or Common
Stock Equivalents then the Anti-Dilution Amount per share of Series C-2 shall be the product of: (i) 0.000002, and (ii) the aggregate
amount of all capital raised by the Corporation after the Initial Issuance Date (the “Capital Raised”). Provided;
further, for the determination of the Anti-Dilution Amount, the amount of Capital Raised shall be limited to $13 million, regardless
of how much capital the Corporation raises. In the event capital is raised simultaneous with a listing on a national securities
exchange and the automatic conversion of the Series C-2 then such funds shall be included in the Capital Raised for the purpose
of determining the Anti-Dilution Amount.

 

7.
Company Redemption Right. Within 180 days of the Initial Issuance Date, the Corporation shall call a special meeting of
stockholders seeking shareholder ratification of the issuance of the Series C-2. If the ratification of the issuance is not approved
prior to the twelve-month anniversary of the Initial Issuance Date (the “Vote Deadline”), the Series C-2 shall
be redeemed at a price equal to 107% of (i) the Stated Value per share plus (ii) all unpaid dividends thereon. Provided; further,
if the Corporation has filed a proxy with the SEC prior to the Vote Deadline and is unable to conduct a vote prior to the Vote
Deadline then the Vote Deadline shall be extended until such time as the vote is conducted. The Series C-2 shall not be entitled
to vote on the ratification.

 

8.
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Corporation at any time on or after
the Initial Issuance Date subdivides (by any stock split, stock dividend, 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 this Section 8, if the Corporation
at any time on or after the Initial Issuance Date combines (by any reverse split, 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 8 shall become
effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under
this Section 8 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.

 

    	 

     

    

 

9.
Voting Rights. After such time as the issuance of the Series C-2 is ratified, each shares of Series C-2 shall vote on an
as converted basis with the Common Stock or other equity securities of the Company on a 2 vote per one share of Common Stock basis.
The Common Stock into which the Series C-2 is convertible shall, when issued, have all of the same voting rights as other issued
and outstanding Common Stock of the Company, and none of the rights of the Series C-2.

 

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, the Corporation (a) shall not increase the par value
of any shares of Common Stock receivable upon the conversion of any Series C-2 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 Series C-2 and (c) shall, so long as any Series C-2 are
outstanding, and upon the filing of an amendment to the Corporation’s Articles of Incorporation to increase the number of
shares of the Corporation’s Common Stock that the Corporation is authorized to issue with the Secretary of State of the
State of Nevada, 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 Series C-2, the maximum number of shares of Common Stock as shall from
time to time be necessary to effect the conversion of the Series C-2 then outstanding (without regard to any limitations on conversion
contained herein).

 

11.
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,
an amount per share of Series C-2 equal to the amount per share such Holder would receive if such Holder converted such Series
C-2 into Common Stock immediately prior to the date of such payment. 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 11.

 

12.
Distribution of Assets. In addition to any adjustments pursuant to Section 8, 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 Series C-2, 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 Series C-2 (without taking
into account any limitations or restrictions on the convertibility of the Series C-2) 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.

 

13.
[Omitted]

 

14.
Transfer of Series C-2. A Holder may transfer some or all of its Series C-2 without the consent of the Corporation in accordance
with an exemption from Section 5 of the Securities Act of 1933.

 

15.
Reissuance of Preferred Certificates.

 

(a)
Transfer. If any Series C-2 are to be transferred, the applicable Holder shall surrender the applicable Series C-2 Certificate
to the Corporation, whereupon the Corporation will forthwith issue and deliver upon the order of such Holder a new Series C-2
Certificate (in accordance with Section 15(d)), registered as such Holder may request, representing the outstanding number of
Series C-2 being transferred by such Holder and, if less than the entire outstanding number of Series C-2 is being transferred,
a new Series C-2 Certificate (in accordance with Section 15(d)) to such Holder representing the outstanding number of Series C-2
not being transferred. Such Holder and any assignee, by acceptance of the Series C-2 Certificate, acknowledge and agree that,
by reason of the provisions of Section 5(d)(i) following conversion of any of the Series C-2, the outstanding number of Series
C-2 represented by the Series C-2 may be less than the number of Series C-2 stated on the face of the Series C-2.

 

    	 

     

    

 

(b)
Lost, Stolen or Mutilated Series C-2 Certificate. Upon receipt by the Corporation of evidence reasonably satisfactory to the Corporation
of the loss, theft, destruction or mutilation of a Series C-2 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 without the requirement to post a bond or other security
and, in the case of mutilation, upon surrender and cancellation of such Series C-2 Certificate, the Corporation shall execute
and deliver to such Holder a new Series C-2 Certificate (in accordance with Section 15(d)) representing the applicable outstanding
number of Series C-2.

 

(c)
Series C-2 Certificate Exchangeable for Different Denominations. Each Series C-2 Certificate is exchangeable, upon the surrender
hereof by the applicable Holder at the principal office of the Corporation, for a new Series C-2 Certificate or Series C-2 Certificate(s)
(in accordance with Section 15(d)) representing in the aggregate the outstanding number of the Series C-2 in the original Series
C-2 Certificate, and each such new certificate will represent such portion of such outstanding number of Series C-2 from the original
Series C-2 Certificate as is designated by such Holder at the time of such surrender.

 

(d)
Issuance of New Series C-2 Certificate. Whenever the Corporation is required to issue a new Series C-2 Certificate pursuant to
the terms of this Certificate of Designations, such new Series C-2 Certificate (i) shall represent, as indicated on the face of
such Series C-2 Certificate, the number of Series C-2 remaining outstanding (or in the case of a new Series C-2 Certificate being
issued pursuant to Section 15(a) or Section 15(c), the number of Series C-2 designated by such Holder which, when added to the
number of Series C-2 represented by the other new Series C-2 Certificates issued in connection with such issuance, does not exceed
the number of Series C-2 remaining outstanding under the original Series C-2 Certificate immediately prior to such issuance of
new Series C-2 Certificate), and (ii) shall have an issuance date, as indicated on the face of such new Series C-2 Certificate,
which is the same as the issuance date of the original Series C-2 Certificate.

 

(e)
Book Entry. If the Corporation’s Transfer Agent issues the Series C-2 in book entry format, all provisions of this Certificate
of Designations as to delivery of Series C-2 certificates shall be disregarded, and the Transfer Agent shall make entries in the
stock transfer records in connection with conversions and transfers, as appropriate.

 

16.
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, 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.

 

    	 

     

    

 

17.
Attorneys Fees.

 

(a)
If (i) any shares of Series C-2 are placed in the hands of an attorney to enforce the provisions of this Certificate of Designations
or (ii) 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.

 

(b)
In addition to the obligations under Section 17(a), in connection with the removal of restrictive legends from shares of Series
C-2, the Corporation shall pay the reasonable attorney’s fees of counsel to any Holder in any amount not to exceed $750
per opinion of counsel. Such payment(s) shall be made within one Trading Day after receipt of a Conversion Notice or other notice
from a Holder.

 

18.
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.

 

19.
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 19 shall permit any waiver of any provision of Section 17.

 

20.
Notices. The Corporation shall provide each Holder of Series C-2 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 the Securities Purchase Agreement or in accordance with any other instructions
provided by the Holder to the Corporation. 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 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, 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. All notices shall be by
email or recognized overnight delivery service, next Trading Day delivery using the addresses of the Corporation as provided to
the Holders and the addresses of any Holder as provided by such Holder to the Corporation. The Corporation and the Holders may
change their addresses by notice by the Corporation to all Holders or any Holder to the Corporation.

 

    	 

     

    

 

21.
Governing Law; Exclusive Jurisdiction. 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 this Certificate of Designations, the Corporation hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in New York County, New York, 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 19. 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.

 

22.
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).

 

23.
Amendment. This Certificate of Designations or any provision hereof may be modified or amended or the provisions hereof
waived with the written consent of the Corporation and the Holders of a majority of the Series C-2 currently outstanding. No waiver
shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

*
* * * *

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Corporation has caused this Certificate of Designations of Series C-2 Convertible Preferred Stock of BTCS
Inc. to be signed by its Chief Executive Officer on this 1st day of January, 2021.

 

	 	BTCS INC.
	 	 	 
	 	By:	 /s/
    Charles Allen
	 	 	Charles Allen, Chief Executive Officer

 

    	 

     

    

 

BTCS
INC.

CONVERSION
NOTICE

 

Reference
is made to the Certificate of Designations, Preferences and Rights of the Series C-2 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-2 Convertible Preferred Stock, $0.001 par value per share
(the “Series C-2”), of BTCS Inc., a Nevada 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 Series C-2 shares to be converted:	 
	 

        Stated
        Value of such Series C-2 to be converted:
	 
	 

        Anti-Dilution
Amount of Series C-2 to be converted:
	 
	 

        Conversion
        Amount of Series C-2 to be converted:

        (Stated
        Value plus Anti-Dilution Amount)
	 
	 	 
	AGGREGATE
        CONVERSION AMOUNT TO BE CONVERTED:

        (Aggregate
        number of Series C-2 x Aggregate Conversion Amount)
	 

 

Please
confirm the following information:

 

	Conversion
    Price:	$0.17
	 

        Number
        of shares of Common Stock to be issued:
	 
	(Aggregate
    Conversion Amount / Conversion Price)	 

 

Please
issue the Common Stock into which the applicable Series C-2 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: 	 

 

    	 

     

    

 

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:	 
	 	Name: 	 
	 	Title:

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