Document:

EXHIBIT 10.1 LEASE PURCHASE AGREEMENT

 

Exhibit 10.1

 

LEASE PURCHASE AGREEMENT

This Lease Purchase Agreement is entered into this 12th day of December, 2013, by and between Nelan Advisors Corporation, a British Virgin Islands Corporation located at Trident Trust Company Complex, P.O. Box 146, Road Town, Tortola, British Virgin Islands (“Seller”), and Bison Petroleum, Corp., a Nevada Corporation, located at 2825 E. Cottonwood Park, Suite 503, Salt Lake City, Utah, 84121 (hereinafter “Buyer”).

 

Recitals

WHEREAS, Seller owns certain oil and gas leases issued by the State of Montana that pertain to properties within the State of Montana and which are more particularly described in Exhibit A attached hereto and incorporated herein by reference;

 

WHEREAS, Buyer is the successor in interest to Seller, which is a successor in interest to the current record owners (“Lessees”) of the oil and gas leases described in Exhibit A; and

 

WHEREAS, Buyer desires to own and operate these leases,

Agreement

NOW, THEREFORE, in consideration of mutual covenants contained herein and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

SECTION – LEASES PURCHASED

1.1

            1.1  RECITALS.  All “Recitals” herein are hereby incorporated by this reference.

1.2

            1.2  ASSETS PURCHASED.  Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, on the terms and conditions set forth in this Agreement, those certain oil and gas leases, issued by the State of Montana, as set forth on Exhibit A (the “Leases”).

1.3

 

            1.3  Seller shall deliver an undivided 50% working interest in the Leases to Buyer, 

 

 

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 
 

including, without qualification, all petroleum, hydrocarbons and associated gases produced at and after the assignment of the Leases from Seller to Buyer.

 

1.4

             1.4  The conveyance of the Leases excludes only well or lease bonds in place with the State of Montana.

 

SECTION 2 – PURCHASE PRICE FOR LEASES

2.1

             2.1  The purchase price for the Leases shall be the issuance of one hundred and fifty   thousand (150,000) shares of Buyer’s common stock that are “restricted securities” as defined under United States Securities and Exchange Commission (the “SEC”) Rule 144, and that shall be subject to resale in compliance with the provisions of subparagraph (i) of Rule 144.  Share issuance shall be subject to the satisfaction of all filing and recording requirements required or necessary to transfer the Leases to Buyer as contemplated hereby.

2.2

 

             2.2  Buyer shall be responsible for all filing and recording fees for the State of Montana and relevant county recorder offices.

2.3

 

             2.3  Buyer is responsible for all rental payments due on the Leases from the date of closing forward. Buyer must give Seller at least 30 days advanced written notice if they will not make rental payments.  If Buyer does not pay any rental payment, then Seller, at its option may pay such rental payment, and shall receive an assignment of those Leases from Buyer, unless Buyer pays such rental payment to Seller within 30 days of written demand to Buyer for such payment. Should Buyer fail to pay following demand or decide not to pay rentals on the Leases, Buyer shall re-assign such unpaid Leases to Seller. 

 

SECTION 3 – REPRESENTATIONS AND WARRANTIES OF SELLER

3.1

            3.1  Seller represents and warrants to Buyer as follows:

3.2

            3.2  Seller is now and on the date of closing will be a limited liability company duly 

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 

organized and validly existing and in good standing under the laws of the British Virgin Islands. Seller has all requisite corporate power and authority to own, operate and/or lease the assets, as the case may be, and to carry own its business as now being conducted.

3.3

 

            3.3  The execution, delivery and performance of this Agreement have been duly authorized and approved by the Members and Managers of Seller, and this Agreement constitutes a valid and binding agreement of Seller in accordance with its terms.

3.4

 

            3.4  Seller holds good and marketable title to the Leases, free and clear of liens, pledges, charges or encumbrances, but offers no warranty of title; and free and clear of restrictions on or conditions to transfer or assignment, apart from those found in the United States Code, the Code of Federal Regulations or the State of Montana, as applicable, as to onshore federal or state oil and gas leases.

3.5

 

            3.5  Seller has no knowledge of any claim, litigation, proceeding, or investigation pending or threatened against Seller or the Leases that might result in any material adverse change in the business or condition of the Leases being conveyed under this Agreement.

3.6

 

            3.6  Seller acknowledges the following with respect to Buyer and the common stock of Buyer to be issued to Seller:

 

(a)

Seller understands the speculative nature and the risks of investments associated with Buyer, including that the shares of common stock of Buyer to be received under this Agreement are “restricted securities” as defined in Rule 144 of the SEC and confirms that the Seller is able to bear the risk of the investment in such shares, and that there may not be any public market for the shares acquired hereunder;

 

(b)

There is no obligation on the part of Buyer to register or seek an exemption under any federal and/or state securities laws, rules or regulations for any sale or transfer of 

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 

such shares by Seller, and Seller is solely responsible for determining the status, in Seller’s hands, of such shares acquired hereunder in this private transaction and the availability, if required, of exemptions from registration for purposes of sale or transfer of such shares;

 

(c)

Seller has had the opportunity to ask questions of Buyer and receive additional information about Buyer, or could acquire it without unreasonable effort or expense necessary to evaluate the merits and risks of the acquisition of such shares, including access to all reports and registration statements filed by Buyer with the SEC, which reflect, among other matters, that the Company was until recently, a “shell company” as defined in SEC Rule 12b-2. Further, Seller has been given an opportunity to question Buyer and the directors and officers of Buyer and receive related documentation regarding Buyer and this private acquisition of such shares.

 

(d) 

Seller has sufficient knowledge and experience in financial and business matters, and is sufficiently familiar with investments of the type represented by such shares, including familiarity with previous private and public purchases of speculative and “restricted securities,” and that Seller is fully capable of evaluating the merits and risks associated with the acquisition of such shares; 

 

(e)

In evaluating the merits of the acquisition of such shares, Seller has relied solely on the Seller’s own investigation concerning Buyer, including reviewing Buyer’s reports and registration statements filed with the SEC in the SEC Edgar Archives at www.sec.gov, and Seller has not relied upon any representations provided by Buyer;   

 

(f)

Seller is able to pay the Seller’s debts as they become due, and Seller (a) is not currently insolvent; (b) has made no general or other assignment for the benefit of creditors; and (c) is not party to any material proceeding that would have an adverse effect on the Seller’s assets; and

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 

(g)

The funds that Seller utilized to purchase the Leases were lawful funds of Seller that were earned or acquired by or paid to Seller for lawful purposes. 

 

3.7

             3.7  None of the representations or warranties of Seller contains or will contain any untrue statements of a material fact or omit or to state a material fact necessary in order to make the statements in this Agreement not misleading.

 

SECTION 4 – REPRESENTATIONS OF BUYER

 

4.1

             4.1  Buyer represents and warrants as follows:

4.2

             4.2  Buyer is a corporation duly organized, validly existing, and in good standing under the laws of Nevada.  Buyer has all requisite corporate power and authority to enter into this Agreement and perform its obligations hereunder.

4.3

 

             4.3  The execution, delivery and performance of this Agreement have been duly authorized and approved by the Board of Directors, and this Agreement constitutes a valid and binding agreement of Buyer in accordance with its terms.

4.4

 

             4.4  None of the representations or warranties of Buyer contain or will contain any untrue statement of a material fact or omit or to state a material fact necessary in order to make the statements in this Agreement not misleading.

 

SECTION 5 – CLOSING

5.1

             5.1  TIME AND PLACE. This Agreement shall be closed at the offices of Nelan Advisors Corporation, on December 12, 2013, or such other date as the parties may agree in writing. If the closing has not occurred on or before the close of business on December 12, 2013, then either party may elect to terminate this Agreement.

5.2

 

             5.2  The party with a right to terminate this Agreement pursuant to Section 5.1 shall not be bound to exercise such right, and its failure to exercise such right shall not constitute a 

 

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 

 

waiver of any other right it may have under this Agreement, including but not limited to remedies for breach of a representation, warranty or covenant.

5.3

            

             5.3  Prior to closing, Buyer had an opportunity to conduct a field inspection and a title examination of relevant leasehold records at the Montana Bureau of Land Management’s office in Billings, Montana regarding the Leases.

 

SECTION 6 – MISCELLANEOUS

6.1

             6.1  The provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives, successors and assigns of the parties.

6.2

 

             6.2  Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be mailed by certified mail, return receipt requested, postage prepaid, addressed to the parties at their location listed above.

6.3

 

             6.3  All notices and other communications shall be deemed to be given at the expiration of three (3) days after the date of mailing.  Buyer must send a copy of all notices to Nelan Advisors Corporation, Trident Trust Company Complex, P.O. Box 146, Road Town, Tortola, British Virgin Islands. The addresses to which notices or other communications shall be mailed may be changed from time to time by giving written notice to the other parties.

6.4

 

             6.4  In the event of a default under this Agreement, the defaulting party shall reimburse the non-defaulting party or parties for all costs and expenses reasonably incurred by the non-defaulting party or parties in connection with the default, including without limitation attorney fees.  Additionally, in the event a suit or action is filed to enforce this Agreement or with respect to this Agreement, the prevailing party or parties shall be reimbursed by the other party for all costs and expenses incurred in connection with the suit or action, including without limitation reasonable attorney fees at the trial level and on appeal.

 

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 

 

6.5

             6.5  No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.

6.6

 

             6.6  This Agreement shall be governed by and shall be construed in accordance with the laws of the State of Nevada. The state and federal courts of the State of Nevada shall have sole jurisdiction.

6.7

 

             6.7  This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and it supersedes all prior contemporaneous agreements, representations, and understandings of the parties.  No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all parties.

 

WITNESS the signatures of the parties this the 12th day of December, 2013.

NELAN ADVISORS CORPORATION.

BISON PETROLEUM, CORP.

/s/ Steve Drayton

/s/ Antonio Martinez-Guzman 

President

Antonio Martinez-Guzman, President

Steve Drayton

Print Name and Title

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LeasePurchaseAgreement betweenNelan Advisors Corporation and Bison Petroleum, Corp.

 

	
    	
    	
    	
    	
    	
    	
    	

	
        Exhibit 'A'

	
        Attached to Lease Purchase Agreement between Nelan Advisors Corporation and Bison Petroleum, Corp. dated December 12, 2013

         

	
        Lease #
	
        County
	
        Lessor
	
        Lessee
	
        Legal Description
	
        Effective lease Date
	
        Lease Duration
	
        Gross Acres

	
        #10-00691
	
        Park
	
        State of Montana
	
        Terry L. Keel
	
        T23N, 1W 
Sec 8: ALL

        Sec 9: SW

        T24N, 1W

        Sec 32: AS2SWMW, SW (less 8.6 acres in SWSEW)
	
        06/27/2011
	
        5 years unless held by production
	
        971.4

	
        #08-00521
	
        Park
	
        State of Montana
	
        Therese Van Auken
	
        T23N, 1W

        Sec 2:W2SW

        Sec 3: ALL

        Sec 10: N2, NWSW,SE

        T24N, 1W

        Sec 31: NE9 less 2 acres in E2NE)

        Sec 34: S2
	
        06/24/2011
	
        5 years unless held by production
	
        1714.53

	
        #08-00522
	
        Park
	
        State of Montana
	
        Nathan & Laura Toeckes
	
        T24N, 1W

        Sec 27: SW, E2SE
	
        06/27/2011
	
        5 years unless held by production
	
        240

	
        #08-00523
	
        Park
	
        State of Montana
	
        Toeckes Family Ltd Partnership
	
        T23N, 1W

        Sec 13: NW, NWSW

        Sec 14: E2, N2SW

        Sec 23: S2NE,E2,SE(less 4 acres in SWS2SWSE)
	
        06/27/2011
	
        5 years unless held by production
	
        1156

	
        #08-00524
	
        Park
	
        State of Montana
	
        Fuhringer Land & Livestock
	
        T24N, 1W

        Sec 28: N2, E2SW,SE

        Sec 29: N2, E2NW,W2SE,SESE

        Sec 33: E2, S2NW
	
        08/06/2011
	
        5 years unless held by production
	
        1320

	
        #08-00525
	
        Park
	
        State of Montana
	
        John F Schrader
	
        T49N, R102W
Sec 15 NW, SWSE

        Sec 22: NE
	
        06/25/2011
	
        5 years unless held by production
	
        200

	
        #08-00526
	
        Park
	
        State of Montana
	
        Leon A & Peggy LToeckes
	
        T23N, 1W

        Sec 15: S2SW

        Sec 22: NWNW,E2NW,E2SW,SE

        Sec 23: SWSWSE

        Sec 27: NENW
	
        06/27/2011
	
        5 years unless held by production
	
        484

	
        #08-00527
	
        Park
	
        State of Montana
	
        Rhad Keel
	
        T24N, 1W
Sec 23: SWSESW
	
        06/27/2011
	
        5 years unless held by production
	
        10

 

	
    	
    	
    	
    	
    	
    	
    	

	
        #08-00528
	
        Park
	
        State of Montana
	
        George keel & Terry Keel
	
        T23N, 1W

        Sec 5: ALL

        Sec 6: lots 1, 2 S2NE

        T24N, 1W

        Sec 29: SE
	
        06/27/2011
	
        5 years unless held by production
	
        953.9

	
        #08-00529
	
        Park
	
        State of Montana
	
        John Anderson 
	
        T23N, 1W

        Sec 26: NW

        Sec 27: NENW, NESE
	
        08/08/2011
	
        5 years unless held by production
	
        400

	
        #08-00530
	
        Park
	
        State of Montana
	
        John  A Anderson
	
        T23N, 1W
Sec 27: NW2SW

        Sec 28: E2
	
        08/08/2011
	
        5 years unless held by production
	
        120

	
        #10-00689
	
        Park
	
        State of Montana
	
        Selma Klein
	
        T24N, 1W
Sec 35: SESE
	
        08/07/2011
	
        5 years unless held by production
	
        320

	
        #08-00530
	
        Park
	
        State of Montana
	
        George keel
	
        T24N, 1W
Sec 32: NWNE, N2NW, N2SWNW, SENW
	
        06/27/2011
	
        5 years unless held by production
	
        180

	
        #10-00689
	
        Park
	
        State of Montana
	
        Warren Anderson
	
        T23N, 1W

        Sec 27: W2SW
Sec 28: SESE

        Sec 33: NWNW (LESS 10 acres in N2NWN), SW

        T22N, 1W

        Sec 4: lots 1,2,3,4 S2N2 (less 3 acres in lot 4 known as plant 460 parcel A)
	
        08/11/2011
	
        5 years unless held by production
	
        628.28

	
        #08-00530
	
        Park
	
        State of Montana
	
        Barbara B. Lehnerz
	
        T23N, 1W

        Sec 1: lots 3 & 4, S2NW
Sec 4: Lots 1,2,3,4 S2N2SE
	
        06/24/2011
	
        5 years unless held by production
	
        1514.79

	
        #10-00689
	
        Park
	
        State of Montana
	
        Timothy Tackes 
	
        T23N, 1W

        Sec 9: E2

        Sec 10: NESE, S2SW

        Sec 15: NW
	
        07/01/2011
	
        5 years unless held by production
	
        600.00

	
        #08-00530
	
        Park
	
        State of Montana
	
        Sharon K Meeks
	
        T23N, 1W 

        Sec 15: NE,NWSW,NESE
	
        06/25/2011
	
        5 years unless held by production
	
        240

	
        #10-00689
	
        Park
	
        State of Montana
	
        Gerald R Gertzen
	
        T23N, 1W 

        Sec 17: NE, W2SE
	
        06/27/2011
	
        5 years unless held by production
	
        240

	
         
	
         
	
         
	
         
	
         
	
        Total Gross Acres, More or Less
	
        11292.9Exhibit 4.1

CERTIFICATE OF DESIGNATIONS,

PREFERENCES AND

RIGHTS OF SERIES F CONVERTIBLE

PREFERRED STOCK, $0.001 PAR VALUE
PER SHARE

 

CoroWare, Inc., a corporation organized
and existing under the laws of the State of Delaware (the “Corporation”), hereby certifies that the following
resolution was adopted by the Board of Directors of the Corporation (the “Board”) on October 21, 2013 in accordance
with the provisions of its Certificate of Incorporation (as amended and restated through the date hereof, the “Certificate
of Incorporation”) and Bylaws.  The authorized series of the Corporation’s previously-authorized preferred
stock shall have the following preferences, privileges, powers and restrictions thereof, as follows:

 

RESOLVED, that pursuant to the
authority granted to and vested in the Board in accordance with the provisions of the Certificate of Incorporation and by-laws
of the Corporation, each as amended or amended and restated through the date hereof, the Board hereby authorizes a series of the
Corporation’s previously authorized preferred stock (the “Preferred Stock”), and hereby states the designation
and number of shares, and fixes the relative rights, preferences, privileges, powers and restrictions thereof as follows:

 

	I.               	 NAME OF THE CORPORATION

CoroWare, Inc.

 

	II.               	 DESIGNATION AND AMOUNT; DIVIDENDS

A.        Designation.   The
designation of said series of preferred stock shall be Series F Convertible Preferred Stock, $0.001 par value per share (the “
Series F Preferred Stock ”).

 

B.         Number
of Shares.  The number of shares of Series F Preferred Stock authorized shall be five hundred thousand (500,000) shares.  Each
share of Series F Preferred Stock shall have a stated value equal to $1.00 (as may be adjusted for any stock dividends, combinations
or splits with respect to such shares) (the “Series F Stated Value”).

 

C.         Dividends:  Initially,
there will be no dividends due or payable on the Series F Preferred Stock. Any future terms with respect to dividends shall be
determined by the Board consistent with the Corporation’s Certificate of Incorporation. Any and all such future terms concerning
dividends shall be reflected in an amendment to this Certificate, which the Board shall promptly file or cause to be filed.

 

 

III.            LIQUIDATION
PREFERENCE.

 

If the Corporation
shall commence a voluntary case under the U.S. Federal bankruptcy laws or any other applicable bankruptcy, insolvency or similar
law, or consent to the entry of an order for relief in an involuntary case under any law or to the appointment of a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or other similar official) of the Corporation or of any substantial part of its property,
or make an assignment for the benefit of its creditors, or admit in writing its inability to pay its debts generally as they become
due, or if a decree or order for relief in respect of the Corporation shall be entered by a court having jurisdiction in the premises
in an involuntary case under the U.S. Federal bankruptcy laws or any other applicable bankruptcy, insolvency or similar law resulting
in the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Corporation
or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and any such decree or order
shall be unstayed and in effect for a period of sixty (60) consecutive days and, on account of any such event, the Corporation
shall liquidate, dissolve or wind up, or if the Corporation shall otherwise liquidate, dissolve or wind up, including, but not
limited to, the sale or transfer of all or substantially all of the Corporation’s assets in one transaction or in a series
of related transactions (a “Liquidation Event”), no distribution shall be made to the holders of any shares of capital
stock of the Corporation (other than Senior Securities and Pari Passu Securities) upon liquidation, dissolution or winding up unless
prior thereto the Holders of shares of Series F Preferred Stock shall have received the Liquidation Preference (as defined below)
with respect to each share. If, upon the occurrence of a Liquidation Event, the assets and funds available for distribution among
the Holders of the Series F Preferred Stock and Holders of Pari Passu Securities shall be insufficient to permit the payment to
such holders of the preferential amounts payable thereon, then the entire assets and funds of the Corporation legally available
for distribution to the Series F Preferred Stock and the Pari Passu Securities shall be distributed ratably among such shares in
proportion to the ratio that the Liquidation Preference payable on each such share bears to the aggregate Liquidation Preference
payable on all such shares. The purchase or redemption by the Corporation of stock of any class, in any manner permitted by law,
shall not, for the purposes hereof, be regarded as a liquidation, dissolution or winding up of the Corporation. Neither the consolidation
or merger of the Corporation with or into any other entity nor the sale or transfer by the Corporation of substantially all of
its assets shall, for the purposes hereof, be deemed to be a liquidation, dissolution or winding up of the Corporation. The Liquidation
Preference with respect to any Pari Passu Securities shall be as set forth in the Certificate of Designation filed in respect thereof.

IV.              CONVERSION.

 

	(a)		Each outstanding share of Series F Preferred Stock shall be convertible into the number
of shares of the Corporation’s common stock (“Common Stock”) determined by dividing the Stated Value by the
Conversion Price as defined below, at the option of the Holder in whole or in part, at any time commencing no earlier than six
(6) months after the Issuance Date; provided that any conversion under this section must be made during the ten (10) day period
immediately following the date on which the Corporation files with the Securities and Exchange Commission any periodic report
on form 10-Q, 10-K or the equivalent form; provided further that, any conversion under this Section IV(a) shall be for a
minimum Stated Value of $500.00 of Series F Preferred Stock. The Holder shall effect conversions by sending a conversion notice
(the “Notice of Conversion”) in the manner set forth in Section IV(j). Each Notice of Conversion shall specify
the Stated Value of Series F Preferred Stock to be converted. The date on which such conversion is to be effected (the “Conversion
Date”) shall be on the date the Notice of Conversion is delivered pursuant to Section IV(j) hereof. Except as provided herein,
each Notice of Conversion, once given, shall be irrevocable. Upon the entire conversion of the Series F Preferred Stock, the certificates
for such Series F Preferred Stock shall be returned to the Corporation for cancellation.

	(b)		Not later than ten (10) Business Days after the Conversion Date, the Corporation will
deliver to the Holder (i) a certificate or certificates representing the number of shares of Common Stock being acquired
upon the conversion of the Series F Preferred Stock and (ii) once received from the Corporation, the Series F Preferred Stock
in principal amount equal to the principal amount of the Series F Preferred Stock not converted; provided, however,
that the Corporation shall not be obligated to issue certificates evidencing the shares of Common Stock issuable upon conversion
of any Series F Preferred Stock until the Series F Preferred Stock are either delivered for conversion to the Corporation or any
transfer agent for the Series F Preferred Stock or Common Stock, or the Holder notifies the Corporation that such Series F Preferred
Stock certificates have been lost, stolen or destroyed and provides an agreement reasonably acceptable to the Corporation to indemnify
the Corporation from any loss incurred by it in connection therewith. In the case of a conversion pursuant to a Notice of Conversion,
if such certificate or certificates are not delivered by the date required under this Section IV(b), the Holder shall be
entitled, by providing written notice to the Corporation at any time on or before its receipt of such certificate or certificates
thereafter, to rescind such conversion, in which event the Corporation shall immediately return the Series F Preferred Stock tendered
for conversion.

	(c)		The Conversion Price for each share of Series F Preferred Stock in effect on any Conversion
Date shall be (i) eighty five percent (85%) of the average closing price of the Common Stock over the five (5) trading days immediately
preceding the date of conversion, (ii) but no less than Par Value of the Common Stock. For purposes of determining the closing
price on any day, reference shall be to the closing price for a share of Common Stock on such date on the NASD OTC Bulletin Board,
as reported on Bloomberg, L.P. (or similar organization or agency succeeding to its functions of reporting prices).

	(d)		 (i)	 	If the Corporation, at any time while any Series F Preferred Stock are outstanding, (A) shall pay a stock dividend or
otherwise make a distribution or distributions on shares of its Junior Securities (as defined below) payable in shares of its
capital stock (whether payable in shares of its Common Stock or of capital stock of any class), (B) subdivide outstanding
shares of Common Stock into a larger number of shares, (C) combine outstanding shares of Common Stock into a smaller number
of shares, or (D) issue by reclassification of shares of Common Stock any shares of capital stock of the Corporation, the
Conversion Price designated in Section IV(c) shall be multiplied by a fraction of which the numerator shall be the number
of shares of Common Stock of the Company outstanding before such event and of which the denominator shall be the number of shares
of Common Stock outstanding after such event. Any adjustment made pursuant to this Section IV(d) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or reclassification.

	(ii)		If the Corporation, at any time while Series F Preferred Stock are outstanding, shall
distribute to all holders of Common Stock (and not to Holders of Series F Preferred Stock) evidences of its indebtedness or assets
or rights or warrants to subscribe for or purchase any security, then in each such case the Conversion Price at which each Series
F Preferred Stock shall thereafter be convertible shall be determined by multiplying the Conversion Price in effect immediately
prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which
the denominator shall be the Per Share Market Value of Common Stock determined as of the record date mentioned above, and of which
the numerator shall be such Per Share Market Value of the Common Stock on such record date less the then fair market value at
such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share
of Common Stock as determined by the Board of Directors in good faith; provided, however that in the event of a
distribution exceeding ten percent (10%) of the net assets of the Corporation, such fair market value shall be determined by a
nationally recognized or major regional investment banking firm or firm of independent certified public accountants of recognized
standing (which may be the firm that regularly examines the financial statements of the Corporation) (an “Appraiser”)
selected in good faith by the Holders of a majority of the principal amount of the Series F Preferred Stock then outstanding;
and provided, further, that the Corporation, after receipt of the determination by such Appraiser shall have the
right to select an additional Appraiser, in which case the fair market value shall be equal to the average of the determinations
by each such Appraiser. In either case the adjustments shall be described in a statement provided to the Holder and all other
Holders of Series F Preferred Stock of the portion of assets or evidences of indebtedness so distributed or such subscription
rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned above.

	(iii)		All calculations under this Article IV shall be made to the nearest 1/1,000th of a
cent or the nearest 1/1,000th of a share, as the case may be. Any calculation resulting in a fraction shall be rounded up to the
next cent or share.

	(iv)		Whenever the Conversion Price is adjusted pursuant to Section IV(d)(ii) or (iii),
the Corporation shall within ten (10) days after the determination of the new Fixed Conversion Price mail and fax to the Holder
and to each other Holder of Series F Preferred Stock, a notice setting forth the Fixed Conversion Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment.

	(v)		In case of any reclassification of the Common Stock, any consolidation or merger of
the Corporation with or into another person, the sale or transfer of all or substantially all of the assets of the Corporation
or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash or property, then
each holder of Series F Preferred Stock then outstanding shall have the right thereafter to convert such Series F Preferred Stock
only into the shares of stock and other securities and property receivable upon or deemed to be held by holders of Common Stock
following such reclassification, consolidation, merger, sale, transfer or share exchange (except in the event the property is
cash, then the Holder shall have the right to convert the Series F Preferred Stock and receive cash in the same manner as other
stockholders), and the Holder shall be entitled upon such event to receive such amount of securities or property as the shares
of the Common Stock into which such Series F Preferred Stock could have been converted immediately prior to such reclassification,
consolidation, merger, sale, transfer or share exchange would have been entitled. The terms of any such consolidation, merger,
sale, transfer or share exchange shall include such terms so as to continue to give to the holder the right to receive the securities
or property set forth in this Section IV(d)(v) upon any conversion following such consolidation, merger, sale, transfer or
share exchange. This provision shall similarly apply to successive reclassifications, consolidations, mergers, sales, transfers
or share exchanges.

	(vi)		If:

		(A)	the Corporation shall declare a dividend (or any other distribution) on its Common Stock; or

		(B)	the Corporation shall declare a special nonrecurring cash dividend on or a redemption of its Common
Stock; or

		(C)	the Corporation shall authorize the granting to all holders of the Common Stock rights or warrants
to subscribe for or purchase any shares of capital stock of any class or of any rights; or

		(D)	the approval of any stockholders of the Corporation shall be required in connection with any reclassification
of the Common Stock of the Corporation (other than a subdivision or combination of the outstanding shares of Common Stock), any
consolidation or merger to which the Corporation is a party, any sale or transfer of all or substantially all of the assets of
the Corporation, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property;
or

		(E)	the Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding-up
of the affairs of the Corporation;
	 	 	 

 then the Corporation shall
cause to be filed at each office or agency maintained for the purpose of conversion of Series F Preferred Stock, and shall cause
to be mailed and faxed to the Holders of Series F Preferred Stock at their last addresses as it shall appear upon the Series F
Preferred stock register, at least thirty (30) calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding-up is expected to become effective,
and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common
Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, transfer, share exchange,
dissolution, liquidation or winding-up; provided, however, that the failure to mail such notice or any defect therein
or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.

	(e)		Intentionally omitted.

	(f)		The Corporation covenants that all shares of Common Stock that shall be issuable hereunder
shall, upon issue, be duly and validly authorized, issued and fully paid and nonassessable.

	(g)		No fractional shares of Common Stock shall be issuable upon a conversion hereunder
and the number of shares to be issued shall be rounded up to the nearest whole share. If a fractional share interest arises upon
any conversion hereunder, the Corporation shall eliminate such fractional share interest by issuing the Holder an additional full
share of Common Stock.

	(h)		The issuance of certificates for shares of Common Stock on conversion of Series F
Preferred Stock shall be made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect
of the issue or delivery of such certificate, provided that the Corporation shall not be required to pay any tax that may be payable
in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than
that of the Holder and the Corporation shall not be required to issue or deliver such certificates unless or until the person
or persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established
to the satisfaction of the Corporation that such tax has been paid.

	(i)		Series F Preferred Stock converted into Common Stock shall be canceled upon conversion.

	(j)		Each Notice of Conversion shall be given by email to the Corporation at secretary@coroware.com
no later than 4:00 pm EST. Any such notice shall be deemed given and effective upon the receipt of the email. In the event that
the Corporation receives the Notice of Conversion after 4:00 p.m. EST, the Conversion Date shall be deemed to be the next Business
Day. In the event that the Corporation receives the Notice of Conversion after the end of the Business Day, notice will be deemed
to have been given the next Business Day.

 

		V.	REDEMPTION

At any time after the Issuance Date
through the fifth (5th) anniversary of the Issuance Date, the Company shall have the option to redeem any unconverted
shares of the Series F Preferred Stock (the “Redemption”), either in part or whole, upon no less than thirty (30) days
written notice (“Redemption Notice”) thereof given to the Holders thereof, at an amount equal to one hundred thirty
percent (130%) of the stated value of the unconverted Series F Preferred Stock (the “Redemption Price”) plus accrued
and unpaid dividends, if any. The Redemption Notice shall state the effective date of the Redemption,
which date shall be established by the Company in its sole and absolute discretion.

 

The
outstanding shares of Series F Preferred Stock shall be redeemed automatically without any further action by the holders of such
shares and whether or not the certificates representing such shares are surrendered to the Company or its transfer agent. 
Upon the effective date of the Redemption, the only rights that the holders of the Series F Preferred Stock shall have will be
to receive the Redemption Price; provided that the holder of the Series F Preferred Stock surrenders or causes to be surrendered
the original certificates representing the Series F Preferred Stock being redeemed, duly endorsed.  The Company shall not
be obligated to deliver the Redemption Price to the holder of Series F Preferred Stock unless and until the certificates evidencing
the shares of Series F Preferred Stock are either delivered to the Company or its transfer agent, or the holder notifies the Company
or its transfer agent that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the
Company to indemnify the Company from any loss incurred by it in connection with such certificates.

 

No holder
of Series F Preferred Stock may demand that the Series F Preferred Stock be redeemed.

VI.              RANK

 

The Series
F Preferred Stock shall, as to distribution of assets upon liquidation, dissolution or winding up of the Corporation, rank (i) prior
to the Corporation’s Common Stock (ii) prior to any class or series of capital stock of the Corporation hereafter created
that, by its terms, ranks junior to the Series F Preferred Stock (“Junior Securities”); (iii) junior to the Series
B Preferred Stock and any class or series of capital stock of the Corporation hereafter created which by its terms ranks senior
to the Series F Preferred Stock (“Senior Securities”); (iv) pari passu with any other series of preferred stock
of the Corporation hereafter created which by its terms ranks on a parity (“Pari Passu Securities”) with the Series
F Preferred Stock.

 

 VII.            
VOTING RIGHTS

 

The Series F Preferred Stock shall have
no voting rights.

 

VIII.            
PROTECTION PROVISIONS

 

So long as any shares of Series F Preferred
Stock are outstanding, the Corporation shall not, without first obtaining the unanimous written consent of the holders of Series
F Preferred Stock, alter or change the rights, preferences or privileges of the Series F Preferred so as to affect adversely the
holders of Series F Preferred Stock.

 

IX.              MISCELLANEOUS

 

   
A.         Status of Converted or Redeemed Stock: In case any shares of
Series F Preferred Stock shall be redeemed or otherwise repurchased or reacquired, the shares so redeemed, repurchased, or reacquired
shall resume the status of authorized but unissued shares of preferred stock, and shall no longer be designated as Series F Preferred
Stock.

 

B.        
Lost or Stolen Certificates: Upon receipt by the Corporation of (i) evidence of the loss, theft, destruction or mutilation
of any Preferred Stock Certificate(s) and (ii) in the case of loss, theft or destruction, indemnity (with a bond or other security)
reasonably satisfactory to the Corporation, or in the case of mutilation, the Preferred Stock Certificate(s) (surrendered for cancellation),
the Corporation shall execute and deliver new Preferred Stock Certificates. However, the Corporation shall not be obligated to
reissue such lost, stolen, destroyed or mutilated Preferred Stock Certificates if the holder of Series F Preferred Stock contemporaneously
requests the Corporation to convert such holder’s Series F Preferred.

 

C.        
Waiver: Notwithstanding any provision in this Certificate of Designation to the contrary, any provision contained herein and
any right of the holders of Series F Preferred granted hereunder may be waived as to all shares of Series F Preferred Stock (and
the holders thereof) upon the unanimous written consent of the holders of the Series F Preferred Stock.

 

D.        
Notices: Any notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail
(return receipt requested) or delivered personally, by nationally recognized overnight carrier or by confirmed facsimile transmission,
and shall be effective five (5) days after being placed in the mail, if mailed, or upon receipt or refusal of receipt, if delivered
personally or by nationally recognized overnight carrier or confirmed facsimile transmission, in each case addressed to a party
as set forth below, or such other address and telephone and fax number as may be designated in writing hereafter in the same manner
as set forth in this Section.

 

 

 

 

If to the Corporation:

 

CoroWare, Inc.

1410 Market Street

Kirkland, WA 98033

Attention: Lloyd Spencer;

Telephone: (800) 641-2676, x756

Facsimile: (425) 818-8990

 

If to the holders of Series F Preferred,
to the address listed in the Corporation’s books and records.

 

 

IN WITNESS WHEREOF,
the undersigned, being the Chief Executive Officer and Secretary of CoroWare, Inc., hereby declare under penalty of perjury that
the foregoing is a true and correct copy of the Certificate of Designation of the Rights and Preferences of the Series F Convertible
Preferred Stock of CoroWare, Inc. duly adopted by the Board of Directors of CoroWare, Inc. on October 21, 2013 and this Certificate
of Designation is executed by the undersigned on behalf of CoroWare, Inc. this 21st day of October,
2013

 

 

 CoroWare,
Inc.

 

 

 

 

By: _/s/ Lloyd
Spencer______________________________

Lloyd Spencer,
Chief Executive Officer

 

 

 

By: _/s/Shanna
Gerrard______________________________

Shanna Gerrard,
Corporate Secretary

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