Document:

Blueprint

 

ADENDA: PRORROGA DE LOCACION

 

Entre TAMASH
S.A.  (C.U.I.T.
33-71234845-9), con domicilio social en la calle Murillo 671, Piso
3, de la Ciudad Autónoma de Buenos Aires, representada en este
acto por su Presidente, Sr. Luis Wolfsohn, D.N.I. N°
18.758.313, con facultades suficientes para este acto,
constituyendo domicilio especial contractual constituido en la
calle Murillo 671, 3° Piso, de Capital Federal, por una parte
y en adelante de nominada la "LOCADORA"; y por la otra y en adelante denominada la
"LOCATARIA"
la Razón Social que gira bajo la
denominación de "LAKELAND ARGENTINA S.R.L.", con
domicilio en Rodriguez Peña 694 Piso 10°, Ciudad
Autónoma de Buenos Aires, C.U.I.T. No 30-71121810-2,
representada en este acto por su Apoderada, Sra. Agustina Cendali,
D.N.I. 24.069.380 con facultades
suficientes para este acto; convienen en celebrar
la presente Adenda a Contrato de
locación suscripto el 15/10/2015 por el espacio parcial
de 1600 m2 cubiertos (correspondientes
a 1240 m2 de Galpón, Oficinas y Baños en Planta Baja; 120
m2 de Oficinas en Planta Alta y 240 m2 de sector depósito en
Entrepiso, de los inmuebles que seguidamente se detallan:
a)
Lote ubicado en
Calle No 122 (Ex. General Roca) No 4.785, de la localidad
de Villa Ballester, Partido de San Martín, Provincia de Buenos
Aires, designado en el plano de subdivisión como Lote Uno-e,
Nomenclatura catastral Circunscripción III, Fracción XLI,
Parcela 1-e; que tiene una superficie aproximada éste de
98.525m2; y b)
Los
veintitrés Lotes de terreno, denominados internamente como
“Parking R8”, ubicados en la localidad de Villa
Ballester, Partido de San Martín, Provincia de Buenos Aires,
designados en el plano característica 47-341-58 que cita su
título, con los números Uno, Dos, Tres, Cuatro, Cinco,
Seis, Siete, Ocho, Nueve, Diez, Once, Doce, Trece, Catorce, Quince,
Dieciséis, Diecisiete, Dieciocho, Diecinueve, Veinte,
Veintiuno, Veintidós y Veintitrés, todos de la Manzana
89-b, Nomenclatura catastral: Circunscripción III,
Sección 0, Manzana 89-b, Parcelas 1, 2, 3, 4, 5, 6, 7, 8, 9,
10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 y 23, con una
superficie aproximada éste de 6.090m2. Todo lo que
totaliza un predio total de aproximadamente 104.615 m2 de
superficie, sujeto a las siguientes cláusulas,
condiciones y declaraciones:

 

PRIMERA: Que el contrato de locación celebrado,
establece un plazo de vigencia de TREINTA Y SEIS (36) meses,
contados a partir del día 01 de Diciembre de 2015, por lo que
su vencimiento operaría el día 30 de Noviembre de
2018.-

 

SEGUNDA: Que en este acto las partes deciden prorrogar la
vigencia del contrato referido por el término de Doce (12)
meses a partir de la fecha de vencimiento señalada, es decir
para el período comprendido entre el 1° de Diciembre de
2018 y el 30 de noviembre de 2019, fecha en la cual se
producirá indefectiblemente el vencimiento de pleno de derecho
del contrato, sin necesidad de interpelación judicial y/o
extrajudicial alguna.

 

TERCERA: La presente prórroga se regirá por todas
las cláusulas del contrato suscripto, salvo en lo relativo al
precio de la locación,
el cual en este acto se modifica y se fija de la siguiente
manera:

Precio de la locación

El valor locativo mensual se pacta por mes entero adelantado y se
establece en la suma de DOSCIENTOS DOSCIENTOS OCHENTA MIL
DOSCIENTOS VEINTITRES PESOS ($ 280.223) para el semestre del 01/12/2018 al
31/05/2019 y en la suma de TRESCIENTOS OCHO MIL DOSCIENTOS CUARENTA
Y CINCO PESOS ($ 308.245) para el semestre del 01/06/2019 al
30/11/2019. En todos los casos la LOCATARIA deberá abonar
además del Canon Locativo mensual el IVA correspondiente y/o
todo otro impuesto que en un futuro lo reemplace o
sustituya.-

 

 

CUARTA: La presente prorroga no
importa novación ni ninguna otra figura que pueda
importar la extinción de las obligaciones o derechos
originalmente contraídos por las partes en el Contrato de
locación oportunamente celebrado. Por lo tanto, las partes
dejan constancia que permanecen vigentes la totalidad de los
términos asumidos en dicho contrato, los que se dan por
reproducidos en el presente con la salvedad de las modificaciones que aquí
expresamente se establecen con relación al plazo y al precio de la
locación aquí
modificadas.

 

QUINTA: En garantía del cumplimiento de sus
obligaciones contractuales, La LOCATARIA mantendrá durante
todo el plazo de vigencia de la presente relación contractual,
y hasta el día del efectivo cumplimiento de todas las
prestaciones a su cargo, un Seguro de Caución en una Empresa
de Seguros a satisfacción de la LOCADORA, y en beneficio de
esta, por un monto equivalente al promedio de un (1) año de
Alquileres del presente Contrato equivalente a Pesos Tres millones
doscientos veintiocho mil novecientos ($ 3.228.900); siempre a
costo y cargo de tramitación y renovación de la
LOCATARIA.. La Póliza que deberá ser contratada por la
LOCATARIA dentro del plazo de sesenta (60) días de suscripto
el presente, será devuelta por el Locador una vez restituida
la propiedad y pagados todos los conceptos cubiertos por
ella.

 

SEXTA: IMPUESTO DE
SELLOS.- El impuesto de sellos que deba tributarse por el
presente se encontrará a cargo de ambas partes por mitades.
Por tal razón, el LOCADOR efectuará el pago
correspondiente y el LOCATARIO deberá reintegrarle el 50% del
importe abonado dentro de los 5 días de efectuado el
mismo.

 

SEPTIMA: Los firmantes constituyen domicilio en los
expresados anteriormente donde se tendrán por válidas
todas las notificaciones judiciales o extrajudiciales que se
practiquen en ellos aunque los mismos no vivan allí, y se
someten a la jurisdicción de los Tribunales Ordinarios Civiles
de la Capital Federal con renuncia expresa a cualquier otro fuero o
jurisdicción que pudiera corresponderles. Asimismo, el
LOCATARIO se obliga a no recusar sin causa al magistrado
interviniente en la medida que se inicie una acción judicial
en su contra.

 

En
prueba de conformidad se firman tres ejemplares de un mismo tenor y
a un solo efecto en la Ciudad de Buenos Aires, a los 1° días del mes de
Diciembre del año 2018.-

 

/s/ Mr.
Luis Wolfsohn

/s/
Agustina Cendali – MANAGER DIRECTOR LATIN
AMERICA

LAKELAND
ARGENTINA S.R.L.

 

 

 

 

 

SWORN
TRANSLATION                                                                                                                                   

ADDENDUM: LEASE
EXTENSION                                                                                                                                   

Between
TAMASH S.A. (Taxpayer ID no.
33-71234845-9), with registered domicile at Murillo 671. Floor 3,
Autonomous City of Buenos Aires, hereby represented by the
President thereof, Mr. Luis Wolfsohn, ID card no. 18758313, with
sufficient powers for the purposes hereto, establishing special
contract domicile at Murillo 671, Floor 3, Federal Capital,
hereinafter referred to as the “LESSOR” on the one hand, and on
the other hand, hereinafter referred to as the “LESSEE”, “LAKELAND ARGENTINA S.R.L.”
business name, domiciled at Rodriguez Peña 694 Floor 10,
Autonomous City of Buenos Aires, Taxpayer ID no. 30-71121810-2,
hereby represented by the legal proxy thereof, Mrs. Agustina
Cendali, bearer of ID card no. 24.069.380, with sufficient powers
for the purposes hereto; this
Addendum to the Lease Agreement executed on 15/1/2015 is
entered into for a partial area of 1600 covered m2 (1240 m2 belonging to the
Storage Area, Offices and Toilets on the Ground Floor; 120
m2 for
Offices on the First Floor and 240 m2 for a mezzanine
warehouse area of the real estates detailed below: a) Plot located on Street No. 122 (Former General
Roca) No. 4785, in the city of Villa Ballester, District of San
Mart’n, Province of Buenos Aires, marked in the subdivision
map as Plot One-e, Cadastral Nomenclature Boundary III, Section
XLI, Plot 1-e; with an area of approximately 98,525
m2;
and b) The twenty three Plots of the land, internally
referred to as “Parking R8”, situated in Villa
Ballester, District of San Mart’n, Province of Buenos Aires,
specified in drawing 47-341-58 as mentioned in the title thereof,
under numbers One, Two, Three, Four, Five, Six, Seven, Eight, Nine,
Ten, Eleven, Twelve, Thirteen, Fourteen, Fifteen, Sixteen,
Seventeen, Eighteen, Nineteen, Twenty, Twenty-one, Twenty-two and
Twenty-three, all in Block 89-b, Cadastral nomenclature: Boundary
III, Section 0, Block 89-b, Plots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,
11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 y 23, with an area
of approximately 6,090 m2
. The foregoing totals a full area
of approximately 104,615 m2,
pursuant to the following terms,
conditions and representations:

ONE: That the lease agreement referred to above sets a term
of THIRTY-SIX (36) months to be counted as of 1 December 2015 and
therefore, it would expire on 30 November 2018.

TWO: That the parties hereto decide to extend the term of
the referred agreement for a period of Twelve (12) moths as of the
above-mentioned expiration date, i.e., for the period comprised
between 1 December 2018 and 30 November 2019, date when the
agreement shall fully expire, without the need of any judicial or
extrajudicial demand whatsoever.

THREE: This extension shall be governed by all the
provisions of the agreement entered into, except as regards the
lease price, which is
herein amended and set as follows:

Lease
price                                                                                                                                   

The
monthly lease price shall be paid in advance for an amount of TWO
HUNDRED AND EIGHTY THOUSAND TWO HUNDRED AND TWENTY-THREE PESOS
($280,223) for the six-month-period covering from 1/12/2018 to
31/05/2019 and for an amount of THREE HUNDRED AND EIGHT THOUSAND
TWO HUNDRED AND FORTY-FIVE PESOS ($308,245) for the
six-month-period covering from 1/06/2019 to 30/11/2019. In all
cases, the LESSEE shall also pay, apart from the monthly rent
amount, the respective VAT and/or any other tax which may replace
or supersede the latter in the future.

FOUR: This extension does not imply any novation whatsoever,
nor any other legal principle which may be construed as any
discharge of the obligations or rights originally assumed by the
parties, as derived from the Lease Agreement timely signed.
Therefore, the parties hereto assert that any and all the
provisions of such Agreement remain in full force, which are
incorporated by reference herein except for the amendments set
forth herein as regards the term and lease price.

FIVE: For the purpose of assuring compliance with its
contractual obligations, the LESSEE shall keep this contractual
relation for the entire term hereof, until the date all its
obligations are effectively fulfilled, a Surety Bond from an
Insurance Company the LESSOR may deem satisfactory, and in favour
of the latter, for an amount equivalent to one (1) year Monthly
Rents, pursuant to this Agreement, which shall equal Three million
two hundred and twenty-eight thousand nine hundred Pesos
($3,228,900); renovation and proceedings thereof to be borne by the
LESSEE. The Policy shall be hired by the LESSEE within sixty (60)
after subscription hereof and shall be returned by the Lessor after
the real estate has been returned and all expenses deriving
therefrom have been paid.

 SIX:
STAMP TAX. - The stamp tax
which should be paid as derived from the provisions herein shall be
born by both parties in halves. Therefore, the LESSOR shall make
the respective payment and the LESSEE shall reimburse the latter
50% of the amount paid within 5 days after making such
payment.

SEVEN: The subscribers hereto constitute their domiciles in
those referred to above, and all judicial and extrajudicial notices
served thereto shall be deemed valid, although they do not reside
therein, and they shall be subjected to the competence of the Civil
Courts of the Federal Capital, expressly waiving to any other venue
or jurisdiction as applicable. Furthermore, the LESSOR hereby
undertakes not to peremptorily challenge the intervening judge
provided no legal proceeding is brought against the
latter.

In
witness thereof, three counterparts of the same tenor and to one
sole effect are signed in the City of Buenos Aires, on this first
day of December in the year 2018.

/s/ Mr.
Luis Wolfsohn

/s/
Agustina Cendali – MANAGER DIRECTOR LATIN
AMERICA

LAKELAND ARGENTINA
S.R.L.                                                                                                                                   

 

MEMORANDUM                                                                                                                                   

This
Memorandum relates to the agreement signed between the Business
Name known as TAMASH S.A. and LAKELAND ARGENTINA S.R.L., on 15
October 2015, which was extended by virtue of the Addendum executed
on 01 December 2018.-

As for the amount
of the rent, the parties hereto agree as
follows:                                                                                                                                   

Without
detriment to the provisions of the Agreement and Addendum referred
to herein, the price agreed for the six-month period from 1 June
2019 to 30 November 2019, the amount of the rent shall be set on
the basis of TWO HUNDRED AND EIGHT THOUSAND TWO HUNDRED AND TWENTY
THREE PESOS ($280.223) , effective as of December 2018 until May
2018 inclusive, and during such period the average of CAC indexes
[CAC is the Spanish acronym of
Cámara Argentina de Comercio, Argentine Chamber of
Commerce] (Building + Materials + Labour) Average CAC Index
= Increase.

Average CAC
indexes                                                                                                                                   

www.camconstrucciones.com.ar/documentos/                                                                                                                                   

Should
that index not be applied, it shall be replaced by any index
mutually agreed by the parties.

As for
all subsequent six-month periods, if any, the monthly values shall be
updated in arrears and so forth until expiration of the
agreement.

/s/ Mr.
Luis Wolfsohn

/s/
Agustina Cendali – MANAGER DIRECTOR LATIN
AMERICA

LAKELAND ARGENTINA
S.R.L.                                                                                                                                   

I,
Lorena Paula Frenk, Sworn Translator of English, hereby certify
that the foregoing is a faithful translation into English,
consisting of four pages, of all relevant parts of the document
written in Spanish. Buenos Aires, 11 February 2019.

La que
suscribe, Lorena Paula Frenk, Traductora Pública en idioma
inglés, CERTIFICA que la presente es traducción fiel y
correcta, compuesta por cuatro páginas, de las partes
pertinentes al idioma inglés de la copia del documento
original redactado en idioma español que ha tenido a la vista
para este acto y al cual se remite, en Buenos Aires, a los 11
d’as del mes de febrero del año 2019.Exhibit 10.16

 

Articles
of Amendment

 

CERTIFICATE OF DESIGNATION

OF

SERIES A 10% CONVERTIBLE PREFERRED STOCK

OF

GROM SOCIAL ENTERPRISES, INC.

 

 

GROM SOCIAL ENTERPRISES,
INC. (the “Corporation”), a corporation organized and existing under and by virtue of the Florida Business Corporation
Act (the “Act”), does hereby certify that pursuant to the provisions of Sections 607.0821, 607.0602 and 607.0603
of the Act, the Corporation hereby states as follows:

 

		1.	The name of the Corporation is Grom Social Enterprises, Inc.

 

		2.	The Certificate of Designation of the Series A 10% Convertible Preferred Stock of the Corporation
was duly adopted by the Board of Directors of the Corporation (the “Board”), pursuant to its unanimous written
consent, effective as of February 22, 2019.

 

		3.	The Certificate of Designation of the Series A Preferred Stock of the Corporation is as set forth
below:

 

*********

 

1.       Designation
and Number.

 

1.1       A
series of Preferred Stock, designated as Series A 10% Convertible Preferred Stock (“Series A Preferred Stock”),
is hereby established.  The number of authorized shares of Series A Preferred Stock shall initially be Two Million (2,000,000)
shares, $0.001 par value per share. The initial stated value amount per share of the Series A Preferred Stock shall be $1.00 per
share (as it may be adjusted from time-to-time, the “Stated Value”).

 

1.2       The
shares of Series A Preferred Stock are being sold to “accredited investors” (as such term is defined in the Securities
Act of 1933, as amended (the “Securities Act”)) in a private placement offering pursuant to Section 4(a)(2)
and/or Rule 506(b) of Regulation D and/or Regulation S, as promulgated under the Securities Act, and any and all applicable state
securities laws (the “Offering”). The Company expressly reserves the rights to increase the number of Series
A Preferred Stock and to designate other classes or series of Preferred Stock from time to time that are senior or junior to, or
pari pasu with, the Series A Preferred Stock, without consent of the Series A Preferred Stock holder.

 

1.3       As
used in this Certificate, the term “Holder” shall mean one or more holder(s) of shares of Series A Preferred
Stock.

 

1.4       No
Maturity, Sinking Fund, Redemption. The Series A Preferred Stock shall have no maturity and will not be subject to any sinking
fund or redemption and will remain outstanding indefinitely unless and until converted by the Holder, pursuant to Section 6 hereof,
or the Corporation decides to redeem or otherwise repurchase the Series A Preferred Stock. The Corporation is not required to redeem,
purchase or set aside funds to redeem the Series A Preferred Stock.

 

2.       Rank.
All shares of the Series A Preferred Stock shall rank (a) senior to the Corporation’s Common Stock and any
other class of securities which is specifically designated as junior to the Series A Preferred Stock (collectively, with the Common
Stock, the “Junior Securities”); (b) pari passu and on parity with any other class or series of Preferred
Stock of the Corporation hereafter created specifically ranking, by its terms, on parity with the Series A Preferred Stock (the
“Pari Passu Securities”); and (c) junior to any class or series of capital stock of the Corporation hereafter
created specifically ranking, by its terms, senior to the Series A Preferred Stock (collectively, the “Senior Securities”),
in each case as to distribution of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or
involuntary.

 

 

 

    	 	1	 

     

    

 

		3.	Dividends.

 

3.1       Commencing
on the date that the Series A Preferred Stock is initially issued to the holder thereof (the “Original Dividend Accrual
Date”), cumulative dividends shall accrue on each share of Series A Preferred Stock, at the rate of 10% (the “Dividend
Rate”) of the Stated Value per annum (accrued daily, from but not including the next preceding Dividend Payment Date
(as defined in Section 4(b) below), or, in the case of the first Dividend Payment Date, from the Original Dividend Accrual Date,
to and including the respective Dividend Payment Date, on the basis of a 360-day year consisting of twelve (12) 30-day months).

 

3.2       The
dividend on the Series A Preferred Stock (the “Series A Dividend”) shall be payable monthly in arrears, beginning
on March 31, 2019 and thereafter on the last calendar day of each month (each a “Dividend Payment Date”), or
if such day is not a Business Day (as hereinafter defined), on the next succeeding Business Day, to Holders of record as of the
tenth (10th) Business Day preceding the respective Dividend Payment Date. Series A Dividends shall be payable in arrears
and, at the discretion of the Corporation, may be paid in cash or in stock (the “PIK Dividend”) by issuance of Common
Stock at a fixed value of $0.25 (per share as may be adjusted as a result of stock splits, reverse splits, combinations, or similar
transactions from time to time, the “Common Stock PIK Value”). Any fractional shares of a PIK Dividend may,
at the discretion of the Corporation, be paid in cash or rounded up to the nearest share. All shares of Common Stock issued in
payment of a PIK Dividend will upon issuance thereof, be duly authorized, validly issued, fully paid and non-assessable. Notwithstanding
anything to the contrary contained herein, dividends on the Series A Preferred Stock will accumulate whether or not the Corporation
has earnings. The term “Business Day” shall mean any day, other than a Saturday or Sunday or a day on which
banking institutions in the State of New York are authorized or obligated by law or executive order to close.

 

4.       Liquidation
Preference.

 

4.1       Liquidation
or Sale of All or Substantially all of Assets. In the event of a merger, sale (of substantially all assets or stock), any voluntary
or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, then, either (a) after any distribution
or payment on Senior Securities, (b) simultaneous with any distribution or payment on Pari Passu Securities, and (c) before any
distribution or payment shall be made to the holders of the Common Stock or any other Junior Securities, each Holder of Series
A Preferred Stock then outstanding shall be entitled to be paid, out of the assets of the Corporation available for distribution
to its stockholders, an amount (the “Liquidation Preference”) equal to (i) aggregate number of shares of Series
A Preferred Stock then outstanding multiplied by its Stated Value per share; and (ii) any accrued but unpaid dividends. If the
assets of the Corporation are not sufficient to generate cash sufficient to pay in full the Liquidation Preference, then the Holders
of Series A Preferred Stock shall share ratably (together with holders of any Pari Passu Securities) in any distribution of cash
generated by such assets in accordance with the respective amounts that would have been payable in such distribution as if the
amounts to which the Holders of outstanding shares of Series A Preferred Stock are entitled were paid in full.

 

4.2       Sale
of Less Than All Assets, With Proceeds of Greater Than $1,500,000. In the event of a sale of less than all or substantially
all of the assets (by merger, asset sale, change of control, capital lease or long term license/lease spin off or otherwise of
the Corporation or any subsidiary) with gross proceeds to the Corporation in excess of $1,500,000 whereby the assets sold exceeds
the cost of assets acquired for GAAP purposes, then the Holder shall receive a “Special Dividend” from the Company
equivalent to 25% of the value of the Holder’s Series A Preferred Stock. This Special Dividend shall be paid by the Company
within 10 business days of the Company’s receipt of funds or other form of consideration, in same form of consideration,
as received by the Company. For example, if the Company receives cash, the Holder shall receive cash. If the Company’s receive
common stock of the purchaser of the assets, the holder shall receive common stock.

 

4.3        Notice
of Liquidation. Holders of Series A Preferred Stock will be entitled to written notice of any such liquidation, dissolution
or winding up no fewer than 30 days and no more than 60 days prior to the payment date. After payment of the full amount of the
liquidating distributions to which they are entitled, the holders of Series A Preferred Stock will have no right or claim to any
of the remaining assets of the Corporation. The consolidation or merger of the Corporation with or into any other corporation,
trust or entity or of any other entity with or into the Corporation, or the sale, lease, transfer or conveyance of all or substantially
all of the property or business the Corporation, shall not be deemed a liquidation, dissolution or winding up of the Corporation.

 

 

 

    	 	2	 

     

    

 

5.       Voting
Rights.  The Series A Preferred Stock shall vote together with the Common Stock and, except as otherwise set forth
in Section 10 hereof, not as a separate class.  Each share of Series A Preferred Stock shall be entitled to vote with
the Common Stock on an as converted basis (e.g. initially five votes for each share of Series A Preferred Stock). The Holder of
each share of Series A Preferred Stock shall be entitled to notice of any stockholders’ meeting in accordance with the Bylaws
of the Corporation as amended from time to time, and shall vote with holders of the Common Stock upon the election of directors
and upon any other matter submitted to a vote of stockholders.  Fractional votes by the Holders of Series A Preferred
Stock shall not, however, be permitted and any fractional voting rights resulting from the above formula (after aggregating all
shares into which shares of Series A Preferred Stock held by each Holder could be converted) shall be rounded to the nearest whole
number (with one-half being rounded upward).

 

6.       Conversion.

 

6.1.       Conversion
Ratio.  Each full share of Series A Preferred Stock shall be convertible, at any time, into five (5) full shares
of the Common Stock of the Corporation (the “Conversion Rate”).

 

6.2       Mechanics
of Conversion.  Before any holder of shares of Series A Preferred Stock shall be entitled to convert the same into shares
of Common Stock, such holder shall surrender the certificate or certificates therefore, duly endorsed, at the office of the Corporation
or of any transfer agent for the Series A Preferred Stock, and shall give written notice to the Corporation at its principal corporate
office, of the election to convert the same and shall state therein the name or names in which the certificate or certificates
for shares of Common Stock are to be issued. The Corporation shall, as soon as practicable thereafter, issue and deliver at such
office to such holder of Series A Preferred Stock, or to the nominee or nominees of such holder, a certificate or certificates
for the number of shares of Common Stock to which such holder shall be entitled as aforesaid. Such conversion shall be deemed to
have been made immediately prior to the close of business on the date of such surrender of the shares of Series A Preferred Stock
to be converted (the “Conversion Date”), and the person or persons entitled to receive the shares of Common
Stock issuable upon such conversion shall be treated for all purposed as the record holder or holders of such shares of Common
Stock as of such date. All shares of Series A Preferred Stock which shall have been surrendered for conversion as herein provided
shall no longer be deemed to be outstanding and all rights with respect to such shares, including the rights, if any, to receive
dividends and to vote, shall immediately cease and terminate on the Conversion Date, except only the right of the holders thereof
to receive shares of Common Stock in exchange therefor.

 

6.3       Adjustment
for Reclassification, Exchange, and Substitution.  If at any time or from time to time after the date upon which
the first share of Series A Preferred Stock was issued by the Corporation (the “Original Issue Date”), the shares
of Common Stock of the Corporation is changed into the same or a different number of shares of any class or classes of stock, whether
by recapitalization, reclassification, reorganization, merger, exchange, consolidation, sale of assets or otherwise, then, (i)
each holder of Series A Preferred Stock shall have the right thereafter to convert such stock into the kind and amount of stock
and other securities and property receivable upon such recapitalization, reclassification, reorganization, merger, exchange, consolidation,
sale of assets or other change by a holder of the number of shares of Common Stock into which such shares of Series A Preferred
Stock could have been converted immediately prior to such recapitalization, reclassification, reorganization, merger, exchange,
consolidation, sale of assets or other change, or with respect to such other securities or property by the terms thereof and (ii)
the PIK Dividend shall be paid in shares of such kind and amount of stock and other securities and property receivable upon such
recapitalization, reclassification, reorganization, merger, exchange, consolidation, sale of assets or other change as would have
been received as such PIK Dividend immediately prior to such recapitalization, reclassification, reorganization, merger, exchange,
consolidation, sale of assets or other change, or with respect to such other securities or property by the terms thereof.

 

6.4       Adjustment
of Conversion Rate and Common Stock PIK Value Upon Common Stock Event.   In the event that a Common Stock Event
(as hereinafter defined) occurs at any time or from time to time after the Original Issue Date, the (i) aggregate number of shares
of Common Stock into which the Series A Preferred Stock may be converted (the “Conversion Shares”) in effect
immediately prior to such event, and (ii) the Common Stock PIK Dividend Rate shall, simultaneously with the occurrence of such
Common Stock Event, be proportionately decreased or increased, as appropriate.  The Conversion Shares shall be readjusted
in the same manner upon the happening of each subsequent Common Stock Event. As used herein, the term “Common Stock Event”
shall mean: (a) the declaration or payment of any dividend or other distribution on the Common Stock, without consideration,
payable to one or more stockholders in additional shares of Common Stock or other securities or rights convertible into, or entitling
the holder thereof to receive, directly or indirectly, additional shares of Common Stock; (b) a subdivision (by stock split, reclassification
or otherwise) of the outstanding shares of Common Stock into a greater number of shares of Common Stock; or (c) a combination or
consolidation (by reverse stock split) of the outstanding shares of Common Stock into a smaller number of shares of Common Stock.  

 

 

 

    	 	3	 

     

    

 

6.5       Reservation
of Stock Issuable Upon Conversion.  The Corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the shares of the Series A Preferred
Stock, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding
shares of the Series A Preferred Stock; and if at any time the number of authorized but unissued shares of Common Stock shall not
be sufficient to effect the conversion of all then outstanding shares of the Series A Preferred Stock. If the Corporation will
take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purpose, including, without limitation, engaging in best
efforts to obtain the requisite stockholder approval of any necessary amendment to the Corporation’s Articles of Incorporation.

 

6.8.       Fractional
Shares.  No fractional shares shall be issued upon the conversion of any share or shares of Series A Preferred
Stock.  All shares of Common Stock (including fractions thereof) issuable upon conversion of more than one share of Series A
Preferred Stock by a holder thereof shall be aggregated for purposes of determining whether the conversion would result in the
issuance of any fractional share.

  

7.       Redemption.  The
Series A Preferred Stock is not redeemable.

 

8.       Amendment.
This Certificate of Designation, or any provision hereof, may only be amended as set forth in Section 10 hereof.

 

9.       Prohibition
on Transfer. The sale, offer to sell, contract to sell, assignment, pledge, hypothecation, encumbrance or other transfer of
the Series A Preferred Stock or the Common Stock issuable thereunder shall be restricted as provided in the Subscription Agreement
for the shares between the Corporation and the purchaser therein or its successors and assigns. Any purported transfer of any
of the Series A Preferred Stock that is not in accordance with this Section 12 shall be null and void, and shall not operate to
transfer any right, title or interest in such Series A Preferred Stock to the purported transferee. Each Holder of Series A Preferred
Stock agrees that the Corporation shall be entitled to prohibit the transfer of any Series A Preferred Stock to be made on its
books unless the transfer is permitted hereunder and has been made in accordance herewith.

 

10.       Protective
Provisions. So long as any shares of Series A Preferred Stock are outstanding, the Corporation shall not take any actions (whether
by merger, consolidation or otherwise) without first obtaining the approval (by vote or written consent) of the Holders of a majority
of the issued and outstanding Series A Preferred Stock (the “Majority Holders”), voting separately as a single
class, that would amend the rights, preferences or privileges of the Series A Preferred Stock in this Certificate of Designation.

 

Notwithstanding the foregoing,
no change pursuant to this Section 10 shall be effective to the extent that, by its terms, it applies to less than all of the Holders
of shares of Series A Preferred Stock then outstanding.

 

11.       Miscellaneous.

 

11.1.Cancellation
of Series A Preferred Stock If any shares of Series A Preferred Stock are converted pursuant to this Series A Certificate of
Designation, or are returned, redeemed or unissued, then such shares shall at the discretion of the Board be canceled, shall return
to the status of authorized, but unissued “blank check” Preferred Stock of no designated series, and may be designated
and issued by the Board in subsequent issuances.

 

11.2.Lost
or Stolen Certificates. Upon receipt by the Corporation of (a) evidence of the loss, theft, destruction or mutilation of any
Series A Preferred Stock Certificate(s) and (b) (i) in the case of loss, theft or destruction, indemnity (without any bond or other
security) reasonably satisfactory to the Corporation, or (ii) in the case of mutilation, the Series A Preferred Stock Certificate(s)
are surrendered for cancellation, the Corporation shall execute and deliver new Series A Preferred Stock Certificate(s) of like
tenor and date. However, the Corporation shall not be obligated to reissue such lost, stolen, destroyed or mutilated Series A Preferred
Stock Certificate(s) if the Holder contemporaneously requests the Corporation to convert such Series A Preferred Stock.

 

 

 

    	 	4	 

     

    

 

11.3.Waiver.
Notwithstanding any provision in this Certificate of Designation to the contrary, any provision contained herein and any right
of the Holders of Series A Preferred Stock granted hereunder may be waived as to all shares of Series A Preferred Stock (and the
Holders thereof) upon the written consent of the Majority Holders, unless a higher percentage is required by applicable law, in
which case the written consent of the Holders of not less than such higher percentage of shares of Series A Preferred Stock shall
be required.

 

11.4Notices.
Any notices required or permitted to be given under the terms hereof shall be in writing and shall be deemed effectively given
upon the earlier of actual receipt, or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s
next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying
next business day delivery, with written verification of receipt. All communications to the Corporation shall be sent to the corporate
business address of the Corporation as set by the Board from time to time.

 

[Signature
Page Follows]

 

 

 

 

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[Signature Page to Certificate of Designation
of Series A 10% Convertible Preferred Stock]

 

 

IN WITNESS WHEREOF, this Certificate
of Designation is executed on behalf of the Corporation this  22nd day of February 2019.

 

	 	GROM SOCIAL ENTERPRISES, INC.
	 	 
	 	 
	 	By:      /s/Darren
    Marks                                 
	 	Name: Darren Marks
	 	Title: President
    and Chief Executive Officer

 

 

 

 

 

 

 

 

 

    	 	6

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