Document:

Form of Indemnification Agreement

 Exhibit 10.2 
  
 INDEMNIFICATION AGREEMENT 
  
 Indemnification Agreement (“Agreement”) is dated as of
                    , 2005 between AnnTaylor Stores Corporation, a Delaware corporation (the “Company”), and
                             (“Indemnitee”). 
  
 RECITALS 
  
 WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors or in other
capacities unless they are provided with adequate protection through insurance and/or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation.

  
 WHEREAS, the Delaware General Corporation Law
(“DGCL”), expressly provides that the indemnification provisions set forth therein are not exclusive, and thereby contemplates that contracts may be entered into between the Company and members of the board of directors, officers and
others with respect to indemnification. 
  
 WHEREAS, it is
reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the
Company free from undue concern that they will not be so indemnified. 
  
 WHEREAS, Indemnitee may not be willing to serve as a director without the additional protection provided for under this/her Agreement, and the Company desires Indemnitee to serve in such capacity and Indemnitee is willing to serve and
continue to serve on the condition that he/she be so indemnified; 
  
 NOW, THEREFORE, the Company and Indemnitee do hereby agree as follows: 
  
 1. SERVICES TO THE COMPANY. Indemnitee will serve, or continue to serve, at the will of the Company in accordance with the Company’s Bylaws, as a director of the Company for so long as Indemnitee is duly
elected or appointed or until Indemnitee tenders his/her resignation. 
  
 2. DEFINITIONS. As used in this/her Agreement: 
  
 (a) “Action” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed
proceeding, whether brought in the right of the Company or otherwise, and whether of a civil, criminal, administrative or investigative nature. 

 (b) “Board” means the Board of Directors of the Company. 
  
 (c) A “Change in Control” shall be deemed to occur upon the
earliest to occur after the date of this/her Agreement of any of the following events: 
  
 (i) any “person,” as such term is used in Section 13(d) and 14(d) of the Exchange Act, other than (1) the Company, (2) any trustee or other fiduciary holding securities under an employee benefits plan of the
Company, or (3) any corporation owned, directly or indirectly, by the stockholders of the Company (in substantially the same proportion as their ownership of shares) (a “Person”) is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding voting securities; 
  
 (ii) during any period of not more than two consecutive years, individuals
who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (iii) or (iv) of
this/her Section 2(c)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof; 
  
 (iii) there is consummated a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or parent entity) more than 80% of the combined voting
power of the voting securities of the Company or such surviving or parent entity outstanding immediately after such merger or consolidation; or 
  
 (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or there is consummated the sale or disposition of all or
substantially all of the assets of the Company and its subsidiaries taken as a whole (or any transaction having a similar effect). 
  
 (d) “Corporate Status” describes a person who is or was serving as a director or agent of the Company or, at the request of the Company,
as a director, officer, employee or agent of any other Enterprise. References to “serving at the request of the Company” shall include, without limitation, any service as a director, officer, employee or agent of the Company which
imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries. 
  

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 (e) “Disinterested Director” means a director of the Company who is not and was not a
party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
  
 (f) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (g) “Enterprise” means the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee
benefit plan or other enterprise. 
  
 (h)
“Expenses” means all disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding, including (without limitation) attorneys’ fees and expenses, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, and delivery service fees. Expenses also include disbursements and expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation, the premium, security for, and other costs relating to
any cost bond, supersedeas bond, or other appeal bond or its equivalent. 
  
 (i) Reference to “fines” shall include any excise tax assessed with respect to any employee benefit plan. 
  
 (j) A person who acted in good faith and in a manner he/she reasonably believed to be in the best interests of the participants and beneficiaries of an
employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company”. 
  
 (k) References “to the fullest extent permitted by applicable law” shall include, but not be limited to: 
  
 (i) to the fullest extent permitted by the provisions of the DGCL that
authorize or contemplate additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and 
  
 (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this/her Agreement that
increase the extent to which a corporation may indemnify its directors. 
  
 (l) “Proceeding” means any Action in which Indemnitee was, is or will be involved (as a party or otherwise) by reason of Indemnitee’s Corporate Status, or any action taken by him/her or of any action on his/her/her
part while acting in his/her/her Corporate Status, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under
this/her Agreement. 
  

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 (m) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the
Indemnitee under this/her Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. “Independent Counsel” shall not include
any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this/her Agreement.
The Company agrees to pay the reasonable fees and expenses of the Independent Counsel and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this/her Agreement or its
engagement pursuant hereto. 
  
 3. THIRD-PARTY PROCEEDINGS.
If Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor against Indemnitee, the Company shall indemnify Indemnitee to
the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement directly or indirectly incurred by or behalf of Indemnitee in connection with such Proceeding or any claim, issue or matter therein,
if Indemnitee acted in good faith and in a manner he/she reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe that his/her/her conduct was
unlawful. 
  
 4. PROCEEDINGS BY OR IN THE RIGHT OF THE
COMPANY. If Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor, the Company shall indemnify Indemnitee to the fullest extent permitted by
applicable law against all Expenses directly or indirectly incurred by or on behalf of Indemnitee in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he/she reasonably believed
to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this/her Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be
liable to the Company unless the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnification. 
  
 5. PARTY
WHO IS WHOLLY OR PARTLY SUCCESSFUL. 
  
 (a) Notwithstanding
any other provisions of this/her Agreement, to the fullest extent permitted by applicable law: 
  
 (i) to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of
any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses directly or indirectly incurred by or on behalf of Indemnitee in connection therewith; or 
  

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 (ii) if Indemnitee is successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses directly or indirectly incurred by or on behalf of Indemnitee in connection with (x) each successfully resolved claim, issue or matter and (y)
each claim, issue, or matter related to any claim, issue or matter on which the Indemnitee was successful. 
  
 (b) For purposes of this/her Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or
without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
  
 6. INDEMNIFICATION FOR EXPENSES OF A WITNESS. Notwithstanding any other provision of this/her Agreement, to the fullest extent permitted by
applicable law, the Company shall indemnify Indemnitee against all Expenses directly or indirectly incurred by or on behalf of Indemnitee if, by reason of his/her/her Corporate Status, Indemnitee is a witness in any Action to which Indemnitee is not
a party. 
  
 7. ADDITIONAL INDEMNIFICATION. Notwithstanding
any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right
of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement in connection with the Proceeding; provided, that the Company shall have the right to consent to any settlement, which consent
shall not be unreasonably withheld. 
  
 8. EXCLUSIONS. The
Company shall not be obligated under this/her Agreement to provide any indemnification in connection with any claim made against Indemnitee: 
  
 (a) For an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of
Section 16(b) of the Exchange Act, or similar provisions of other federal or state statutory law or common law; or 
  
 (b) In connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, unless (i) such indemnification is expressly required to be
made by applicable law; (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation; or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company to the
fullest extent permitted by applicable law. 
  
 9. ADVANCEMENT
OF EXPENSES. Notwithstanding any provision of this/her Agreement, to the fullest extent permitted by applicable law, the Company shall advance the Expenses incurred by or on behalf of Indemnitee in connection with any 
  

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 Proceeding within 20 days after the receipt by the Company of a statement or statements requesting such advances from
time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free, and made without regard to Indemnitee’s ability to repay the expenses or ultimate entitlement to indemnification under
the other provisions of this/her Agreement. Advances shall include all reasonable Expenses incurred pursuing an Action to enforce this/her right of advancement, including Expenses incurred preparing and forwarding statements to the Company to
support the advances claimed. The Indemnitee shall qualify for advances solely upon the execution and delivery to the Company of an undertaking to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be
indemnified by the Company. This Section 9 shall not apply to any claim made by Indemnitee for which indemnification is excluded pursuant to Section 8. 
  
 10. PROCEDURE FOR NOTIFICATION AND DEFENSE OF CLAIM. 
  
 (a) Within 30 days after service of process of Indemnitee relating to notice of the commencement of any Proceeding, Indemnitee shall submit to the Company
a written request, including such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The failure to notify the Company
within such period will not relieve the Company from any liability that it may have to Indemnitee (i) under this/her Agreement except to the extent the failure adversely affects the Company’s rights, legal position, ability to defend or ability
to obtain insurance coverage with respect to such Proceeding or (ii) otherwise than under this/her Agreement. The Secretary of the Company shall advise the Board in writing promptly upon receipt of such a request for indemnification. 
  
 (b) If the Company shall be obligated to pay the Expenses in connection with
any Proceeding against the Indemnitee, the Company shall be entitled to assume and control the defense of such Proceeding (with counsel consented to by the Indemnitee, which consent shall not be unreasonably withheld), upon the delivery to the
Indemnitee of written notice of its election so to do. After delivery of such notice, consent to such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under this/her
Agreement for any fees of separate counsel subsequently incurred by the Indemnitee with respect to the same Proceeding, provided that the reasonable fees and expenses of Indemnitee’s counsel shall be at the expense of the Company if:

  
 (i) the employment of separate counsel by the Indemnitee has
been previously authorized by the Company; 
  
 (ii) the
Indemnitee or counsel selected by the Company shall have concluded that there may be a conflict of interest between the Company and the Indemnitee or among Indemnitees jointly represented in the conduct of any such defense; or 
  

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 (iii) the Company shall not, in fact, have employed counsel, to which Indemnitee has consented as
aforesaid, to assume the defense of such Proceeding. 
  
 (c) The
Company may participate in the Proceeding at its own expense. The Company will not, without prior written consent of the Indemnitee, effect any settlement of a claim in any threatened or pending Proceeding unless such settlement solely involves the
payment of money and includes an unconditional release of the Indemnitee from all liability on any claims that are or were threatened to be made against the Indemnitee in the Proceeding. 
  
 11. PROCEDURE UPON APPLICATION FOR INDEMNIFICATION. 
  
 (a) Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 10(a), a determination,
if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: 
  
 (i) if a Change in Control has occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or

  
 (ii) if a Change in Control has not occurred, 
  
 (A) by a majority vote of the Disinterested Directors, even
though less than a quorum of the Board, 
  
 (B)
by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, 
  
 (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee, or 
  
 (D) if so directed by the Board, by the stockholders of the Company. 
  
 If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within days after such determination. 
  
 Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information that is not privileged or otherwise protected from disclosure and reasonably available to Indemnitee and
reasonably necessary to such determination. Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 
  

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 (b) If the determination of entitlement to indemnification is to be made by Independent Counsel, the
Independent Counsel shall be selected as follows. 
  
 (i) if a
Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him/her of the identity of the Independent Counsel so selected. 
  
 (ii) if a Change in Control shall have occurred, the Independent Counsel
shall be selected by Indemnitee (unless he/she shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected. 
  
 In either event, Indemnitee or the Company,
as the case may be, may, within 10 days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, that such objection may be asserted
only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this/her Agreement, and the objection shall set forth with particularity the factual basis of
such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless
and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof, no Independent Counsel
shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 11(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this/her Agreement, Independent Counsel shall be discharged and relieved of any
further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 
  
 12. PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS. 
  
 (a) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this/her Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this/her Agreement, and the Company shall have the burden of proof to
overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. 
  

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 (b) Neither the failure of the Company (including by its directors or independent legal counsel) to have
made a determination prior to the commencement of any action pursuant to this/her Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company
(including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

  
 (c) If the person, persons or entity empowered or selected to
determine whether Indemnitee is entitled to indemnification shall not have made a determination within 60 days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to
have been made and Indemnitee shall be entitled to such indemnification, absent a prohibition of such indemnification under applicable law; provided, that 
  
 (i) such 60-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making the
determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and 
  
 (ii) the provisions of this/her Section 12(c) shall not apply (1) if the
determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 11(a) of this/her Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to
submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within 15 days
after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (2) if the determination of entitlement to indemnification
is made by Independent Counsel pursuant to Section 11(a) of this/her Agreement. 
  
 (d) The termination of a Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he/she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal
Proceeding, that Indemnitee had reasonable cause to believe that his/her conduct was unlawful. 
  
 (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, 
  

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 including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course
of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable
care by the Enterprise. The provisions of this/her Section 12(e) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in
this/her Agreement. 
  
 (f) The knowledge and/or actions, or
failure to act, of any director, officer, agent or employee of any Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this/her Agreement. 
  
 13. REMEDIES OF INDEMNITEE. 
  
 (a) If 
  
 (i) a determination is made pursuant to Section 11 of this/her Agreement that Indemnitee is not entitled to indemnification
under this/her Agreement, 
  
 (ii) advancement of Expenses is not
timely made pursuant to Section 9 of this/her Agreement, 
  
 (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of this/her Agreement within 45 days after receipt by the Company of the request for indemnification, 
  
 (iv) payment of indemnification is not made pursuant to Section 5 or 6 or
the last sentence of Section 11(a) of this/her Agreement within 10 days after receipt by the Company of a written request therefor, or 
  
 (v) payment of indemnification pursuant to Section 3, 4 or 7 of this/her Agreement is not made within 10 days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by a court of his/her entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his/her option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

  
 (b) If a determination shall have been made pursuant to
Section 11(a) of this/her Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this/her Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the
merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this/her Section 13, the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be. 
  

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 (c) If a determination shall have been made pursuant to Section 11(a) of this/her Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this/her Section 13, absent a prohibition of such indemnification under applicable law.

  
 (d) The Company shall be precluded from asserting in any
judicial proceeding or arbitration commenced pursuant to this/her Section 13 that the procedures and presumptions of this/her Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that
the Company is bound by all the provisions of this/her Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within 10 days after receipt by the Company of a written request therefor)
advance, to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002 or other applicable law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any Action brought by Indemnitee for indemnification or
advancement of Expenses from the Company under this/her Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to
such indemnification, advancement of Expenses or insurance recovery. 
  
 14. NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; SUBROGATION. 
  
 (a) The rights provided by this/her Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Certificate of Incorporation, the Company’s
Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this/her Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this/her Agreement in
respect of any action taken or omitted by such Indemnitee prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses
than would be afforded currently under the Company’s Bylaws and this/her Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this/her Agreement the greater benefits so afforded by such change. No right or remedy
herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 
  
 (b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors,
officers, employees, or agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be an insured under such
policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. The Company agrees to promptly notify 
  

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 Indemnitee of any material change in any such policy. The Company may, but will not be required to, create a trust fund,
grant a security interest or use other means, including, without limitation, a letter of credit, to ensure the payment of such amounts as may be necessary to satisfy the obligations to indemnify and advance Expenses pursuant to this/her Agreement.
If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The Company and Indemnitee shall mutually cooperate and take all reasonable actions to cause such insurers to pay on behalf of the insureds, all amounts payable as a result of such
proceeding in accordance with the terms of all applicable policies. 
  
 (c) The Company shall be subrogated to the extent of any payment under this/her Agreement to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 
  
 (d) The Company shall not be liable under this/her Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided
hereunder) hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, the Certificate of Incorporation, the Bylaws, contract, agreement or otherwise. 
  
 (e) The Company’s obligation to indemnify or advance Expenses hereunder
to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such
other Enterprise. 
  
 15. DURATION OF AGREEMENT, SUCCESSORS AND
ASSIGNS. This/her Agreement shall continue until and terminate upon the later of: (a) ten years after Indemnitee has ceased to occupy any positions or have any relationships described in Section 1 of this/her Agreement; and (b) the final
termination of all Actions pending or threatened during such period to which Indemnitee may be subject by reason of Indemnitee’s Corporate Status or by reason of anything done or not done by Indemnitee in any such capacity. This/her Agreement
shall be binding upon the Company and its successors and assigns and shall inure to the benefit of and be enforceable by Indemnitee and his/her personal and legal representatives, heirs, executors, administrators, distributees, legatees and other
successors. 
  
 16. SEVERABILITY. If any provision or
provisions of this/her Agreement or any application of any provision hereof shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this/her
Agreement (including without limitation, each portion of any Section of this/her Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall 
  

 12 

 not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b)
such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this/her
Agreement (including, without limitation, each portion of any Section of this/her Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby. 
  
 17.
ENFORCEMENT. 
  
 (a) The Company expressly confirms and
agrees that it has entered into this/her Agreement and assumed the obligations imposed on it hereby to induce Indemnitee to serve as a director of the Company, and the Company acknowledges that Indemnitee is relying upon this/her Agreement in
serving as a director of the Company. 
  
 (b) This/her Agreement
constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof; provided, that this/her Agreement is a supplement to and in furtherance of the Certificate of Incorporation of the Company, the Bylaws of the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish or
abrogate any rights of Indemnitee thereunder. 
  
 18.
MODIFICATION AND WAIVER. No supplement, modification or amendment of this/her Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of the provisions of this/her Agreement shall be deemed or shall
constitute a waiver of any other provisions of this/her Agreement nor shall any waiver constitute a continuing waiver. 
  
 19. NOTICE BY INDEMNITEE. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the
Company of any obligation which it may have to the Indemnitee under this/her Agreement or otherwise. 
  
 20. NOTICES. Any notices or other communications required or permitted under, or otherwise in connection with this/her Agreement, shall be in
writing and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile transmission (but only if followed by transmittal by national overnight courier or hand for delivery on the
next business day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next business day if transmitted by national overnight courier, in each case as follows: (i) if to the Company, directed to the
Chief Executive Officer and General Counsel at its principal place of business; and (ii) if to the Indemnitee, to such address as set forth below their name on the signature page to this/her Agreement; or such other persons or addresses as shall be
furnished in writing by the Indemnitee to the Company. 
  

 13 

 21. CONTRIBUTION. To the fullest extent permissible by applicable law, if the indemnification
provided for in this/her Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes,
amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this/her Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such
Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 
  
 22. APPLICABLE LAW AND CONSENT TO JURISDICTION. This/her Agreement and the legal relations among the parties shall be governed by, and construed
and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 13 of this/her Agreement, the Company and Indemnitee
hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this/her Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in
any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection
with this/her Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801 as its agent in the State
of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware,
(iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in
an improper or inconvenient forum. 
  
 23. IDENTICAL
COUNTERPARTS. This/her Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart
signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this/her Agreement. 
  
 24. HEADINGS. The headings of the paragraphs of this/her Agreement are inserted for convenience only and shall not be deemed to constitute part of
this/her Agreement or to affect the construction thereof. 
  

 14 

 IN WITNESS WHEREOF, the parties have caused this/her Agreement to be signed as of the day and year first
above written. 
  
  

							
	 AnnTaylor Stores Corporation
	 	 Indemnitee

			
	 By:
	 	  

	 	  

				
	 	 	 	 	 Name:
	 	  

				
	 	 	 	 	 Address:
	 	  

			
	 	 	 	 	  

  

 15Certificate of Designations, Preferences and Rights

 Exhibit 4.1 
  

					
	Document processing fee	 	 	  	 
	 If document is filed on paper
	 	$150.00	  	 
	 If document is filed electronically
	 	Currently Not Available	  	 20051312807     C

	Fees & forms/cover sheets	 	 	  	 $300.00

	 are subject to change.
	 	 	  	 SECRETARY OF STATE

	To file electronically, access instructions	 	 	  	 08-16-2005     15:21:06

	 for this form/cover sheet and other
	 	 	  	 
	 information or print copies of filed
	 	 	  	 
	 documents, visit www.sos.state.co.us
	 	 	  	 
	 and select Business Center.
	 	 	  	 
	Paper documents must be typewritten or machine printed.	 	 	  	ABOVE SPACE FOR OFFICE USE ONLY

  
 Statement of
Correction 
 filed pursuant to §7-90-301, et seq. and §7-90-305 of the Colorado Revised Statutes (C.R.S)

  

			
	Document number:	  	20051312016
	(of filed document to be corrected)	  	 
		
	ID number:	  	19891112372
		
	 1.      Entity name:
	  	ACT Teleconferencing, Inc.
		
	 2.      True name:
	  	 
	 (if different from the entity name)
	  	________________________________________
	
	The corrected statement(s) below correct(s) the corresponding incorrect statement(s) that is/are contained in the filed document identified by the document number
above.
	
	Complete lines 4 - 17 as applicable to make a correction. Complete lines 18 - 21 as applicable. You must complete line 22.
	
	 3.      Corrections made in lines 4 -17 are intended to update the entity’s current information
 ̈

	
	 OR

	
	 Corrections made in lines 4 -17 are intended for historical purposes only, and not to update the entity’s current information þ

		
	 4.      Correction of entity name of record:
	  	________________________________________
		
	 5.      Correction of true name of record:
	  	________________________________________
		
	 6.      Correction of entity form of record:
	  	________________________________________
		
	 7.      Correction of jurisdiction of formation of record:
	  	________________________________________
		
	 8.      Correction of registered agent of record:
	  	________________________________________

  

 Page 1 of 4 

											
	 	 	(if an individual)	 	______________	 	______________	 	______________	 	______________
	 	 	 	 	(Last)	 	(First)	 	(Middle)	 	(Suffix)
			
	 	 	OR (if a business organization)	 	__________________________________________________________________________

  
 The person appointed
as registered agent in the document has consented to being so appointed. 
  
 If the correction is being effected by the registered agent, the following statement applies: 
  
 The person appointed as registered agent has delivered notice of the correction to the entity at the principal office address of its principal office.

  

							
	 9.      Correction of registered agent street address of record:
	 	___________________________________________________________________
	 	 	(Street name and number)
	 	 	____________________________________________________________________
				
	 	 	__________________________________	 	    CO    	 	______________________
	 	 	                (City)	 	(State)	 	(Postal/Zip Code)

  
 If the correction is
being effected by the registered agent, the following statement applies: 
  
 The person appointed as registered agent has delivered notice of the correction to the entity at the principal office address of its principal office. 
  

							
	 10.    Correction of registered agent mailing address of record*:
	 	_________________________________________________________________
	 (if different from above)
	 	(Street name and number or Post Office information)
	 	 	__________________________________________________________________
				
	 	 	____________________________	 	________________	 	______________________
	 	 	(City)	 	(State)	 	(Postal/Zip Code)
	 	 	____________________________	 	________________	 	 
	 	 	(Province – if applicable)	 	(Country – if not US)	 	 

  
 If the correction is
being effected by the registered agent, the following statement applies: 
  
 The person appointed as registered agent has delivered notice of the correction to the entity at the principal office address of its principal office. 
  

	*	If this address is being deleted entirely, mark this box  ̈. 

  

							
	 11.    Correction of principal office street address of record:
	 	_________________________________________________________________
	 	 	(Street name and number)
	 	 	__________________________________________________________________
				
	 	 	____________________________	 	________________	 	______________________
	 	 	(City)	 	(State)	 	(Postal/Zip Code)
	 	 	____________________________	 	________________	 	 
	 	 	(Province – if applicable)	 	(Country – if not US)	 	 

  

							
	 12.    Correction of principal office mailing address of record*:
	 	_________________________________________________________________
	 (if different from above)
	 	(Street name and number or Post Office information)
	 	 	__________________________________________________________________
				
	 	 	____________________________	 	________________	 	______________________
	 	 	(City)	 	(State)	 	(Postal/Zip Code)
	 	 	____________________________	 	________________	 	 
	 	 	(Province – if applicable)	 	(Country – if not US)	 	 

  

 Page 2 of 4 

	*	If this address is being deleted entirely, mark this box  ̈. 

  

							
	 13.      Correction of trade name of record:
	 	____________________________________________________________
				
	 14.      Correction of delayed effective date of record:
	 	 	 	 	 	 
	 (only for filed documents that have not become effective)
	 	__________________	 	 	 	 
	 	 	(mm/dd/yyyy)	 	 	 	 
	 15.      Correction of period of duration of record:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
  If the
entity’s period of duration as corrected is perpetual, mark this box  ̈ 
  
 OR 
  

							
	 If period of duration is less than perpetual, state the date on which the period of duration expires:
	 	___________________	 	 	 	 
	 	 	(mm/dd/yyyy)	 	 	 	 

  

	16.	If other information contained in the filed document is being corrected, mark this box þ and include an attachment stating the
information to be corrected and each such correction. 

  

	17.	Correction regarding unauthorized filed document (if the filed document should not have been filed, mark this box  ̈ and include an attachment stating each incorrect statement that is corrected by the statement of correction). (only for filed documents that have become effective)

  

	18.	If this statement of correction affects another record in the records of the Secretary of State, mark this box  ̈ and include an attachment stating the entity name, true name, trade name, or trademark and the identification number of that record. 

  

	19.	If this statement of correction affects this record’s status, mark this box  ̈. 

  

	20.	Revocation of a filed document that states a delayed effective date and has not yet become effective: 

  
 (If applicable mark this box  ̈). 
  

			
	 21.      Use of Restricted Words (if any of these terms are contained in an entity name, true name of an
entity, trade name or trademark stated in this document, mark the applicable box):
	 	  ̈ “bank” or “trust” or
any derivative thereof
  ̈ “credit union”
             ̈ “savings and loan”
  ̈ “insurance”, “casualty”,
“mutual”, or “surety”

  
 Notice: 
  
 Causing this document to be delivered to the secretary of state for filing shall constitute
the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual’s act and deed, or that the individual in good faith believes the document is the act and deed of the
person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the
individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. 
  
 This perjury notice applies to each individual who causes this document to be delivered to
the secretary of state, whether or not such individual is named in the document as one who has caused it to be delivered. 
  

 Page 3 of 4 

									
	 22.    Name(s) and address(es) of the individual(s) causing the document to be delivered for filing:
	 	Campbell	 	William	 	J.	 	______________
	 	 	(Last)	 	(First)	 	(Middle)	 	(Suffix)
	 	 	Faegre & Benson LLP
	 	 	(Street name and number or Post Office Box information)
		
	 	 	1700 Lincoln Street, Suite 3200
	 	 	Denver	 	CO	 	80203	 	 
	 	 	(City)	 	(State)	 	(Postal/Zip Code)	 	 
	 	 	______________________	 	_____________________	 	 	 	 
	 	 	(Province - if applicable)	 	(Country - if not US)	 	 	 	 

  
 (The document need
not state the true name and address of more than one individual. However, if you wish to state the name and address of any additional individuals causing the document to be delivered for filing, mark this box  ̈ and include an attachment stating the name and address of such individuals.) 
  
 Disclaimer: 
  
 This form, and any related instructions, are not intended to provide legal, business or tax advice, and are offered as a public service without representation or
warranty. While this form is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form. Questions should
be addressed to the user’s attorney. 
  

 Page 4 of 4 

 STATEMENT OF CORRECTION 
 TO THE 
 CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS 
 OF 
 SERIES AA CONVERTIBLE PREFERRED
STOCK 
 OF 
 ACT
TELECONFERENCING, INC. 
  
 ACT Teleconferencing, Inc. (the
“Company”), a corporation organized and existing under the Colorado Business Corporations Act (the “CBCA”), does hereby certify that, pursuant to authority conferred upon the Board of Directors of the Company by the
Articles of Incorporation, as amended, of the Company, and pursuant to Section 7-106-102 of the CBCA, the Board of Directors duly approved and adopted resolutions approving the authorization and issuance of up to one hundred and sixty nine thousand
(169,000) shares of Series AA Convertible Preferred Stock: 
  
 THEREFORE, BE IT RESOLVED, that clause (ii) of the preamble to the Certificate of Designations, Preferences and Rights of Series AA Convertible Preferred Stock of the Company (the “Certificate”) is amended in its entirety
to read as follows: 
  
 “(ii) providing for the designations,
preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, of One Hundred Sixty Nine Thousand (169,000) shares of Series AA Convertible Preferred Stock of the Company”

  
 FURTHER RESOLVED, that the introductory language to the first
resolution in the Certificate is amended in its entirety to read as follows: 
  
 “RESOLVED, that the Company is authorized to issue 160,000 shares of Series AA Convertible Preferred Stock (the “ Preferred Shares”), without par value, which shall be perpetual ____ and ____
converted or redeemed as contemplated by this Certificate of Designations, Preferences and Rights (this “Certificate of Designations”) and shall have the following powers, designations, preferences and other special
rights:” 
  
 FURTHER RESOLVED, that the second
resolution in the Certificate is deleted in its entirety. 
  
 The name and address of the individual who causes this document to be
delivered for filing and to whom the Secretary of State may deliver notice if filing is refused are William J. Campbell, Esq., _____ & Benson LLP, 3200 Wells Fargo Center, 1700 Lincoln Street, Denver Colorado 80203. 
  
 [SEAL] 

					
	 	 	 	  	Colorado Secretary of State
	 	 	

	  	Date and Time: 08/16/2005 10:47 AM
	Document processing fee	 	 	  	Entity Id: 19891112372
	 If document is filed on paper
	 	$ 125.00	  	Document number: 20051312016
	 If document is filed electronically
	 	$ 50.00	  	 
	Fees & forms/cover sheets	 	 	  	 
	 are subject to change.
	 	 	  	 
	To file electronically, access instructions	 	 	  	 
	 for this form/cover sheet and other
	 	 	  	 
	 information or print copies of filed
	 	 	  	 
	 documents, visit www.sos.state.co.us
	 	 	  	 
	 and select Business Center
	 	 	  	 
	Paper documents must be typewritten or machine printed.	 	 	  	ABOVE SPACE FOR OFFICE USE ONLY

  
 Articles of
Amendment 
 filed pursuant to §7-90-301, et seq. and §7-110-106 of the Colorado Revised Statutes (C.R.S.) 
  

			
	 ID number:
	  	19891112372
		
	 1.        Entity name:
	  	 
	 	  	ACT TELECONFERENCING, INC.
	 	  	(If changing the name of the corporation, indicate name
BEFORE the name change)
		
	 2.        New Entity name:
	  	 
	 (if applicable)
	  	____________________________________________________________________
	 	  	 
		
	 3.        Use of Restricted Words (if any of these terms are contained in an entity name,
true name of an entity, trade name or trademark stated in this document, mark the applicable box):
	  	  ̈ “bank” or “trust” or
any derivative thereof
  ̈ “credit
union”              ̈ “savings and loan”
  ̈ “insurance”, “casualty”,
“mutual”, or “surety”

	
	 4.        Other amendments, if any, are attached.

	
	 5.        If the amendment provides for an exchange, reclassification or cancellation of
issued shares, the attachment states the provisions for implementing the amendment.

		
	 6.        If the corporation’s period of duration as amended is less than perpetual, state the
date on which the period of duration expires:
	  	___________________
	 	  	 (mm/dd/yyyy)

	 OR
	  	 
	 If the corporation’s period of duration as amended is perpetual, mark this box: þ

		
	 7.        (Optional) Delayed effective date:
	  	___________________
	 	  	 (mm/dd/yyyy)

  
 Notice: 
  
 Causing this document to be delivered to the secretary of state for filing shall constitute
the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual’s act and deed, or that the individual in good faith believes the document is the act and deed of the
person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity 

  

 Page 1 of 2 

 
with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith
believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. 
  
 This perjury notice applies to each individual who causes this document to be delivered to the secretary of state, whether or not such
individual is named in the document as one who has caused it to be delivered. 
  

									
	 8.      Name(s) and address(es) of the individual(s) causing the document to be delivered for
filing:
	 	Campbell	 	William	 	J.	 	______________
	 	 	(Last)	 	(First)	 	(Middle)	 	(Suffix)
	 	 	Faegre & Benson LLP
	 	 	(Street name and number or Post Office information)
	 	 	1700 Lincoln St., #3200
	 	 	Denver	 	CO	 	80203	 	 
	 	 	(City)	 	(State)	 	(Postal/Zip Code)	 	 
	 	 	______________________________	 	United States	 	 	 	 
	 	 	            (Province – if applicable)	 	(Country – if not US)	 	 	 	 

  
 (The document need
not state the true name and address of more than one individual. However, if you wish to state the name and address of any additional individuals causing the document to be delivered for filing, mark this box  ̈ and include an attachment stating the name and address of such individuals.) 
  

Disclaimer: 
  
 This form, and any related instructions, are not intended to provide legal, business or tax advice, and are offered as a public service without representation or warranty. While this form is believed to satisfy
minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form. Questions should be addressed to the user’s attorney.

  

 Page 2 of 2 

 NOTICE: 
  
 This “image” is merely a display of information that was filed electronically. It is not an image that was created by optically scanning a paper document.

  
 No such paper document was filed. Consequently, no copy of a paper
document is available regarding this document. Questions? Contact the Business Division. For contact information, please visit the Secretary of State’s web site. 
  
 Click the following links to view attachments 
  
 Attachment 1 
 ACI Attachment 1
of 5 
  
 Attachment 2 
 ACI Attachment 2 of 5 
  
 Attachment 3 
 ACI Attachment 3 of 5 
  
 Attachment 4 
 ACI Attachment 4
of 5 
  
 Attachment 5 
 ACI Attachment 5 of 5 

 CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS 
 OF 
 SERIES AA CONVERTIBLE PREFERRED STOCK

 OF 
 ACT TELECONFERENCING, INC.

  
 ACT Teleconferencing, Inc. (the “Company”), a
corporation organized and existing under the Colorado Business Corporations Act (the “CBCA”), does hereby certify that, pursuant to authority conferred upon the Board of Directors of the Company by the Articles of Incorporation, as
amended, of the Company, and pursuant to Section 7-106-102 of the CBCA, the Board of Directors of the Company adopted resolutions (i) designating a series of the Company’s previously authorized preferred stock, without par value, and (ii)
providing for the designations, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, of One Hundred Sixty Thousand (160,000) shares of Series AA Convertible Preferred Stock
of the Company, and (iii) providing additional matters, as follows: 
  
 RESOLVED, that the Company is authorized to issue 160,000 shares of Series AA Convertible Preferred Stock (the “Preferred Shares”), without par value, which shall be perpetual unless and until converted or redeemed as
contemplated by this Certificate of Designations, Preferences and Rights (this “Certificate of Designations”) and shall have the following powers, designations, preferences and other special rights: 
  
 1. Definitions. For purposes of this Certificate of Designations, the
following terms shall have the following meanings: 
  
 i. “AMEX” means the American Stock Exchange. 
  
 ii. “Approved Stock Plan” means any employee benefit plan that has been approved by the Board of Directors of the Company, pursuant to which the Company’s securities may be issued to any employee,
officer or director for services provided to the Company. 
  
 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. “Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, including, without limitation, with respect to partnerships, partnership interests
(whether general or limited) and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership. 

 vi. “Change of Control” means any Fundamental Transaction other than (A) a
Fundamental Transaction in which holders of the Company’s voting power immediately prior to the Fundamental Transaction continue after the Fundamental Transaction to hold publicly traded securities and, directly or indirectly, the voting power
of the surviving entity or entities necessary to elect a majority of the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities, or (B) pursuant to a migratory merger effected solely for the
purpose of changing the jurisdiction of incorporation of the Company. 
  
 vii. “Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, 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 or the closing trade price, as the case may be, then the last bid price or last trade price,
respectively, of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price,
respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively,
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 or last trade price, respectively, is reported for such security by Bloomberg, the average of
the bid prices, or the ask prices, respectively, 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 or the Closing Sale Price
cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the
Company and the Required Holders. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 3(c)(iii). All such determinations to be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 
  
 viii. “Common Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock actually outstanding at
such time, plus the number of shares of Common Stock deemed to be outstanding pursuant to Sections 3(e)(i)(A) and 3(e)(i)(B) hereof regardless of whether the Options or Convertible Securities are actually exercisable at such time, but excluding any
shares of Common Stock owned or held by or for the account of the Company or issuable upon conversion of the Preferred Shares. 
  
 ix. “Conversion Amount” means the Stated Value as increased pursuant to Section 2. 
  
 x. “Conversion Price” means, with respect to the
Preferred Shares, as of any Conversion Date or other date of determination, $1.00, subject to adjustment pursuant to Section 2 and further adjustment as provided elsewhere herein. 
  

 -2- 

 xi. “Convertible Securities” means any stock or securities (other than Options)
directly or indirectly convertible into or exchangeable or exercisable for Common Stock. 
  
 xii. “Eligible Market” means the Principal Market, NYSE, AMEX or The Nasdaq SmallCap Market. 
  
 xiii. “Excluded Securities” means shares of Common
Stock issued or deemed to be issued in accordance with Section 2(e) hereof by the Company: (x) in connection with an Approved Stock Plan; (y) upon issuance of the Preferred Shares or upon conversion of the Preferred Shares; and (z) upon exercise of
any Options or Convertible Securities which are outstanding on the date immediately preceding the Initial Issuance Date, except as may be subject to waivers or amendments thereto entered into in connection with the issuance of the Preferred Shares,
provided that such issuance of shares of Common Stock upon exercise of such Options or Convertible Securities is made pursuant to the terms of such Options or Convertible Securities as in effect on the date immediately preceding the Initial Issuance
Date and such Options or Convertible Securities are not amended after the date immediately preceding the Initial Issuance Date. 
  
 xiv. “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i)
consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another
Person, or (iii) allow another Person to make a purchase offer, tender offer or exchange offer that is accepted by the holders of more than 50% of the Company’s outstanding voting securities (but excluding any voting securities held by the
Person or Persons making or party to, or any Person(s) associated or affiliated with such Person or Persons making or party to, such purchase offer, tender offer or exchange offer), or (iv) enter into a stock purchase agreement or other agreement to
effect any other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person or Persons, whereby more than 50% of the Company’s outstanding voting securities are acquired by such
Person or Persons (excluding any voting securities of the Company held by such Person or Persons making or party to, or any Person(s) associated or affiliated with such Person or Persons making or party to, such stock purchase agreement or other
agreement to effect such other business combination), or (v) change the members constituting its Board of Directors such that the individuals who constituted the Board of Directors on the Initial Issuance Date or other governing body of the Company
(together with any new directors whose election to such Board of Directors or whose nomination for election by the stockholders of the Company was approved by a vote of 66  2/3% of the directors then still in office who were either directors on the Initial Issuance Date or whose election or nomination for election was previously so approved), cease for
any reason to constitute a majority of such Board of Directors then in office, or (vi) reorganize, recapitalize or reclassify its Common Stock. 
  
 xv. “Initial Issuance Date” means the Initial Closing Date, as defined in the Securities Purchase Agreement. 
  

 -3- 

 xvi. “Investor Rights Agreement” means that certain registration rights
agreement, by and among the Company and the initial Holders of the Preferred Shares relating to the filing of a registration statement covering the resale of the shares of Common Stock issuable upon conversion of the Preferred Shares (including any
Preferred Shares issuable upon the exercise of the warrants) and certain other matters, as such agreement may be amended or modified from time to time as provided in such agreement. 
  
 xvii. “Liquidation Event” means (x) the voluntary or involuntary liquidation, dissolution or
winding up of the Company or such Subsidiaries the assets of which constitute all of the business of the Company and its Subsidiaries taken as a whole, in a single transaction or series of transactions or (y) a Change of Control. 
  
 xviii. “NYSE” means The New York Stock Exchange,
Inc. 
  
 xix. “Options” means any
rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities. 
  
 xx. “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common
stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of
the Fundamental Transaction. 
  
 xxi.
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof. 
  
 xxii. “Principal Market” means the Nasdaq National
Market. 
  
 xxiii. “Required Holders”
means the Holders of Preferred Shares representing at least a majority of the aggregate Preferred Shares then outstanding. 
  
 xxiv. “SEC” means the Securities and Exchange Commission. 
  
 xxv. “Securities Purchase Agreement” means that certain securities purchase agreement, dated as of
June 30, 2005, by and among the Company and the initial Holder, as such agreement may be amended or modified from time to time as provided in such agreement. 
  

xxvi. “Stated Value” means $100 as increased pursuant to Section 2. 
  
 xxvii. “Successor Entity” means the Person, which
may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made, provided that if such Person is not a publicly traded entity whose common stock or
equivalent equity security is quoted or listed for trading on an Eligible Market, Successor Entity shall mean such Person’s Parent Entity. 
  

 -4- 

 xxviii. “Trading Day” means any day on which the Common Stock are traded on the
Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock are then traded; provided that “Trading Day”
shall not include any day on which the Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from trading during the final hour of trading on such exchange or market (or
if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York Time). 
  
 2. Increase in Stated Value. 
  
 a. In lieu of dividends on the Preferred Shares, the Stated Value of the Preferred Shares shall increase at
the rate of 4.225% (the “Stated Value Increase Rate”) per quarter, compounded quarterly, from the Initial Date of Issuance, which rate is subject to adjustment pursuant to Section 2(b). 
  
 b. i. The Stated Value Increase Rate contemplated by Section
2(a) shall be subject to a one-time adjustment effective as of the Initial Issuance Date pursuant to this Section 2(b). The Stated Value Increase Rate shall be adjusted effective as of the Initial Closing to be the amount as calculated pursuant to
the following formula: 
  
 Stated Value Increase Rate = ((16,71
1,562/(7,304,306+NAVA)).05)-1 
  
 ii. For purposes of the foregoing formula: (I) “NAVA” or “Net Asset Value Adjustment” is
equal to (w) Net Assets as of the Initial Closing Date plus (x) $500,000 minus (y) $10,721,000 [Net Assets as of March 31, 2005] minus (z) $50 for each Preferred Share purchasable pursuant to warrants issued to ThinkEquity Partners LLC or Belle
Haven Investments, L.P. at the Initial Closing; (II) “Net Assets as of the Initial Closing Date” means the Total Assets minus the Total Liabilities of the Company and its consolidated subsidiaries as such amounts are set forth on a
consolidated balance sheet of the Company as of the Initial Closing Date as audited by the Company’s independent accountants in conformity with generally accepted accounting principles in the United States, consistently applied, and the
standards of the Public Company Accounting Oversight Board (United States) (the “Closing Balance Sheet”), which amounts shall include (1) all accrued costs of the transactions contemplated by the Securities Purchase Agreement and
(2) any negotiated reductions in the accrued royalties and principal amounts payable upon Initial Closing to the Company’s subordinated debt holders, but shall exclude any effect on Total Assets and Total Liabilities from (3) the
issuance of and payment for any Preferred Shares and (4) the application of the proceeds from the Preferred Shares to reduce any indebtedness of the Company. The Company hereby represents that no financial information set forth on its consolidated
balance sheet as contained in its Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 would change if it were so audited as of such date. Notwithstanding the foregoing, no adjustment shall be made pursuant to this
Section 2(b) if the Net Asset Value Adjustment is equal to or greater than $0.00. 
  
 iii. Within 60 days of the Initial Closing Date, the Company shall deliver a copy of the Closing Balance Sheet, accompanied by a copy of
the audit report signed by 

  

 -5- 

 
the Company’s auditors relating thereto, to each Holder at its address as it appears on the Company’s record. Upon the request of the Required
Holders, the Company will make available, and will cause its auditors to make available, to each Required Holder and its respective representatives, all relevant work papers and other books and records of the Company and its consolidated
subsidiaries that such auditors used in the preparation of the Closing Balance Sheet and will make available to each Required Holder the appropriate personnel involved in the preparation thereof. 
  
 iv. As promptly as practicable after the delivery of the
Closing Balance Sheet in accordance with Section 2(b)(iii), but in no event later man 45 days thereafter, the Required Holders shall notify the Company in writing of its good faith dispute of any financial information contained in the Closing
Balance Sheet, including a general description of the basis for its dispute (s) (the “Holders Dispute Notice”). The Company will notify each Holder in writing (the “Company Dispute Notice”) within 20 days after
receipt of the Holders’ Dispute Notice if the Company, in good faith, refuses to revise in accordance with the Holders Dispute Notice the information in the Closing Balance Sheet for purposes of this Section 2(b). The Company Dispute Notice, if
any, shall set forth in reasonable detail the basis for such disagreement, the dollar amounts involved and the Company’s good faith calculation of any disputed calculation. 
  
 v. Upon receipt by the Holders of the Company Dispute Notice, if any, as contemplated above, the Company and
the Required Holders shall negotiate in good faith to resolve any disagreement. To the extent the Required Holders and the Company are unable to resolve any disagreement within thirty (30) days after receipt by the Holders of the Dispute Notice (the
“Resolution Period”), the Required Holders and the Company shall submit their dispute to a reputable public accounting firm selected by the Required Holders and subject to the approval, which shall not be unreasonably withheld or
delayed, of the Company and having no material relationship to any Holder comprising the Required Holders or the Company or their respective subsidiaries or affiliates, within twenty (20) days after the expiration of the Resolution Period. The
Required Holders and the Company agree that the determination of such accounting firm as to the computation of the disputed amounts in the Closing Balance Sheet shall be final and binding absent manifest error, and that judgment may be entered
thereon in any court having jurisdiction over the party or parties against whom such determination is sought to be enforced. In resolving any disputed item, such accounting firm: (x) shall be bound by the provisions of this Section 2(b)) and the
formulas and definitions included herein, and (y) shall limit its review to matters still in dispute as specifically set forth in the Holders’ Dispute Notice. The fees and expenses of such accounting firm will be paid by the Company.

  
 3. Conversion of Preferred Shares. The Preferred Shares
shall be convertible into shares of the Company’s Common Stock, without par value (the “Common Stock”), on the terms and conditions set forth in this Section 3. 
  
 a. Holder’s Conversion Right. At any time or times on or after the Initial Issuance Date, any
Holder shall be entitled to convert any whole number of Preferred Shares into fully paid and nonassessable shares of Common Stock in accordance with Section 3(c) at the Conversion Rate (as defined below). 
  

 -6- 

 b. Conversion. The number of fully paid, non-assessable shares of Common Stock
issuable upon conversion of each Preferred Share pursuant to Section 3(a) shall be determined according to the following formula (the “Conversion Rate”): 
  
 Conversion Amount 
 Conversion Price 
  
 c. Mechanics of Conversion. The conversion of Preferred Shares shall be conducted in the following manner: 
  
 i. Holder’s Delivery Requirements. To convert
Preferred Shares into shares of Common Stock on any date (the “Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 5:00 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 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 3(c)(vii), surrender to a common carrier for delivery to the Company as soon as practicable following such date the original certificates
representing the Preferred Shares being converted (or compliance with the procedures set forth in Section 13) (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, but in any event within one (1) Business Day, 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 herein and (II) on or before the third (3rd) Trading Day following the date of receipt by the Company of such Conversion Notice, (the “Share Delivery Date”), (A) provided the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program, 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, or (B) if the Transfer
Agent is not participating in the DTC Fast Automated Securities Transfer Program, 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. If the number of Preferred Shares represented by the Preferred Stock Certificate(s) submitted for conversion, as may be required pursuant to Section 3(c)(vii), is greater than the number of
Preferred Shares being converted, then the Company shall, as soon as practicable and in no event later than three (3) Business Days after receipt of the Preferred Stock Certificate(s) (the “Preferred Stock Delivery Date”) and at its
own expense, issue and deliver to the Holder a new Preferred Stock Certificate representing the number of Preferred Shares not converted. 
  
 iii. Dispute Resolution. In the case of a dispute as to the determination of the Closing Sale Price or the arithmetic calculation
of the Conversion Rate, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days of receipt of the Conversion Notice giving rise to such dispute, as the case may be, to the Holder. If
the Holder and the Company are unable to agree upon the 

  

 -7- 

 
determination of the Closing Sale Price or arithmetic calculation of the Conversion Rate within three (3) Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Holder shall, within two (2) Business Days thereafter submit via facsimile the disputed determination of the Closing Sale Price to an independent, reputable investment bank or accounting
firm selected by the Holder and approved by the Company, which approval shall not be unreasonably withheld or delayed, or the disputed arithmetic calculation of the Conversion Rate to the Company’s independent, outside accountant. The Company
and the Holder shall cause, at the Company’s expense, the investment bank or the accounting firm, as the case may be, to perform the determinations or calculations and simultaneously notify the Company and the Holder of the results no later
than ten (10) Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accounting firm’s determination or calculation, as the case may be, shall be binding upon all parties absent
demonstrable error. 
  
 iv. Record Holder.
The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date. 

 
 v. Company’s Failure to Timely Convert.

  
 (A). Cash Damages. If (I) within
three (3) Business Days after the Company’s receipt of the facsimile copy of a Conversion Notice the Company shall fail to credit a Holder’s balance account with DTC or issue and deliver a certificate to such Holder for the number of
shares of Common Stock to which such Holder is entitled upon such Holder’s conversion of Preferred Shares or (II) within three (3) Business Days of the Company’s receipt of a Preferred Stock Certificate the Company shall fail to issue and
deliver a new Preferred Stock Certificate representing the number of Preferred Shares to which such Holder is entitled pursuant to Section 3(c)(ii), then in addition to all other available remedies which such Holder may pursue hereunder and under
the Securities Purchase Agreement, the Company shall pay in cash to the Holder on each day after such third Business Day that the issuance of such shares of Common Stock is not timely effected an amount equal to 1.5% of the product of (A) the sum of
the number of shares of Common Stock not issued to the Holder on a timely basis and to which the Holder is entitled and (B) the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding the last possible date which
the Company could have issued such shares of Common Stock to the Holder without violating Section 3(c)(ii). In addition to the foregoing, if within three (3) Trading Days after the Company’s receipt of the facsimile copy of a Conversion Notice
the Company shall fail to issue and deliver a certificate to the Holder and register such shares of Common Stock on the Company’s share register or credit the Holder’s balance account with DTC for the number of shares of Common Stock to
which the Holder is entitled upon such Holder’s conversion of Preferred Shares hereunder, and if on or after the third Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Holder of shares of Common Stock issuable upon such conversion that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after the
Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so 

  

 -8- 

 
purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such shares of Common
Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such shares of Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price
over the product of (A) such number of shares of Common Stock, multiplied by (B) the Closing Bid Price on the Conversion Date. 
  
 (B). Void Conversion Notice; Adjustment of Conversion Price. If for any reason a Holder has not received all of the shares of Common
Stock to which such Holder is entitled prior to the fifth (5th) Business Day after the Share Delivery Date with
respect to a conversion of Preferred Shares, then the Holder, upon written notice to the Company, with a copy to the Transfer Agent, may void its Conversion Notice with respect to, and retain or have returned, as the case may be, any Preferred
Shares that have not been converted pursuant to such Holder’s Conversion Notice; provided that the voiding of a Holder’s Conversion Notice shall not effect the Company’s obligations to make any payments which have accrued prior to the
date of such notice pursuant to Section 3(c)(v)(A) or otherwise. 
  
 vi. Pro Rata Conversion. In the event the Company receives a Conversion Notice from more than one Holder for the same Conversion Date and the Company can convert some, but not all, of such Preferred Shares, the
Company shall convert from each Holder electing to have Preferred Shares converted at such time a pro rata amount of such Holder’s Preferred Shares submitted for conversion based on the number of Preferred Shares submitted for conversion on
such date by such Holder relative to the number of Preferred Shares submitted for conversion on such date. 
  
 vii. Book-Entry. Notwithstanding anything to the contrary set form herein, upon conversion of Preferred Shares in accordance with
the terms hereof, the Holder thereof shall not be required to physically surrender the certificate representing the Preferred Shares to the Company unless (A) the full or remaining number of Preferred Shares represented by the certificate are being
converted or (B) a Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of Preferred Shares upon physical surrender of any Preferred Shares. The Holder and the Company
shall maintain records showing the number of 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 Preferred Shares upon each such conversion. In the event of any dispute or discrepancy, such records of the Company establishing the number of Preferred Shares to which the record holder is entitled shall be controlling
and determinative in the absence of manifest error. Notwithstanding the foregoing, if Preferred Shares represented by a certificate are converted as aforesaid, the Holder may not transfer the certificate representing the Preferred Shares unless the
Holder first physically surrenders the certificate representing the 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 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 Preferred Shares, the number of Preferred Shares 

  

 -9- 

 
represented by such certificate may be less than the number of Preferred Shares stated on the face thereof. Each certificate for Preferred Shares shall bear
the following legend: 
  
 ANY TRANSFEREE 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 3(c)(vi) 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 3(c)(vi) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE. 
  
 d. Taxes. The Company shall pay any and all
documentary, stamp, transfer (but only in respect of the registered holder thereof) and other similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon the conversion of Preferred Shares. 
  
 e. Adjustments to Conversion Price. The Conversion
Price will be subject to adjustment from time to time as provided in this Section 3(e). 
  
 i. Adjustment of Conversion Price upon Issuance of Common Stock. If and whenever on or after the Initial Issuance Date, the Company
issues or sells, or in accordance with this Section 3(e) is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company but excluding Excluded
Securities) for a consideration per share (the “New Securities Issuance Price”) less than a price (the “Applicable Price”) equal to the Conversion Price in effect immediately prior to such time (a “Dilutive
Issuance”), then immediately after such issue or sale, the Conversion Price then in effect shall be reduced to an amount equal to the product of (x) the Conversion Price in effect immediately prior to such Dilutive Issuance and (y) (1) the
sum of (I) the product of the Applicable Price and the number of shares of Common Stock Deemed Outstanding immediately prior to such Dilutive Issuance and (II) the consideration, if any, received by the Company upon such Dilutive Issuance, divided
by (2) the product of (I) the Applicable Price multiplied by (II) the number of shares of Common Stock Deemed Outstanding immediately after such Dilutive Issuance. For purposes of determining the adjusted Conversion Price under this Section 3(e)(i),
the following shall be applicable: 
  
 (A).
Issuance of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exchange or exercise of any
Convertible Securities issuable upon exercise of such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of
such Option for such price per share. For purposes of this Section 3(e)(i)(A), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exchange or exercise of any
Convertible Securities issuable upon exercise of such Option” shall be equal to 

  

 -10- 

 
the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon granting or
sale of the Option, upon exercise of the Option and upon conversion, exchange or exercise of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Conversion Price shall be made upon the actual issuance of such
Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such Common Stock upon conversion, exchange or exercise of such Convertible Securities. 
  
 (B). Issuance of Convertible Securities. If the
Company in any manner issues or sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon such conversion, exchange or exercise thereof is less than the Applicable Price, then such share of
Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance of sale of such Convertible Securities for such price per share. For the purposes of this Section 3(e)(i)(B), the “lowest
price per share for which one share of Common Stock is issuable upon such conversion, exchange or exercise” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one
share of Common Stock upon the issuance or sale of the Convertible Security and upon the conversion, exchange or exercise of such Convertible Security. No further adjustment of the Conversion Price shall be made upon the actual issuance of such
Common Stock upon conversion, exchange or exercise of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of the Conversion Price had been or are to be
made pursuant to other provisions of this Section 3(e)(i), no further adjustment of the Conversion Price shall be made by reason of such issue or sale. 
  
 (C). Change in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional
consideration, if any, payable upon the issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exchangeable or exercisable for Common Stock changes at any time,
the Conversion Price in effect at the time of such change shall be adjusted to the Conversion Price which would have been in effect at such time had such Options or Convertible Securities provided for such changed purchase price, additional
consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 3(e)(i)(C), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance
of the Preferred Shares are changed in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change. No adjustment shall be made if such adjustment would result in an increase of the Conversion Price then in effect 
  
 (D). Calculation of Consideration Received. In case any Option is issued in connection with the issue or sale of other securities
of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of $0.001. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the gross amount received by the Company therefor. If any Common Stock, 

  

 -11- 

 
Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of the consideration other than cash received by the
Company will be the fair value of such consideration, except where such consideration consists of marketable securities, in which case the amount of consideration received by the Company will be the arithmetic average of the Closing Sale Prices of
such securities during the ten (10) consecutive Trading Days ending on the date of receipt of such securities. The fair value of any consideration other than cash or securities will be determined jointly by the Company and the Required Holders. If
such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined within five (5) Business Days
after the tenth (10th) day following the Valuation Event by an independent, reputable appraiser selected by the Company and the Required Holders. The determination of such appraiser shall be deemed binding upon all parties absent manifest error and
the fees and expenses of such appraiser shall be borne by the Company. 
  
 (E). Record Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (I) to receive a dividend or other distribution payable in Common Stock, Options or Convertible
Securities or (II) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. 
  
 ii. Adjustment of Conversion Price Upon Subdivisions or Combinations of Common Stock. If the
Company at any time on or after the Initial Issuance Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion
Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time on or after the Initial Issuance Date combines (by combination, reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased. Any adjustment under this Section 2(f) shall become effective at the close of
business on the date the subdivision or combination becomes effective. 
  
 iii. Notices. 
  
 (A). Whenever the Conversion Price is adjusted, the Company shall promptly mail to Holders a notice of the adjustment accompanied by an Officers’ Certificate briefly stating the facts requiring the adjustment and the manner of
computing it, which computation shall have been made by the Company. 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 3(e)(iii).

  
 (B). The Company will give written notice
stating the proposed effective date or record date, as the case may be, to each Holder at least ten (10) Business Days prior to the date on which any Fundamental Transaction or Liquidation Event will take place or on which the Company closes its
books or takes a record (I) with respect to any dividend or 

  

 -12- 

 
distribution upon the Common Stock, (II) with respect to any pro rata subscription offer to holders of Common Stock or (III) for determining rights to vote
with respect to any Fundamental Transaction or Liquidation Event, provided that such information shall be made known to the public prior to or in conjunction with such notice being provided to such Holder. 
  
 Failure to provide the requisite notice or any defect
therein shall not affect the validity of any transaction referred to in clause (I), (II) or (III) of this Section 3(e)(iii). 
  
 4. Other Rights of Holders. 
  
 a. Assumption. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in
writing all of the obligations of the Company under this Certificate of Designations and the other Transaction Documents in accordance with the provisions of this Section 3(a) pursuant to written agreements in form and substance satisfactory to the
Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each holder of Preferred Shares in exchange for such Preferred Shares a security of the Successor Entity evidenced by a
written instrument substantially similar in form and substance to the Certificate of Designations, including, without limitation, having a Stated Value equal to the Stated Value of the Preferred Shares, as increased pursuant to Section 2, held by
such holder and having similar ranking to the Preferred Shares, and satisfactory to the Required Holders and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for
trading on an Eligible Market. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of
Designations referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Certificate of Designations with
the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon conversion of the
Preferred Shares at any time after the consummation of the Fundamental Transaction, in lieu of the shares of the Company’s Common Stock (or other securities, cash, assets or other property) purchasable upon the conversion of the Preferred
Shares prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the
happening of such Fundamental Transaction had the Preferred Shares been converted immediately prior to such Fundamental Transaction, as adjusted in accordance with the provisions of this Certificate of Designations. The provisions of this Section
shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of the Preferred Shares. 
  
 b. Purchase Rights. If at any time the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holders will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the 

  

 -13- 

 
number of shares of Common Stock acquirable upon complete conversion of the Preferred Shares (without taking into account any limitations or restrictions on
the convertibility of the Preferred Shares) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are
to be determined for the grant, issue or sale of such Purchase Rights. 
  
 5. Reservation of Shares. 
  
 a.
Reservation. So long as any Preferred Shares are outstanding, the Company shall take all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the
Preferred Shares, 130% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred Shares outstanding at such time (the “Required Reserve Amount”). At no time
shall the number of shares of Common Stock so reserved be less than the Required Reserve Amount. The initial number of shares of Common Stock reserved for conversions of the Preferred Shares and each increase in the number of shares so reserved
shall be allocated pro rata among the Holders based on the number of Preferred Shares held by each Holder on the Initial Issuance Date or increase in the number of reserved shares, as the case may be (the “Authorized Share
Allocation”). In the event that a Holder shall sell or otherwise transfer any of such Holder’s interests in the Preferred Shares, each transferee shall be allocated a pro rata portion of such Holder’s Authorized Share Allocation.
Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Preferred Shares shall be allocated to the remaining Holders of such Preferred Shares, pro rata based on the number of Preferred Shares then held by such
Holders. 
  
 b. Insufficient Authorized
Shares. If at any time while any of the Preferred Shares remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of
the Preferred Shares at least a number of shares of Common Stock equal to the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s
authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Preferred Shares then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after
the date of the occurrence of an Authorized Share Failure, but in no event later than 60 days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its shareholders for the approval of an increase in the number
of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each shareholder with a proxy statement and shall use its best efforts to solicit its shareholders’ approval of such increase in authorized shares
of Common Stock and to cause its board of directors to recommend to the shareholders that they approve such proposal. 
  
 6. Voting Rights. Except as otherwise required by law and except as provided in Section 11 with respect to the matters referred to therein, each
Preferred Share shall be entitled to any and all voting rights or powers accorded to the Common Stock and shall vote together with the Common Stock as a single class on all matters submitted for a vote of holders of Common Stock. Each Preferred
Share shall be entitled to that number of votes equal to the number of 

  

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shares of Common Stock then issuable upon conversion of each Preferred Share at the then current Conversion Rate. Each Holder shall be entitled to receive
the same prior notice (including all information delivered or in connection therewith) of any stockholders’ meeting as is provided to the holders of Common Stock in accordance with the bylaws of the Company as well as prior notice of all
stockholder actions to be taken by legally available means in lieu of a meeting. 
  
 7. Liquidation, Dissolution, Winding-Up. In the event of a Liquidation Event, the Holders shall be entitled to receive in cash out of the assets of the Company, whether from capital or from earnings available
for distribution to its stockholders (the “Liquidation Funds”), before any amount shall be paid to the holders of any of the capital stock of the Company of any class junior in rank to the 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 Preferred Share equal to the Stated Value, as increased pursuant to Section 2; provided that, if the Liquidation Funds are
insufficient to pay the full amount due to the Holders and holders of shares of other classes or series of preferred stock of the Company that are of equal rank with the Preferred Shares as to payments of Liquidation Funds (the “Pari Passu
Shares”), if any, then each Holder 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 Certificates of Designations, as a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and Pari Passu Shares. To the extent necessary, the Company shall cause such actions to be taken by any of
its Subsidiaries so as to enable, to the maximum extent permitted by law, the proceeds of a Liquidation Event to be distributed to the Holders in accordance with this Section. All the preferential amounts to be paid to the Holders under this Section
shall be paid or set apart for payment before the payment or setting apart for payment of any amount for, or the distribution of any Liquidation Funds of the Company to the holders of shares of other classes or series of preferred stock of the
Company junior in rank to the Preferred Shares in connection with a Liquidation Event as to which this Section applies. 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 Event. 
  
 8. Preferred
Rank. All shares of Common Stock shall be of junior rank to all Preferred Shares with respect to the preferences as to accrual of Stated Value, dividends, distributions and payments upon any Liquidation Event. The rights of the shares of Common
Stock shall be subject to the preferences and relative rights of the Preferred Shares. Without the prior express written consent of the Required Holders, the Company shall not hereafter authorize or issue additional or other capital stock that is of
senior or pari passu rank to the Preferred Shares in respect of the preferences as to distributions and payments upon any Liquidation Event. The Company shall be permitted to issue preferred stock that is junior in rank to the Preferred Shares in
respect of the preferences as to distributions and payments upon any Liquidation Event, provided that such junior preferred stock is perpetual. In the event of the merger or consolidation of the Company with or into another corporation, the
Preferred Shares shall maintain their relative powers, designations and preferences provided for herein (except that the Preferred Shares may be pari passu with, but not junior to, any capital stock of the successor entity) and no merger shall
result inconsistent therewith. 
  

 -15- 

 9. Participation. Each Holder shall be entitled to such dividends paid and distributions made to
the holders of Common Stock, whether in cash or in kind, to the same extent as if such Holder had converted Preferred Shares into Common Stock (without regard to any limitations on conversion in this Certificate of Designations or elsewhere) and had
held such shares of Common Stock on the record date for such dividends and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders of Common Stock. 
  
 10. Additional Covenants. 
  
 a. Existence. Subject to Section 7, the Company shall
do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any such right or franchise
if the Board of Directors of the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Holders.

  
 b. Further Instruments and Acts. Upon
the request of any Holder, the Company will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Certificate of Designations. 
  
 11. Vote to Change the Terms of Certificate of Designations or Issue
Preferred Shares. In addition to any other rights provided by law, except where the vote or written consent of the holders of a greater number of shares is required by law or by another provision of the Articles of Incorporation as in effect on
the Initial Issuance Date, without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the Required Holders, voting together as a single separate class, the Company shall not:
(i) amend, waive or repeal any provision of, or add any provision to, the Articles of Incorporation or bylaws, or file any certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action
would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Preferred Shares, regardless of whether any such action shall be by means of amendment to the Articles of Incorporation
or by merger, consolidation or otherwise; (ii) increase or decrease (other than by conversion) the authorized number of Preferred Shares; (iii) create or authorize (by reclassification or otherwise) any new class or series of shares that has rights,
preferences or privileges over or is on a parity with the Preferred Shares with respect to dividends, accrual of Stated Value, liquidation preference, voting, the distribution of assets on any Liquidation Event; (iv) purchase, repurchase or redeem
any shares of Common Stock (other than pursuant to equity incentive agreements with employees giving the Company the right to repurchase shares upon the termination of services); (v) enter into any Fundamental Transaction; (vi) pay dividends or make
any other distribution on the Common Stock, the Preferred Shares or any other preferred stock of the Company; (vii) incur any indebtedness for money borrowed individually or in the aggregate from the Initial Issuance Date in excess of $100,000;
(viii) amend or repeal any provision of, or add any provision to, the Articles of Incorporation or bylaws if such action would increase or decrease the authorized size of the Company’s Board of Directors; or (ix) 

  

 -16- 

 
whether or not prohibited by the terms of the Preferred Shares, circumvent a right of the Preferred Shares. 
  
 12. Optional Redemption. 
  
 a. The Preferred Shares will not be redeemable prior to the
fifth anniversary of the Initial Issuance Date. At any time after the fifth anniversary of the Initial Issuance Date, the Company shall have the right at its option to redeem all but not less than all outstanding Preferred Shares at a price (the
“Redemption Price”) per share in cash equal to the Stated Value as increased pursuant to Section 2 from the Initial Issuance Date through the date of redemption. In the event that the Company does not pay the Redemption Price on the
Redemption Date (as defined below), the Redemption Price shall be calculated as if the Redemption Date were the later of the Redemption Date and the date on which such payment is made. 
  
 b. In the event of a redemption of Preferred Shares pursuant to Section 12(a), notice of such redemption
shall be given by the Company, by first class mail, postage prepaid, or overnight mail, received not more than 180 days prior to the Company Redemption Date (as defined below), to each Holder at the address appearing in the Company’s records.
Such notice shall state: (i) the date on which the Holder is to surrender to the Company the certificates for the Preferred Shares to be redeemed (such date, or if such date is not a Business Day, the first Business Day thereafter, the
“Company Redemption Date”), (ii) the number of Preferred Shares to be redeemed, (iii) the Redemption Price, (iv) the address of the place where certificates for such shares are to be surrendered for payment of the Redemption Price,
(v) that Stated Value will cease to increase pursuant to Section 2 on the Company Redemption Date (such notice being referred to as the “Company Redemption Notice”), and (vi) whether the certificate or certificates to be surrendered
are required to be endorsed for transfer or accompanied by a duly executed stock power or other appropriate instrument of assignment and, if so, the form of such endorsement or power or other instrument of assignment. On or prior to the Company
Redemption Date, each Holder of Preferred Shares to be redeemed shall surrender his, her or its certificate or certificates representing such shares to the Company, in the manner and at the place designated in the Company Redemption Notice, and
thereupon the Redemption Price of such shares shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof and each surrendered certificate shall be canceled. From and after the Company
Redemption Date, unless there shall have been a default in payment of the Redemption Price (e.g. the Company shall not have set aside, separate and apart from its other funds in trust for the benefit of the Holders, all funds necessary for the
payment of the Redemption Price), all rights of the Holders of Preferred Shares (except the right to receive the Redemption Price upon surrender of their certificate or certificates) shall cease with respect to such shares, and such shares shall not
thereafter be transferred on the books of the Company or deemed to be outstanding for any purpose whatsoever. 
  
 c. At any time after the fifth anniversary of the Initial Issuance Date, the Required Holders of Preferred Shares may, at such Required
Holder’s option, require the Company to redeem all but not less than all outstanding Preferred Shares at the Redemption Price. In the event that the Company does not pay the Redemption Price on the Holder Redemption Date (as defined below), the
Redemption Price shall be calculated as if the Holder 

  

 -17- 

 
Redemption Date were the later of the Holder Redemption Date and the date on which such payment is made. 
  
 d. To effect a redemption of Preferred Shares pursuant to
Section 12(c), the Required Holders shall make a written demand for such redemption (for purposes of this Section 12(d), a “Holder Redemption Demand”) upon the Company at its principal executive offices setting forth therein the
identity of each Holder comprising the Required Holders and the number of Preferred Shares held by each such Holder. Within 10 days of receipt of the Holder Redemption Demand, the Company shall give written notice (for purposes of this Section
12(d), a “Holder Redemption Notice”) to each Holder of Preferred Shares at the address appearing in the Company’s records. Such notice shall state: (i) the date on which the Holder is to surrender to the Company the
certificates for the Preferred Shares to be redeemed, which shall be not more than 180 days after the date of such notice (such date of notice, or if such date is not a Business Day, the first Business Day thereafter, the “Holder Redemption
Date”). (ii) the number of Preferred Shares to be redeemed, (iii) the Redemption Price, (iv) the address of the place where certificates for such shares are to be surrendered for payment of the Redemption Price, (v) that Stated Value will
cease to increase pursuant to Section 2 on the Company Redemption Date (such notice being referred to as the “Company Redemption Notice”), and (vi) whether the certificate or certificates to be surrendered are required to be
endorsed for transfer or accompanied by a duly executed stock power or other appropriate instrument of assignment and, if so, the form of such endorsement or power or other instrument of assignment. 
  
 e. On or prior to the Holder Redemption Date, each Holder of
Preferred Shares thereon shall surrender his, her or its certificate or certificates representing such shares to the Company, in the manner and at the place designated in the Holder Redemption Notice, and thereupon the Redemption Price of such
shares shall be paid by check payable to the order of the person whose name appears on such certificate or certificates as the owner thereof and each surrendered certificate shall be canceled. From and after the Holder Redemption Date, unless there
shall have been a default in payment of the Redemption Price (e.g. the Company shall not have set aside, separate and apart from its other funds in trust for the benefit of the Holder, all funds necessary for the payment of the Redemption Price),
all rights of the Holder of the Preferred Shares (except the right to receive the Redemption Price upon surrender of their certificate or certificates) shall cease with respect to such shares, and such shares shall not thereafter be transferred on
the books of the Company or deemed to be outstanding for any purpose whatsoever. 
  
 f. Upon the redemption of Preferred Shares pursuant to this Section 12, such Preferred Shares so redeemed by the Company shall be retired
and canceled and shall not be reissued. 
  
 13. 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 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 Certificates), the Company shall execute and deliver new preferred
stock certificate(s) of like tenor and date; provided, 

  

 -18- 

 
however, the Company shall not be obligated to re-issue preferred stock certificates if the Holder contemporaneously requests the Company to convert such
Preferred Shares into Common Stock. 
  
 14. Remedies, Other
Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of Designations shall be cumulative and in addition to all other remedies available under this Certificate of Designations and the other Transaction
Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of 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 acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holders and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the Holders 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. 
  
 15.
Construction: Headings. This Certificate of Designations shall be deemed to be jointly drafted by the Company and all of the Holders and shall not be construed against any person as the drafter hereof. The headings of this Certificate of
Designations are for convenience of reference and shall not form part of, or affect the interpretation of, this Certificate of Designations. 
  
 16. Failure or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 
  
 17. Notice. Whenever notice is required to be given under this
Certificate of Designations, unless otherwise provided herein, such notice shall be given in accordance with Section 12(f) of the Securities Purchase Agreement (provided that if the Preferred Shares are not held by the Buyer (as defined in the
Securities Purchase Agreement) then substituting the words “holder of Securities” for the word “Buyer”), subject to the provisions of Colorado law. 
  
 18. Transfer of Preferred Shares. A Holder may assign some or all of the Preferred Shares and the accompanying rights
hereunder held by such Holder without the consent of the Company; provided that such assignment is in compliance with applicable securities laws, subject to the transfer and resale restrictions set forth in the Securities Purchase Agreement.

  
 19. Preferred Share Register. The Company shall
maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall record the name and address of the persons in
whose name the Preferred Shares have been issued, as well as the name and address of each transferee. The Company may treat the person in whose name any Preferred 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. 
  

 -19- 

 20. Preferred Stockholder Matters. Any preferred stockholder action, approval or consent required,
desired or otherwise sought by the Company pursuant to the rules and regulations of the Principal Market, the CCAA, this Certificate of Designations or otherwise with respect to the issuance of the Preferred Shares or the Common Stock issuable upon
conversion thereof may be effected by written consent of the Company’s preferred stockholders or any series thereof or at a duly called meeting of the Company’s preferred stockholders or any series thereof, as applicable, all in accordance
with the applicable rules and regulations of the Principal Market and the CCAA. This provision is intended to comply with the applicable sections of the CCAA permitting stockholder action, approval and consent affected by written consent in lieu of
a meeting. 
  
 RESOLVED, the Company is authorized to issue an
additional Nine Thousand (9,000) Preferred Shares to a single Person in connection with the settlement of a contract amount payable. 
  
 * * * * * 
  

 -20-

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