Document:

egan_Ex10_1

		
			Exhibit 10.1
		

		
			AMENDMENT NUMBER TWO TO CREDIT AGREEMENT
		

		
			This Amendment Number Two to Credit Agreement (“Amendment”) is entered into as of January 27, 2017, by and among Lenders identified on the signature pages of this Amendment and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, “Agent”) on the one hand, and eGAIN CORPORATION, a Delaware corporation (“eGain”), and the Subsidiaries of eGain identified on the signature pages hereof (such Subsidiaries, together with eGain, are referred to each, individually, and collectively, jointly and severally, as “Borrower”) on the other hand, in light of the following:
		

			
	
			
				 A.
			Borrower, Agent and the Lenders have previously entered into that certain Credit Agreement, dated as of November 21, 2014, as amended by that certain Amendment Number One to Credit Agreement, dated as of September 2, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available to Borrower.  Capitalized terms used herein without definition shall have the meanings ascribed thereto in the Credit Agreement.

			
	
			
				 B.
			In connection with the entry into the Credit Agreement and the other Loan Documents on the Closing Date, Agent required that the Borrower satisfy certain post-closing conditions to better perfect the Agent’s Lien, on behalf of itself and the Secured Parties, on certain Equity Interests of Borrower’s Subsidiaries (i) Exony Limited, a private limited company incorporated under the laws of England and Wales (“Exony UK”) and (ii) eGain Communications Limited, a private limited company incorporated under the laws of England and Wales (“eGain UK”), as set forth under clauses (a), (b), and (c) of Schedule 3.6 to the Credit Agreement (the “Post-Closing Condition”).  As of the date hereof, the Post-Closing Condition has not been satisfied and Borrower has requested that Agent and Lenders set forth their mutual agreement in this Amendment with respect to the treatment of the Post-Closing Condition under the Credit Agreement.

			
	
			
				 C.
			Borrower, Agent and Lenders desire to amend the Credit Agreement and provide a waiver with respect to the Post-Closing Condition as provided for and on the conditions herein.

		
			NOW, THEREFORE, the parties hereby amend and supplement the Credit Agreement as follows:
		

			
	
			
				 1.
			DEFINITIONS.  All initially capitalized terms used in this Amendment shall have the meanings given to them in the Credit Agreement unless specifically defined herein.

			
	
			
				 2.
			AMENDMENTS.

			
	
			
				 2.1
			Section 2.4(e)(vi)  of the Credit Agreement is hereby amended and supplemented by deleting the “.” after “required” at the end of such Section and replacing it with “;” followed by:

		
			“provided,  further, that if the financial statements demonstrate that EBITDA as of the end of any fiscal year was less than $0, then the Leverage Ratio for such fiscal year shall be deemed to be greater than 3.00:1.00 for purposes of the prepayment required under this Section 2.4(e)(vi).
		

			
	
			
				 2.2
			Section 7 (a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			
		

		
			

		 

		

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				 (a)
			Minimum EBITDA.  On and prior to the Financial Covenant Replacement Date, achieve EBITDA, measured on a quarter-end basis, of at least the required amount set forth in the following table for the applicable period set forth opposite thereto:

			
					
						 

					
					
						 

				
	
					
						Applicable Amount

					
					
						Applicable Period

				
	
					
						($900,000)

					
					
						For the four quarter period ending December 31, 2016

				
	
					
						($2,000,000)

					
					
						For the four quarter period ending March 31, 2017

				
	
					
						($4,500,000)

					
					
						For the four quarter period ending June 30, 2017

				
	
					
						($6,100,000)

					
					
						For the four quarter period ending September 30, 2017

				
	
					
						($5,100,000)

					
					
						For the four quarter period ending December 31, 2017

				
	
					
						($3,800,000)

					
					
						For the four quarter period ending March 31, 2018

				
	
					
						($3,000,000)

					
					
						For the four quarter period ending June 30, 2018

				
	
					
						($1,500,000)

					
					
						For the four quarter period ending September 30, 2018

				
	
					
						$0

					
					
						For the four quarter period ending December 31, 2018

				
	
					
						$1,500,000

					
					
						For the four quarter period ending March 31, 2019

				
	
					
						$3,000,000

					
					
						For the four quarter period ending June 30, 2019

				
	
					
						$4,000,000

					
					
						For the four quarter period ending September 30, 2019

				

		
			 
		

			
	
			
				 2.3
			Section 7 (b) of the Credit Agreement is hereby amended and restated in its entirety as follows:

			
	
			
				 (a)
			Minimum Liquidity.  Commencing as of the Second Amendment Effective Date and on and prior to the Financial Covenant Replacement Date, at all times achieve Liquidity, measured on a monthly basis, of at least $4,000,000, measured as of the last day of each calendar month.

			
	
			
				 2.4
			Section 7 (d) of the Credit Agreement is hereby amended and supplemented by adding the following immediately prior to the “:”:

		
			
		

		
			

		 

		

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			provided, that if the financial statements demonstrate that EBITDA as of the end of any fiscal quarter was less than $0, then the Leverage Ratio for such fiscal quarter shall be deemed to be greater than 3.00:1.00.
		

			
	
			
				 2.5
			The definition of “Applicable Margin” in Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			  “Applicable Margin” means, as of any date of determination and with respect to Base Rate Loans or LIBOR Rate Loans, as applicable, the applicable margin set forth in the following table that corresponds to the most recent TTM Recurring Revenue calculation delivered to Agent pursuant to Section 5.2 of the Agreement (the “TTM Recurring Revenue Calculation”); provided, that for the period from the Second Amendment Effective Date through June 30, 2017, the Applicable Margin shall be set at the margin in the row styled “Level I”; provided further, that any time an Event of Default has occurred and is continuing, the Applicable Margin shall be set at the margin in the row styled “Level I”:   
		

			
					
						Level

					
					
						TTM Recurring
Revenue Calculation

					
					
						Applicable Margin Relative to
Base Rate Loans (the “Base
Rate Margin”)

					
					
						Applicable Margin
Relative to LIBOR Rate
Loans (the “LIBOR Rate
Margin”)

				
	
					
						I

					
					
						If the TTM Recurring Revenue is less than or equal to $45,000,000

					
					
						6.00 percentage points

					
					
						7.00 percentage points

				
	
					
						II

					
					
						If the TTM Recurring Revenue is greater than $45,000,000

					
					
						4.50 percentage points

					
					
						5.50 percentage points

				

		
			 
		

		
			Except as set forth in the foregoing provisos, the Applicable Margin shall be based upon the most recent TTM Recurring Revenue Calculation, which will be calculated as of the end of each fiscal quarter.  Except as set forth in the foregoing provisos, the Applicable Margin shall be re-determined quarterly on the first day of the month following the date of delivery to Agent of the certified calculation of the TTM Recurring Revenue pursuant to Section 5.2 of the Agreement; provided, that if Borrower fails to provide such certification when such certification is due, the Applicable Margin shall be set at the margin in the row styled “Level I” as of the first day of the month following the date on which the certification was required to be delivered until the date on which such certification is delivered (on which date (but not retroactively), without constituting a waiver of any Default or Event of Default occasioned by the failure to timely deliver such certification, the Applicable Margin shall be set at the margin based upon the calculations disclosed by such certification).  In the event that the information regarding the TTM Recurring Revenue contained in any certificate delivered pursuant to Section 5.2 of the Agreement is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin actually applied for such Applicable Period, then (i) Borrower shall immediately deliver to Agent a correct certificate for such Applicable Period, (ii) the Applicable Margin shall be determined as if the correct Applicable Margin (as set forth in the table above) were applicable for such Applicable Period, and (iii) Borrower shall immediately deliver to Agent full payment in respect of the accrued 
		

		
			
		

		
			

		 

		

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			additional interest as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by Agent to the affected Obligations. 
		

			
	
			
				 2.6
			Clause (b)(iv) of the definition of “EBITDA” in Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			(iv)        depreciation and amortization for such period (but excluding amortization of deferred commissions),
		

			
	
			
				 2.7
			Clause (b)(xii) of the definition of “EBITDA” in Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			(xii)       with respect to the Loan Documents and related transactions, costs, reasonable fees to Persons (other than any Borrower or any of its Affiliates), or other charges or expenses incurred in connection therewith, which are factually supportable and acceptable to Agent, up to an aggregate amount not to exceed $500,000,
		

			
	
			
				 2.8
			Clause (b)(xiii) of the definition of “EBITDA” in Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			(xiii)      [reserved],
		

			
	
			
				 2.9
			The definition of “Credit Amount” set forth in Schedule 1.1 to the Credit Agreement is hereby amended by deleting the same in its entirety and replacing such definition with the following:

		
			“Credit Amount” means the product of (i) 0.60 times (ii) TTM Recurring Revenue calculated as of the last month for which the Credit Amount Certificate was most recently delivered pursuant to Section 5.2 of the Agreement minus the aggregate amount of reserves, if any, established by Agent under Section 2.1(c) of the Agreement.
		

			
	
			
				 2.10
			The definition of “Fee Letter” set forth in Schedule 1.1 to the Credit Agreement is hereby amended by deleting the same in its entirety and replacing such definition with the following:

		
			“Fee Letter” means that certain second amended and restated fee letter, dated as of the Second Amendment Effective Date, between Borrower and Agent.
		

			
	
			
				 2.11
			The definition of “Financial Covenant Replacement Date” set forth in Schedule 1.1 to the Credit Agreement is hereby amended by deleting the same in its entirety and replacing such definition with the following:

		
			“Financial Covenant Replacement Date” means the first day of the fiscal quarter following the date on which the Borrowers and their Subsidiaries have achieved (both): (A)(i) a Fixed Charge Coverage Ratio equal to or greater than 1.50 to 1.00 and (ii) a Leverage Ratio of less than 2.50 to 1.00, in each case, for the immediately preceding two consecutive fiscal quarters and (B) and Borrowers would not have been in default under Section 7(d) as of the last day of the immediately preceding fiscal quarter if such financial covenants were in effect.   
		

			
	
			
				 2.12
			The definition of “Leverage Ratio” set forth in Schedule 1.1 to the Credit Agreement is hereby amended by deleting the same in its entirety and replacing such definition with the following:

		
			
		

		
			

		 

		

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			“Leverage Ratio” means, as of any date of determination the result of (a) the amount of Funded Indebtedness minus the aggregate amount of Qualified Cash in an amount not to exceed a total of $3,000,000,  as of such date, to (b) EBITDA for the 12 month period ended as of such date.
		

			
	
			
				 2.13
			Schedule 1.1 to the Credit Agreement is hereby amended by adding the following definitions to the same in the appropriate alphabetical order:

		
			“Applicable Period”  has the meaning specified therefor in the definition of Applicable Margin.
		

		
			“Second Amendment” means that certain Second Amendment to Credit Agreement dated as of the Second Amendment Effective Date.
		

		
			“Second Amendment Effective Date” means January 27, 2017. 
		

		
			“TTM Recurring Revenue Calculation” has the meaning specified therefor in the definition of Applicable Margin.
		

			
	
			
				 3.
			WAIVER WITH RESPECT TO POST-CLOSING CONDITION AND CONSENT TO EXTENSION OF DELIVERY DATES.  Agent and Lenders agree that any Event of Default arising as a result of the failure to have satisfied the Post-Closing Condition strictly in accordance with the terms of the Credit Agreement, including, without limitation, in accordance with the time frames set forth on Schedule 3.6 to the Credit Agreement is hereby waived.  Agent and Lenders agree to extend the date by which the Post-Closing Condition is required to be satisfied to February 5, 2017, unless extended by Agent in its sole discretion.  Failure to satisfy the Post-Closing Condition by February 5, 2017, shall constitute an immediate Event of Default.  The waiver, consent, and extension set forth herein are limited to the specifics hereof, shall not apply with respect to any other facts or occurrences other than those on which the failure to have satisfied the Post-Closing Condition as of the date hereof is based, shall not excuse future non-compliance with any Loan Document (including without limitation the extension granted pursuant to this Section 3), shall not be a practical construction, course of conduct or course of performance under any Loan Document, and, except as expressly set forth herein, shall not operate as a modification, consent, waiver, or amendment of any right, power, or remedy of Agent or the Lenders, nor as a consent to, amendment or waiver of any further or other matter, under the Loan Documents.   

			
	
			
				 4.
			REPRESENTATIONS AND WARRANTIES.  Borrower hereby affirms to Agent, for the benefit of the Lender Group, that, giving effect to this Amendment, all of its representations and warranties set forth in the Credit Agreement are true, complete and accurate in all material respects as of the date hereof (except those which specifically relate to an earlier date).

			
	
			
				 5.
			NO DEFAULTS.  Borrower hereby affirms to the Lender Group that, giving effect to this Amendment, no Event of Default has occurred and is continuing as of the date hereof.

			
	
			
				 6.
			CONDITIONS PRECEDENT.  The effectiveness of this Amendment is expressly conditioned on (a) receipt by Agent of a copy of this Amendment duly executed by Borrower, Lenders and Agent, and (b) receipt by Agent of a copy of the Second Amended and Restated Fee Letter duly executed by Borrower and Agent and payment of all fees set forth therein which are due.

			
	
			
				 7.
			COSTS AND EXPENSES.  Borrower shall pay to Agent all of Agent’s documented out-of-pocket costs and expenses (including, without limitation, the reasonable fees and expenses of their counsel, which counsel may include any local counsel deemed necessary, search fees, filing and recording 

		
			

		 

		

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			fees, documentation fees, appraisal fees, travel expenses, and other reasonable fees) arising in connection with the preparation, execution, and delivery of this Amendment and all related documents.
		

			
	
			
				 8.
			COUNTERPARTS; EFFECTIVENESS.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed and delivered shall be deemed to be an original.  All such counterparts, taken together, shall constitute but one and the same Amendment.  Upon the execution of a counterpart of this Amendment by each of the parties hereto and satisfaction of the conditions set forth in Section 6 hereof, it shall be deemed to be effective as of the Second Amendment Effective Date.  Delivery of an executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

			
	
			
				 9.
			FURTHER ASSURANCES.  Borrower shall execute and deliver all agreements, documents and instruments, in form and substance reasonably satisfactory to Agent, and take all actions as Agent may reasonably request from time to time to perfect and maintain the perfection and priority of the security interests of Agent in the Collateral and to consummate fully the transactions contemplated under this Amendment and the other Loan Documents.

			
	
			
				 10.
			EFFECT ON LOAN DOCUMENTS.

			
	
			
				 10.1
			The Credit Agreement, as amended hereby, and each of the other Loan Documents, as amended as of the date hereof, shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects.  The execution, delivery, and performance of this Amendment shall not operate, except as expressly set forth herein, as a waiver of, consent to, or a modification or amendment of, any right, power, or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document.  Except for the amendments to the Credit Agreement expressly set forth herein, the Credit Agreement and the other Loan Documents shall remain unchanged and in full force and effect.  The consents, waivers and modifications set forth herein are limited to the specifics hereof, shall not apply with respect to any facts or occurrences other than those on which the same are based, shall neither excuse future non-compliance with the Loan Documents nor operate as a waiver of any Default or Event of Default, shall not operate as a consent to any further or other matter under the Loan Documents and shall not be construed as an indication that any future waiver of covenants or any other provision of the Credit Agreement will be agreed to, it being understood that the granting or denying of any waiver which may hereafter be requested by any Loan Party remains in the sole and absolute discretion of the Agent and the Lenders.

			
	
			
				 10.2
			Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “therein”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

			
	
			
				 10.3
			To the extent that any of the terms and conditions in any of the Loan Documents shall contradict or be in conflict with any of the terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

			
	
			
				 10.4
			This Amendment is a Loan Document.

		
			

		 

		

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				 10.5
			Headings and numbers have been set forth herein for convenience only.  Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Amendment.

			
	
			
				 10.6
			Neither this Amendment nor any uncertainty or ambiguity herein shall be construed against Agent, any member of the Lender Group, the Bank Product Providers or any Loan Party, whether under any rule of construction or otherwise.  This Amendment has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto.

			
	
			
				 10.7
			The pronouns used herein shall include, when appropriate, either gender and both singular and plural, and the grammatical construction of sentences shall conform thereto.

			
	
			
				 10.8
			Unless the context of this Amendment clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and  “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”.  The words “hereof”, “herein”, “hereby”, “hereunder”, and similar terms in this Amendment refer to this Amendment as a whole and not to any particular provision of this Amendment.  Section, subsection, clause, schedule, and exhibit references herein are to this Amendment unless otherwise specified.  Any reference in this Amendment to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein).  The words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract rights.  Any reference herein or in any other Loan Document to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash or immediately available funds (or, in the case of Letters of Credit or Bank Products, providing Letter of Credit Collateralization or Bank Product Collateralization, as applicable) of all Obligations other than unasserted contingent indemnification Obligations and other than any Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding and that are not required by the provisions of the Credit Agreement to be repaid or cash collateralized.  Any reference herein to any Person shall be construed to include such Person’s successors and assigns.  Any requirement of a writing contained herein shall be satisfied by the transmission of a Record.

			
	
			
				 11.
			ENTIRE AGREEMENT.  This Amendment, and the terms and provisions hereof, the Credit Agreement and the other Loan Documents constitute the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede any and all prior or contemporaneous amendments or understandings with respect to the subject matter hereof, whether express or implied, oral or written.

			
	
			
				 12.
			REAFFIRMATION OF OBLIGATIONS.  Borrower hereby (a) acknowledges and reaffirms its obligations owing to Agent, the Bank Product Providers, and each other member of the Lender Group under each Loan Document to which it is a party, and (b) agrees that each of the Loan Documents to which it is a party is and shall remain in full force and effect.  Borrower hereby (i) further ratifies and reaffirms the validity and enforceability of all of the Liens and security interests heretofore granted, pursuant to and in connection with the Guaranty and Security Agreement or any other Loan Document, to Agent, on behalf and for the benefit of the Lender Group and the Bank Product Providers, as collateral security for the obligations under the Loan Documents in accordance with their respective terms, and (ii) acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged as security 

		
			

		 

		

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			for such obligations, continue to be and remain collateral for such obligations from and after the date hereof (including, without limitation, from after giving effect to this Amendment).
		

			
	
			
				 13.
			RATIFICATION.  Borrower hereby restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and the Loan Documents effective as of the date hereof and as amended hereby.  All Obligations owing by Borrower are unconditionally owing by Borrower to Agent and the Lenders, without offset, defense, withholding, counterclaim or deduction of any kind, nature or description whatsoever.

			
	
			
				 14.
			RELEASE.

			
	
			
				 14.1
			In consideration of the agreements of Agent and each Lender contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower, on behalf of itself and its successors, assigns and other legal representatives (Borrower and all such other persons being hereinafter referred to collectively as “Releasors” and individually as a “Releasor”), hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent and each Lender and all such other persons being hereinafter referred to collectively as  “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set‐off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which Releasors may now or hereafter own, hold, have or claim to have against Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, for or on account of, or in relation to, or in any way in connection with any of the Credit Agreement or any of the other Loan Documents or transactions thereunder or related thereto.

			
	
			
				 14.2
			It is the intention of Borrower that this Amendment and the release set forth above shall constitute a full and final accord and satisfaction of all claims that may have or hereafter be deemed to have against Releasees as set forth herein.  In furtherance of this intention, Borrower, on behalf of itself and each other Releasor, expressly waives any statutory or common law provision that would otherwise prevent the release set forth above from extending to claims that are not currently known or suspected to exist in any Releasor’s favor at the time of executing this Amendment and which, if known by Releasors, might have materially affected the agreement as provided for hereunder.  Borrower, on behalf of itself and each other Releasor, acknowledges that it is familiar with Section 1542 of California Civil Code:

		
			A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
		

		
			Borrower, on behalf of itself and each other Releasor, waives and releases any rights or benefits that it may have under Section 1542 to the full extent that it may lawfully waive such rights and benefits, and each of Borrower, on behalf of itself and each other Releasor, acknowledges that it understands the significance and consequences of the waiver of the provisions of Section 1542 and that it has been advised by its attorney as to the significance and consequences of this waiver.
		

		
			
		

		
			

		 

		

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				 14.3
			Borrower, understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

			
	
			
				 14.4
			Borrower, agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

			
	
			
				 15.
			CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE.  THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE SET FORTH IN SECTION 12 OF THE CREDIT AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS.

			
	
			
				 16.
			SEVERABILITY.  In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

			
	
			
				 17.
			ESTOPPEL.  To induce Agent to enter into this Amendment and to continue to make advances to Borrower under the Credit Agreement, Borrower hereby acknowledges and agrees that, immediately before and after giving effect to this Amendment, as of the date hereof, there exists no Default or Event of Default and no right of offset, defense, counterclaim or objection in favor of Borrower as against Agent or any Lender with respect to the Obligations.

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BORROWER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						eGAIN CORPORATION,

				
	
					
						 

					
					
						a Delaware corporation

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:  Eric Smit

				
	
					
						 

					
					
						Title:  Chief Financial Officer

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			Amendment Number Two to Credit Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						WELLS FARGO BANK, NATIONAL ASSOCIATION,

					
						 as Agent and sole Lender

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		 

		

			Amendment Number Two to Credit AgreementCERTIFICATE
OF DESIGNATIONS OF

12.00%
SERIES A CONVERTIBLE

PREFERRED
STOCK,

PAR
VALUE $0.001 PER SHARE, OF

HOUSTON
AMERICAN ENERGY CORP.

 

 

 

Pursuant
to Sections 151 and 103 of the

General
Corporation Law of the State of Delaware

 

 

 

HOUSTON
AMERICAN ENERGY CORP., a corporation organized and existing under the laws of the State of Delaware (the “Company”),
certifies that pursuant to the authority contained in its Certificate of Incorporation, as amended from time to time (the “Certificate
of Incorporation”), and in accordance with the provisions of Section 151 of the General Corporation Law of the State
of Delaware, the Board of Directors of the Company (the “Board of Directors”) has duly approved and adopted
the following resolution on January 4, 2017, as modified by resolutions adopted on January 30, 2017, and the resolution was adopted
by all necessary action on the part of the Company:

 

RESOLVED,
that pursuant to the authority vested in the Board of Directors by the Certificate of Incorporation and Section 151 of the General
Corporation Law of the State of Delaware, the Board of Directors does hereby designate, create, authorize and provide for the
issue of a series of 2,000 shares of Preferred Stock, par value $0.001 per share, having the voting powers and such designations,
preferences and relative, participating, optional and other special rights, and qualifications, limitations and restrictions that
are set forth in this resolution of the Board of Directors pursuant to authority expressly vested in it by the provisions of the
Certificate of Incorporation and hereby constituting an amendment to the Certificate of Incorporation as follows:

 

Section
1. Designation. The designation of the series of preferred stock of the Company is “12.00% Series A Convertible Preferred
Stock,” par value $0.001 per share (the “Series A Preferred Stock”). Each share of the Series A Preferred
Stock shall be identical in all respects to every other share of the Series A Preferred Stock. The Series A Preferred Stock shall
be perpetual.

 

Section
2. Number of Shares. The authorized number of shares of Series A Preferred Stock is 2,000 shares. Series A Preferred Stock
that is redeemed, purchased or otherwise acquired by the Company, or converted into another class or series of Capital Stock shall
not be reissued as Series A Preferred Stock, and the Company shall take such actions as are necessary to cause such acquired or
converted shares to resume the status of authorized but unissued shares of Preferred Stock.

 

Section
3. Defined Terms and Rules of Construction.

 

(a) Definitions.
                                         As used herein with respect to the Series A Preferred Stock:

 

“Affiliate”
of any Person shall mean any other Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such Person. For purposes of this definition, “control” when used with respect to any Person has the
meaning specified in Rule 12b-2 under the Exchange Act; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

 

“Beneficially
Own” shall mean “beneficially own” as defined in Rule 13d-3 under the Exchange Act.

 

“Board
of Directors” shall mean the board of directors of the Company.

 

“Business
Day” shall mean a day that is a Monday, Tuesday, Wednesday, Thursday or Friday and is not a day on which banking institutions
in New York, New York or Houston, Texas generally are authorized or obligated by law, regulation or executive order to close.

 

    	HUSA – Cert of Designations – Series A Preferred	1 

    	 		 

    

 

“Bylaws”
shall mean the Bylaws of the Company in effect on the date hereof, as they may be amended from time to time.

 

“Capital
Stock” shall mean any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents
of or interests in (in each case however designated) stock issued by the Company.

 

“Certificate
of Incorporation” shall mean the Certificate of Incorporation of the Company, as amended from time to time, including
by this Certificate of Designations.

 

“Certificate
of Designations” shall mean this Certificate of Designations relating to the Series A Preferred Stock, as it may be
amended from time to time.

 

“Change
of Control” shall mean the occurrence of any of the following:

 

(1)
any Person shall Beneficially Own, directly or indirectly, through a purchase, merger or other acquisition transaction or series
of transactions, shares of the Company’s Capital Stock entitling such Person to exercise more than 50% of the total voting
power of all classes of Voting Stock of the Company, other than an acquisition by the Company, any of the Company’s Subsidiaries
or any of the Company’s employee benefit plans (for purposes of this clause (1), “Person” shall include any
syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act); or

 

(2)
the Company (i) merges or consolidates with or into any other Person, another Person merges with or into the Company, or the Company
conveys, sells, transfers or leases all or substantially all of the Company’s assets to another Person or (ii) engages in
any recapitalization, reclassification or other transaction in which all or substantially all of the Common Stock is exchanged
for or converted into cash, securities or other property, in each case other than a merger or consolidation:

 

(A)
that does not result in a reclassification, conversion, exchange or cancellation of the Company’s outstanding Common Stock;
provided that the holders of the Common Stock outstanding immediately prior to such transaction hold the majority of the
Common Stock immediately following such transaction;

 

(B)
which is effected solely to change the Company’s jurisdiction of incorporation and results in a reclassification, conversion
or exchange of outstanding shares of the Common Stock solely into shares of common stock of the surviving entity; or

 

(C)
where the Voting Stock outstanding immediately prior to such transaction is converted into or exchanged for Voting Stock of the
surviving or transferee Person constituting a majority of the outstanding shares of such Voting Stock of such surviving or transferee
Person (immediately after giving effect to such issuance).

 

“Close
of Business” shall mean 5:00 p.m., Eastern Time, on any Business Day.

 

“Closing
Price” shall mean the price per share of the final trade of the Common Stock on the applicable Trading Day on the principal
national securities exchange or market on which the Common Stock is listed or admitted to trading (including any over-the-counter
market).

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Commission”
shall mean the U.S. Securities and Exchange Commission, including the staff thereof.

 

“Common
Stock” shall mean the common stock, par value $0.001 per share, of the Company.

 

“Company”
shall mean Houston American Energy Corp., a corporation organized and existing under the laws of the State of Delaware, and any
successor thereof.

 

“Conversion
Price” shall mean the quotient of (i) the Liquidation Preference and (ii) $1,000.

 

    	HUSA – Cert of Designations – Series A Preferred	2 

    	 		 

    

 

“Conversion
Rate” shall, subject to adjustment as set forth in Section 8, mean (i) with respect to shares of Series A Preferred
Stock originally issued to Insiders, the Reference Rate and (ii) with respect to shares of Series A Preferred Stock originally
issued to Non-Insiders, 5,000. For clarity, as to each share of Series A Preferred Stock originally issued to an Insider, the
Conversion Rate will be established as to each such share on the respective Pricing Date and may vary among individual shares
of Series A Preferred Stock held by Insiders based on the applicable Reference Rate as computed on the Pricing Date of each share
of Series A Preferred Stock.

 

“Current
Market Price” shall mean the average Closing Price for the ten (10) consecutive Trading Days immediately preceding,
but not including, the date as of which the Current Market Price is to be determined.

 

“Debt
Documents” shall mean each agreement, if any, of the Company for borrowed money in an aggregate principal amount in
excess of $2.0 million (with “principal amount” for purposes of this definition to include undrawn committed or available
amounts) that is entered into by the Company from time to time and as may be amended, supplemented, restated, renewed, replaced,
refinanced or otherwise modified from time to time. For the avoidance of doubt, (x) obligations under multiple agreements may
not be aggregated for purposes of satisfying the definition of Debt Document, (y) mortgages, real estate leases, capital lease
obligations, purchase money agreements, sale-leaseback transactions, equipment financing, inventory financing, letters of credit
and receivables financing shall be eligible to constitute Debt Documents and (z) interest rate swaps, currency or commodity hedges
and other derivative instruments shall be eligible to constitute Debt Documents measured on the basis of liability to the Company
determined as of the date of the most recent quarterly or annual balance sheet of the Company, and not based on notional amount.

 

“Distributed
Property” shall have the meaning ascribed to it in Section 8(c).

 

“Dividend
Payment Date” shall mean March 31, June 30, September 30 and December 31 of each year, commencing on September 30, 2017;
provided that if any such Dividend Payment Date would otherwise occur on a day that is not a Business Day, such Dividend
Payment Date shall instead be (and any dividend payable on Series A Preferred Stock on such Dividend Payment Date shall instead
be payable on) the immediately succeeding Business Day.

 

“Dividend
Period” shall mean the period commencing on and including a Dividend Payment Date and shall end on and include the day
immediately preceding the next Dividend Payment Date; provided that the “Initial Dividend Period” shall
commence on and include July 1, 2017 and shall end on and include the day immediately preceding the first Dividend Payment Date.

 

“Dividend
Rate” shall mean 12.00% per annum.

 

“Dividend
Record Date” shall have the meaning ascribed to it in Section 4(a).

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Exchange
Property” shall have the meaning ascribed to it in Section 10(a).

 

“Insiders”
shall mean persons who, as of the Original Issue Date with respect to shares held by such person, are officers, directors or holders
of 5% or more of the Common Stock of the Company, or Affiliates of such persons.

 

“Internal
Reorganization Event” shall have the meaning ascribed to it in Section 10(d).

 

“Investor
Majority” means, so long as shares of Series A Preferred Stock remain outstanding, holders of a majority of the Series
A Preferred Stock outstanding at such time.

 

“Junior
Stock” shall mean the Common Stock and any other class or series of Capital Stock that ranks junior to the Series A
Preferred Stock (1) as to the payment of dividends or (2) as to the distribution of assets on any liquidation, dissolution or
winding up of the Company, or both.

 

“Liquidating
Distribution” shall have the meaning ascribed to it in Section 8(c).

 

    	HUSA – Cert of Designations – Series A Preferred	3 

    	 		 

    

 

“Liquidation
Preference” shall initially mean $1,000 per share of Series A Preferred Stock.

 

“Non-Insiders”
shall mean purchasers of shares of Preferred Stock other than Insiders.

 

“Original
Issue Date” shall, as to each share of Series A Preferred Stock, mean the date on which each share of Series A Preferred
Stock is first issued.

 

“Parity
Stock” shall mean any class or series of Capital Stock (other than the Series A Preferred Stock) that ranks equally
with the Series A Preferred Stock both (1) in the priority of payment of dividends and (2) in the distribution of assets upon
any liquidation, dissolution or winding up of the Company (in each case, without regard to whether dividends accrue cumulatively
or non-cumulatively).

 

“Per
Share Amount” shall have the meaning ascribed to it in Section 7(a).

 

“Person”
shall mean any individual, company, partnership, limited liability company, joint venture, association, joint stock company, trust,
unincorporated organization, government or agency or political subdivision thereof or any other entity.

 

“Preferred
Dividend” has the meaning ascribed to it in Section 4(b).

 

“Preferred
Stock” shall mean any and all series of preferred stock of the Company, including the Series A Preferred Stock.

 

“Pricing
Date” shall mean, with respect to each share of Series A Preferred Stock, the date on which the initial holder of such
shares and the Company execute a definitive purchase and sale agreement relating to the shares.

 

“Record
Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common
Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security)
is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of
shareholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors
or by statute, contract, this Certificate of Designations or otherwise).

 

“Redemption
Date” shall have the meaning ascribed to it in Section 6(b).

 

“Redemption
Notice” shall have the meaning ascribed to it in Section 6(b).

 

“Redemption
Price” shall have the meaning ascribed to it in Section 6(a).

 

“Reference
Rate” shall mean quotient of (i) 1,000 and (ii) the greater of (a) the Closing Price on the Pricing Date or (b) $0.20.

 

“Reorganization
Event” shall have the meaning ascribed to it in Section 10(a).

 

“Reorganization
Event Date” shall have the meaning ascribed to it in Section 10(a).

 

“Series
A Preferred Stock” shall have the meaning ascribed to it in Section 1.

 

“Spin-Off”
shall have the meaning ascribed to it in Section 8(c).

 

“Subsidiary”
shall mean any company, partnership, limited liability company, joint venture, joint stock company, trust, unincorporated organization
or other entity for which the Company owns at least 50% of the Voting Stock of such entity.

 

“Trading
Day” shall mean any Business Day on which the Common Stock is traded, or able to be traded, on the principal national
securities exchange or market on which the Common Stock is listed or admitted to trading (including any over-the-counter market).

 

    	HUSA – Cert of Designations – Series A Preferred	4 

    	 		 

    

 

“Trigger
Event” shall have the meaning ascribed to it in Section 8(c).

 

“Voting
Stock” shall mean Capital Stock of the class or classes pursuant to which the holders thereof have the general voting
power under ordinary circumstances (determined without regard to any classification of directors) to elect one or more members
of the Board of Directors (without regard to whether or not, at the relevant time, Capital Stock of any other class or classes
(other than Common Stock) shall have or might have voting power by reason of the happening of any contingency).

 

(b)
Rules of Construction. Unless the context otherwise requires: (i) a term has the meaning assigned to it herein; (ii) an accounting
term not otherwise defined herein has the meaning accorded to it in accordance with generally accepted accounting principles in
effect from time to time in the United States, applied on a consistent basis; (iii) words in the singular include the plural,
and in the plural include the singular; (iv) “or” is not exclusive; (v) “will” shall be interpreted to
express a command; (vi) “including” means including without limitation; (vii) provisions apply to successive events
and transactions; (viii) references to any Section or clause refer to the corresponding Section or clause, respectively, of this
Certificate of Designations; (ix) any reference to a day or number of days, unless expressly referred to as a Business Day or
Trading Day, shall mean the respective calendar day or number of calendar days; (x) references to sections of or rules under the
Exchange Act shall be deemed to include substitute, replacement or successor sections or rules, and any term defined by reference
to a section of or rule under the Exchange Act shall include Commission and judicial interpretations of such section or rule;
(xi) references to sections of the Code shall be deemed to include any substitute, replacement or successor sections as well as
the Treasury Regulations promulgated thereunder from time to time; (xii) headings are for convenience only; and (xiii) unless
otherwise expressly provided in this Certificate of Designations, a reference to any specific agreement or other document shall
be deemed a reference to such agreement or document as amended from time to time in accordance with the terms of such agreement
or document.

 

Section
4. Dividends.

 

(a)
Participation with Dividends on Common Stock. No cash dividend may be declared or paid on the Common Stock during a Dividend
Period unless a cash dividend is also declared or paid (as applicable) on the Series A Preferred Stock for such Dividend Period
in an amount (the “Common Participation Amount”) equal to (A) the Per Share Amount as of the Record Date for
such dividend (the “Dividend Record Date”) multiplied by (B) the amount per share distributed or to
be distributed in respect of the Common Stock in connection with such cash dividend.

 

(b)
Dividend Rate on Series A Preferred Stock. In addition to participation in cash dividends on Common Stock as set forth in
Section 4(a), holders of the Series A Preferred Stock shall be entitled to receive, in preference to the holders of any Junior
Stock, on each share of Series A Preferred Stock and with respect to each Dividend Period commencing on and after July 1, 2017,
an amount (such amount, the “Preferred Dividend”) equal to the Dividend Rate multiplied by the Liquidation
Preference per share of Series A Preferred Stock. Amounts payable at the Dividend Rate shall begin to accrue and be cumulative
from July 1, 2017, whether or not the Company has funds legally available for such dividends or such dividends are declared, and
shall be payable in arrears on the first Dividend Payment Date after such Dividend Period. Dividends that are payable on the Series
A Preferred Stock on any Dividend Payment Date shall be payable to holders of record of the Series A Preferred Stock as they appear
on the stock register of the Company on the Record Date for such dividend, which shall be the date 15 days prior to the applicable
Dividend Payment Date.

 

Dividends
payable at the Dividend Rate on the Series A Preferred Stock in respect of any Dividend Period shall be computed on the basis
of a 360-day year consisting of twelve 30-day months. The amount of dividends payable at the Dividend Rate on the Series A Preferred
Stock on any date prior to the end of a Dividend Period, and for the initial Dividend Period, shall be computed on the basis of
a 360-day year consisting of twelve 30-day months, and actual days elapsed over a 30-day month (i.e., during each Dividend Period,
$30.00 of Preferred Dividend accrues).

 

(c)
Payment of Dividends. Notwithstanding anything to the contrary in this Certificate of Designations, cash dividends shall be
paid only to the extent (i) the Company has funds legally available for such payment, (ii) there are no provisions in any of the
Debt Documents prohibiting the payment of cash dividends on the Series A Preferred Stock in such amount on the applicable Dividend
Payment Date and (iii) the Board of Directors, or an authorized committee thereof, declares such dividend payable. To the extent
the Board of Directors desires to declare any cash dividend or other distribution in cash on the Common Stock during any Dividend
Period that requires a corresponding cash dividend on the Series A Preferred Stock in accordance with Section 4(a), it may do
so only to the extent that (i) the Company has funds legally available for the payment of such dividend or distribution in cash
on all of the shares of Common Stock and Series A Preferred Stock then outstanding and (ii) such cash dividend or distribution
on the Common Stock and the Series A Preferred Stock shall be payable only on the applicable Dividend Payment Date for such Dividend
Period.

 

    	HUSA – Cert of Designations – Series A Preferred	5 

    	 		 

    

 

(d)
Priority of Dividends. Subject to Sections 4(a), (b) and (c), Section 8 and Section 9, such dividends (payable in cash, securities
or other property) as may be determined by the Board of Directors or an authorized committee thereof may be declared and paid
on any Capital Stock, including Common Stock and other Junior Stock, from time to time out of any funds legally available for
such payment.

 

Section
5. Liquidation Rights.

 

(a)
Voluntary or Involuntary Liquidation. In the event of any liquidation, dissolution or winding up of the affairs of the Company,
whether voluntary or involuntary, holders of the Series A Preferred Stock shall be entitled to receive for each share of Series
A Preferred Stock, out of the assets of the Company or proceeds thereof (whether capital or surplus) available for distribution
to shareholders of the Company, and after satisfaction of all liabilities and obligations to creditors of the Company, on par
with each share of Parity Stock but before any distribution of such assets or proceeds is made to or set aside for the holders
of Junior Stock, an amount equal to the greater of (1) the sum of (a) the Liquidation Preference per share of the Series A Preferred
Stock plus (b) an amount per share equal to accrued but unpaid dividends to but excluding the date fixed for such liquidation,
dissolution or winding up of the Company and (2) the per share amount of all cash, securities and other property (such securities
or other property having a value equal to its fair market value as reasonably determined by the Board of Directors) to be distributed
in respect of the Common Stock such holder would have been entitled to receive had it converted such Series A Preferred Stock
immediately prior to the date fixed for such liquidation, dissolution or winding up of the Company. To the extent such amount
is paid in full to all holders of Series A Preferred Stock and all the holders of Parity Stock, the holders of Junior Stock of
the Company shall be entitled to receive all remaining assets of the Company (or proceeds thereof) according to their respective
rights and preferences.

 

(b)
Partial Payment. If in connection with any distribution described in Section 5(a) above the assets of the Company or proceeds
thereof are not sufficient to pay the liquidation preferences in full to all holders of Series A Preferred Stock and all holders
of Parity Stock, the amounts paid to the holders of Series A Preferred Stock and to the holders of all such other Parity Stock
shall be paid pro rata in accordance with the respective aggregate liquidation preferences of the holders of Series A Preferred
Stock and the holders of all such other Parity Stock.

 

(c)
Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this Section 5, the merger or consolidation of the
Company with any other corporation or other entity, including a merger or consolidation in which the holders of Series A Preferred
Stock receive cash, securities or other property for their shares, or the sale, lease or exchange (for cash, securities or other
property) of all or substantially all of the assets of the Company, shall not be deemed to constitute a liquidation, dissolution
or winding up of the Company, but instead shall be subject to the provisions of Section 10.

 

Section
6. Redemption.

 

(a)
On or after January 1, 2019, the Company will have the right, but not the obligation, to redeem, in the manner described in
Sections 6(a) and (b) below, some or all of the then outstanding shares of Series A Preferred Stock by paying cash therefore in
a per share amount (the “Redemption Price”) equal to the sum of (i) the percentage set forth in the table below
multiplied by the Liquidation Preference per share of the Series A Preferred Stock plus (ii) an amount equal to accrued
but unpaid dividends to but excluding the date of redemption; provided, however, that the Company shall not repurchase
any shares of Series A Preferred Stock pursuant to this Section 6(a) to the extent such repurchase would be prohibited by (x)
any provision of any Debt Document or (y) any applicable law:

 

	For the period below	 	Percentage	 
	On or after January 1, 2019 to December 31, 2019	 	 	112	%
	On or after January 1, 2020 to December 31, 2020	 	 	108	%
	On or after January 1, 2021 to December 31, 2021	 	 	104	%
	On or after January 1, 2022	 	 	100	%

 

    	HUSA – Cert of Designations – Series A Preferred	6 

    	 		 

    

 

(b)
The Company may exercise the redemption right set forth in Section 6(a) by providing to the holders of the Series A Preferred
Stock written notice (a “Redemption Notice”) of its intent to redeem shares, which Redemption Notice shall
(i) be mailed, first class postage prepaid, to each holder of Series A Preferred Stock to be redeemed, (ii) call upon the holder
to surrender the certificates evidencing the shares to be redeemed, and (iii) specify (A) the manner and place of surrendering
certificates and receiving the Redemption Price, (B) the number of shares of Series A Preferred Stock to be redeemed from such
holder, (C) the Redemption Price to be paid to such holder, and (D) the date on which shares of Series A Preferred Stock are to
be redeemed (the “Redemption Date”), which date shall be no less than 15 nor more than 30 calendar days from
the date of delivery of the Redemption Notice.

 

(c)
Subject to the rights of the holders of shares of Series A Preferred Stock to convert their shares in the manner provided
in Section 7 below, which right shall terminate 3 business days prior to the Redemption Date, on the Redemption Date, the holder
shall surrender to the Company the certificates evidencing the shares of Series A Preferred Stock to be redeemed in the manner
and at the place specified in the Redemption Notice, and upon surrender of such certificates the Company shall pay the Redemption
Price to the holder and cancel the certificate so surrendered. In the event that less than all the shares represented by any such
certificate are redeemed, a new certificate shall be issued representing the unredeemed shares.

 

(d)
From and after the Redemption Date, unless there shall be a default in payment of the Redemption Price, all rights of the
holders of shares of Series A Preferred Stock designated for redemption in the Redemption Notice (except the right to receive
the Redemption Price without interest upon surrender of their certificate(s)) shall cease with respect to such shares, and such
shares shall not thereafter be transferred on the books of the Company or be deemed to be outstanding for any purpose whatsoever.

 

Section
7. Conversion.

 

(a)
Conversion at the Option of the Holders. Subject to Section 7(d) below, each share of Series A Preferred Stock may be converted
on any date, from time to time, at the option of the holder thereof, into the number of shares of Common Stock (the “Per
Share Amount”) equal to the Conversion Price multiplied by the Conversion Rate in effect at such time.

 

The
right of conversion attaching to any shares of Series A Preferred Stock may be exercised by the holders thereof by delivering
the shares to be converted to the office of the Company, accompanied by a duly signed and completed notice of conversion in form
reasonably satisfactory to the Company. The conversion date shall be the date on which the shares of Series A Preferred Stock
and the duly signed and completed notice of conversion are received by the Company. The Person entitled to receive the Common
Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such Common Stock as
of such conversion date, and such Person or Persons shall cease to be a record holder of the Series A Preferred Stock on that
date. As promptly as practicable on or after the conversion date (and in any event no later than three Trading Days thereafter),
the Company shall issue the number of whole shares of Common Stock issuable upon conversion, with any fractional shares (after
aggregating all Series A Preferred Stock being converted on such date) rounded to the nearest whole share. Such delivery shall
be made, at the option of the applicable holder, in certificated form or by book-entry. Any such certificate or certificates shall
be delivered by the Company to the appropriate holder on a book-entry basis or by mailing certificates evidencing the shares to
the holders at their respective addresses as set forth in the conversion notice.

 

(b)
Common Stock Reserved for Issuance. The Company shall at all times reserve and keep available out of its authorized and unissued
Common Stock, solely for issuance upon the conversion of the Series A Preferred Stock, such number of shares of Common Stock as
shall from time to time be issuable upon the conversion of all the shares of Series A Preferred Stock then outstanding. Any shares
of Common Stock issued upon conversion of Series A Preferred Stock shall be (i) duly authorized, validly issued and fully paid
and nonassessable, (ii) shall rank pari passu with the other shares of Common Stock outstanding from time to time and (iii) shall
be approved for listing on the principal national securities exchange or market on which the Common Stock is listed or admitted
to trading (including any over-the-counter market).

 

    	HUSA – Cert of Designations – Series A Preferred	7 

    	 		 

    

 

(c)
Taxes. The Company shall pay any and all transfer taxes that may be payable in respect of the issue or delivery of shares
of Common Stock on conversion of Series A Preferred Stock. The Company shall not, however, be required to pay any tax which may
be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in a name other than that in
which the Series A Preferred Stock so converted were registered, and no such issue or delivery shall be made unless and until
the Person requesting such issue has paid to the Company the amount of any such tax, or has established to the satisfaction of
the Company that such tax has been paid.

 

Section
8. Dilution Adjustments. The Conversion Rate shall be adjusted from time to time (successively and for each event described)
by the Company as follows:

 

(a)
If the Company shall, at any time or from time to time while any of the Series A Preferred Stock is outstanding, issue shares
of Common Stock as a dividend or distribution on shares of Common Stock, or if the Company effects a share split or share combination
in respect of the Common Stock, then the Conversion Rate shall be adjusted based on the following formula:

 

	 	CR’ 
    =  CR0	x	OS’	 
	 	OSo	 

 

where

 

	 	CR0	=	the
    Conversion Rate in effect immediately prior to the Close of Business on the Record Date for such dividend or distribution,
    or the Close of Business on the effective date of such share split or combination, as applicable;
	 	 	 	 
	 	CR’	=	the
    new Conversion Rate in effect immediately after the Close of Business on the Record Date for such dividend or distribution,
    or the Close of Business on the effective date of such share split or share combination, as applicable;
	 	 	 	 
	 	OS0	=	the
    number of shares of Common Stock outstanding immediately prior to the Close of Business on the Record Date for such dividend
    or distribution, or the Close of Business on the effective date of such share split or share combination, as applicable; and
	 	 	 	 
	 	OS’	=	the
    number of shares of Common Stock outstanding immediately after such dividend or distribution, or the Close of Business on
    the effective date of such share split or share combination, as applicable.

 

The
Company shall not pay any dividend or make any distribution on shares of Common Stock held in treasury by the Company.

 

(b)
Except as otherwise provided for by Section 8(c), if the Company shall, at any time or from time to time while any of the
Series A Preferred Stock is outstanding, distribute to all or substantially all holders of its outstanding shares of Common Stock
any options, rights or warrants entitling them for a period of not more than 45 days from the Record Date of such distribution
to subscribe for or purchase shares of Common Stock at a price per share less than the Closing Price of the Common Stock on the
Trading Day immediately preceding the Record Date of such distribution, the Conversion Rate shall be adjusted based on the following
formula:

 

    	HUSA – Cert of Designations – Series A Preferred	8 

    	 		 

    

 

	 	CR’ 	= 	CR0 	x 	OS0 + X	 
	 	OSo + Y	 

 

where

 

	 	CR0	=	the
    Conversion Rate in effect immediately prior to the Close of Business on the Record Date for such distribution;
	 	 	 	 
	 	CR’	=	the
    new Conversion Rate in effect immediately after the Close of Business on the Record Date for such distribution;
	 	 	 	 
	 	OS0	=	the
    number of shares of Common Stock outstanding immediately prior to the Close of Business on the Record Date for such distribution;
	 	 	 	 
	 	X	=	the
    total number of shares of Common Stock issuable pursuant to such options, rights or warrants; and
	 	 	 	 
	 	Y	=	the
    number of shares of Common Stock equal to the aggregate price payable to exercise such options, rights or warrants divided
    by the average Closing Price of the Common Stock over the 10 consecutive Trading Day period ending on the Record Date.

 

To
the extent that shares of Common Stock are not delivered pursuant to any such options, rights or warrants that are non-transferable
upon the expiration or termination of such options, rights or warrants, the Conversion Rate shall be readjusted to the Conversion
Rate which would then be in effect had the adjustments made upon the distribution of such options, rights or warrants been made
on the basis of the delivery of only the number of shares of Common Stock actually delivered.

 

In
determining the aggregate price payable to exercise such options, rights or warrants, there shall be taken into account any amount
payable on exercise thereof, with the value of such consideration, if other than cash, to be determined in good faith by the Board
of Directors.

 

(c)
If the Company, at any time or from time to time while any of the Series A Preferred Stock is outstanding, shall, by dividend
or otherwise, distribute to all or substantially all holders of its Common Stock shares of any class of Capital Stock of the Company,
cash, evidences of its indebtedness, assets, property or rights or warrants to acquire Capital Stock or other securities, but
excluding (i) dividends or distributions as to which an adjustment under Section 8(a) or Section 8(b) shall apply, (ii) dividends
or distributions paid exclusively in cash to the extent that the Series A Preferred Stock participates on an as-converted basis
with the Common Stock in a cash dividend or distribution in accordance with Section 4(a), and (iii) Spin-Offs to which the provision
set forth below in this Section 8(c) shall apply (any of such shares of Capital Stock, cash, indebtedness, assets, property or
rights or warrants to acquire Common Stock or other securities, hereinafter in this Section 8(c) called the “Distributed
Property”), then, in each such case the Conversion Rate shall be adjusted based on the following formula:

 

	 	CR’ 	= 	CR0 	x 	SP0	 
	 	SPo – FMV 	 

 

where

 

	 	CR0	=	the
    Conversion Rate in effect immediately prior to the Close of Business on the Record Date for such distribution;
	 	 	 	 
	 	CR’	=	the
    new Conversion Rate in effect immediately after the Close of Business on the Record Date for such distribution;
	 	 	 	 
	 	SP0	=	the
    average Closing Price of the Common Stock over the 10 consecutive Trading Day period ending on the Record Date for such distribution;
    and
	 	 	 	 
	 	FMV	=	(i)
    for cash dividends or distributions, the amount of cash distributed and (ii) for other Distributed Property, the fair market
    value (as determined in good faith by the Board of Directors) of the portion of Distributed Property, in each case, with respect
    to each outstanding share of Common Stock on the Record Date for such distribution.

 

    	HUSA – Cert of Designations – Series A Preferred	9 

    	 		 

    

 

Notwithstanding
the foregoing, if the then fair market value (as so determined) of the portion of the Distributed Property so distributed applicable
to one share of Common Stock is equal to or greater than SP0 as set forth above (a “Liquidating Distribution”),
then in lieu of the foregoing adjustment, the Company shall distribute to each holder of Series A Preferred Stock on the date
such Distributed Property is distributed to holders of Common Stock, but without requiring such holder to convert its shares of
Series A Preferred Stock, the amount of Distributed Property such holder would have received had such holder owned a number of
shares of Common Stock equal to the Per Share Amount on the Record Date fixed for determination for shareholders entitled to receive
such Liquidating Distribution; provided, however, that the Company shall not distribute Distributed Property to
either the holders of the Common Stock or the Preferred Stock to the extent such distribution would be prohibited by any provision
of any Debt Document. If the Board of Directors determines the fair market value of any distribution for purposes of this Section
8(c) by reference to the actual or when issued trading market for any securities, it shall in doing so consider the prices in
such market over the same period used in computing the Current Market Price of the Common Stock for purposes of calculating SP0
in the formula in this Section 8(c).

 

With
respect to an adjustment pursuant to this Section 8(c) where there has been a payment of a dividend or other distribution on the
Common Stock consisting of shares of Capital Stock of any class or series, or similar equity interest, of or relating to a Subsidiary
or other business unit of the Company (a “Spin-Off”), the Conversion Rate in effect immediately before the
Close of Business on the 10th Trading Day immediately following, and including, the effective date of the Spin-Off
shall be increased based on the following formula:

 

	 	CR1 	= 	CR0 	x 	FMV + MP0	 
	 	MPo	 

 

where

 

	 	CR0	=	the
    Conversion Rate in effect immediately prior to the Close of Business on the 10th Trading Day immediately following,
    and including, the effective date of the Spin-Off;
	 	 	 	 
	 	CR1	=	the
    new Conversion Rate in effect from and after the Close of Business on the 10th Trading Day immediately following,
    and including, the effective date of the Spin-Off;
	 	 	 	 
	 	FMV	=	the
    average of the Closing Prices of the Capital Stock or similar equity interest distributed to holders of Common Stock applicable
    to one share of Common Stock over the 10 consecutive Trading Day period immediately following, and including, the effective
    date of the Spin-Off; and
	 	 	 	 
	 	MP0	=	the
    average Closing Price of the Common Stock over the 10 consecutive Trading Day period calculated immediately following, and
    including, the effective date of the Spin-Off.

 

Such
adjustment shall occur on the 10th Trading Day immediately following, and including, the effective date of the Spin-Off.

 

    	HUSA – Cert of Designations – Series A Preferred	10 

    	 		 

    

 

For
purposes of this Section 8(c), Section 8(a) and Section 8(b) hereof, any dividend or distribution to which this Section 8(c) is
applicable that also includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock
to which Section 8(a) or 8(b) hereof applies (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences
of indebtedness, assets or shares of Capital Stock other than such shares of Common Stock or rights or warrants to which Section
8(a) or 8(b) hereof applies (and any Conversion Rate adjustment required by this Section 8(c) with respect to such dividend or
distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such
options, rights or warrants to which Section 8(a) or 8(b) hereof applies (and any further Conversion Rate adjustment required
by Section 8(a) and 8(b) hereof with respect to such dividend or distribution shall then be made), except (A) the Close of Business
on the Record Date of such dividend or distribution shall be substituted for “the Close of Business on the Record Date,”
“the Close of Business on the Record Date or the Close of Business on the effective date,” “after the Close
of Business on the Record Date for such dividend or distribution or the Close of Business on the effective date of such share
split or share combination” and “the Close of Business on the Record Date for such distribution” within the
meaning of Section 8(a) and 8(b) hereof and (B) any shares of Common Stock included in such dividend or distribution shall not
be deemed “outstanding immediately prior to the Close of Business on the Record Date or the Close of Business on the effective
date” within the meaning of Section 8(a) hereof.

 

If
the Company shall, at any time or from time to time while any of the Series A Preferred Stock is outstanding, distribute options,
rights or warrants to all or substantially all holders of Common Stock entitling the holders thereof to subscribe for, purchase
or convert into shares of Capital Stock (either initially or under certain circumstances), which options, rights or warrants,
until the occurrence of a specified event or events (“Trigger Event”): (x) are deemed to be transferred with
such shares of Common Stock; (y) are not exercisable; and (z) are also issued in respect of future issuances of Common Stock,
shall be deemed not to have been distributed for purposes of this Section 8(c), (and no adjustment to the Conversion Rate under
this Section 8(c) shall be required) until the occurrence of the earliest Trigger Event and a distribution or deemed distribution
under the terms of such options, rights or warrants at which time an appropriate adjustment (if any is required) to the Conversion
Rate shall be made in the same manner as provided for under this Section 8(c). If any such options, rights or warrants are subject
to events, upon the occurrence of which such options, rights or warrants become exercisable to purchase different securities,
evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the
date of distribution and Record Date with respect to new options, rights or warrants for purposes of this Section 8(c) (and a
termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in
the event of any distribution (or deemed distribution) of options, rights or warrants (of the type described in the preceding
sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the
Conversion Rate under this Section 8(c) was made, (1) in the case of any such options, rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final
redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a distribution
under this Section 8(c), equal to the per share redemption or repurchase price received by a holder or holders of Common Stock
with respect to such options, rights or warrants (assuming such holder had retained such options, rights or warrants), made to
all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such options, rights or warrants
that shall have expired or been terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as
if such options, rights or warrants had not been issued.

 

Section
9. Voting Rights.

 

(a)
General. The holders of shares of Series A Preferred Stock shall be entitled to vote with the holders of shares of Common
Stock on all matters submitted to a vote of shareholders of the Company, except as otherwise provided herein or by applicable
law. Each holder of shares of Series A Preferred Stock shall be entitled to the number of votes equal to the largest number of
whole shares of Common Stock into which all shares of Series A Preferred Stock held of record by such holder could then be converted
pursuant to Section 7 at the record date for the determination of the shareholders entitled to vote on such matters or, if no
such record date is established, at the date such vote is taken or any written consent of shareholders is first executed. The
holders of shares of Series A Preferred Stock shall be entitled to notice of any meeting of shareholders of the Company in accordance
with the Bylaws.

 

(b)
Class Voting Rights as to Particular Matters. In addition to any other vote or consent of shareholders required by law or
by the Certificate of Incorporation, the affirmative vote or consent of the Investor Majority, given in person or by proxy, either
in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting any of the actions
described in clauses (1) through (3) below:

 

    	HUSA – Cert of Designations – Series A Preferred	11 

    	 		 

    

 

(1)
Dividends, Repurchase and Redemption.

 

(A)
The declaration or payment of any dividend or distribution on Common Stock, other Junior Stock or Parity Stock (other than (i)
a dividend payable solely in Junior Stock and (ii) dividends or distributions paid exclusively in cash to the extent that the
Series A Preferred Stock participates on an as-converted basis with the Common Stock in a cash dividend or distribution in accordance
with Section 4(a)) if, at the time of such declaration, payment or distribution, dividends on the Series A Preferred Stock have
not been paid in full in cash; or

 

(B)
the purchase, redemption or other acquisition for consideration by the Company, directly or indirectly, of any Common Stock, other
Junior Stock or Parity Stock (except as necessary to effect (1) a reclassification of Junior Stock for or into other Junior Stock,
(2) a reclassification of Parity Stock for or into other Parity Stock with the same or lesser aggregate liquidation preference,
(3) a reclassification of Parity Stock into Junior Stock, (4) the exchange or conversion of one share of Junior Stock for or into
another share of Junior Stock, (5) the exchange or conversion of one share of Parity Stock for or into another share of Parity
Stock with the same or lesser per share liquidation amount or (6) the exchange or conversion of one share of Parity Stock into
Junior Stock), in each case if, at the time of such purchase, redemption or other acquisition, dividends on the Series A Preferred
Stock have not been paid in full in cash;

 

(2)
Amendment of Series A Preferred Stock. Any amendment, alteration or repeal of any provision of the Certificate of Incorporation
or Certificate of Designations so as to adversely affect the relative rights, preferences, privileges or voting powers of the
Series A Preferred Stock; or

 

(3)
Authorizations, Issuances and Reclassifications. The authorization or creation of, issuance of, or reclassification into,
Parity Stock (including additional shares of the Series A Preferred Stock) or Capital Stock that would rank senior to the Series
A Preferred Stock.

 

(c)
Changes after Provision for Redemption. No vote or consent of the holders of Series A Preferred Stock shall be required pursuant
to Section 9(b) if, at or prior to the time when any such vote or consent would otherwise be required pursuant to such Section,
all outstanding shares of Series A Preferred Stock shall have been redeemed, or shall have been called for redemption upon proper
notice and sufficient funds shall have been deposited in trust for such redemption, in each case pursuant to Section 6 above.

 

Section
10. Reorganization Events.

 

(a)
In the event of:

 

(1)
any consolidation or merger of the Company with or into another Person or of another Person with or into the Company;

 

(2)
any sale, transfer, lease or conveyance to another Person of the property of the Company as an entirety or substantially as an
entirety;

 

(3)
any statutory share exchange of the Company with another Person (other than in connection with a merger or acquisition); or

 

    	HUSA – Cert of Designations – Series A Preferred	12 

    	 		 

    

 

(4)
any tender offer or exchange offer which, in combination with any related transactions, would result in a Change of Control
of the Company (in which case, the Reorganization Event for such purposes shall be all such transactions taken together), in
each case in which holders of Common Stock would be entitled to receive cash, securities or other property for their shares
of Common Stock (any such event specified in this Section 10(a), a “Reorganization Event”), each share of
Series A Preferred Stock outstanding immediately prior to such Reorganization Event shall (subject to conversion rights
pursuant to Section 7), in the event of a Change of Control, be exchanged for (or in the event that the transaction is not a
Change of Control, be exchanged for the right to receive upon conversion of the Series A Preferred Stock thereafter at the
time of the holder’s election, in accordance with the terms hereof) whichever of the following has the greatest value
(as determined by the Board of Directors in its reasonable discretion): (A) an amount in cash equal to the sum of (1) the
Liquidation Preference per share of the Series A Preferred Stock plus (2) an amount per share equal to accrued but
unpaid dividends to but excluding the date on which such Reorganization Event occurs (the “Reorganization Event
Date”); and (B) an amount equal to the product of (I) the Per Share Amount as of the Reorganization Event
Date multiplied by (II) the amount of cash, securities or other property (such securities or other property having a
value equal to its fair market value as reasonably determined by the Board of Directors) distributed or to be distributed in
respect of the Common Stock in connection with such Reorganization Event to a holder of Common Stock that was not the
counterparty to the Reorganization Event or an Affiliate of such counterparty (such cash, securities and other property, the
“Exchange Property”); provided, however, that the Company shall not distribute cash,
securities or other property as provided in this Section 10(a) to either the holders of the Common Stock or the Series A
Preferred Stock to the extent such distribution would be prohibited by any provision of any Debt Document. In case of any
Reorganization Event, provision shall be made in such transaction so that the holders of any Series A Preferred Stock shall
be entitled, but not obligated, to participate in whole or in part in such Reorganization Event directly by surrendering such
Series A Preferred Stock in exchange for the Exchange Property receivable in such Reorganization Event applicable to
such Series A Preferred Stock on an as converted basis.

 

(b)
In the event that (i) the Board of Directors determines pursuant to Section 10(a) that the Series A Preferred Stock shall
be exchanged for Exchange Property and (ii) the holders of the shares of the Common Stock have the opportunity to elect the form
of consideration to be received in such transaction, the “Exchange Property” that holders of the Series A Preferred
Stock shall be entitled to receive shall be determined by the holders of a majority of the outstanding shares of Series A Preferred
Stock.

 

(c)
The above provisions of this Section 10 shall similarly apply to successive Reorganization Events.

 

(d)
Notwithstanding anything to the contrary, Section 10(a) shall not apply in the case of, and a Reorganization Event shall not
be deemed to be, a merger, consolidation, reorganization or statutory share exchange (x) among the Company and its direct and
indirect Subsidiaries or (y) between the Company and any Person for the primary purpose of changing the domicile of the Company
(a “Internal Reorganization Event”). Without limiting the rights of the holders of the Series A Preferred Stock
set forth in Section 9(b)(2), the Company shall not effectuate an Internal Reorganization Event unless the Series A Preferred
Stock shall be outstanding as a class of preferred stock of the surviving company having the same rights, terms, preferences,
liquidation preference and accrued and unpaid dividends as the Series A Preferred Stock in effect immediately prior to such Internal
Reorganization Event, as adjusted for such Internal Reorganization Event pursuant to this Certificate of Designations after giving
effect to any such Internal Reorganization Event. The Company (or any successor) shall, within 20 days of the occurrence of any
Internal Reorganization Event, provide written notice to the holders of the Series A Preferred Stock of the occurrence of such
event. Failure to deliver such notice shall not affect the operation of this Section 10(d) or the validity of any Internal Reorganization
Event.

 

Section
11. Record Holders. To the fullest extent permitted by applicable law, the Company may deem and treat the record holder of
any share of the Series A Preferred Stock as the true and lawful owner thereof for all purposes, and the Company shall not be
affected by any notice to the contrary.

 

Section
12. Notices.

 

(a)
General. All notices or communications in respect of the Series A Preferred Stock shall be sufficiently given if given in
writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted
in this Certificate of Designations, in the Certificate of Incorporation or Bylaws or by applicable law or regulation. Notwithstanding
the foregoing, if the Series A Preferred Stock is issued in book-entry form through The Depository Trust Company or any similar
facility, such notices may be given to the holders of the Series A Preferred Stock in any manner permitted by such facility.

 

(b)
Notice of Certain Events. The Company shall, to the extent not included in the Exchange Act reports of the Company, provide
reasonable written notice to each holder of the Series A Preferred Stock of any event the occurrence of which would result in
an adjustment to the Conversion Rate, including the then applicable Conversion Rate.

 

    	HUSA – Cert of Designations – Series A Preferred	13 

    	 		 

    

 

Section
13. Replacement Certificates. The Company shall replace any mutilated certificate at the holder’s expense upon surrender
of that certificate to the Company. The Company shall replace certificates that become destroyed, stolen or lost at the holder’s
expense upon delivery to the Company of reasonably satisfactory evidence that the certificate has been destroyed, stolen or lost,
together with any indemnity that may be required by the Company.

 

Section
14. Other Rights. The shares of Series A Preferred Stock shall not have any rights, preferences, privileges or voting powers
or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than
as set forth herein or in the Certificate of Incorporation or as provided by applicable law and regulation.

 

Section
15. Further Assurances. The Company shall take such actions as are reasonably required in order for the Company to satisfy
its obligations under this Certificate of Designations, including, without limitation, using reasonable best efforts in obtaining
the approval of the holders of any class or series of Capital Stock or making any filings, in each case as required pursuant to
applicable law or the listing requirements (if any) of any national securities exchange on which any class or series of Capital
Stock is then listed or traded. The Company further agrees to cooperate with the holders of Series A Preferred in the making of
any filings under applicable law that are to be made by the Company or any such holder in connection with the exercise of any
such holder’s rights hereunder.

 

IN
WITNESS WHEREOF, the Company has caused this Certificate of Designations to be duly executed and acknowledged by its undersigned
duly authorized officer this 30th of January, 2017.

 

	 	HOUSTON AMERICAN ENERGY CORP.
	 	 	 
	 	By:	/s/
    John P. Boylan
	 	Name:	John
    P. Boylan
	 	Title:	President
    and Chief Executive Officer

 

    	HUSA – Cert of Designations – Series A Preferred	14

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