Document:

Exhibit 4.4 

 

CERTIFICATE OF DESIGNATION OF

PREFERENCES, RIGHTS AND LIMITATIONS

OF

15% CUMULATIVE CONVERTIBLE REDEEMABLE SERIES
D PREFERRED STOCK

OF

VERTICAL COMPUTER SYSTEMS, INC.

 

VERTICAL COMPUTER SYSTEMS.
INC. (the "Company"), a corporation organized and existing under the laws of the State of Delaware, does hereby certify:

 

That, pursuant to authority
conferred upon the Board of Directors by the Certificate of Incorporation of the Company, and pursuant to the provision of Section
161 Delaware Statutes, said Board of Directors, by unanimous written consent effective as of October 13. 1998, duly adopted a resolution
providing for the issuance of a series of 1 00,000 shares of 15% Cumulative Convertible Redeemable Series D Preferred Stock, $.001
par value ("Preferred Stock"), which resolution is as follows:

 

 

RESOLVED, that pursuant to the authority expressly
granted and invested in the Board of Directors of this Company in accordance with the provisions of its Certificate of Incorporation,
a series of preferred stock of the Company be and hereby is given the distinctive designation of 15% Cumulative Convertible Redeemable
Series D Preferred Stock' (the "Preferred Stock"), said series to consist of 100,000 shares of the par value $001 per
share non-voting preferred stock, of which the preferences and relative, participating, optional or other special rights, and the
qualifications, limitations or restrictions thereof shall be as follows:

 

1.            Dividends on Preferred Stock.

 

(a)
Except as hereinafter provided, the holders of the Preferred Stock shall be entitled to receive, when and as declared by the
Board of Directors out of funds for the Company legally available therefor, cash or common stock dividends at the annual rate
of 15% per annum on March 15 and September 15 of each year. Dividends will accrue from the date of the issuance of the
Preferred Stock (the "Closing Date'). If the dividend on the Preferred Stock for any dividend period shall not have been
paid or set apart in full for such Preferred Stock, the aggregate deficiency shall be cumulative and shall be fully paid or
set apart for payment before any dividend shall be paid or set apart for payment of any class of common stock of the Company.
Accumulation of dividends of the Preferred Stock shall not bear interest.

 

     

     

    

 

(b) Dividends shall be
paid in cash.

 

2.           Conversion of Preferred
Stock into Common Stock.

 

(a) Subject to redemption
by the Company as hereinafter described, the holder of record of any share or shares of Preferred Stock shall have the right, at
his option, to convert each said share or shares of Preferred Stock into 3.788 fully paid and non-assessable shares of the Company's
common stock, par value $.001 per share ("Common Stock").

 

(b) Any holder of a share
or shares of Preferred Stock desiring to convert such Preferred Stock into Common Stock shall surrender the certificate or certificates
representing the share or shares of Preferred Stock to be so converted, duly endorsed to the Company or in blank, at the principal
office of the Company (or such other place as may be designated by the Company) and shall give written notice to the Company at
said office that the holder elects to convert same, setting forth the name or names (with the address or addresses) in which the
shares of Common Stock are to be issued. Shares of the Preferred Stock shall be deemed to have been converted as of the close of
business on the date the Company shall receive the written notice of conversion, together with the duly executed certificate and
payment in full of transfer tax, if applicable, and the rights of the holders of such Preferred Stock shall cease at such time,
and the person or persons in whose name or names the certificates for such shares are to be issued shall be treated for all purposes
as having become the record holder or holders of such Common Stock at such time: provided, however, that any such surrender on
any date when the stock transfer books of the Company shall be closed shall constitute the person or persons in whose name or names
the certificates for such shares to be issued as the record holder or holders thereof for all purposes at the close of business
on the next succeeding day on which such stock transfer books are open.

 

(c) Conversion of the Preferred
Stock shall be subject to the following additional terms and provisions:

 

(i) As promptly as practicable
after the surrender for conversion of any certificate or certificate representing Preferred Stock, the Company shall deliver or
cause to be delivered at the principal office of the Company (or such other place as may be designated by the Company) to or upon
the written order of the holder of such Preferred Stock, certificates representing the shares of Common Stock issuable upon the
conversion, issued in such name or names as such holder may direct.

 

     

     

    

 

(ii) The Company shall
at the time of such conversion pay to the holder of record of any share or shares of such Preferred Stock any accrued but unpaid
dividends on such Preferred Stock so surrendered for conversion, except that no payment or adjustment shall be made for any accrued
or unpaid dividends for the then current quarterly dividend.

 

(iii) The Company shall
not be required to issue any fractions of shares of Common Stock or script upon the conversion of Preferred Stock. If more than
one share of Preferred Stock shall be surrendered for conversion at any time by the holder, the number of full shares of Common
Stock which shall be issuable upon conversion of such Preferred Stock shall be computed on the basis of the aggregate number of
shares of Preferred Stock so surrendered. If any interest in a fractional share of Common Stock would otherwise be delivered upon
the conversion of any Preferred Stock, the Company shall make adjustment for such fractional share of interest by payment of an
amount in cash equal to the same fraction of the market value of a full share of Common Stock of the Company. For such purpose,
the market value of a share of Common Stock on any securities exchange or in the open market, as determined by the Company, which
determination shall be conclusive.

 

(iv) In the event that
the Company shall at any time subdivide or combine in a greater or lesser number of outstanding shares of Common Stock, the number
of shares of Common Stock issuable upon conversion of the Preferred Stock shall be proportionately increased in the case of subdivision
or decreased in the case of combination, effective in either case at the close of business on the date when such subdivision or
combination shall become effective.

 

(v) In the event that the
Company shall be recapitalized, consolidated or merged into any other corporation, or shall sell or convey to any corporation all
or substantially all of its property as an entity, provisions shall be made as part of the terms of such recapitalization, consolidation,
merger, sale or conveyance so that any holder of Preferred Stock may thereafter receive in lieu of Common Stock otherwise issuable
to him upon his conversion of Preferred Stock, and at the same conversion ratio stated in this Paragraph 2, the same kind and amount
of securities or assets as may be distributable upon such recapitalization, consolidation, merger, sale or conveyance, with respect
to the Common Stock of the Company.

 

(vi) Such adjustment shall
be made successively if more than one event listed in subdivision (iv) and (v) of this subparagraph (c) of this Paragraph 2 shall
occur.

 

(vii) No adjustment of
the conversion ratio shall be made by reason of:

 

     

     

    

 

(A) the payment of any
cash or Common Stock dividend on the Common Stock or any other classes of capital stock of the Company: or

 

(B) the purchase, acquisition,
redemption or retirement by the Company of any shares of Common Stock or any other class of the capital stock of the Company, except
as provided in subdivision (iv) of this subparagraph (c); or

 

(C) the issuance other
than as provided in subdivision (iv) and (v) of this subparagraph (c) of any shares of Common Stock of the Company or of any securities
convertible into shares of Common Stock or other securities of the Company, or any rights, warrants or options to subscribe for
or purchase shares of the Common Stock or other securities of the Company. or of any other securities of the Company, provided
that in the event the Company offers any of its securities or any rights, warrants or options to subscribe for or purchase any
of its securities, to holders of its Common Stock pursuant to any preemptive or preferential rights granted to holders of Common
Stock by the Certificate of Incorporation of the Company, as may be amended, or pursuant to any similar rights that may be granted
to such holders of Common Stock by the board of Directors of the Company, then the Company shall mail written notice of such offer
to holders of the Preferred Stock then of record at Least 20 days prior to the record date set for such determination of holders
of the Common Stock entitled to receive any such offer: or

 

(D) Any offer by the company
to redeem or acquire shares of the Common Stock by paying or exchanging therefore stock of another corporation the carrying out
by the Company of the transactions contemplated by such offer, provided that at least twenty (20) days prior to the expiration
of any such offer the Company shall mail written notice of such offer to the holders of the Preferred Stock then of record; or

 

(d) The Company shall at
all times reserve and keep available solely for the purpose of issue upon conversion of the Preferred Stock, as herein provided,
such number of shares of Common Stock as shall be issuable upon the conversion of all outstanding Preferred Stock.

 

(e) The issuance of certificate
for shares of Common Stock upon conversion of the Preferred Stock shall be made without charge for any tax in respect to such issuance.
However, if any certificate is to be issued in its name Other than that of the holder of record of the Preferred Stock so converted,
the person or persons requesting the issuance thereof shall pay to the Company the amount of tax which may be payable in respect
of any transfer involved in such issuance, or shall establish the satisfaction of the Company that such tax has been paid or is
not due and payable.

 

     

     

    

 

3. Redemption of
Preferred Stock.

 

(a) The Preferred Stock
may be redeemed at the option of the Company on or after the second anniversary of the Closing Date at $6.25 per share. The Company
may redeem the Preferred Stock at any time prior to the two-year period, if all of the following are true: (i) the Company's Common
Stock trades at or above $2.00 bid for thirty (30) consecutive trading days ending within fifteen (15) days of the date of the
redemption notice, (ii) the Company's Common Stock is listed on NASDAQ and there has been reported volume of at least 100,000 shares
per week for the prior four calendar weeks, and (iii) a registration statement is effective with respect to the Common Stock into
which the Preferred Stock is convertible. The applicable redemption price in the first two years is $6.875 (110% of the stated
value of one (1) share of Preferred Stock) plus all dividends accrued and unpaid on such Preferred Stock up to the date fixed for
redemption. In the event that the Company shall call all or part of the Preferred Stock for redemption, the holder of the Preferred
Stock shall have a period of not less than thirty (30) days within which to convert the Preferred Stock to Common Stock before
such redemption shall occur.

 

(b) In
the event that less than the entire amount of Preferred Stock outstanding is redeemed at any one time, the shares to be
redeemed shall be selected by lot in a manner to be determined by the Board of Directors of the Company. Not less than thirty
(30) nor more than sixty (60) days prior to the date fixed for redemption of the Preferred Stock or any part thereof, a
notice specifying the time and place thereof shall be given by mail to the holders of record of the shares of Preferred Stock
selected for redemption at the respective addresses as the same shall appear on the stock records of the Company, but no
failure to mail such notice or any defect therein or in the mailing thereof shall affect the validity of the proceeding for
redemption. Any notice which was mailed in the manner herein provided shall be conclusively presumed to have been duly given
whether or not the holder receives the notice. Upon such redemption date, or such earlier date as the Board of Directors
shall designate for payment of the redemption price (unless the Company shall default on the payment of the redemption price
set forth in such notice). The holders of the shares of Preferred Stock selected for redemption and to whom notice has been
duly given shall cease to be stockholders with respect to such shares and shall have no interest in or claim against the
Company by virtue thereof and shall have no rights with respect to such shares except the right to convert such shares within
the time hereinabove set forth and except the right to receive the monies payable upon such redemption from the Company or
otherwise, without interest thereon, upon surrender and endorsement, if required by the Company, of the certificates, and the
shares represented thereby shall no longer be deemed to be outstanding. Upon redemption or conversion of the Preferred Stock
in the manner set out herein, or upon purchase of Preferred Stock by the Company, the Preferred Stock so acquired by the
Company shall be cancelable and shall not be reissued. After giving any notice of redemption and prior to the close of
business ont he date prior to the redemption date. As hereinbefore provided, the holders of the Preferred Stock so called for
redemption may convert such stock into Common Stock of the Company in accordance with the conversion privileges set forth in
Paragraph 2 hereof.

 

     

     

    

 

4.           Voting Rights.
Except as otherwise required by law, the holders of Preferred Stock shall have no voting rights.

 

5.           Priority of Preferred
Stock in the Event of a Dissolution. In the event of any liquidation, dissolution or winding up of the affairs of the company,
whether voluntary or otherwise, after payment or provision for payment of debts and the liabilities of the Company, the holders
of Preferred Stock shall receive preference on distribution including an amount equal to all dividends accrued and unpaid on each
share up to the date fixed for distribution, before any distribution shall be made to the holders of any class of Common Stock
of the company.

 

IN WITNESS WHEREOF, the
undersigned has caused its corporate seal to be affixed and this Certificate to be executed by its President and Secretary as of
the 13th day of October, 1998.

 

	 	VERTICAL COMPUTER SYSTEMS
	 	 
	 	/s/ Brett E. Howell
	 	Brett E. Howell, President, Secretary & TreasurerExhibit 4.5

 

Form of Restricted Stock Agreement

 

RESTRICTED STOCK AGREEMENT

 

CONFIDENTIAL

 

THIS RESTRICTED
STOCK AGREEMENT (the “Agreement”) is made and entered into on ______________, 20__, by and between
_______________, an individual residing at __________________________________  (the “Participant”)
and Vertical Computer Systems, a Delaware corporation, located at 101 W. Renner Road, Suite 300, Richardson, TX 75082 (the “Company”).

 

W I T N E
S S E T H:

 

WHEREAS, the Company desires
to provide the Participant an incentive with respect to the Participant’s employment with the Company or an affiliate of
the Company (“Affiliate(s”) or services to be rendered by Participant on behalf of the Company or its
Affiliates, as applicable, and to promote the growth and success of the Company and its Affiliates by awarding the Participant
a restricted stock award pursuant to the terms of this Agreement.

 

NOW, THEREFORE, for and
in consideration of the mutual promises and covenants and the considerations as set forth herein, the parties do hereby agree as
follows:

 

ARTICLE 1

AWARD OF SHARES

 

1.1.          Grant.
For and in consideration of services to be rendered by the Participant, the Company does hereby grant and issue to the Participant,
and the Participant does hereby accept from the Company, effective as of the date of this Agreement (the “Date of Grant”)
a restricted stock award consisting of _________________ (____________) shares of common stock in the Company (the “Shares”)
pursuant to the terms and conditions and subject to the restrictions hereinafter set forth.

 

1.2           Confidentiality.
As a condition of the grant of Shares in this Agreement, Participant shall keep the terms of this Agreement and the award of Shares
confidential. Participant shall not disclose the terms of this Agreement or the award of shares to any third party, including any
other employees of or consultants to the Company and its Affiliates. Notwithstanding the foregoing, Participant may discuss or
disclose the terms of this Agreement to (a) Participant’s accountant or legal counsel, provided such individuals or entities
agree to keep the terms of this Agreement and the award of the Shares confidential, or (b) to the extent required by applicable
law; provided, however, that if Participant is required in any legal proceeding, regulatory proceeding or any similar process to
disclose any part of the terms of this Agreement, Participant shall give prompt notice of such request to the Company so that the
Company may seek an appropriate protective action.

 

1.3           Vesting
of Shares. The Shares that have become vested pursuant to this Section 1.3 are herein referred to as the “Vested
Shares” and all Shares which are not vested are herein referred to as the “Unvested Shares.”

 

(a) The Shares shall vest
in accordance with the following schedule:

 

(1)         First installment.
_________________ (__________) of the total Shares on the ________ (__) month anniversary of the Date of Grant, provided that the
Participant is employed by the Company or an Affiliate or the Participant is providing services to the Company or an Affiliate
on the ________ (__)month anniversary of the Date of Grant.

 

    	RSA Agreement	- 1 -	 

     

    

 

(2)         Second
installment. An additional ______________ (_______) of the total Shares on the ________ (__)month anniversary of the Date of Grant,
provided that the Participant is employed by the Company or an Affiliate or the Participant is providing services to the Company
or an Affiliate on such ________ (__) month anniversary.

 

(3)         Third
installment. An additional ______________ (_______) of the total Shares on the ________ (__) month anniversary of the Date of Grant,
provided that the Participant is employed by the Company or an Affiliate or the Participant is providing services to the Company
or an Affiliate on such ________ (__) month anniversary.

 

(b) In the event the Participant’s
employment by the Company or an Affiliate or the Participant’s engagement to provide services to the Company or an Affiliate
terminates as set forth below, the Shares will vest as follows:

 

(1)         If
the Participant is unable to perform the Participant’s duties in connection with the Participant’s employment by the
Company or an Affiliate or Participant’s engagement to provide services to the Company or an Affiliate, and such failure
is due to a partial or total disability or incapacity resulting from a mental or physical illness, injury or any other cause for
a period of ten (10) consecutive weeks or for a cumulative period of seventy (70) business days during any five (5) month period
(“Disability”), or due to death, the Shares will continue to vest for a period of nine (9) months after
the date of such determination of Disability.

 

(2)         If
the Participant’s employment by the Company or an Affiliate or the Participant’s engagement to provide services to
the Company or an Affiliate is terminated without cause by the Company or an Affiliate, as the case may be, the Shares will
continue to vest for a period of nine (9) months after the date of such termination.

 

(c)          Notwithstanding
anything to the contrary in this Agreement, upon the occurrence of a Triggering Event (as defined below), the Shares shall immediately
vest effective on the date of such Triggering Event. A “Triggering Event” shall mean (i) the date that any person or
group of persons (other than the shareholders of the Company as of the date of this Agreement) shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934,
as amended) of a majority of the issued and outstanding shares of capital stock of the Company having the right to vote for the
election of directors of the Company, (ii) the date of sale or other disposition of all or substantially all the assets of the
Company, or (iii) a change in the composition of the Board of Directors of the Company affecting more than one member of the Board,
prior to December 31, 2016.

 

1.4           Term;
Forfeiture. Upon any forfeiture, all rights of the Participant with respect to the forfeited Unvested Shares shall cease and
terminate, without any further obligation on the part of the Company, and the Unvested Shares shall be transferred back to the
Company. Any Unvested Shares shall be forfeited on the first to occur of the following:

 

(a) 5 p.m. on the date
which is nine (9) months following the date of the termination of (i) the Participant’s employment by the Company or an Affiliate
of the Company or (ii) the Participant’s engagement to provide services to the Company or an Affiliate, in either instance
due to death or Disability.

 

(b) 5 p.m. on the date
of termination of (i) the Participant’s employment by the Company or an Affiliate or (ii) the Participant’s engagement
to provide services to the Company or an Affiliate, in either instance for Cause;

 

(c) 5 p.m. on the date
which is nine (9) months following the termination of (i) the Participant’s employment by the Company or an Affiliate or
(ii) the Participant’s engagement to provide services to the Company or an Affiliate, in either instance without Cause.

 

    	RSA Agreement	- 2 -	 

     

    

 

(d) 5 p.m. on the date
of termination of (i) the Participant’s employment by the Company or an Affiliate or (ii) the Participant’s engagement
to provide services to the Company or an Affiliate, in either instance by the Participant.

 

For purposes of this Section 1.4, “Cause”
for a Participant who is an employee means (i) frequent and unjustifiable absenteeism, including unexcused and repeated failures
to perform work for the Company or an Affiliate in the office of the Company or an Affiliate at the regularly prescribed times
and for the regular scheduled hours the Participant is required to work, other than by reason of the Participant's illness or physical
or mental disability; (ii) insubordination, or continued violation of the Participant’s obligation to perform the duties
and responsibilities required of the Participant, including the Company’s policies applicable to all employees, after the
Participant has been given written notice from his or her supervisor describing the violations and failure to cure or commence
to cure such violations within thirty (30) days; (iii) any embezzlement or any act of dishonesty which is materially injurious
to the Company or an Affiliate or (iv) for a breach by Participant under an employment agreement or non-disclosure agreement, as
applicable.

 

For purposes of this Section 1.4, “Cause”
for a Participant who is not an employee means (i) a breach by Participant of any consulting or services agreement between Participant
and the Company or an Affiliate which is not timely cured, or (ii) any embezzlement or any act of dishonesty which is materially
injurious to the Company or an Affiliate.

 

1.5           Shares
Held by the Custodian. The Participant hereby authorizes and directs the Company to deliver any certificates evidencing the
Shares to the President of the Company or another authorized agent of the Company (the “Custodian”),
to be held until the Shares become Vested Shares. The Participant hereby irrevocably appoints the Custodian, and any successor
thereto, as the true and lawful attorney-in-fact of the Participant with full power and authority to execute any stock power or
other instrument necessary to transfer the Shares to the Company, in the name, place and stead of the Participant, if the Shares
do not vest as provided in Section 1.3 above.

 

1.6           No
Rights to Distributions. The Participant shall not be entitled to any dividends paid or declared on Unvested Shares for which
the record date is prior to the vesting of the Shares as provided in Section 1.3 above.

 

ARTICLE 2

RESTRICTIONS ON SHARES

 

2.1.          Restrictions
on Unvested Shares. No portion of the Shares or rights granted hereunder may be sold, transferred, assigned, pledged or otherwise
encumbered or disposed of by the Participant, including by will or intestacy, until such portion of the Shares becomes vested in
accordance with Section 1.3 of this Agreement. Unvested Shares shall not be transferable by the Participant.

 

2.2.          Restrictions
on Vested Shares. Vested Shares shall be subject to the provisions set forth in this Agreement, any restrictive legends as
set forth on the share certificate, and any State or Federal regulations, including Rule 144.

 

ARTICLE 3

GENERAL PROVISIONS

 

3.1.          Legends.
Any certificate representing the Shares shall be endorsed with the following legend or a legend with similar language as determined
by the Company in its sole and absolute discretion. The Participant shall not make any transfer of the Shares without first complying
with the restrictions on transfer described in such legend:

 

    	RSA Agreement	- 3 -	 

     

    

 

TRANSFER IS RESTRICTED

 

THE SHARES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE
OF THIS CORPORATION. THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT REGISTRATION UNDER SAID ACT OR AN EXEMPTION THEREFROM.

 

The Participant agrees that the Company may
also endorse any certificate representing the Shares with any other legends required by applicable federal or state securities
law. The Company need not register a transfer of the Shares and may also instruct its transfer agent or other authorized agent,
if any, not to register the transfer of the Shares unless the conditions specified in the foregoing legends are satisfied.

 

3.2           Participant
Shareholder Rights. Neither the Participant nor any person claiming under or through the Participant will have any of the rights
or privileges of a stockholder of the Company in respect of any Shares deliverable pursuant to this Agreement unless and until
such Shares have been issued on the records of the Company or its transfer agents or registrars. After such issuance, the Participant
will have all the rights as a stockholder of the Company with respect to such Shares.

 

3.3           Tax
Consequences. The Participant understands that Participant shall be responsible for any taxes that may arise as a result of
the transactions contemplated by this Agreement. 

 

3.4           Insider
Trading Policy. By accepting this grant of stock, the Participant acknowledges that (a) a copy of Vertical Computer Systems’
Insider Trading Corporate Communications Policy (the “ITCCP”) has been made available to the Participant, (b) the Participant
has had an opportunity to review the ITCCP and (c) the Participant is bound by all the terms and conditions of the ITCCP.

 

3.5            Changes in Shares. 

 

(a) In the event that as a result of any stock
dividend, forward stock split, or other change in any Unvested Shares, the Participant shall be entitled to new or additional or
different shares or securities, such new or additional or different shares or securities shall thereupon also be considered to
be Unvested Shares and shall be subject to all of the conditions and restrictions which were applicable to the Shares pursuant
to this Agreement.

 

(b) In the event that the Company shall combine
the outstanding shares into a smaller number of shares in connection with a reverse stock split, the Unvested Shares shall be proportionately
decreased, effective at the opening of business on the full business day next following the day such reverse stock split becomes
effective.

 

3.6           Participant
Representation. The Participant expressly acknowledges that the Participant has not been induced to enter into this Agreement
by the expectation of employment or continued employment with the Company or an Affiliate.

 

3.7.          No Employment Rights Created.
The award of Shares hereunder shall not be construed (i) as granting Participant right to continue or extend Participant’s
employment or Participant’s engagement to provide services to the Company or an Affiliate, or (ii) as interfering with the
right of the Company or an Affiliate to terminate the Participant’s employment or engagement. The parties agree that the
Company shall have no further obligations to Participant relating to the grant of Shares except as stated herein.

 

    	RSA Agreement	- 4 -	 

     

    

 

3.8           Notices.
Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by overnight courier, U.S. registered or certified mail, return receipt requested and
postage prepaid. In the case of the Participant, mailed notices shall be addressed to the Participant at the address set forth
above. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed
to the attention of the President. Each notice, request, claim, demand or other communication delivered or sent in the manner described
above shall be deemed sufficiently delivered or sent at such time as it is delivered to the addressee (with the return receipt
deemed exclusive evidence of such receipt) or at such time as delivery is refused by the addressee.

 

3.9           Authority.
Each party hereto represents and warrants that it has full power and authority to enter into this Agreement and to perform this
Agreement in accordance with its terms.

 

3.10         Governing
Law. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Texas without
regard to its conflict of law principles, and the Federal and State courts of Texas shall have exclusive jurisdiction with respect
to any dispute arising hereunder. The parties irrevocably waive any objection to such venue based on forum nonconveniens
or similar principle with respect to the exclusive jurisdiction of the Federal and State courts of Texas.

 

3.11         Successors
and Assigns. The rights, duties and obligations of a party hereunder may not be assigned, delegated or assumed without the
prior written consent of the other party, provided that the Company may assign this Agreement to any successor entity or acquiring
entity of the Company if the context so requires, without the Participant’s consent, and such assignment shall not constitute
a termination of the Participant’s employment by the Company or an affiliate or the Participant’s engagement to provide
services to the Company or an Affiliate, as applicable. Nothing herein shall cause a termination of this Agreement upon the acquisition,
reorganization, or merger of the Company. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and each party’s respective successors or permitted assigns. Nothing herein shall be construed to confer upon any person
not a party hereto any right, remedy or claim under or by reason of this Agreement.

 

3.13         Waiver.
No waiver of any breach of any term or provision of this Agreement shall be construed to be, or shall be, a waiver of any other
breach of this Agreement. No waiver shall be binding unless in writing and signed by the party against whom the waiver may be enforced.

 

3.14         Counterparts.
This Agreement may be executed in several counterparts, each of which shall be an original, but all of which together shall constitute
one and the same agreement. It is not necessary that each party hereto execute the same counterpart.

 

3.15         Severability.
If any provision of this Agreement shall be determined, under applicable law, to be overly broad in duration, substantive scope
or otherwise, such provision shall be deemed narrowed to the broadest terms permitted by applicable law and shall be enforced as
so narrowed. If any provision of this Agreement is nevertheless held invalid, void, or enforceable for any reason, the remaining
provisions will nevertheless continue in full force and effect as if the invalid, void, or unenforceable provision had never been
contained in this Agreement and the validity, legality and enforceability of the remaining provisions shall remain in full force
and effect and shall in no way be affected, impaired or invalidated.

 

3.16         Amendment.
This Agreement may be amended only in writing executed by the Participant and an authorized representative of the Company.

 

3.17         Finality
of Agreement. This Agreement, when executed by the parties, supersedes all other understandings and agreements of the parties
with respect to the matters set forth herein.

 

    	RSA Agreement	- 5 -	 

     

    

 

3.18         Independent
Counsel. The Participant represents and warrants to the Company that the Participant was advised to consult with independent
legal counsel of the Participant’s own choosing concerning this Agreement and that Participant has either done so or has
had a reasonable opportunity to do so and has chosen not to seek independent legal counsel.

 

IN WITNESS WHEREOF, the parties have executed
this Agreement to be effective as of the day and year first set forth above.

 

	 	VERTICAL COMPUTER SYSTEMS, INC.
	 	 	 
	 	By:	 
	 	 	Richard Wade
	 	 	President/CEO

 

	Accepted and agreed:	 
	 	 
	Participant	 
	 	 	 
	By: 	 	 
	Name: 	 	 

 

    	RSA Agreement	- 6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}]]