Document:

Exhibit
10.62

    
       

      
        

      

    

     

    ADVAXIS,
INC.

     

    2009
STOCK OPTION PLAN

     

    
      
 

    1.           Purpose.  The
purpose of this Plan is to advance the interests of ADVAXIS, INC., a Delaware
corporation (the “Company”), and its Related
Entities by providing an additional incentive to attract and retain qualified
and competent persons who provide services to the Company and its Related
Entities, and upon whose efforts and judgment the success of the Company and its
Related Entities is largely dependent, through the encouragement of stock
ownership in the Company by such persons.

     

    2.           Definitions.  As
used herein, the following terms shall have the meanings indicated:

     

    (a)           “Board” shall mean the Board of
Directors of the Company.

     

    (b)           “Cause” shall, with respect to
any Optionee, have the equivalent meaning (or the same meaning as “cause” or
“for cause”) set forth in any employment agreement, consulting, or other
agreement for the performance of services between the Optionee, and the Company
or a Related Entity or, in the absence of any such agreement or any such
definition in such agreement, such term shall mean (i) the failure by the
Optionee to perform, in a reasonable manner, his or her duties as assigned by
the Company or a Related Entity, (ii) any violation or breach by the Optionee of
his or her employment agreement, consulting or other similar agreement with the
Company or a Related Entity, if any, (iii) any violation or breach by the
Optionee of any non-competition, non-solicitation, non-disclosure and/or other
similar agreement with the Company or a Related Entity, (iv) any act by the
Optionee of dishonesty or bad faith with respect to the Company (or a Related
Entity), (v) use of alcohol, drugs or other similar substances in a manner that
adversely affects the Optionee’s work performance, or (vi) the commission by the
Optionee of any act, misdemeanor, or crime reflecting unfavorably upon the
Optionee or the Company or any Related Entity.  The good faith
determination by the Committee of whether the Optionee’s Continuous Service was
terminated by the Company for “Cause” shall be final and binding for all
purposes hereunder.

     

    (c)           “Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time.

     

    (d)           “Committee” means a committee
designated by the Board to administer the Plan; provided, however, that if the
Board fails to designate a committee or if there are no longer any members on
the committee so designated by the Board, then the Board shall serve as the
Committee.  The Committee shall consist of at least two directors, and
each member of the Committee shall be (i) a “non-employee director” within
the meaning of  Rule 16b-3 (or any successor rule) under the Exchange
Act, unless administration of the Plan by “non-employee directors” is not then
required in order for exemptions under Rule 16b-3 to apply to transactions under
the Plan, (ii) an “outside director” within the meaning of Section 162(m) of the
Code, and (iii) "Independent".

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)           “Common Stock” shall mean the
Company’s common stock, par value $.001 per share.

     

    (f)           “Company” shall mean Advaxis,
Inc., a Delaware corporation and its successors or assigns.

     

    (g)           “Consultant” shall mean any
person (other than an Employee or a Director, solely with respect to rendering
services in such person’s capacity as a Director) who is engaged by the Company
or any Related Entity to render consulting or advisory services to the Company
or such Related Entity.

     

    (h)           “Continuous Service” shall mean
the continuous service to the Company or any Related Entity, without
interruption or termination, in any capacity of Employee, Director or
Consultant.  Continuous Service shall not be considered interrupted in
the case of (i) any approved leave of absence (including, without limitation,
sick leave, military leave, or any other authorized personal leave), (ii)
transfers among the Company, any Related Entity, or any successor, in any
capacity of Employee, Director or Consultant, or (iii) any change in status as
long as the individual remains in the service of the Company or any Related
Entity in any capacity of Employee, Director or Consultant (except as otherwise
provided in the Option Agreement).

     

    (i)           “Director” shall mean a member
of the Board or the board of directors of any Related Entity.

     

    (j)           “Disability” means a permanent
and total disability (within the meaning of Section 22(e) of the Code), as
determined by a medical doctor satisfactory to the Committee.

     

    (k)           “Effective Date” shall mean
July 19, 2009.

     

    (l)           “Employee” shall mean any
person, including an officer or Director, who is an employee of the Company or
any Related Entity. The payment of a Director’s normal compensation and fee (as
applicable to all Directors or Committee members, as the case may be) by the
Company or a Related Entity shall not be sufficient to constitute “employment”
by the Company.

     

    
      
        
        

      

      
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    (m)           “Fair Market Value” of a Share
on any date of reference shall mean the “Closing Price” (as defined below) of
the Common Stock on the business day immediately preceding the date of
reference, unless the Committee in its sole discretion shall determine otherwise
in a fair and uniform manner.  For the purpose of determining Fair
Market Value, the “Closing Price” of the Common Stock on any business day shall
be (i) if the Common Stock is listed or admitted for trading on any United
States national securities exchange, or if actual transactions are otherwise
reported on a consolidated transaction reporting system, the last reported sale
price of Common Stock on such exchange or reporting system, as reported in any
newspaper of general circulation, (ii) if the Common Stock is quoted on the
National Association of Securities Dealers Automated Quotations System
(“NASDAQ”), the Over-The-Counter Bulletin Board or any similar system of
automated dissemination of quotations of securities prices in common use, the
last reported sale price of Common Stock on such system or, if sales prices are
not reported, the mean between the closing high bid and low asked quotations for
such day of Common Stock on such system, as reported in any newspaper of general
circulation or (iii) if neither clause (i) or (ii) is applicable, the mean
between the high bid and low asked quotations for the Common Stock as reported
by the National Quotation Bureau, Incorporated if at least two securities
dealers have inserted both bid and asked quotations for Common Stock on at least
five of the ten preceding days.  If neither (i), (ii), or
(iii) above is applicable, then Fair Market Value shall be determined by the
Committee in a fair and uniform manner.

     

    (n)           “Incentive Stock Option” shall
mean an incentive stock option as defined in Section 422 of the Internal Revenue
Code.

     

    (o)           “Independent”, when referring
to either the Board or members of the Committee, shall have the same meaning as
used in the rules of any national securities exchange on which any securities of
the Company are listed for trading, and if not listed for trading, by the rules
of Nasdaq Stock Market.

     

    (p)           “Non-Qualified Stock Option”
shall mean an Option that is not an Incentive Stock Option.

     

    (q)           “Option” (when capitalized)
shall mean any option granted under this Plan.

     

    (r)           “Option Agreement” shall mean
the agreement between the Company and the Optionee for the grant of an
option.

     

    (s)           “Optionee” shall mean a person
to whom a stock option is granted under this Plan or any person who succeeds to
the rights of such person under this Plan by reason of the death of such
person.

     

    (t)           “Person” shall have the meaning
ascribed to such term in Section 3(a)(9) of the Securities Exchange Act and
used in Sections 13(d) and 14(d) thereof, and shall include a “group” as defined
in Section 13(d) thereof.

     

    (u)           “Plan” shall mean this Advaxis,
Inc. 2009 Stock Option Plan, as may be amended from time to time.

     

    (v)           “Related Entity” shall mean any
Subsidiary, and any business, corporation, partnership, limited liability
company or other entity in which the Company or a Subsidiary holds
a  substantial ownership interest, directly or
indirectly.

     

    
      
        
        

      

      
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    (w)           “Securities Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended from time to
time.

     

    (x)           “Share” shall mean a share of
Common Stock.

     

    (y)           “Subsidiary” shall mean any
corporation or other entity in which the Company has a direct or indirect
ownership interest of 50% or more of the total combined voting power of the then
outstanding securities or interests of such corporation or other entity entitled
to vote generally in the election of directors or in which the Company has the
right to receive 50% or more of the distribution of profits or 50% or more of
the assets on liquidation or dissolution.

     

    3.           Shares Available for Option
Grants.  The
Committee may grant to Optionees from time to time Options to purchase an
aggregate of up to 14,001,399
Shares from the Company’s authorized and unissued Shares.  If any
Option granted under the Plan shall terminate, expire, or be canceled or
surrendered as to any Shares, new Options may thereafter be granted covering
such Shares.

     

    4.           Incentive and Non-Qualified
Options.

     

    (a)           An
Option granted hereunder shall be either an Incentive Stock Option or a
Non-Qualified Stock Option as determined by the Committee at the time of grant
of the Option and the Option Agreement relating to the Option shall clearly
state whether it is an Incentive Stock Option or a Non-Qualified Stock
Option.  All Incentive Stock Options shall be granted within 10 years
from the Effective Date.  Incentive Stock Options may not be granted
to any person who is not an Employee of the Company or a Related
Entity.

     

    (b)           Options
otherwise qualifying as Incentive Stock Options hereunder will not be treated as
Incentive Stock Options to the extent that the aggregate fair market value
(determined at the time the Option is granted) of the Shares with respect to
which Options meeting the requirements of Section 422(b) of the Code are
exercisable for the first time by any individual during any calendar year (under
all plans of the Company and its parent corporation or subsidiary corporation,
as those terms are defined in Sections 424(e) and (f) of the Code, respectively,
exceeds $100,000.

     

    5.           Conditions for Grant of
Options.

     

    (a)           Each
Option shall be evidenced by an Option Agreement that may contain any term
deemed necessary or desirable by the Committee, provided such terms are not
inconsistent with this Plan or any applicable law.  Optionees shall be
those persons who are selected by the Committee from the class of all Employees,
Directors and Consultants of the Company or any Related Entity.

     

    
      
         

      

      
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    (b)           In
granting Options, the Committee shall take into consideration the contribution
the person has made to the success of the Company or any Related Entities and
such other factors as the Committee shall determine.  The Committee
shall also have the authority to consult with and receive recommendations from
officers and other personnel of the Company and its Related Entities with regard
to these matters.  The Committee may from time to time in granting
Options under the Plan prescribe such other terms and conditions concerning such
Options as it deems appropriate, including, without limitation, (i) prescribing
the date or dates on which the Option becomes exercisable, (ii) providing that
the Option rights accrue or become exercisable in installments over a period of
years, or upon the attainment of stated goals or both, or (iii) relating an
Option to the Continuous Service or continued employment of the Optionee for a
specified period of time, provided that such terms and conditions are not more
favorable to an Optionee than those expressly permitted herein.

     

    (c)           The
Options granted to Optionees under this Plan shall be in addition to regular
salaries, pension, life insurance or other benefits related to their Continuous
Service with the Company or its Related Entities.  Neither the Plan
nor any Option granted under the Plan shall confer upon any person any right to
continuance of any Continuous Service by the Company or its Related
Entities.

     

    (d)           The
Committee shall have the discretion to grant Options that are exercisable for
unvested Shares.  Should the Optionee’s Continuous Service cease while
holding such unvested Shares, the Company shall have the right to repurchase, at
the exercise price paid per share, any or all of those unvested
Shares.  The terms upon which such repurchase right shall be
exercisable (including the period and procedure for exercise and the appropriate
vesting schedule for the purchased shares) shall be established by the Committee
and set forth in the Option Agreement for the relevant Option.

     

    (e)           Notwithstanding
any other provision of this Plan, an Incentive Stock Option shall not be granted
to any person owning directly or indirectly (through attribution under Section
424(d) of the Code) at the date of grant, stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company (or of any
parent corporation or subsidiary corporation of the Company (as those terms are
defined in Sections 424(e) and 424(f) of the Code, respectively) at the date of
grant) unless the exercise price of such Option is at least 110% of the Fair
Market Value of the Shares subject to such Option on the date the Option is
granted, and such Option by its terms is not exercisable after the expiration of
five years from the date such Option is granted.

     

    (f)           Notwithstanding
any other provision of this Plan, and in addition to any other requirements of
this Plan, the aggregate number of Options granted to any one Optionee may not
exceed 4,200,420,
subject to adjustment as provided in Section 10 hereof.

     

    6.           Exercise
Price.  The
exercise price per Share of any Option shall be any price determined by the
Committee but shall not be less than the par value per Share; provided, however,
that in no event shall the exercise price per Share of any Incentive Stock
Option be less than the Fair Market Value of the Shares underlying such Option
on the date such Option is granted.

     

    
      
         

      

      
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    7.           Exercise of
Options.

     

    (a)           An
Option shall be deemed exercised when (i) the Company has received written
notice of such exercise in accordance with the terms of the Option, (ii) full
payment of the aggregate exercise price of the Shares as to which the Option is
exercised has been made, and (iii) arrangements that are satisfactory to the
Committee in its sole discretion have been made for the Optionee’s payment to
the Company of the amount that is necessary for the Company or Related Entity
employing the Optionee to withhold in accordance with applicable Federal or
state tax withholding requirements.

     

    (b)           The
consideration to be paid for the Shares to be issued upon exercise of an Option,
as well as the method of payment of the exercise price and of any withholding
and employment taxes applicable thereto, shall be determined by the Committee
and may in the discretion of the Committee consist of: (1) cash, (2) certified
or official bank check, (3) money order, (4) Shares that have been held by the
Optionee for at least six (6) months (or such other Shares as the Committee
determines will not cause the Company to recognize for financial accounting
purposes a charge for compensation expense), (5) the withholding of Shares
issuable upon exercise of the Option, (6) pursuant to a “cashless exercise”
procedure, by delivery of a properly executed exercise notice together with such
other documentation, and subject to such guidelines, as the Committee shall
require to effect an exercise of the Option and delivery to the Company by a
licensed broker acceptable to the Company of proceeds from the sale of Shares or
a margin loan sufficient to pay the exercise price and any applicable income or
employment taxes, or (7) in such other consideration as the Committee deems
appropriate, or by a combination of the above.  In the case of an
Incentive Stock Option, the permissible methods of payment shall be specified at
the time the Option is granted. The Committee in its sole discretion may accept
a personal check in full or partial payment of any Shares.  If the
exercise price is paid, and/or the Optionee’s tax withholding obligation is
satisfied, in whole or in part with Shares, or through the withholding of Shares
issuable upon exercise of the Option, the value of the Shares surrendered or
withheld shall be their Fair Market Value on the date the Option is
exercised.

     

    (c)           The
Committee in its sole discretion may, on an individual basis or pursuant to a
general program established in connection with this Plan, cause the Company to
lend money to an Optionee, guarantee a loan to an Optionee, or otherwise assist
an Optionee to obtain the cash necessary to exercise all or a portion of an
Option granted hereunder or to pay any tax liability of the Optionee
attributable to such exercise; provided that such loan, loan guaranty, or
assistance in obtaining a loan is not in violation of the Sarbanes-Oxley Act of
2002, or any rule or regulation adopted thereunder or any other applicable
law.  If the exercise price is paid in whole or part with the
Optionee’s promissory note, such note shall (i) provide for full recourse to the
maker, (ii) be collateralized by the pledge of the Shares that the Optionee
purchases upon exercise of the Option, (iii) bear interest at the prime rate of
the Company’s principal lender, and (iv) contain such other terms as the
Committee in its sole discretion shall reasonably require.

     

    (d)           No
Optionee shall be deemed to be a holder of any Shares subject to an Option
unless and until a stock certificate or certificates for those Shares are issued
to that person(s) under the terms of this Plan.  No adjustment shall
be made for dividends (ordinary or extraordinary, whether in cash, securities or
other property) or distributions or other rights for which the record date is
prior to the date the stock certificate is issued, except as expressly provided
in Section 10 hereof.

     

    
      
         

      

      
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    8.           Exercisability of
Options. Any
Option shall become exercisable in such amounts, at such intervals and upon such
terms and/or conditions as the Committee shall provide in the Option Agreement
for that Option, except as otherwise provided in this Section 8:

     

    (a)           The
expiration date of an Option shall be determined by the Committee at the time of
grant, but in no event shall an Option be exercisable after the expiration of 10
years from the date of grant of the Option.

     

    (b)           The
Option Agreement relating to any Option may provide that the Option shall become
immediately fully exercisable in the event of a “Change in Control” and/or
shall become fully exercisable in the event that the Committee exercises its
discretion to provide a cancellation notice with respect to the Option pursuant
to Section 9(b) hereof.  For this purpose, the term “Change in
Control” shall mean the occurrence of any of the following:

     

    (i)           The
acquisition by any Person of Beneficial Ownership (as defined in Rule 13d-3
under the Securities Exchange Act), of fifty percent (50%) or more of either (A)
the value of the then outstanding shares of common stock of the Company (the
“Outstanding Company Common
Stock”) or (B) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this
Section 8(b), the following acquisitions shall not constitute a Change of
Control:  (w) any acquisition directly from the Company; (x) any
acquisition by the Company; (y) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Subsidiary; or (z)
any acquisition by any corporation pursuant to a transaction which complies with
clauses (A), (B) and (C) of subsection (iii) below; or

     

    (ii)          Consummation
of a reorganization, merger, statutory share exchange or consolidation or
similar corporate transaction involving the Company or any of its Subsidiaries,
a sale or other disposition of all or substantially all of the assets of the
Company, or the acquisition of assets or stock of another entity by the Company
or any of its Subsidiaries (each a “Business Combination”), in
each case, unless, following such Business Combination, (A) all or substantially
all of the individuals and entities who were the Beneficial Owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than fifty percent (50%) of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (B) no Person (excluding any employee
benefit plan (or related trust) of the Company or such corporation resulting
from such Business Combination) beneficially owns, directly or indirectly, fifty
percent (50%) or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination and (C) at least a majority of the members of the Board of
Directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

     

    
      
         

      

      
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    (iii)         Approval
by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

     

    (c)           The
Committee may in its sole discretion, accelerate the date on which any Option
may be exercised and may accelerate the vesting of any Shares subject to any
Option or previously acquired by the exercise of any Option.

     

    9.           Termination of Option
Period.

     

    (a)           Unless
otherwise provided in any Option Agreement, the unexercised portion of any
Option shall automatically and without notice terminate and become null and void
at the time of the earliest to occur of the following:

     

    (i)           three
months after the date on which the Optionee’s Continuous Service is terminated
other than by reason of (A) Cause, (B) a Disability of the Optionee as
determined by a medical doctor satisfactory to the Committee, or (C) death of
the Optionee;

     

    (ii)          immediately
upon the termination of the Optionee’s Continuous Service for
Cause;

     

    (iii)         twelve
months after the date on which the Optionee’s Continuous Service is terminated
by reason of a Disability as determined by a medical doctor satisfactory to the
Committee;

     

    (iv)         (A)
twelve months after the date of termination of the Optionee’s Continuous Service
by reason of the death of the Optionee, or, if later, (B) three months after the
date on which the Optionee shall die if such death shall occur during the one
year period specified in Subsection 9(a)(iii) hereof; or

     

    (v)          The
tenth anniversary of the date of grant of the Option.

     

    
      
         

      

      
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    (b)           To
the extent not previously exercised, (i) each Option shall terminate immediately
in the event of (1) the liquidation or dissolution of the Company, or (2) any
reorganization, merger, consolidation or other form of corporate transaction in
which either the Company does not survive or the Shares are exchanged for or
converted into securities issued by another entity, unless the successor or
acquiring entity, or an affiliate thereof, assumes the Option or substitutes an
equivalent option or right pursuant to Section 10(c) hereof, and (ii) the
Committee in its sole discretion may by written notice (“cancellation notice”) cancel,
effective upon the consummation of any Business Combination described in
Subsection 8(b)(iii) hereof, any Option that remains unexercised on the
effective date of that Business Combination.  The Committee shall give
written notice of any proposed transaction referred to in this Section 9(b) a
reasonable period of time prior to the closing date for such transaction (which
notice may be given either before or after approval of such transaction), in
order that Optionees may have a reasonable period of time prior to the closing
date of such transaction within which to exercise any Options that then are
exercisable (including any Options that may become exercisable upon the closing
date of such transaction).  An Optionee may condition his exercise of
any Option upon the consummation of a transaction referred to in this Section
9(b).

     

    10.         Adjustment of
Shares.

     

    (a)           If
at any time while the Plan is in effect or unexercised Options are outstanding,
there shall be any increase or decrease in the number of issued and outstanding
Shares through the declaration of a stock dividend or through any
recapitalization resulting in a stock split-up, combination or exchange of
Shares, then and in that event, the Committee shall make:

     

    (i)           appropriate
adjustment in the maximum number of Shares available for grant under the Plan,
or available for grant to any person under the Plan, so that the same percentage
of the Company’s issued and outstanding Shares shall continue to be subject to
being so optioned; and

     

    (ii)          appropriate
adjustment in the number of Shares and the exercise price per Share thereof then
subject to any outstanding Option, so that the same percentage of the Company’s
issued and outstanding Shares shall remain subject to purchase at the same
aggregate exercise price.

     

    (b)           Unless
otherwise provided in any Option Agreement, the Committee may change the terms
of Options outstanding under this Plan, with respect to the exercise price or
the number of Shares subject to the Options, or both, when, in the sole
discretion of the Committee, such adjustments become appropriate to preserve
benefits under the Plan.

     

    (c)           In
the event of any proposed sale of all or substantially all of the Company’s
assets or any reorganization, merger, consolidation, or other form of corporate
transaction in which the Company does not survive, or in which the Shares are
exchanged for or converted into securities issued by another entity, the
successor or acquiring entity or an affiliate thereof may, with the consent of
the Committee, assume each outstanding Option or substitute an equivalent option
or right.  If the successor or acquiring entity or an affiliate
thereof, does not cause such an assumption or substitution of any Option, then
that Option shall terminate pursuant to Section 9(d) hereof upon consummation of
the sale, merger, consolidation, or other corporate transaction, with or without
consideration as determined by the Committee.  The Committee shall
give written notice of any proposed transaction referred to in this Section
10(c) a reasonable period of time prior to the closing date for such transaction
(which notice may be given either before or after the approval of such
transaction), in order that Participants may have a reasonable period of time
prior to the closing date of such transaction within which to exercise any
Options that are then exercisable (including any Options that may become
exercisable upon the closing date of such transaction).  A Participant
may condition his exercise of any Options upon the consummation of the
transaction.

     

    
      
         

      

      
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    (d)           Except
as otherwise expressly provided herein, the issuance by the Company of shares of
its capital stock of any class, or securities convertible into shares of capital
stock of any class, either in connection with a direct sale or upon the exercise
of rights or warrants to subscribe therefor, or upon conversion of shares or
obligations of the Company convertible into such shares or other securities,
shall not affect, and no adjustment by reason thereof shall be made to, the
number of or exercise price for Shares then subject to outstanding Options
granted under the Plan.

     

    (e)           Without
limiting the generality of the foregoing, the existence of outstanding Options
granted under the Plan shall not affect in any manner the right or power of the
Company to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business; (ii) any merger or consolidation of the Company;
(iii) any issue by the Company of debt securities, or preferred or preference
stock that would rank above the Shares subject to outstanding Options; (iv) the
dissolution or liquidation of the Company; (v) any sale, transfer or assignment
of all or any part of the assets or business of the Company; or (vi) any other
corporate act or proceeding, whether of a similar character or
otherwise.

     

    11.         Transferability. No
Incentive Stock Option, and unless the prior written consent of the Committee is
obtained (which consent may be withheld for any reason) and the transaction does
not violate the requirements of Rule 16b-3 promulgated under the Securities
Exchange Act no Non-Qualified Stock Option, shall be subject to alienation,
assignment, pledge, charge or other transfer other than by the Optionee by will
or the laws of descent and distribution, and any attempt to make any such
prohibited transfer shall be void.  Each Option shall be exercisable
during the Optionee’s lifetime only by the Optionee, or in the case of a
Non-Qualified Stock Option that has been assigned or transferred with the prior
written consent of the Committee, only by the permitted assignee.

     

    In
addition, no Shares acquired by an officer or Director pursuant to the exercise
of an Option may be sold, assigned, pledged or otherwise transferred prior to
the expiration of the six-month period following the date on which the Option
was granted, unless the transaction does not violate the requirements of Rule
16b-3 promulgated under the Securities Exchange Act.

     

    12.         Issuance of
Shares.

     

    (a)           Notwithstanding
any other provision of this Plan, the Company shall not be obligated to issue
any Shares unless it is advised by counsel of its selection that it may do so
without violation of the applicable Federal and State laws pertaining to the
issuance of securities, and may require any stock so issued to bear a legend,
may give its transfer agent instructions, and may take such other steps, as in
its judgment are reasonably required to prevent any such violation.

     

    
      
         

      

      
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    (b)           As
a condition to any sale or issuance of Shares upon exercise of any Option, the
Committee may require such agreements or undertakings as the Committee may deem
necessary or advisable to facilitate compliance with any applicable law or
regulation including, but not limited to, the following:

     

    (i)           a
representation and warranty by the Optionee to the Company, at the time any
Option is exercised, that he is acquiring the Shares to be issued to him for
investment and not with a view to, or for sale in connection with, the
distribution of any such Shares; and

     

    (ii)          a
representation, warranty and/or agreement to be bound by any legends endorsed
upon the certificate(s) for the Shares that are, in the opinion of the
Committee, necessary or appropriate to facilitate compliance with the provisions
of any securities laws deemed by the Committee to be applicable to the issuance
and transfer of those Shares.

     

    13.         Administration of the
Plan.

     

    (a)           The
Plan shall be administered by the Committee which shall be composed of two or
more Directors.  The membership of the Committee shall be constituted
so as to comply at all times with the then applicable requirements for
“non-employee directors” under Rule 16b-3 promulgated under the Securities
Exchange Act and “outside directors” under Section 162(m) of the
Code.  The Committee shall serve at the pleasure of the Board and
shall have the powers designated herein and such other powers as the Board may
from time to time confer upon it.

     

    (b)           Any
and all decisions or determinations of the Committee shall be made either (i) by
a majority vote of the members of the Committee at a meeting or (ii) without a
meeting by the unanimous written approval of the members of the
Committee.

     

    (c)           The
Committee, from time to time, may adopt rules and regulations for carrying out
the purposes of the Plan.

     

    (d)           The
determinations of the Committee, and its interpretation and construction of any
provision of the Plan or any Option Agreement, shall be final and binding on all
persons, unless determined otherwise by the Board.

     

    14.         Withholding or Deduction for
Taxes.  If
at any time specified herein for the making of any issuance or delivery of any
Option or Shares to any Optionee, any law or regulation of any governmental
authority having jurisdiction in the premises shall require the Company or a
Related Entity to withhold, or to make any deduction for, any taxes or to take
any other action in connection with the issuance or delivery then to be made,
the issuance or delivery shall be deferred until the withholding or deduction
shall have been provided for by the Optionee or beneficiary, or other
appropriate action shall have been taken.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    15.         Interpretation.

     

    (a)           As
it is the intent of the Company that the Plan shall comply in all respects with
Rule 16b-3 promulgated under the Securities Exchange Act (“Rule 16b-3”), any
ambiguities or inconsistencies in construction of the Plan shall be interpreted
to give effect to such intention, and if any provision of the Plan is found not
to be in compliance with Rule 16b-3, such provision shall be deemed null and
void to the extent required to permit the Plan to comply with Rule
16b-3.  The Committee may from time to time adopt rules and
regulations under, and amend, the Plan in furtherance of the intent of the
foregoing.

     

    (b)           The
Plan and any Option Agreements entered into pursuant to the Plan shall be
administered and interpreted so that all Incentive Stock Options granted under
the Plan will qualify as Incentive Stock Options under Section 422 of the
Code.  If any provision of the Plan or any  Option Agreement
relating to an Incentive Stock Option should be held invalid for the granting of
Incentive Stock Options or illegal for any reason, that determination shall not
affect the remaining provisions hereof, but instead the Plan and the Option
Agreement shall be construed and enforced as if such provision had never been
included in the Plan or the Option Agreement.

     

    (c)           This
Plan shall be governed by the laws of the State of Delaware, without reference
to the conflict of laws rules or principals thereof.

     

    (d)           Headings
contained in this Plan are for convenience only and shall in no manner be
construed as part of this Plan.

     

    (e)           Any
reference to the masculine, feminine, or neuter gender shall be a reference to
such other gender as is appropriate.

     

    16.         Amendment and
Discontinuation of the Plan.  The
Committee may from time to time amend, suspend or terminate the Plan or any
Option; provided, however, that, any amendment to the Plan shall be subject to
the approval of the Company’s shareholders if such shareholder approval is
required by any applicable federal or state law or regulation (including,
without limitation, Rule 16b-3 or to comply with Section 162(m) of the Code) or
the rules of any stock exchange or automated quotation system on which the
Common Stock may then be listed or granted.  Except to the extent
provided in Sections 9 and 10 hereof, no amendment, suspension or termination of
the Plan or any Option issued hereunder shall substantially impair the rights or
benefits of any Optionee pursuant to any Option previously granted without the
consent of the Optionee.

     

    17.         Effective Date and
Termination Date.  The
effective date of the Plan is the Effective Date, and the Plan shall terminate
on the 10th
anniversary of the Effective Date.  This Plan shall be submitted to
the shareholders of the Company for their approval and adoption and Options
hereunder may be granted prior to such approval and adoption; provided, however,
that any Incentive Stock Options granted hereunder, and if but only to the
extent otherwise required by law or the rules of any stock exchange or automated
quotation system on which the Common Stock may be listed, any Non-Qualified
Stock Options granted hereunder, prior to such approval and adoption shall be
contingent upon obtaining such approval and adoption.

    
      
         

      

      
        12STATE
OF WASHINGTON

     

    CERTIFICATE
OF DESIGNATIONS

    OF

    RIGHTS
AND PREFERENCES

    OF

    SERIES
G CONVERTIBLE PREFERRED STOCK

     

    Pursuant
to Title 23B of the Washington Business Corporation Act (the “WBCA”), the undersigned
corporation hereby executes the following Certificate of
Designations:

     

    FIRST:
The name of the Corporation is Geos Communications, Inc., a Washington
corporation.

     

    SECOND:
The Corporation is authorized to issue 500,000,000 shares of common stock, no
par value per share, and 5,000,000 shares of preferred stock, no par value per
share.

     

    THIRD:
The Certificate of Designations of Rights and Preferences of Series G
Convertible Preferred Stock is attached hereto as Exhibit A (the “Certificate of
Designations”).   The Certificate of Designations was
adopted and approved by the Board of Directors of the Corporation at a meeting
held on February 12, 2010.  No shareholder action was
required.

     

    FOURTH:
This Certificate of Designations does not call for an increase or decrease in
the total number of shares of preferred stock authorized in the Corporation’s
Articles of Incorporation.

     

    IN
WITNESS WHEREOF, said Corporation has caused this Certificate of Designations to
be signed by a duly authorized officer, this 16th day of February,
2010.

     

    
      
        
          	 
      	
                  GEOS
      COMMUNICATIONS, INC.

                
	 	 
	 
      	
                  By:

                	
                  /s/ Christopher
  Miltenberger

                
	 
      	 
      	
                   Christopher
      Miltenberger

                
	 
      	 
      	
                   President
      and Chief Operating
Officer

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CERTIFICATE
OF DESIGNATIONS

    OF

    RIGHTS
AND PREFERENCES

    OF

    PREFERRED
STOCK SERIES G

    GEOS
COMMUNICATIONS, INC.

     

    February
16, 2010

     

    (1)           Designation and
Dividends.

     

    (a)           Designation.  Geos
Communications, Inc. (the “Company”), pursuant to the
resolutions of its Board of Directors (the “Board of Directors”) adopted
as of February 12, 2010, creates and designates Twenty Thousand (20,000) shares
of the Company’s previously authorized preferred stock, no par value per share,
as Preferred Stock Series G (the “Series G Preferred
Shares”). The voting power,
designations, preferences and rights of the Series G Preferred Shares are as set
forth below.

     

    (b)           Dividends.  The
holders of the Series G Preferred Shares shall be entitled to receive dividends
(“Dividends”) payable on
the Stated Value (as defined below) of such Series G Preferred Share at the
Dividend Rate (as defined below), which shall be cumulative and shall accrue
daily from the Issuance Date (as defined below) and be due and payable on the
third (3rd)
anniversary of the Initial Issuance Date (the “Dividend Date”). The form of dividend
payments to each holder of the Series G Preferred Shares shall be made at the
election of the Company either in cash or shares of Common Stock (as defined
below) which shall be valued solely for such purpose at the Weighted Average
Price (as defined below) for the Twenty Day Period (as defined below)
immediately prior to the Dividend Date.

     

    (2)           Conversion of Series G
Preferred Shares.  Series G Preferred Shares shall be
convertible into shares of Common Stock on the terms and conditions set forth in
this Section
2.

     

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

     

    (i)           “AMEX” means the American Stock
Exchange.

     

    (ii)         “Automatic Conversion Date”
means the Business Day following the last day of the Twenty Day Period during
which each Milestone is satisfied during each day of such Twenty Day Period.

     

    (iii)        “Bloomberg” means Bloomberg Financial
Markets.

     

    (iv)        “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.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (v)          “Closing Bid Price” means, for the Common
Stock as of any date, the last closing bid price for such security on the
Principal Market as reported by Bloomberg, or if the Principal Market begins to
operate on an extended hours basis, and does not designate the closing bid
price, then the last bid price at 4:00:00 p.m., New York City Time, as reported
by Bloomberg, or if the foregoing do not apply, the last closing bid price of
such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg, or, if no closing bid price is
reported for such security by Bloomberg, the last closing trade price for such
security as reported by Bloomberg, or, if no last closing trade price is
reported for such security by Bloomberg, the average of the bid prices of any
market makers for such security as reported in the “pink sheets” by Pink Sheets
LLC (formerly the National Quotation Bureau, Inc.).  If the
Closing Bid Price cannot be calculated for such security on such date on any of
the foregoing bases, the Closing Bid Price of such security on such date shall
be the fair market value determined in good faith by the Company.

     

    (vi)        “Common Stock” means the common
stock of the Company, no par value.

     

    (vii)       “Conversion Price” means, with respect to
the Series G Preferred Shares, as of any Conversion Date or other date of
determination, $0.50, subject to adjustment as provided herein.

     

    (viii)      “Dividend Rate” means prior to and
including the third (3rd)
anniversary of the Initial Issuance Date, 6.00% per annum.

     

    (ix)         “Initial Issuance Date” means the first date of
issuance of any of the Series G Preferred Shares.

     

    (x)          “Issuance
Date” means, with respect to each Series G
Preferred Share, the date of issuance of the applicable Series G Preferred
Share.

     

    (xi)         “Milestones” means (A) 180 days
have passed from the applicable Issuance Date; (B) the Common Stock underlying
the applicable Series G Preferred Share is available for sale under Rule 144 of
the Securities Act of 1933, as amended; (C) the Closing Bid Price of the Common
Stock is greater than $1.00, as adjusted for stock splits, stock dividends,
recapitalizations, combinations, reverse stock splits or other similar events)
for a Twenty Day Period, as determined in accordance with the Weighted Average
Price; and (D) the total volume of shares of Common Stock traded shall be in
excess of 500,000 shares, as adjusted for stock splits, stock dividends,
recapitalizations, combinations, reverse stock splits or other similar events)
for a Twenty Day Period; provided however, if condition (D) is not met, then the
amount of Series G Preferred Shares otherwise convertible shall be pro-rated to
the percentage of 500,000 shares traded during the Twenty Day Period immediately
prior to the Automatic Conversion Date.

     

    (xii)        “NYSE” means The New York Stock
Exchange.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (xiii)       “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization and a government or any department or
agency thereof.

     

    (xiv)       “Principal Market” means any of
the OTC Bulletin Board, AMEX, NYSE, the NASDAQ National Market or The NASDAQ
SmallCap Market.

     

    (xv)       “SEC” means the Securities and
Exchange Commission.

     

    (xvi)      “Stated Value” means
$1,000.

     

    (xvii)      “Twenty Day Period” means an
applicable twenty (20) consecutive trading days.

     

    (xviii)     “Weighted Average Price” means the dollar
volume-weighted average price for Common Stock on the Principal Market during
the period beginning at 9:30:01 a.m., New York City Time, and ending at 4:00:00
p.m., New York City Time, as reported by Bloomberg through its “Volume at Price”
function or, if the foregoing does not apply, the dollar volume-weighted average
price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01 a.m., New York
City Time, and ending at 4:00:00 p.m., New York City Time, as reported by
Bloomberg, or, if no dollar volume-weighted average price is reported for such
security by Bloomberg for such hours, the average of the highest closing bid
price and the lowest closing ask price of any of the market makers for such
security as reported in the “pink sheets” by Pink Sheets LLC (formerly the
National Quotation Bureau, Inc.).  If the Weighted Average Price
cannot be calculated for such security on such date on any of the foregoing
bases, the Weighted Average Price of such security on such date shall be the
fair market value determined in good faith by the Company.  All such
determinations shall be appropriately adjusted for any stock dividend, stock
split or other similar transaction during such period.

     

    (b)           Holder’s Optional Conversion
Right; Automatic Conversion.

     

    (i)           Subject
to the provisions of Section 10, at any
time or times on or after the Issuance Date, any holder of Series G Preferred
Shares shall be entitled to convert any whole or fractional number of Series G
Preferred Shares into fully paid and nonassessable shares of Common Stock in
accordance with Section 2(d) at the
Conversion Rate (as defined below).

     

    (ii)         The
Company shall not issue any fraction of a share of Common Stock upon any
conversion.  All shares of Common Stock (including fractions thereof)
issuable upon conversion of more than one Series G Preferred Share by a holder
thereof shall be aggregated for purposes of determining whether the conversion
would result in the issuance of a fraction of a share of Common Stock. If, after
the aforementioned aggregation, 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 nearest whole share.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (c)           Conversion.  The
number of shares of Common Stock issuable upon conversion of each Series G
Preferred Share pursuant to Section 2(b) shall be
determined according to the following formula (the “Conversion
Rate”):

     

    Stated
Value

    Conversion
Price

     

    (d)           Mechanics of
Conversion.  The conversion of Series G Preferred Shares shall
be conducted in the following manner:

     

    (i)           Holder’s Delivery
Requirements.  To convert Series G Preferred Shares into shares
of Common Stock on any date (the “Conversion Date”), the holder thereof shall
(A) transmit by facsimile (or otherwise deliver), for receipt on or prior to
11:59 p.m., New York City Time, on such date, a copy of a properly completed
notice of conversion executed by the registered holder of the Series G Preferred
Shares subject to such conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company and the
Company’s designated transfer agent (the “Transfer Agent”) and (B) if
required by Section
2(d)(vii), surrender to a common carrier for delivery to the Company as
soon as practicable following such date the original certificates representing
the Series G Preferred Shares being converted (the “Preferred Stock
Certificates”).

     

    (ii)         Company’s
Response.  Upon receipt by the Company of copy of a Conversion
Notice, the Company shall (I) as soon as practicable send, via facsimile, a
confirmation 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
hereof and (II) on or before the tenth (10th)
Business Day following the date of receipt by the Company of such Conversion
Notice, (A) issue and deliver to the address as specified in the Conversion
Notice, a certificate, registered in the name of the holder or its designee, for
the number of shares of Common Stock to which the holder shall be entitled, or
(B) provided the Transfer Agent is participating in the DTC Fast Automated
Securities Transfer Program, upon the request of the holder, credit such
aggregate number of shares of Common Stock to which the holder shall be entitled
to the holder’s or its designee’s balance account with DTC through its Deposit
Withdrawal Agent Commission system. If the number of Series G Preferred Shares
represented by the Preferred Stock Certificate(s) submitted for conversion is
greater than the number of Series G Preferred Shares being converted, then the
Company shall, as soon as practicable and in no event later than ten (10)
Business Days after receipt of the Preferred Stock Certificate(s) and at its own
expense, issue and deliver to the holder a new Preferred Stock Certificate
representing the number of Series G Preferred Shares not
converted.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (iii)        Dispute
Resolution.  In the case of a dispute as to the determination
of the arithmetic calculation of the Conversion Rate, the Company shall instruct
the Transfer Agent to issue to the holder the number of shares of Common Stock
that is not disputed and shall transmit an explanation of the disputed
arithmetic calculations to the holder via facsimile within two (2) Business Days
of receipt of such holder’s Conversion Notice or other date of
determination.  If such holder and the Company are unable to agree
upon the determination of the arithmetic calculation of the Conversion Rate
within two (2) Business Days of such disputed arithmetic calculation being
transmitted to the holder, then the Company shall within one (1) Business Day
submit via facsimile the disputed arithmetic calculation of the Conversion Rate
to the Company’s independent, outside accountant. The Company shall cause, at
the Company’s expense, the accountant to perform the calculations and notify the
Company and the holder of the results no later than two (2) Business Days from
the time it receives the disputed calculations. Such accountant’s determination
or calculation, as the case may be, shall be binding upon all parties absent
error.

     

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

     

    (v)         Pro Rata
Conversion.  Subject to Section 10, in the
event the Company receives a Conversion Notice from more than one holder of
Series G Preferred Shares for the same Conversion Date and the Company can
convert some, but not all, of such Series G Preferred Shares, the Company shall
convert from each holder of Series G Preferred Shares electing to have Series G
Preferred Shares converted at such time a pro rata amount of such holder’s
Series G Preferred Shares submitted for conversion based on the number of Series
G Preferred Shares submitted for conversion on such date by such holder relative
to the number of Series G Preferred Shares submitted for conversion on such
date.

     

    (vi)        Automatic
Conversion.

     

    (A)           If
at any time each of the Milestones is met for a Twenty Day Period, then each
Series G Preferred Share then outstanding (or such lesser amount as provided in
(B) below) shall, in accordance with this Section, automatically convert into
Common Stock at the Conversion Rate on the Automatic Conversion Date, without
the holder of such Series G Preferred Share being required to give a Conversion
Notice (a “Milestone
Conversion”).

     

    (B)           In
the event of a Milestone Conversion, the outstanding Series G Preferred Shares
(or the pro-rated portion of those shares available for conversion in the event
less than 500,000 shares of Common Stock trade during the Twenty Day Period, as
adjusted for stock splits, stock dividends, recapitalizations, combinations,
reverse stock splits or other similar events) shall automatically convert into
shares of Common Stock on the Automatic Conversion Date as if the holder of the
Series G Preferred Shares had delivered a Conversion Notice with respect to the
Series G Preferred Shares.  Upon the Milestone Conversion, the Company
shall deliver written notice to each holder of Series G Preferred Shares
outstanding on such date, which shall specify the
aggregate principal amount of the Series G Preferred Shares converted and the
holder’s pro rata principal amount of such aggregate minus any principal amount
the holder actually converted during the Twenty Day Period prior to the
Automatic Conversion Date.  Promptly following the Automatic
Conversion Date, all holders of Series G Preferred Shares shall surrender all
Preferred Stock Certificates representing such Series G Preferred Shares, duly
endorsed for cancellation, to the Company.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (vii)       Redemption by the
Company.  At any time on or after the third (3rd)
anniversary of the Initial Issuance Date, upon the written request of any holder
(which written request shall contain certificates for the Series G Preferred
Shares to be redeemed) (the “Redemption Notice”), the
Company shall redeem all of the outstanding Series G Preferred Shares requested
to be redeemed by such holder (an “Optional Redemption”) for an
amount in cash per Series G Preferred Share equal to $1,000 plus any accrued but
unpaid dividends thereon (the “Redemption Price”). Within twenty (20) days
following the Company’s receipt of a Redemption Notice, the Company shall pay to
such requesting holder the Redemption Price for the Series G Preferred Shares
being redeemed, by wire transfer of immediately available funds to an account
designated in writing by such holder.

     

    (viii)      Book-Entry.  Unless
otherwise specifically required herein, upon conversion of Series G Preferred
Shares in accordance with the terms hereof, the holder thereof shall not be
required to physically surrender the certificate representing the Series G
Preferred Shares to the Company unless the full or remaining number of Series G
Preferred Shares represented by the certificate are being converted. The holder
and the Company shall maintain records showing the number of Series G Preferred
Shares so converted and the dates of such conversions or shall use such other
method, reasonably satisfactory to the holder and the Company, so as not to
require physical surrender of the certificate representing the Series G
Preferred Shares upon each such conversion. In the event of any dispute or
discrepancy, such records of the Company establishing the number of Series G
Preferred Shares to which the record holder is entitled shall be controlling and
determinative in the absence of manifest error. Notwithstanding the foregoing,
if Series G Preferred Shares represented by a certificate are converted as
aforesaid, the holder may not transfer the certificate representing the Series G
Preferred Shares unless the holder first physically surrenders the certificate
representing the Series G Preferred Shares to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the holder a new certificate
of like tenor, registered as the holder may request, representing in the
aggregate the remaining number of Series G Preferred Shares represented by such
certificate. The holder and any assignee, by acceptance of a certificate,
acknowledge and agree that, by reason of the provisions of this paragraph,
following conversion of any Series G Preferred Shares, the number of Series G
Preferred Shares represented by such certificate may be less than the number of
Series G Preferred Shares stated on the face thereof. Each certificate for
Series G Preferred Shares shall bear the following legend:

     

    ANY
TRANSFEREE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE
COMPANY’S CERTIFICATE OF DESIGNATIONS RELATING TO THE PREFERRED SHARES
REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 2(d)(viii) THEREOF. THE
NUMBER OF PREFERRED SHARES REPRESENTED BY
THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF PREFERRED SHARES STATED ON THE
FACE HEREOF PURSUANT TO SECTION 2(d)(viii) OF THE CERTIFICATE OF DESIGNATIONS
RELATING TO THE PREFERRED SHARES REPRESENTED BY THIS
CERTIFICATE.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

     

    (f)           Adjustments to Conversion
Price.  The Conversion Price will be subject to adjustment from
time to time as provided in this Section
2(f).

     

    (i)           Adjustment of Standard
Conversion Price Upon Subdivision or Combination of Common
Stock.  If the Company at any time subdivides (by any stock
split, stock dividend, recapitalization or otherwise) 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. If the
Company at any time combines (by combination, reverse stock split or otherwise)
its outstanding shares of Common Stock into a smaller number of shares and the
Conversion Price in effect immediately prior to such combination will be
proportionately increased.

     

    (ii)         Other Events. If any
event occurs of the type contemplated by the provisions of this Section 2(f) but not
expressly provided for by such provisions, then the Board of Directors will make
an appropriate adjustment in the Conversion Price so as to protect the rights of
the holders of the Series G Preferred Shares; provided that no such adjustment
will increase the Conversion Price as otherwise determined pursuant to this
Section
2(f).

     

    (iii)        Notices.

     

    (A)           Promptly
upon any adjustment of the Conversion Price pursuant to this Section 2(f), the
Company will give written notice thereof to each holder of Series G Preferred
Shares, setting forth in reasonable detail, and certifying, the calculation of
such adjustment. In the case of a dispute as to the determination of such
adjustment, then such dispute shall be resolved in accordance with the
procedures set forth in Section
2(d)(iii).

     

    (B)           The
Company will give written notice to each holder of Series G Preferred Shares at
least ten (10) Business Days prior to the date on which the Company closes its
books or takes a record (I) with respect to any dividend or distribution upon
the Common Stock and (II) for determining rights to vote with respect to any
Organic Change (as defined in Section 3(a)),
dissolution or liquidation, provided that such information shall be made known
to the public prior to or in conjunction with such notice being provided to such
holder.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (C)           The
Company will also give written notice to each holder of Series G Preferred
Shares at least ten (10) Business Days prior to the date on which any Organic
Change, dissolution or liquidation will take place, provided that such
information shall be made known to the public prior to or in conjunction with
such notice being provided to such holder.

     

    (3)           Reorganization,
Reclassification, Consolidation, Merger or Sale.  Any
recapitalization, reorganization, reclassification, consolidation, merger, sale
of all or substantially all of the Company’s assets to another Person or other
transaction which is effected in such a way that holders of Common Stock are
entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for Common Stock is referred
to herein as “Organic
Change.” Prior to the
consummation of any (i) sale of all or substantially all of the Company’s
assets to an
acquiring Person or (ii) other Organic Change following which the Company is not
a surviving entity, the Company will secure from the Person purchasing such
assets or the successor, or, if applicable, the parent of the successor,
resulting from such Organic Change (in each case, the “Acquiring Entity”) a written
agreement (in form and substance reasonably satisfactory to the holders of at
least two-thirds of the Series G Preferred Shares then outstanding) to deliver
to each holder of Series G Preferred Shares in exchange for such shares, a
security of the Acquiring Entity evidenced by a written instrument substantially
similar in form and substance to the Series G Preferred Shares, including,
without limitation, having a stated value and liquidation preference equal to
the Stated Value and the liquidation preference of the Series G Preferred Shares
held by such holder (except that such security may be pari passu, with but not
junior to, any capital stock of such Acquiring Entity). Prior to the
consummation of any other Organic Change not governed by the preceding sentence,
the Company shall make appropriate provision to insure that each of the holders
of the Series G Preferred Shares will thereafter have the right to acquire and
receive in lieu of or in addition to (as the case may be) the shares of Common
Stock immediately theretofore acquirable and receivable upon the conversion of
such holder’s Series G Preferred Shares such shares of stock, securities or
assets that would have been issued or payable in such Organic Change with
respect to or in exchange for the number of shares of Common Stock which would
have been acquirable and receivable upon the conversion of such holder’s Series
G Preferred Shares as of the date of such Organic Change (without taking into
account any limitations or restrictions on the convertibility of the Series G
Preferred Shares).

     

    (4)           Reservation of
Shares.  The Company shall, so long as any of the Series G
Preferred Shares are outstanding, take all action necessary to reserve and keep
available out of its authorized and unissued Common Stock, solely for the
purpose of effecting the conversions of the Series G Preferred Shares, such
number of shares of Common Stock as shall from time to time be sufficient to
effect the conversion of all of the Series G Preferred Shares then outstanding.
The initial number of shares of Common Stock reserved for conversions of the
Series G Preferred Shares and each increase in the number of shares so reserved
shall be allocated pro rata among the holders of the Series G Preferred Shares
based on the number of Series G Preferred Shares held by each holder at the time
of issuance of the Series G Preferred Shares or increase in the number of
reserved shares, as the case may be. In the event a holder shall sell or
otherwise transfer any of such holder’s Series G Preferred Shares, each
transferee shall be allocated a pro rata portion of the number of reserved
shares of Common Stock reserved for such transferor. Any shares of Common Stock
reserved and allocated to any Person which ceases to hold any Series G Preferred
Shares shall be allocated to the remaining holders of Series G Preferred Shares,
pro rata based on the number of Series G Preferred Shares then held by such
holders.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (5)           Voting
Rights.  Except as otherwise provided in this Certificate of
Designations, each holder of Series G Preferred Shares shall be entitled to vote
on all matters submitted for a vote of the holders of Common Stock a number of
votes equal to the number of full shares of Common Stock into which such
holder’s shares of Series G Preferred Shares could then be converted pursuant to
the provisions of Section 2(c)
(regardless of whether or not such shares could legally be converted at such
time), such number to be determined as of the record date for the determination
of holders of Common Stock entitled to vote on any such matter, or, if no record
date is fixed, then the record date for determination of holders of Series G
Preferred Shares entitled to vote at a meeting of stockholders shall be at the
close of business on the day next preceding the day on which such meeting is
held.  Except as otherwise required in this Certificate of Designation
or by the WBCA, the holders of the Series G Preferred Shares shall vote with the
holders of outstanding Common Stock and any other preferred shares entitled to
vote on any such matter, and not as a separate class or series.

     

    (6)           Liquidation, Dissolution
Winding-Up. In the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company, the holders of the Series G Preferred
Shares 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
shareholders (the “Liquidation
Funds”), before any amount shall
be paid to the holders of any of the capital stock of the Company of any class
junior in rank to the Series G Preferred Shares in respect of the preferences as
to distributions and payments on the liquidation, dissolution and winding up of
the Company, an amount per Series G Preferred Share equal to the Stated Value;
provided that, if the Liquidation Funds are insufficient to pay the full amount
due to the holders of Series G Preferred Shares and holders of shares of other
classes or series of preferred stock of the Company that are of equal rank with
the Series G Preferred Shares as to payments of Liquidation Funds (the “Pari Passu Shares”), then each
holder of Series G Preferred Shares and Pari Passu Shares shall receive a
percentage of the Liquidation Funds equal to the full amount of Liquidation
Funds payable to such holder as a liquidation preference, in accordance with
their respective Certificate of Designations, Preferences and Rights, as a
percentage of the full amount of Liquidation Funds payable to all holders of
Series G Preferred Shares and Pari Passu Shares. The purchase or redemption by
the Company of stock of any class, in any manner permitted by law, shall not,
for the purposes hereof, be regarded as a liquidation, dissolution or winding up
of the Company. Neither the consolidation or merger of the Company with or into
any other Person, nor the sale or transfer by the Company of less than
substantially all of its assets, shall, for the purposes hereof, be deemed to be
a liquidation, dissolution or winding up of the Company.

     

    (7)           Preferred
Rank.  Other than the Company’s Series F Preferred Shares,
which shall rank pari passu with the Series G Preferred Shares, and any other
securities of the Company designated by the Company as ranking senior or pari
passu with the Series G Preferred Shares, all shares of Common Stock and any
other equity securities of the Company shall be of junior rank to all Series G
Preferred Shares with respect to the preferences as to dividends, distributions
and payments upon the liquidation, dissolution and winding up of the Company.
The rights of the shares of Common Stock and other equity securities of the
Company shall be
subject to the preferences and relative rights of the Series G Preferred
Shares.  In the event of the merger or consolidation of the Company
with or into another corporation, the Series G Preferred Shares shall maintain
their relative powers, designations and preferences provided for herein and no
merger shall result which is inconsistent therewith.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (8)           Vote to Change the Terms of
or Issue Series G Preferred Shares.  The affirmative vote at a
meeting duly called for such purpose or the written consent without a meeting of
the holders of not less than a majority of the Series G Preferred Shares then
outstanding shall be required for any change to this Certificate of Designations
or the Company’s Articles of Incorporation which would amend, alter, change or
repeal any of the powers, designations, preferences and rights of the Series G
Preferred Shares, whether by merger, consolidation or otherwise.

     

    (9)           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 Preferred Stock Certificates representing the Series G
Preferred Shares, and, in the case of loss, theft or destruction, of an
indemnification undertaking by the holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of the Preferred
Stock Certificate(s), the Company shall execute and deliver new preferred stock
certificate (s) of like tenor and date; provided, however, the Company shall not
be obligated to re-issue preferred stock certificates if the holder
contemporaneously requests the Company to convert such Series G Preferred Shares
into Common Stock.

     

    (10)        Remedies
Characterizations.  The remedies provided in this Certificate
of Designations shall be cumulative and in addition to all other remedies
available under this Certificate of Designations, at law or in equity (including
a decree of specific performance and/or other injunctive relief). No remedy
contained herein shall be deemed a waiver of compliance with the provisions
giving rise to such remedy. Nothing herein shall limit a holder’s right to
pursue actual damages for any failure by the Company to comply with the terms of
this Certificate of Designations. The Company covenants to each holder of Series
G Preferred Shares 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 the holder thereof
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 of the Series G Preferred Shares 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, the holders of the Series G Preferred
Shares shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required.

     

    (11)        Construction.  This
Certificate of Designations shall be deemed to be jointly drafted by the Company
and all holders of Series G Preferred Shares and shall not be construed against
any Person as the drafter hereof.

     

    (12)        Failure or Indulgence not
Waiver.  No failure or delay on the part of a holder of Series
G Preferred Shares 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.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (13)        Notice.  Whenever
notice is required to be given under this Certificate of Designations, unless
otherwise provided herein, such notice shall be deemed to be sufficiently given
for all purposes by being sent as registered or certified mail, return receipt
requested, postage prepaid, in the case of the Company to its then current
principal place of business and to a holder of Series G Preferred Shares to the
address for such holder as set forth in the books and records of the
Company.  Such notice shall be deemed received on the third business
day following the date on which it is so mailed.

     

    (14)        Transfer of Series G
Preferred Shares.  The Series G Preferred Shares may not be
transferred except in a transaction which is in compliance with the Securities Act of 1933, as
amended (the “Securities
Act”) and any applicable state or other securities laws (“State Acts”).  It
shall be a condition to any transfer of the Series G Preferred Shares that the
Company shall be furnished with an opinion of counsel, which counsel and opinion
shall be reasonably satisfactory to the Company, to the effect that the proposed
transfer would be in compliance with the Securities Act and State
Acts.

     

    (15)        Series G 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 of the Series G Preferred Shares), a register
for the Series G Preferred Shares, in which the Company shall record the name
and address of the Persons in whose name the Series G 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 Series G Preferred Share 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.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    EXHIBIT
I

    GEOS
COMMUNICATIONS, INC. CONVERSION NOTICE

     

    Reference
is made to the Certificate of Designation of Rights and Preferences of Preferred
Stock Series G of Geos Communications, Inc. (the “Certificate of
Designations”). In accordance with and
pursuant to the Certificate of Designations, the undersigned hereby elects to convert the number of
shares of Preferred Stock Series G, no par value per share (the “Series G Preferred
Shares”), of
Geos Communications, Inc., a Washington
corporation (the “Company”), indicated below into
shares of Common Stock, no par value per share (the “Common Stock”), of the Company, as of
the date specified below.

     

    
      
        
          
            
              
                
                  	
                          Date
      of Conversion:

                        	 
      

                

              

            

          

        

      

    

     

    
      
        
          
            
              	
                      Number
      of Series G Preferred Shares to be converted:

                    	 
      

            

          

        

      

    

     

    
      
        
          
            
              	
                      Stock
      certificate no(s). of Series G Preferred Shares to be
      converted:

                    	 
      

            

          

        

      

    

     

    
      
        
          
            
              
                	
                        Tax
      ID Number (If applicable):

                      	 
      

              

            

          

        

      

    

     

    
      
        
          
            
              	
                      Please
      confirm the following information:

                    	 
      

            

          

        

      

    

     

    
      
        
          
            
              	
                      Conversion
      Price:

                    	 
      

            

          

        

      

    

     

    
      
        
          
            
              	
                      Number
      of shares of Common Stock to be issued:

                    	 
      

            

          

        

      

    

     

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

     

    
      
        
          
            	
                    Issue
      to:

                  	 
      

          

        

      

    

     

    
      
        
          
            	
                    Address:

                  	 
      

          

        

      

    

     

    
      
        
          
            
              
                
                  	
                          Telephone
      Number:

                        	 
      

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                	
                        Facsimile
      Number:

                      	 
      

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  	
                          Authorization:

                        	 
      

                

              

            

          

        

      

    

     

    
      
        
          	
                  By:

                	 
      

        

      

    

     

    
      
        
          	
                  Title:

                	 
      

        

      

    

     

    
      
        
          	
                  Dated:

                	 
      

        

      

    

     

    
      
        
          
            	
                    Account
      Number (if electronic book entry transfer):

                  	 
      

          

        

      

    

     

    
      
        
          
            	
                    Transaction
      Code Number (if electronic book entry transfer):

                  	 
      

          

        

      

    

    
      
         

      

      
        I-1

        
          

        

      

      
         

      

    

    [NOTE
TO HOLDER - THIS FORM MUST BE SENT CONCURRENTLY TO TRANSFER AGENT]

     

    ACKNOWLEDGMENT

     

    The
Company hereby acknowledges this Conversion Notice and hereby directs
Continental Stock Transfer & Trust Company to issue the above indicated
number of shares of Common Stock.

     

    
      
        
          
            	 
      	
                    GEOS
      COMMUNICATIONS, INC.

                  
	 	 
	 
      	
                    By;

                  	 
      
	 
      	
                    Name:

                  	 
      
	 
      	
                    Title:

                  	 
      

          

        

      

    

    
      
         

      

      
        I-2

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