Document:

f10k0708ex4iii_natlampoon.htm

    EXHIBIT
4.3

    AMENDMENT
NO. 2

    OF

    CERTIFICATE
OF DESIGNATIONS,

    PREFERENCES,
RIGHTS AND LIMITATIONS

    (SERIES
C CONVERTIBLE PREFERRED STOCK)

    

    First: The Board of Directors
of National Lampoon, Inc., a Delaware corporation (the “Corporation”), duly
adopted resolutions setting forth the proposed amendment to the Certificate of
Designations, Preferences, Rights and Limitations (Series C Convertible
Preferred Stock) of said Corporation, declaring said amendment to be in the best
interests of the Corporation and its stockholders.  The resolutions
setting forth the proposed amendment are substantially as follows:

    

    NOW, THEREFORE, BE IT
RESOLVED, NOW,
that the Certificate of Designations, Preferences, Rights and Limitations
(Series C Convertible Preferred Stock) of the Corporation is hereby amended by
striking out Section 4 thereof and by substituting in lieu of said section the
following new Section 4, as follows:

    

    Section 4.
Dividends.  The Corporation shall have the right to issue
dividends and make distributions, whether cash, securities or otherwise, whether
or not any shares of the Series C Preferred Stock are outstanding.  To
the extent dividends are declared and issued by the Corporation prior to the
earlier of (i) the date of a Liquidation Event or (ii) the date on which the
Series C Preferred Stock is converted hereunder, the Corporation shall pay
preferential dividends, payable at the election of the holder of the Series C
Preferred Stock, in the Corporation’s Series D Convertible Preferred Stock or in
shares of the Corporation’s Common Stock, to the holders of the Series C
Preferred Stock as provided in this Section 4.  Dividends on each
share of the Series C Preferred Stock shall accrue on a daily basis, whether or
not declared, beginning with the date of issuance of such share of Series C
Preferred (November 1, 2004) and continuing until the earlier of (i) the date of
a Liquidation Event, or (ii) the date on which such share of Series C Preferred
Stock is converted hereunder, at the rate of 9.0% per annum on the sum of (i)
the Original Purchase Price (as equitably adjusted for any stock splits, stock
dividends, recapitalizations, reverse stock splits or otherwise to prevent an
enlargement or diminution of rights), plus (ii) all accumulated and unpaid
dividends thereon (compounding annually).  All accrued and unpaid
dividends on each share of Series C Preferred Stock shall be fully paid (pro
rata and pari passu
with any class or series of preferred securities of the Corporation
entitled to participate pro rata and pari passu as to dividends
with the Series C Preferred Stock) before any dividends or distributions may be
issued with respect to any Junior Securities.  Dividends shall be paid
on January 31, April 30, July 31, and October 31 of each
year.  The number of
shares of Series D Convertible Preferred Stock or Common Stock that will be
issued in payment of a dividend shall be computed by (i) dividing the amount of
the dividend by the closing price of a share of Common Stock as reported by the
exchange or regulated quotation service on which the Common Stock is traded on
the trading day immediately prior to the date on which the dividend is to be
paid, (provided, however, that if no trades are made on that day, then the
number of shares to be issued will be computed using the closing price on the
last day, prior to the date on which the dividend is to be paid, on which trades
were made and reported) and, in the case of the Series D Convertible Preferred
Stock only, (ii) dividing the quotient by 20.  Except as
otherwise provided herein, if at any time the Corporation pays less than the
total amount of dividends then accrued with respect to the Series C Preferred
Stock and each Parity Series, such payment shall be distributed ratably among
the holders thereof based upon the aggregate accrued but unpaid dividends on the
Series C Preferred Stock and all Parity Series.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    and by
deleting the definition of "Payment Satisfaction Date" in Section
9.

     

    Second: That acting by written
consent, the holders of at least a majority of the issued and outstanding shares
of the Corporation’s capital stock, including the Series C Convertible Preferred
Stock, consented to the foregoing resolutions and to this Second Amendment of
Certificate of Designations, Preferences, Rights and Limitations (Series C
Convertible Preferred Stock) in accordance with Section 228(a) of the Delaware
General Corporation Law.

    

    Third: That the resolutions
and this Second Amendment of Certificate of Designations, Preferences, Rights
and Limitations (Series C Convertible Preferred Stock) was duly adopted in
accordance with the provisions of Section 242(b)(1) of the Delaware General
Corporation Law.

    

    IN WITNESS WHEREOF, the
undersigned Corporation has caused this Second Amendment to Certificate of
Designations, Preferences, Rights and Limitations (Series C Convertible
Preferred Stock) to be signed by a duly authorized officer as of September 10,
2008.

    

    

    

    By:/s/ Daniel S.
Laikin

          Daniel
S. Laikin, Chief Executive Officerf10k0708ex4iv_natlampoon.htm

    

    
    

     

    
      	 	
              Delaware

              The First State

            	Page
  1

    

     

    I,
HARRIET SMITH WINDSOR, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY
CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF
DESIGNATION OF "NATIONAL LAMPOON, INC.", FILED IN THIS OFFICE ON THE EIGHTEENTH
DAY OF AUGUST, A.D. 2008,
AT 1:18
O'CLOCK P.M.

     

     

     

    
    

     

    
      	

                  3562246
      8100

               

              
                    080887709

              

            	
              

            	
              /s/
      Harriet Smith Windsor

              Harriet Smith
      Windsor, Secretary of State

              AUTHENTICATION: 6803297

               

                  DATE:
      08-20-08

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	 	      
              Secretary
      of State

              Division
      of Corporations

              Delivered
      01:18 PM
      08/18/2008

              FILED
      01:18 PM 08/18/2008.

              SRV
      080879716 - 3562246
      FILE

            

    

     

    CERTIFICATE
OF DESIGNATIONS,

    PREFERENCES,
RIGHTS AND LIMITATIONS or

    SERIES
D CONVERTIBLE PREFERRED STOCK OF

    NATIONAL
LAMPOON, INC.

     

        Pursuant to
Section 151 of the General Corporation Law of the State of Delaware NATIONAL
LAMPOON, INC., a corporation organized and existing under the General
Corporation Law of the state of Delaware (the "Corporation"), DOES HEREBY
CERTIFY:

     

        That,
pursuant to the authority expressly vested in the Board of Directors by Article
5 of the Certificate of Incorporation of the Corporation (as amended from time
to time, the "Certificate
of Incorporation"), and pursuant to the provisions of Section 151 of the
General Corporation Law of the State of Delaware, the Board of Directors duly
adopted a resolution providing
for the issuance of up to Five Hundred Thousand (500,000) shares of Series D
Convertible Preferred Stock, which resolution is as follows:

     

        RESOLVED by
the Board of Directors of National Lampoon, inc., a Delaware corporation
(the"Corporation"), that one (1) series of the class of authorized Preferred
Stock, $0.0001 par value per share, of the Corporation (the "Preferred Stock")
to be designated the Series D Convertible Preferred Stock (the "Series
D) Preferred")
is hereby created, and that the designations and amounts thereof and the
voting powers, preferences and relative, participating optional and other
special rights of the shares of such series, and the qualifications, limitations
and restrictions thereof are as follows:

     

        Number of Series Authorized Shares: Series D Convertible Preferred
Stock 500,000

     

        Section 1.
Number of Shares. The number of shares
constituting the Series D Preferred shall be as set forth above. Such number of
shares may be increased or decreased by resolution of the Board of Directors;
provided, that no decrease shall reduce the number of shares of Series
D
Preferred to a number less than the number of shares then outstanding plus the
number of shares reserved for issuance upon the exercise of any outstanding
options, rights
or warrants, or upon
the conversion of any outstanding securities or rights issued by the Corporation
convertible into the Series D Preferred.

     

        Section 2.
Ownership. Series D Preferred may be
issued only to holders of the Corporation's Series B Convertible Preferred Stock
or the Corporation's Series C Convertible Preferred Stock or to their assigns or
designees.

     

        Section 3.
Ranking. Upon
any liquidation, dissolution, or winding up of the Corporation,
whether voluntary or involuntary, the assets of the Corporation legally
available for distribution,
if arly, following any distribution required to be made to the holders of the
Corporation's
Series B Convertible Preferred Stock and the Corporation's Series C Convertible
Preferred Stock, shall be distributed ratably to the holders of the Common Stock
and the Series D Preferred
Stock, with all holders of Series D Preferred Stock being treated as if they
were holders of
the number of shares of Common Stock into which their shares of Series D
Preferred Stock could
be converted in accordance with Section 5.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

        Section 4.
Voting. Except as may be otherwise
provided in this Certificate of Desigutions or as otherwise required by
applicable law, the Series D Preferred shall not have the right to
Vote.

     

        Section 5.
Conversion.

     

        (a) The
Series D Preferred may not be converted for a period of 36 months after the date
of issuance (the ''Holding Period"), Following the expiration of the Holding
Period, at any time and from time to time, any holder of Series D Preferred may
convert all or any portion of the Series D Preferred held by such holder into a
number of shares of Conversion Stock computed by multiplying the number of
shares of Series D Preferred to be converted times 20, with such conversion
ratio to be adjusted as provided herein. Irrespective of the foregoing, the
Series D Preferred may be converted at any time in connection with a Change in
Ownership or a Fundamental Change,

     

        (b) Except
as otherwise provided herein, each conversion of Series D Preferred shall be
deemed to have been effected as of the close of business on the date on which
the certificate or certificates representing the Series D Preferred to be
oonverted have been surrendered for conversion at the principal office of the
Corporation. At the time any such conversion has been effected, the rights of
the holder of the converted shares of Series D Preferred, as a holder of Series
13 Preferred as to such shares, shall cease and the Person or Persons in whose
name or names any certificate or certificates for shares of Conversion Stock are
to be issued upon such conversion shall be deemed to have become the holder or
holders of record of the shares of
Conversion Stock represented thereby.

     

        (c) Notwithstanding
any other provision hereof, if
a conversion of Series D Preferred is to be made in connection with a
Change in Ownership or a Fundamental Change, the conversion of any shares of
Series D Preferred may, at the election of the holder thereof, be conditioned
upon the consummation of such transaction, in which case such conversion shall
not be deemed to be effective until such transaction has been
consummated.

     

        (d) As
soon as possible after a conversion has been effected, the Corporation shall
deliver to the converting holder,

     

            (i) a
certificate or certificates representing the number of shares of Conversion
Stock issuable by reason of such conversion in such name or names and such
denomination or denominations as the converting holder has specified;
and

     

            (ii) a
certificate representing any shares of Series D Preferred which were represented
by the certificate or certiEcatcs delivered to the Corporation in connection
with such conversion but which were not converted.

     

        (e) The
issuance of certificates for shares of Conversion Stock upon conversion of
Series D Preferred shall be made without charge to the holders of such Series D
Preferred for any
cost incurred
by the Corporation in connection with such conversion and the related issuance
of shares of Conversion Stock

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

        (f) The
Corporation shall not close its books against the transfer of Series D Preferred
or of Conversion Stock issued or issuahie upon conversion of Series D
Preferred in any manner which interferes with the timely conversion of
Series D Preferred. The Corporation shall assist and cooperate with any
holder of shares of Series D Preferred required to make any governments/ filings
or obtain any govenunental approval prior to or lit connection with any
conversion ofshares of Series D Preferred hereunder (including, without
limitation, making any filings required to be made by the
Corporation).

     

        (g) The
Corporation strati at all times reserve and keep available out of its
authorized. lint unissued shares of Conversion Stock, solely for the purpose of
issuance upon the conversion of the Series b Preferred, such number of shares of
Conversion Stock issuable upon the conversion of all outstanding Series D
Preferred. All shares of Conversion Stock which are so issuable shall, when
issued, be
duly and validly issued, fully paid and rionassessable and
free from all taxes, liens and charges,

     

        (h) If any
fractional interest in a share
of Conversion Stock would, except for the provisions of this
subparagraph, be delivered upon any conversion of the Series D Preferred, the
Corporation may, in lieu of delivering the fractional share therefore, pay an
amount to the holder thereof equal to the Market Price of such fractional
interest as of the date of conversion.

     

        (i) If the
Corporation at any time 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 number of shares of Conversion
Stock into which each Series D Preferred Share can be converted shall be
increased ratably, and if the Corporation at any rime combines (by reverse stock
split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, the number of shares of Conversion Stock
into which each Series D Preferred Share can be converted shall be decreased
ratably.

     

        Section 6.
Registration of Transfer. The
Corporation shall
keep at its principal office a register for the registration of Series 13
Preferred. Upon the surrender of arty certificate representing Series D
Preferred at such place, the Corporation shall, at the request of the record
holder of such certificate, execute and deliver (at the Corporation's expense) a
new certificate or certificates in exchange therefore representing in the
aggregate the number of shares of Series D Preferred represented by the
surrendered certificate. Bach
such new certificate shall be registered in such name and shall represent
such number of shares of Series D Preferred as is requested by the holder of the
surrendered certificate and shall be substantially identical in form to the
surrendered certificate.

     

        Section 7.
Replacement. Upon receipt
of evidence reasonably satisfactory to the Corporation (an affidavit of
the registered holder shad be satisfactory) of the ownership and the loss,
theft, destruction or mutilation of
any certificate evidencing shares of Series D Preferred, and in the case
of any such loss, theft or destruction, upon receipt of lodemuity reasonably
satisfactory to the Corporation (provided that if the holder is a financial
institution or other institutional
investor its own
agreement shall be satisfactory), or, in the case of any such mutilation
upon surrender of such certificate, the Corporation shall (at its expense)
execute and deliver in lieu of such certificate a new certificate of lice kind
representing the number of shares of Series D Preferred of such class
represented by such lost,
stolen, destroyed Or
mutilated certificate and
dated the date of such lost, stolen, destroyed or mutilated Certificate,
and declared dividends shall accrue on the Series D Preferred represented by
such new certificate from the date to which dividends have been fullypaid on
such lest, stolen, destroyed or mutilated certificate.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

        Section 8.
Definitions.

     

        "Change in Ownership" means any sale, transfer or
issuance or series of sales, transfers or issuances of shares of the
Corporation's capital stock by the Corporation or any holders thereof
which results in any Person or group of Persons (as the term "group" is used
under the Securities Exchange Act of 1934), other than the holders of Common
Stock, the Series )3 Convertible Preferred Stock, the Series C Convertible
Preferred Stock and the Series D Preferred owning more than 50% of the Common
Stock outstanding at the time of such sale, transfer or issuance or series of
sales, transfers or issuances.

     

        "Common Stock"
means, collectively, the Corporation's Common Stock, par value of S0,0001 per
share.

     

        "Conversion Stock" means shares of the
Corporation's Common Stook; provided that if there is a change such that the
securities issuable upon conversion of the Series D Preferred are issued by 2n
entity other than the Corporation or there is a change in the type or class of
securities so issuable, then the term "Conversion
Stock" shall mean one share of the security issuable upon conversion of
the Series D Preferred if such security is issuable in shares, or shall
mean the smallest unit in which such security is issuable if such security is
not issuable in shares.

     

        "Fundamental Change" means (a) any sale or
transfer of more than 50% of the assets of the Corporation and its Subsidiaries
on a consolidated basis (measured either by book value accordance with generally
accepted accounting principles consistently applied or by fair market value
determined in the reasonable good faith judgment of the Corporation's Board of
Directors) in any transaction or series
of transactions (other than sales in the ordinary course of business) and
(b) any merger or consolidation to which the Corporation is a party, except for
a merger in
which the Corporation is the surviving corporation, the temis of the
Series ID Preferred are hot chaired and the Series D Preferred is not exchanged
for cash, securities or other property, and after giving effect to such merger,
the holders of
the Corporation's outstanding capital stock possessing a majority of the
voting power (under ordinary circumstances) to elect a. majority of the
Corporation's Board of Directors immediately prior to the merger shall continue
to own the Corporation's outstanding capital stock possessing the -voting power
(under ordinary circurns:ances) to elect a majority of the Corporation's Board
of Directors.

     

        "Market Price" of any security means the
average of the closing prices of such security's
sales on all securities exchanges on which such security may at the time be
listed, or, if there have been no sales on any such exchange on any day, the
average of the highest bid and lowest
asked prices on all such exchanges at the end
of such day, or if on any day such security is not so listed, the average
of the representative bid and asked prices quoted in the NASDAQ System as of
4:00 P.M., New York time, or,
if on any day such security is not quoted in the NASDAQ System, the
average of the closing or East prices of such stock's sales each day (whether
sales occurred each day or no)
in the domestic over-the-counter market as reported by the National
Quotation Bureau, Incorporated, or
any
similar successor organization, in each such case averaged over a period
of 21 days consisting of the day as of which "Market Price" is being determined
and the 20 consecutive business days prior to such day. If at any time such
security is not listed on any securities exchange or quoted in the NASDAQ System
or the over-the-counter market, the "Market Price" shall be the fair value
thereof determined in the reasonable good faith judgment of the Corporation's
Board of Directors.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

        "Person" means
an individual, a partnership, a corporation, a
limited liability Coporation, a limited liability, an association, a
joint stock Corporation, a
trust, a joint venture, an unincorporated organization and a governmental
entity or any department, agency or political subdivision thereof.

     

        Section 9.
Amendment and Waiver. No amendment,
modification or waiver shall be binding or effective with respect to any
provision hereof without the afEnnative vote or prior written consent of the
holders of a majority of the Series D Preferred outstanding at the time such
action is taken; and provided further that DO
change in the terms hereof may be accomplished by merger or consolidation
of the Corporation with another corporation or entity unless the Corporation has
obtained the affirmative vote or prior written consent of the holders of a
majority of the Series D Preferred then outstanding.

     

        Section 10.
Notices. Except as otherwise expressly
provided hereunder, all notices referred to herein shall be in writing and shall
be delivered by registered or certified mail, return receipt requested and
postage prepaid, or by reputable overnight courier service, charges prepaid, and
shall he deemed to have been given when so
mailed or sent (i) to the Corporation, at lts principal executive offices
and (ii) to any stockholder, at such holder's address as it appears in the stock
records of the Corporation (unless otherwise indicated by any such
holder).

     

        RESOLVED
FURTHER, that the Chief Executive Officer of the Corporation is authorized to do
or cause to be done all such acts or things and to make, execute and deliver or
cause to be made, executed and delivered all such agreements, documents,
instruments and certificates in the name and on behalf of the Corporation or
otherwise as he deems necessary, desirable or appropriate to execute or carry
out the impose and intent of the foregoing resolutions.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

        IN
WITNESS WHEREOF, National Lampoon, Inc. has caused this Certificate of
Designations, Preferences, Rights and Limitations of Series D Convertible
Preferred Stock to be signed by its duly authorized officer as of this 4th day
of August 2008.

     

    NATIONAL.
LAMPOON, INC,

     

    BY:
/s/ Daniel S.
Laikin

          
Daniel S. Laikin

          
Chief Executive Officer

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