Document:

Exhibit 4.2

 

DESCRIPTION OF SECURITIES

 

The following is a
description of the material provisions of our capital stock, as well as other material terms of our Amended and Restated Articles
of Incorporation and Amended and Restated Bylaws.  We refer you to our Articles of Incorporation and to Amended and Restated
Bylaws, copies of which have been filed as exhibits to this report.

 

Common Stock

 

We are authorized,
subject to limitations prescribed by Nevada law, to issue up to 1,000,000,000 shares of common stock with a nominal par value of
$.001.

  

Dividend Rights

 

Subject to preferences
that may apply to shares of preferred stock outstanding at the time, the holders of outstanding shares of our common stock are
entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue
dividends and only then at the times and in the amounts that our board of directors may determine.

 

Voting Rights

 

Each holder of common
stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders.  Under
our articles of incorporation, stockholders do not have the right to cumulate votes for the election of directors.

 

No Preemptive or
Similar Rights

 

Our common stock is
not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions.

 

Right to Receive
Liquidation Distributions

 

Upon our dissolution,
liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the
holders of our common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights
and payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

 

Preferred Stock

 

We are authorized,
subject to limitations prescribed by Nevada law, to issue up to 100,000,000 shares of preferred stock, with a par value of $0.001
per share.  Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that
could adversely affect the voting power or other rights of the holders of the common stock.  The issuance of preferred
stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things,
have the effect of delaying, deferring or preventing a change in control of our company and may adversely affect the market price
of our common stock and the voting and other rights of the holders of common stock.  We have no current plan to issue
any shares of preferred stock.

 

 

 

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Anti-takeover Provisions

 

Some of the provisions
of Nevada law, our Amended and Restated Articles of Incorporation and our Amended and Restated Bylaws may have the effect of delaying,
deferring or discouraging another person from acquiring control of our company, including:

 

	 	·	acquisition of us by means of a tender offer;
	 	·	acquisition of us by means of a proxy contest or otherwise; or
	 	·	removal of our incumbent officers and directors.

 

These provisions are designed to encourage
persons seeking to acquire control of us to first negotiate with our Board and to discourage certain types of coercive takeover
practices and inadequate takeover bids.  Among other things, the Amended and Restated Articles and the Amended and Restated
Bylaws provide that:

 

	 	·	Our stockholders may not call special meetings of our stockholders unless they hold in excess of 50% of the shares entitled to vote at a meeting of stockholders;

 

	 	·	In any annual meeting of our stockholders, stockholders may not act on any matter not properly brought before the meeting.  A matter is considered to have been properly brought before a meeting if it was: (i) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board; (ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors; or (iii) otherwise properly brought before the meeting by a stockholder of the Company who is a stockholder of record on the date of the giving of the notice of such meeting and on the record date for the determination of stockholders entitled to vote at such meeting and who complies with certain notice procedures set forth in the Restated Bylaws.  According to the Restated Bylaws, a stockholder’s notice must be delivered to or mailed and received at the principal offices of the Company not less than 45 days nor more than 75 days prior to the one-year anniversary of the date on which the Company first mailed its proxy materials for the previous year’s annual meeting of stockholders (or the date on which the Company mails its proxy materials for the current year if during the prior year the Company did not hold an annual meeting or if the date of the annual meeting was changed more than 30 days from the prior year).  Furthermore, such notice must set forth (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and record address of the stockholder proposing such business, (iii) the class and number of shares of the Company which are beneficially owned by the stockholders, (iv) a description of any material interest of such stockholder in such business, (v) a representation that such stockholder intends to appear in person or by proxy at the meeting to bring such business before the meeting and (vi) any other information required by law.

 

	 	·	Our stockholders may not nominate persons to our Board unless they comply with certain nomination procedures.  A stockholder must deliver notice of its intent to nominate persons to be elected to the Board to the principal offices of the Company not less than 45 days nor more than 75 days prior to the one-year anniversary of the date on which the Company first mailed its proxy materials for the previous year’s annual meeting of stockholders (or the date on which the Company mails its proxy materials for the current year if during the prior year the Company did not hold an annual meeting or if the date of the annual meeting was changed more than 30 days from the prior year).  Such notice shall set forth (a) as to each person whom the stockholder proposes to nominate for election or re-election as a director, (i) the name, age, business address and residence address of the person, (ii) the principal occupation or employment of the person, (iii) the class and number of shares of the Company which are beneficially owned by the person, and (iv) any other information relating to the person that is required to be disclosed in solicitations for proxies for election of directors pursuant to Rule 14a under the Exchange Act; and (b) as to the stockholder giving the notice, (i) the name and record address of such stockholders, and (ii) the class and number of shares of the Company which are beneficially owned by such stockholder.  The proposed nominee must deliver (in accordance with the time periods prescribed for delivery of notice in the Restated Bylaws to the Secretary at the principal offices of the Company a written questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the Secretary upon written request) and a written representation and agreement (in the form provided by the Secretary upon written request) that such person (A) is not and will not become a party to (1) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Company, will act or vote on any issue or question (a “Voting Commitment”) that has not been disclosed to the Company or (2) any Voting Commitment that could limit or interfere with such person’s ability to comply, if elected as a director of the Company, with such person’s fiduciary duties under applicable law, (B) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Company with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein and (C) in such person’s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Company, and will comply with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Company.  The Company may require any proposed nominee to furnish such other information as may reasonably be required by the Company to determine the eligibility of such proposed nominee to serve as a director of the Company.

 

 

 

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	 	·	Our Board may designate the terms of, and issue a new series of preferred stock with, voting or other rights without stockholders approval;

 

	 	·	Our directors have the power to adopt, amend or repeal our bylaws without stockholders approval;

 

	 	·	Our stockholders may not cumulate votes in the election of directors; and

 

	 	·	We will indemnify directors and officers against losses that they may incur in investigations and legal proceedings resulting from their services to us, which may include services in connection with takeover defense measures.

 

These provisions of
our Amended and Restated Articles of Incorporation or Amended and Restated Bylaws may have the effect of delaying, deferring or
discouraging another person or entity from acquiring control of us.

 

In addition, the Nevada
Revised Statutes contain provisions governing the acquisition of a controlling interest in certain Nevada corporations.  These
laws provide generally that any person that acquires 20% or more of the outstanding voting shares of certain Nevada corporations
in the secondary public or private market must follow certain formalities before such acquisition or they may be denied voting
rights, unless a majority of the disinterested stockholders of the corporation elects to restore such voting rights in whole or
in part.  These laws will apply to us if we conduct business in Nevada directly or indirectly through an affiliated corporation
and have 200 or more stockholders of record, at least 100 of whom have addresses in Nevada, unless our articles of incorporation
or bylaws in effect on the tenth day after the acquisition of a controlling interest provide otherwise.  These laws provide
that a person acquires a “controlling interest” whenever a person acquires shares of a subject corporation that, but
for the application of these provisions of the Nevada Revised Statutes, would enable that person to exercise (1) one-fifth or more,
but less than one-third, (2) one-third or more, but less than a majority or (3) a majority or more, of all of the voting power
of the corporation in the election of directors.  Once an acquirer crosses one of these thresholds, shares which it acquired
in the transaction taking it over the threshold and within the 90 days immediately preceding the date when the acquiring person
acquired or offered to acquire a controlling interest become “control shares” to which the voting restrictions described
above apply.  These laws may have a chilling effect on certain transactions if our articles of incorporation or bylaws
are not amended to provide that these provisions do not apply to us or to an acquisition of a controlling interest, or if our disinterested
stockholders do not confer voting rights in the control shares.

 

Nevada law also provides
that if a person is the “beneficial owner” of 10% or more of the voting power of certain Nevada corporations, such
person is an “interested stockholder” and may not engage in any “combination” with the corporation for
a period of three years from the date such person first became an interested stockholder, unless the combination or the transaction
by which the person first became an interested stockholder is approved by the board of directors of the corporation before the
person first became an interested stockholder.  Another exception to this prohibition is if the combination is approved
by the affirmative vote of the holders of stock representing a majority of the outstanding voting power not beneficially owned
by the interested stockholder at a meeting, no earlier than three years after the date that the person first became an interested
stockholder.  These laws generally apply to Nevada corporations with 200 or more stockholders of record, but a Nevada
corporation may elect in its articles of incorporation not to be governed by these particular laws.  We have not made
such an election in our Articles of Incorporation.

 

Nevada law also provides
that directors may resist a change or potential change in control if the directors determine that the change is opposed to, or
not in the best interest of, the corporation.

 

 

 

    	 	3Exhibit 4.1 

 

CERTIFICATE OF DESIGNATION OF

SERIES F REDEEMABLE, CONVERTIBLE PREFERRED STOCK

OF BIOHITECH GLOBAL, INC.

 

BioHiTech Global, Inc.,
a corporation organized and existing under the laws of the State of Delaware ("Company"), hereby certifies that
the Board of Directors of the Company (the "Board of Directors" or the "Board"), pursuant to
authority of the Board of Directors as required by applicable corporate law, and in accordance with the provisions of its certificate
of incorporation and bylaws, has and hereby authorizes a series of the Company's previously authorized Preferred Stock, par value
$0.0001 per share (the "Preferred Stock"), and hereby states the designation and number of shares, and fixes the
rights, preferences, privileges, powers and restrictions thereof, as follows:

 

1.            Designation
and Number of Shares. There shall hereby be created and established a series of preferred stock of the Company designated as
 “Series F Redeemable, Convertible Preferred Stock” (the “Preferred Shares”). The authorized
number of Preferred Shares shall be Thirty Thousand Ninety (30,090) shares. Each Preferred Share shall have a par value of $0.0001.
Capitalized terms not defined herein shall have the meanings as set forth in Section 22 below.

 

2.            Ranking.
Except with respect to any other existing or future series of preferred stock of senior rank to the Preferred Shares in respect
of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding-up of the Company
(collectively, the “Senior Preferred Stock”) or any existing or future series of preferred stock of pari passu
rank to the Preferred Shares in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company (collectively, the “Parity Stock”), all shares of capital stock of the Company
shall be junior in rank to all Preferred Shares with respect to the preferences as to dividends, distributions and payments upon
the liquidation, dissolution and winding-up of the Company (collectively, the “Junior Stock”). The rights of
all such shares of capital stock of the Company shall be subject to the rights, powers, preferences and privileges of the Preferred
Shares. In the event of the merger or consolidation of the Company with or into another corporation, the Preferred Shares shall
maintain their relative rights, powers, preferences, privileges, and designations provided for herein and no such merger or consolidation
shall result inconsistent therewith.

 

3.            Dividends.

 

(a) Commencing
on the date of issuance of a Holder’s Preferred Shares (the “Initial Issuance Date”), each holder of such
Preferred Shares (each, a “Holder” and collectively, the “Holders”) shall be entitled to
receive dividends (the “Dividends”), out of funds legally available therefor, subject to the provisions of Section 3(c) below,
at an annual rate of nine percent (9%) per annum, payable bi-annually commencing on September 15, 2020 (the “Initial
Divided Date”) and continuing every six-months thereafter for so long as the Series F Preferred Stock remain outstanding
and unconverted (each a “Dividend Date”) at the option of the Holder, in cash (a “Cash Dividend”) provided
such Cash Dividend is not subject to a “Company Restriction” (as that term is defined in Section 4(c) herein),
or (ii) shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) (the “Dividend
Shares”) so long as the delivery of Dividend Shares would not violate the provisions of Section 4(e). On or before
the fifteenth (15th) Trading Day prior to the Initial Dividend Date, if the Holder desires to elect to receive a Cash
Dividend, such Holder shall deliver a written notice to the Company (a “Dividend Election Notice”) which notice
either (A) confirms that the Holder paid on such Dividend Date shall be paid entirely in Dividend Shares or (B) elects
to receive Dividends as Cash Dividends. Any Holder who does not set a Dividend Election Notice, shall be deemed to have agreed
to accept Dividend Shares and all Dividends paid to such Holders shall be paid in Dividend Shares. If the Company is unable to
pay a Dividend to the Holders as a Cash Dividend due to a Company Restriction, the Company shall advise on or before the fifth
(5th) Trading Day of receipt of such Dividend Election Notice of the Company’s inability to make such Cash Dividend
and pay the Dividend Shares to the Holder as set forth herein, unless The Holder shall provide notice on or before the fifth (5th)
Trading Day of the Company’s advisement that Holder instruct the Company to accumulate Dividends, but not to pay the Dividend
in Dividend Shares.

 

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(b)            The
Dividend payable to such Holder on such Dividend Date in Dividend Shares shall be paid in a number of fully paid and non-assessable
shares (rounded up to the next whole share) of Common Stock equal to the quotient of (1) the amount of Dividends payable to
such Holder on such Dividend Date less any Cash Dividends paid and (2) the Conversion Price in effect on the applicable Dividend
Date. Dividends on the Preferred Shares shall commence accumulating on the Initial Issuance Date and shall be computed on the basis
of a 365-day year and actual days elapsed. Subject to Section 3(c) and Section 4(b), Dividends shall be payable
as provided in Section 3 (a). If a Dividend Date is not a Business Day (as defined below), then the Dividend shall be due
and payable on the Business Day immediately following such Dividend Date.

 

(c)            The
Company may only pay a Cash Dividend (“Cash Payment Dividend”) to a Holder provided that the payment of such
a Cash Payment Dividend would not breach any provision of any agreement or obligation of the Company outstanding on the Initial
Issuance Date and still outstanding on such Dividend Date (a “Company Restriction”). Cash Payment Dividends
shall be paid by the Company out of funds legally available therefor, in cash by wire transfer of immediately available funds,
in the amount of any Cash Payment Dividend.

 

(d)            The
Company may only pay Dividend Shares on a Dividend Date to any Holder provided that the Company has not defaulted under any of
the provisions of this Certificate of Designation. On the applicable Dividend Date the Company shall issue and deliver to the Holder
the Dividend Shares either through electronic book entry form with the Transfer Agent or a certificate, registered in the name
of such Holder or its designee, for the number of Dividend Shares to which such Holder shall be entitled and with respect to each
Dividend Date. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery of Dividend
Shares.

 

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4.            Conversion.
Each Preferred Share shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock (as defined
below) on the terms and conditions set forth in this Section 4.

 

		(a)	Holder’s Conversion Right.

 

(i)            Subject
to the provisions of Section 4(e), at any time or times after the Initial Issuance Date (the “Initial Conversion
Date”) each Holder shall be entitled to convert any whole number of Preferred Shares and any accrued but unpaid Dividends
into validly issued, fully paid and non-assessable shares of Common Stock in accordance with Section 4(c) at the Conversion
Rate (as defined below).

 

(ii)            The
number of validly issued, fully paid and non-assessable shares of Common Stock issuable upon conversion (the “Conversion
Shares”) of each Preferred Share pursuant to Section 4(a) shall be determined according to the following formula
(the “Conversion Rate”):

 

Conversion Amount

Conversion Price

 

No fractional shares
of Common Stock are to be issued upon the conversion of any Preferred Shares. If the issuance would result in the issuance of a
fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the next whole share.

 

(b)          Company’s
Mandatory Conversion Right. At such time as: (i) the closing price of the Common Stock on the Principal Market is $5.50
or greater for ten (10) consecutive Trading Days (the “Measuring Period”); and (ii) the average trading volume
of the Common Stock on the Principal market is 50,000 shares or greater, and either (A) a registration statement covering
the Conversion Shares has been declared effective by the U.S. Securities and Exchange Commission (the “Commission”)
or (B) at such time as the Holders would be able to sell the Conversion Shares in accordance with Rule 144, as promulgated
by the Commission under the Securities Act of 1933, as amended, as such Rule may be amended from time to time (the “Mandatory
Conversion Date”), then each outstanding share of the Preferred Shares, together with any and all accrued but unpaid Dividends,
will automatically convert into such number of fully paid and non-assessable shares of Common Stock as is determined in Section 4(a)(ii) above
(the “Mandatory Conversion”) and shall be issued as Conversion Shares as set forth in this Section 4. The Company
shall deliver to each Holder the Conversion Shares issuable upon conversion of such Holder’s Preferred Shares and the failure
by any Holder to return a certificate for the Preferred Shares will have no effect on the Mandatory Conversion pursuant to this
Section 4(b), which Mandatory Conversion will be deemed to occur on the Mandatory Conversion Date.

 

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

 

(i)        Holder’s
Conversion. Subject to the provisions of Section 4(e), to convert Preferred Shares into validly issued, fully paid and
non-assessable shares of Common Stock on any date (a “Conversion Date”), a Holder shall deliver (via electronic
mail), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion of Preferred
Shares subject to such conversion in the form attached hereto as Exhibit A (the “Conversion Notice”)
to the Company, which Conversion Notice shall be subject to adjustment pursuant to Section 8. If required by Section 4(c)(vi),
within three (3) Trading Days following a conversion of any such Preferred Shares as aforesaid, such Holder shall surrender
to a nationally recognized overnight delivery service for delivery to the Company the original certificates representing the share(s) of
Preferred Shares (the “Preferred Share Certificates”) so converted as aforesaid.

 

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(ii)        Company’s
Response. On or before the second (2nd) Trading Day following the date of receipt of a Conversion Notice, the Company
shall transmit by facsimile or electronic mail an acknowledgment of confirmation, in the form attached hereto as Exhibit B,
of receipt of such Conversion Notice to such Holder and 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 fifth (5th)
Trading Day following the date of receipt by the Company of such Conversion Notice, the Company shall (1) provided that (x) the
Transfer Agent is participating in DTC Fast Automated Securities Transfer Program and (y) such Conversion Shares to be so
issued are registered for resale pursuant to the terms of a registration statement or are eligible for resale pursuant to Rule 144
of the Securities Act credit such aggregate number of Conversion Shares 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 either of the
immediately preceding clauses (x) or (y) are not satisfied, issue and deliver the Conversion Shares either through electronic
book entry form with the Transfer agent (or 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 Conversion Shares to which such Holder
shall be entitled. If the number of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion
pursuant to Section 4(c)(vi) is greater than the number of Preferred Shares being converted, then the Company shall if
requested by such Holder, as soon as practicable and in no event later than three (3) Trading Days after receipt of the Preferred
Share Certificate(s) and at its own expense, issue and deliver to such Holder (or its designee) a new Preferred Share Certificate
representing the number of Preferred Shares not converted.

 

(iii)        Record
Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares
shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(iv)        Intentionally
Omitted.

 

(v)         Pro
Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the same Conversion
Date and the Company can convert some, but not all, of such Preferred Shares submitted for conversion, the Company shall convert
from each Holder electing to have Preferred Shares converted on such date a pro rata amount of such Holder’s Preferred Shares
submitted for conversion on such date based on the number of Preferred Shares submitted for conversion on such date by such Holder
relative to the aggregate number of Preferred Shares submitted for conversion on such date. In the event of a dispute as to the
number of shares of Common Stock issuable to a Holder in connection with a conversion of Preferred Shares, the Company shall issue
to such Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 22.

 

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(vi)        Book-Entry.
Notwithstanding anything to the contrary set forth in this Section 4, upon conversion of any Preferred Shares in accordance
with the terms hereof, no Holder thereof shall be required to physically surrender the certificate representing the Preferred
Shares to the Company following conversion thereof unless (A) the full or remaining number of Preferred Shares represented
by the certificate are being converted (in which event such certificate(s) shall be delivered to the Company as contemplated
by this Section 4(c)(vi)) or (B) such Holder has provided the Company with prior written notice (which notice may be
included in a Conversion Notice) requesting reissuance of Preferred Shares upon physical surrender of any Preferred Shares. Each
Holder and the Company shall maintain records showing the number of Preferred Shares so converted by such Holder and the dates
of such conversions or shall use such other method, reasonably satisfactory to such Holder and the Company, so as not to require
physical surrender of the certificate representing the Preferred Shares upon each such conversion. In the event of any dispute
or discrepancy, such records of the Company establishing the number of Preferred Shares to which the record holder is entitled
shall be controlling and determinative in the absence of manifest error. A Holder and any transferee or assignee, by acceptance
of a certificate, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of any Preferred
Shares, the number of Preferred Shares represented by such certificate may be less than the number of Preferred Shares stated
on the face thereof. Each certificate for Preferred Shares shall bear the following legend:

 

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

 

(d)          Taxes.
The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof), issuance
and other similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon the conversion
of Preferred Shares.

 

(e)          Principal
Market Regulation. Notwithstanding anything herein to the contrary, the Company shall not issue any shares of Common Stock
upon conversion of any Preferred Shares or otherwise pursuant to this Certificate of Designation, until the Company obtains the
Stockholder Approval, if and to the extent such Stockholder Approval is necessary for such issuance.

 

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(f)            Anti-Dilution.
If, at any time while the Preferred Shares are outstanding, the Company sells or grants any option to purchase or sells or grants
any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other disposition),
any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock or Common Stock Equivalents
at or with a conversion formula that creates an effective price per share that is lower than the then Conversion Price (such lower
price or conversion formula, the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, without the prior written consent of a majority of the Holders of the Preferred
Shares, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance),
then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such Common
Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 4(f) in
respect of an Exempt Issuance. The Company shall notify the Holders in writing, no later than the Trading Day following the issuance
of any Common Stock or Common Stock Equivalents subject to this Section 4(f), indicating therein the applicable issuance price,
or applicable reset price, exchange price, conversion price, conversion formula and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For the avoidance of doubt, whether or not the Company provides a Dilutive Issuance Notice pursuant to
this Section 4(f), upon the occurrence of any Dilutive Issuance, the Holders will be entitled to receive a number of Conversion
Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately
refers to the Base Conversion Price in the Notice of Conversion.

 

5.             Redemption.

 

(a)            Following
a date (the "Redemption Date") that is twenty-four (24) months after the Initial Issuance Date the Company, at
its sole option may redeem all or less than all of the Preferred Shares plus any and all accrued but unpaid Dividends for: a) cash
(a “Cash Redemption”) at the price of the Stated Value per Preferred Share, (the “Redemption Price”), provided
such Cash Redemption is not subject to a Company Restriction; or b) for shares of Common Stock provided that (i) the closing
price of the Common Stock on the Principal Market is $3.00 or greater for ten (10) consecutive Trading Days (the “Measuring
Period”); and (ii) the average trading volume of the Common Stock on the Principal market is 50,000 shares or greater,
for such number of shares of Common Stock (the “Redemption Shares”) determined in accordance with the conversion rate
set forth in Section 4(a)(ii) above provided the delivery of the Redemption Shares would not violate the provisions of
Section 4(e).

 

(b)            If
fewer than all the outstanding Preferred Shares are to be redeemed pursuant to this Section 5, the Company shall select those
Preferred Shares to be redeemed pro rata or in such manner as the Board of Directors may determine.

 

(c)            Written
notice as to the redemption of any Preferred Shares pursuant to this Section 5 shall be given by first class mail,
postage pre-paid, to each such record holder of such Preferred Shares at the respective mailing addresses of each such holder as
the same shall appear on the stock transfer records of the Company. No failure to give such notice or any defect therein or in
the mailing thereof shall affect the validity of the proceedings for the redemption of any such Preferred Shares except as to the
holder to whom notice was defective or not given. Each record holder of Preferred Shares subject to a Cash Redemption shall have
the option for seven calendar days following the date of such written redemption notice to convert the Preferred Shares into Common
Stock in accordance with the conversion rate set forth in Section 4(a)(ii) above provided the delivery of the Common
Stock would not violate the provisions of Section 4(e).

 

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(d)          In
addition to any information required by law or by the applicable rules of any exchange upon which Preferred Shares may then
be listed or admitted to trading, such notice shall state: (i) the Redemption Date; (ii) the redemption price payable
on the Redemption Date, including without limitation the amount of any accrued and unpaid Dividends payable as part of the redemption
price; (iii) whether the redemption price will be paid in a Cash Redemption or Redemption Shares; and (iv) that dividends
on the Preferred Shares to be redeemed will cease to accrue on such Redemption Date. If less than all the Preferred Shares held
by any holder are to be redeemed, the notice mailed to such holder also shall specify the number of Preferred Shares held by such
holder to be redeemed.

 

(e)          The
Company shall not issue fractional shares of Common Stock upon any redemption for Redemption Shares, but in lieu of fractional
shares, the Corporation shall round up to the nearest whole number of shares of Common Stock to be issued.

 

6.            Rights
Upon Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the
Successor Entity assumes in writing all of the obligations of the Company under this Certificate of Designation and the other Transaction
Documents in accordance with the provisions of this Section 6 pursuant to written agreements in form and substance satisfactory
to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver
to each holder of Preferred Shares in exchange for such Preferred Shares a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Certificate of Designation, including, without limitation, having
a Stated Value and Dividend Rate equal to the stated value and dividend rate of the Preferred Shares held by the Holders and having
similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders and (ii) the Successor Entity
(including its Parent Entity) is a publicly traded corporation whose shares of common stock are quoted on or listed for trading
on an Eligible Market. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designation and the
other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of the Company under this Certificate of Designation
and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein and therein.
In addition to the foregoing, upon consummation of a Fundamental Transaction, the Successor Entity shall deliver to each Holder
confirmation that there shall be issued upon conversion of the Preferred Shares at any time after the consummation of such Fundamental
Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the conversion
of the Preferred Shares prior to such Fundamental Transaction, such shares of publicly traded common stock (or their equivalent)
of the Successor Entity (including its Parent Entity) which each Holder would have been entitled to receive upon the consummation
of such Fundamental Transaction had all the Preferred Shares held by each Holder been converted immediately prior to such Fundamental
Transaction (without regard to any limitations on the conversion of the Preferred Shares contained in this Certificate of Designation),
as adjusted in accordance with the provisions of this Certificate of Designation. The provisions of this Section 6 shall apply
similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion
of the Preferred Shares.

 

    7

     

    

 

 

7.            Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Section 11, if
the Company at any time on or after the Initial Issuance Date subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price
in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision of Section 11,
if the Company at any time combines (by combination, reverse stock split or otherwise) 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 7 shall become effective immediately after the effective date of such subdivision
or combination. If any event requiring an adjustment under this Section _ 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.

 

8.            Reservation
of Shares. The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of Common
Stock equal to 100% of the Conversion Rate with respect to the Conversion Amount of each Preferred Share as of the Initial Issuance
Date (assuming for purposes hereof, that such Preferred Shares are convertible at the Conversion Price and without taking into
account any limitations on the conversion of such Preferred Shares set forth in herein). So long as any of the Preferred Shares
are outstanding, the Company shall take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the conversion of the Preferred Shares, as of any given date, 100% of the
number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred Shares
issued or issuable pursuant to the Transaction Documents assuming for purposes hereof, have been issued and without taking into
account any limitations on the issuance of securities set forth herein, provided that at no time shall the number of shares of
Common Stock so available be less than the number of shares required to be reserved by the previous sentence (without regard to
any limitations on conversions contained in this Certificate of Designation) (the “Required Amount”). The initial
number of shares of Common Stock reserved for conversions of the Preferred Shares and each increase in the number of shares so
reserved shall be allocated pro rata among the Holders based on the number of Preferred Shares held by each Holder on the Initial
Issuance Date or increase in the number of reserved shares (as the case may be) (the “Authorized Share Allocation”).
In the event a Holder shall sell or otherwise transfer any of such Holder’s Preferred Shares, each transferee shall be allocated
a pro rata portion of such Holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any
Person which ceases to hold any Preferred Shares shall be allocated to the remaining Holders of Preferred Shares, pro rata based
on the number of Preferred Shares then held by such Holders.

 

    8

     

    

 

9.            Voting
Rights. Holders of Preferred Shares shall have no voting rights, except as required by law (including, without limitation,
the DGCL) and as expressly provided in this Certificate of Designation. To the extent that under the DGCL the vote of the holders
of the Preferred Shares, voting separately as a class or series as applicable, is required to authorize a given action of the Company,
the affirmative vote or consent of the holders of all of the Preferred Shares, voting together in the aggregate and not in separate
series unless required under the DGCL, represented at a duly held meeting at which a quorum is presented or by written consent
of all of the Preferred Shares (except as otherwise may be required under the DGCL), voting together in the aggregate and not in
separate series unless required under the DGCL, shall constitute the approval of such action by both the class or the series, as
applicable. Subject to Section 4(e), to the extent that under the DGCL holders of the Preferred Shares are entitled to vote
on a matter with holders of shares of Common Stock, voting together as one class, each Preferred Share shall entitle the holder
thereof to cast that number of votes per share as is equal to the number of shares of Common Stock into which it is then convertible
(subject to the ownership limitations specified in Section 4(e) hereof) using the record date for determining the stockholders
of the Company eligible to vote on such matters as the date as of which the Conversion Price is calculated. Holders of the Preferred
Shares shall be entitled to written notice of all stockholder meetings or written consents (and copies of proxy materials and other
information sent to stockholders) with respect to which they would be entitled by vote, which notice would be provided pursuant
to the Company’s bylaws and the DGCL).

 

10.          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 Company, 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 Preferred Share
110% of the Conversion Amount thereof on the date of such payment, provided that if the Liquidation Funds are insufficient to pay
the full amount due to the Holders and holders of shares of Parity Stock, then each Holder and each holder of Parity Stock shall
receive a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder and such holder
of Parity Stock as a liquidation preference, in accordance with their respective certificate of designations (or equivalent), as
a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and all holders of shares of Parity
Stock. To the extent necessary, the Company 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 10. All the preferential amounts to be paid to the Holders under this Section 10 shall be paid or set apart for
payment before the payment or setting apart for payment of any amount for, or the distribution of any Liquidation Funds of the
Company to the holders of shares of Junior Stock in connection with a Liquidation Event as to which this Section 10 applies.

 

11.          Participation.
In addition to any adjustments pursuant to Section 7, the Holders shall, as holders of Preferred Shares, be entitled to receive
such dividends paid and distributions made to the holders of shares of Common Stock to the same extent as if such Holders had converted
each Preferred Share held by each of them into shares of Common Stock (without regard to any limitations on conversion herein or
elsewhere) and had held such shares of Common Stock on the record date for such dividends and distributions. Payments under the
preceding sentence shall be made concurrently with the dividend or distribution to the holders of shares of Common Stock (provided,
however, to the extent that a Holder’s right to participate in any such dividend or distribution would result in such Holder
exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such dividend or distribution to such
extent (or the beneficial ownership of any such shares of Common Stock as a result of such dividend or distribution to such extent)
and such dividend or distribution to such extent shall be held in abeyance for the benefit of such Holder until such time, if ever,
as its right thereto would not result in such Holder exceeding the Maximum Percentage).

 

    9

     

    

 

12. Events of Default.
Each of the following events shall constitute an event of default:

 

(a)       the
suspension from trading or failure of the Common Stock to be traded or listed (as applicable) on an Eligible Market for a period
of five (5) consecutive Trading Days;

 

(b)       the
Company’s written notice to any holder of the Preferred Shares, including, without limitation, by way of public announcement
or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion of any Preferred
Shares into shares of Common Stock that is requested in accordance with the provisions of this Certificate of Designation, other
than pursuant to Section 4(e) hereof;

 

(c)       the
Company’s Board of Directors fails to pay any Dividends to be paid on the applicable Dividend Date in accordance with Section 3;

 

(d)       the
Company’s failure to pay to any Holder any Dividend (whether or not declared by the Board of Directors) or any other amount
when and as due under this Certificate of Designation or any other Transaction Document or any other agreement, document, certificate
or other instrument delivered in connection with the transactions contemplated hereby, except, in the case of a failure to pay
Dividends and late charges when and as due, in each such case only if such failure remains uncured for a period more than three
(3) Trading Days;

 

(e)       the
occurrence of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $1,000,000 of indebtedness
of the Company or any Subsidiaries;

 

(f)        bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed
within sixty (60) days of their initiation;

 

    10

     

    

 

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

 

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

 

(i)        a
final judgment or judgments for the payment of money aggregating in excess of $1,000,000 are rendered against the Company and/or
any of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged, settled
or stayed pending appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however, any
judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $1,000,000
amount set forth above so long as the Company provides each Holder a written statement from such insurer or indemnity provider
(which written statement shall be reasonably satisfactory to each Holder) to the effect that such judgment is covered by insurance
or an indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity
within sixty (60) days of the issuance of such judgment;

 

(j)        other
than as specifically set forth in another clause of this Section 12, the Company or any Subsidiary breaches any representation
or warranty in any material respect (other than representations or warranties subject to material adverse effect or materiality,
which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, except, in the
case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of
five (5) consecutive Trading Days, unless such breach does not have a Material Adverse Effect (as defined below); or

 

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(k)       any
breach or failure in any respect by the Company or any Subsidiary to comply with any covenants of this Certificate of Designation,
unless such breach does not have a Material Adverse Effect.

 

13.       Vote
to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the vote or
written consent of the holders of a greater number of shares is required by law or by another provision of the Certificate of Incorporation,
without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting
of the Required Holders, voting together as a single class, the Company shall not amend or repeal any provision of, or add any
provision to, its Certificate of Incorporation or bylaws, or file any certificate of designations or articles of amendment of any
series of shares of preferred stock, if such action would adversely alter or change in any respect the preferences, rights, privileges
or powers, or restrictions provided for the benefit, of the Preferred Shares, regardless of whether any such action shall be by
means of amendment to the Certificate of Incorporation or by merger, consolidation or otherwise; provided, however, the Company
shall be entitled, without the consent of the Required Holders unless such consent is otherwise required by the DGCL, to (a) amend
the Certificate of Incorporation to effectuate one or more reverse stock splits of its issued and outstanding Common Stock for
purposes of maintaining compliance with the rules and regulations of the Principal Market; (b) purchase, repurchase or
redeem any shares of capital stock of the Company junior in rank to the Preferred Shares (other than pursuant to equity incentive
agreements (that have in good faith been approved by the Board) with employees giving the Company the right to repurchase shares
upon the termination of services); or (c) issue any preferred stock that is junior in rank to the Preferred Shares.

 

14.       Lost
or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of any certificates representing Preferred Shares (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 an indemnification undertaking
by the applicable Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation
of the certificate(s), the Company shall execute and deliver new certificate(s) of like tenor and date.

 

15.       Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of Designation
shall be cumulative and in addition to all other remedies available under this Certificate of Designation and any of the other
Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and no
remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy. Nothing herein shall
limit any Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms
of this Certificate of Designation. The Company 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 Company (or the performance thereof). The Company 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 Company 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 an injunction restraining any such breach or any such threatened breach, without
the necessity of showing economic loss and without any bond or other security being required, to the extent permitted by applicable
law. The Company shall provide all information and documentation to a Holder that is requested by such Holder to enable such Holder
to confirm the Company’s compliance with the terms and conditions of this Certificate of Designation.

 

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16.       Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate 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
Designation, and will at all times in good faith carry out all the provisions of this Certificate of Designation 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 Designation, the Company (i) shall not increase the par value of any shares of Common Stock receivable
upon the conversion of any Preferred Shares above the Conversion Price then in effect, (ii) shall take all such actions as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of
Common Stock upon the conversion of Preferred Shares and (iii) shall, so long as any Preferred Shares are outstanding, take
all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose
of effecting the conversion of the Preferred Shares, the maximum number of shares of Common Stock as shall from time to time be
necessary to effect the conversion of the Preferred Shares then outstanding (without regard to any limitations on conversion contained
herein).

 

17.       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 Designation shall be deemed to be jointly drafted
by the Company and all Holders and shall not be construed against any Person as the drafter hereof.

 

18.       Notices.
The Transaction Documents shall provide each Holder of Preferred Shares with prompt written notice of all actions taken pursuant
to the terms of this Certificate of Designation, including in reasonable detail a description of such action and the reason therefor.
Whenever notice is required to be given under this Certificate of Designation, unless otherwise provided herein, such notice must
be in writing and shall be given in accordance with the signature page of the Transaction Documents. Without limiting the
generality of the foregoing, the Company shall give written notice to each Holder (i) promptly following any adjustment of
the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
fifteen (15) days prior to the date on which the Company 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 all holders of shares of Common Stock as a class or (C) for
determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided, in each case, that
such information shall be made known to the public prior to, or simultaneously with, such notice being provided to any Holder.

 

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

 

20.       Preferred
Shares Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall record the name,
address and facsimile number of the Persons in whose name the Preferred Shares have been issued, as well as the name and address
of each transferee. The Company may treat the Person in whose name any Preferred Shares is registered on the register as the owner
and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events recognizing any properly made
transfers.

 

21.       Amendment. This Certificate of Designation or any provision hereof may be amended by obtaining the affirmative vote at a
meeting duly called for such purpose, or written consent without a meeting in accordance with the DGCL, of the Required Holders,
voting separate as a single class, and with such other stockholder approval, if any, as may then be required pursuant to the DGCL
and the Certificate of Incorporation.

 

22.       Dispute
Resolution.

 

The Company shall have
three (3) Business Days after receipt of the Conversion Notice to advise the Holder in writing via facsimile or electronic
mail that the Company disputes the calculation of the Conversion Shares.  The Company shall promptly (no later than two (2) Business
Days) issue to the Holder any number of Conversion Shares that is not disputed and shall advise the Holder of the disputed amount
within two (2) Business Days following the Company’s receipt of such Holder’s Conversion Notice. If such Holder
and the Company are unable to promptly resolve such dispute relating to such Conversion Notice, at any time after the second (2nd)
Business Day following such initial notice by the Company of such dispute to the Holder, then such dispute shall be submitted by
arbitration according to the Commercial Arbitration Rules of the American Arbitration Association located in New York City
before a single arbitrator. Notwithstanding the prior sentence, any other action commenced by either party herein shall be venued
in the appropriate court of competent jurisdiction located in the county of New York, State of New York.

 

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

 

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

 

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

 

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(c)            “Certificate
of Designation” means the Certificate of Designation of Series F Redeemable, Convertible Preferred Stock of BioHiTech
Global, Inc.

 

(d)            “Common
Stock” means (i) the Company’s shares of common stock, $0.0001 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.

 

(e)            “Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, 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.

 

(f)            “Conversion
Amount” means, with respect to each Preferred Share, as of the applicable date of determination, the product of (1) the
Stated Value thereof, times (2) the number of Preferred Shares the Holder is attempting to convert, together with any and
all accrued but unpaid Dividends.

 

(g)            “Conversion
Price” means $2.10, subject to adjustment as provided in this Certificate of Designation.

 

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

 

(i)            Reserved.

 

(j)            “Dividend
Rate” means nine percent (9.0%).

 

(k)            “Eligible
Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market,
the Nasdaq Capital Market, or the Principal Market.

 

(l)            “Exempt
Issuance” means any offer, issuance or agreement to issue any Common Stock
or securities convertible into or exercisable for shares of common stock (or modify any of the foregoing which may be outstanding)
in connection with (i) full or partial consideration in connection with a strategic merger, consolidation or purchase of substantially
all of the securities or assets of the Company or other entity, (ii) the Company’s issuance of securities in connection
with strategic license agreements and other partnering arrangements so long as such issuances are not for the purpose of raising
capital, (iii) the Company’s issuance of Common Stock or the issuance or grants of options to purchase Common Stock
pursuant to the Company’s equity incentive and employee stock purchase plans, (iv) issuance of securities to consultants
or vendors as payment for services rendered, (v) the conversion of any of the Preferred Shares, (vi) the payment of any
dividends on the Preferred Shares, and (vii) the issuance of any Securities and/or other securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the Issuance Date, provided that such securities have
not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities or to extend the term of such securities.

 

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(m)            “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more
related transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the
surviving corporation) any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all
or substantially all of the Company’s properties or assets to any other Person, or (3) allow any other Person to make
a purchase, tender or exchange offer that is accepted by the holders of more than fifty percent (50%) of the outstanding shares
of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or
party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (4) consummate
a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than fifty percent (50%) of the
outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination), or (5)  reorganize, recapitalize or reclassify the Common Stock, or (ii) any
 “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the
1934 Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined
in Rule 13d-3 under the 1934 Act), directly or indirectly, of fifty percent (50%) of the aggregate ordinary voting power represented
by issued and outstanding Voting Stock of the Company.

 

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

 

(o)            “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations
(including results thereof), condition (financial or otherwise) or prospects of the Company or any subsidiary, either individually
or taken as a whole, (ii) the transactions contemplated hereunder or (iii) the authority or ability of the Company to
perform any of its obligations hereunder.

 

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

 

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(q)            “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(r)            “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.

 

(s)            “Principal
Market” means the Eligible Market, OTC PINK, OTCQB, OTCQX, or OTCBB.

 

(t)            “Required
Holders” means the holders of at least two-thirds of the outstanding Preferred Shares.

 

(u)            “Securities”
means, collectively, the Preferred Shares and the shares of Common Stock issuable upon conversion of the Preferred Shares.

 

(v)            “Securities
Act” means the Securities Act of 1933, as amended.

 

(w)            “Stated
Value” shall mean $115.00 per share, 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 Preferred Shares.

 

(x)            “Stockholder
Approval” means, for the purposes of this Certificate of Designation and any other Transaction Document, the affirmative
approval of the stockholders of the Company providing for the Company’s issuance of all of the Securities as described in
the Transaction Documents if and to the extent required in accordance with applicable law and the rules and regulations of
the Principal Market.

 

(y)            “Subsidiary”
or “Subsidiaries” means any subsidiary of the Company, including,
where applicable, any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

(z)            “Successor
Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by, resulting from or
surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

 

(aa)         “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange 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 4:00p.m., New York time) unless such day is otherwise designated
as a Trading Day in writing by the Required Holders.

 

    17

     

    

 

(bb)     Reserved.

 

(cc)     “Transaction
Documents” means the Certificate of Designation plus the Securities Purchase Agreement and Series F Common Stock
Purchase Warrant entered into contemporaneously with the Holder’s subscription of the Preferred Shares.

 

(dd)     “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers, trustees
or other similar governing body of such Person (irrespective of whether or not at the time capital stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency).

 

24.       Disclosure.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate of Designation, unless the
Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries, the Company shall simultaneously with any such receipt or delivery publicly
disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company
so shall indicate to each Holder contemporaneously with delivery of such notice, and in the absence of any such indication, each
Holder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information
relating to the Company or its Subsidiaries. Nothing contained in this Section 24 shall limit any obligations of the Company,
or any rights of any Holder.

 

(Remainder of the page left intentionally
blank.)

 

    18

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Certificate of Designation of Series F Redeemable, Convertible Preferred Stock of Inc.
to be signed by its duly authorized officer on this 9th day of March, 2020.

 

	 	BioHiTech Global, Inc.
	 	 
	 	By:  	 /s/ Brian C. Essman
	 	 	Name:  	Brian C. Essman
	 	 	Title:  	Chief Financial Officer

 

    19

     

    

 

EXHIBIT A

 

BioHiTech Global, Inc.

 

CONVERSION NOTICE

 

Reference is made to
the Certificate of Designation of Series F Redeemable, Convertible Preferred Stock of BioHiTech
Global, Inc. (the “Certificate of Designation”). In accordance with and pursuant to the Certificate
of Designation, the undersigned hereby elects to convert the number of shares of Series F Redeemable, Convertible Preferred
Stock (the “Preferred Shares”), of BioHiTech Global, Inc.,
a Delaware corporation (the “Company”), indicated below into shares of common stock of the Company, as of the
date specified below.

 

	Date of Conversion:
	 
	 
	Number of Preferred Shares to be converted:  
	 
	 
	Share certificate no(s). of Preferred Shares to be converted:  
	 
	 
	Tax ID Number (If applicable): 
	 
	 
	Conversion Price: 
	 
	 
	Number of shares of Common Stock to be issued: 
	 

 

Please issue the shares of Common Stock
into which the Preferred Shares are being converted in the following name and to the following address:

 

	Issue to:	 
	 
	                	 
	 
	Address:	 

 

	Telephone Number:
	 
	 
	Facsimile Number:
	 

  

	Holder:	 

 

	By: 	
	 	 
	 
	Title:	 
	 	 
	 
	Dated:	 
	 	 

 

	Account Number (if electronic book entry transfer):
	 
	 
	Transaction Code Number (if electronic book entry transfer):
	 

 

    20

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Conversion Notice and hereby directs Vstock Transfer, LLC to issue the above indicated number of shares of Common
Stock in accordance with its Transfer Agent Instructions dated ___________________ from the Company and acknowledged and agreed
to by Vstock Transfer, LLC.

 

	 	BioHiTech Global Inc.
	 	 	 
	 	

By:	 
	 	Name:	 
	 	Title:	             
	 	Date:	 

 

    21

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