Document:

ex10_3.htm

    
      

    

    
      Exhibit
10.3

      

      THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THESE SECURITIES AND THE SECURITIES ISSUABLE UPON CONVERSION
OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

      

      Original
Issue Date: October 22,
2009

      

      $1,500,000

      

      7.5%
CONVERTIBLE NOTE

      DUE
OCTOBER 31, 2014

      

      THIS
Convertible Note of Exobox Technology, Corp., a Nevada corporation (the “Company”), designated
as its 7.5% Convertible Note, due October 31, 2014 (the “Convertible
Note”).

      

      FOR VALUE
RECEIVED, the Company promises to pay to SPQR Energy, Inc. or its registered
assigns (the “Holder”), the
principal sum of $1,500,000 on October 31, 2014 (the “Maturity Date”), and
to pay accrued interest to the Holder quarterly beginning on January 31, 2010 on
the then outstanding principal amount of this Convertible Note at the rate of
7.5% per annum, payable in cash or the Company’s common stock as set forth in
Section 6.

      

      This
Convertible Note is subject to the following terms and conditions:

      

      Section
1.               This
Convertible Note is exchangeable for an equal aggregate principal amount of
Convertible Notes of different authorized denominations, as requested by the
Holder surrendering the same.  No service charge will be made for such
registration of transfer or exchange.

      

      Section
2.              
This Convertible Note may be transferred or exchanged only in compliance with
applicable federal and state securities laws and regulations.  Prior
to due presentment to the Company for transfer of this Convertible Note, the
Company and any agent of the Company may treat the Person in whose name this
Convertible Note is duly registered on the Convertible Note register as the
owner hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Convertible Note is overdue, and neither the
Company nor any such agent shall be affected by notice to the
contrary.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Section
3.               Events of
Default.

      

      (a)           “Event of Default”,
wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law
or pursuant to any judgment, decree or order of any court, or any order, rule or
regulation of any administrative or governmental body):

      

      (i)           
any default in the payment of the principal amount of, or interest on, the
Convertible Note;

      

      (ii)           the
Company shall commence, or there shall be commenced against the Company a case
under any applicable bankruptcy or insolvency laws as now or hereafter in effect
or any successor thereto, or the Company  commences any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Company or there
is commenced against the Company any such bankruptcy, insolvency or other
proceeding which remains undismissed for a period of 60 days; or the Company is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or the
Company  suffers any appointment of any custodian or the like for it
or any substantial part of its property which continues undischarged or unstayed
for a period of 60 days; or the Company makes a general assignment for the
benefit of creditors; or the Company shall fail to pay, or shall state that it
is unable to pay, or shall be unable to pay, its debts generally as they become
due; or the Company; or any corporate or other action is taken by the Company or
any subsidiary thereof for the purpose of effecting any of the foregoing;
or

      

      (iii)          final
judgment for the payment of money in excess of $500,000 shall be rendered
against the Company and the same shall remain undischarged for a period of 60
days during which execution shall not be effectively stayed;

      

      (b)           If
any Event of Default occurs, the full principal amount of this Convertible Note,
together with interest and other amounts owing in respect thereof, to the date
of acceleration shall become immediately due and payable in cash; provided,
however, that the Holder shall have the right to convert all or a portion of
such principal of the Convertible Note into shares of Common Stock pursuant to
the terms set forth in Section 4 below (and to receive cash on the (i) accrued
interest and (ii) principal amount Holder elects not to
convert).  Commencing 5 days after the occurrence of any Event of
Default that results in the eventual acceleration of this Convertible Note, the
interest rate on this Convertible Note shall accrue at the rate of 18% per
annum, or such lower maximum amount of interest permitted to be charged under
applicable law.  The Holder need not provide and the Company hereby
waives any presentment, demand, protest or other notice of any kind, and the
Holder may immediately and without expiration of any grace period enforce any
and all of its rights and remedies hereunder and all other remedies available to
it under applicable law.  Such declaration may be rescinded and
annulled by Holder at any time prior to payment hereunder and the Holder shall
have all rights as a Convertible Note holder until such time, if any, as the
full payment under this Section shall have been received by it.  No
such rescission or annulment shall affect any subsequent Event of Default or
impair any right consequent thereon.

      

      Section
4.               Conversion.

      

      (a)           The
Holder shall be entitled, at its option, to convert all or any part of the
principal amount of this Convertible Note into shares of the Company’s common
stock, at a price (the “Conversion Price”) of
$0.21 per share of the Company’s common stock.  No fraction of shares
or scrip representing fractions of shares will be issued on conversion, but the
number of shares issuable shall be rounded to the nearest whole
share.  The number of shares of the Company’s common stock issuable
upon a conversion hereunder shall be determined by the quotient obtained by
dividing (x) the outstanding principal amount of this Convertible Note to be
converted as set forth in the applicable Conversion Notice by (y) the Conversion
Price.  To convert this Convertible Note, the Holder hereof shall
deliver written notice (the “Conversion Notice”),
to the Company at its address as set forth herein.  The date upon
which the conversion shall be effective (the “Conversion Date”)
shall be deemed to be the date set forth in the Conversion
Notice.  Except as otherwise provided herein, the Company shall not
have the right to object to the conversion or the calculation of the applicable
conversion price, absent manifest error.  Any conversion of any
portion of the Convertible Note shall be deemed to be a pre-payment of
principal, without any penalty, and shall be credited against any future
payments of principal in the order that such payments become due and
payable.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      (b)           If
the Company at any time after the date of issuance of this Convertible Note
subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding shares of the Company’s common stock into
a greater number of shares, the Conversion Price in effect immediately prior to
such subdivision will be proportionately reduced.  If the Company at
any time after the date of issuance of this Convertible Note combines (by
combination, reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the
Conversion Price in effect immediately prior to such combination will be
proportionately increased.  Any adjustment under this Section 4(b)
shall become effective at the close of business on the date the subdivision or
combination becomes effective.

      

      Section 5.    This
Convertible Note is a direct obligation of the Company, and the obligation of
the Company to repay this Convertible Note is absolute and unconditional, but is
expressly subordinated to all currently outstanding secured and unsecured
indebtedness of the Company outstanding on the date hereof. The repayment terms
hereof agreed to be paid to Holder for making  the loan evidenced by
this Convertible Note reflect the substantial risks Holder is assuming by virtue
of such subordination and Holder’s further agreement evidenced hereby that no
recourse shall be had for the payment of the principal of, or interest on the
Convertible Note, or for any claim based hereon, or otherwise in respect hereof,
against any shareholder, officer or director, as such, past, present or future,
of the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the express terms hereof and
as part of the consideration for the repayment terms here or hereof, expressly
waived and released.

      

      Section 6.     Interest on
the amount advanced will accrue on this Convertible Note at the rate of seven
point five percent (7.5%) per annum, and be payable quarterly, in cash or the
Company’s common stock at the Interest Conversion Price (as defined below). The
“Interest Conversion Price” shall be deemed to be the Closing Price (as defined
below) of the Company’s common stock on the fifth trading dys prior to the date
the interest payment is due.  The “Closing Price” shall mean the last
reported sales price on the principal national securities exchange on which the
Common Stock is listed or admitted to trading or, if not listed or admitted to
trading on any national securities exchange, on Nasdaq, or, if the Common Stock
is not listed or admitted to trading on any national securities exchange or
quoted on Nasdaq, the average of the closing bid and asked prices in the
over-the-counter market as furnished by any New York Stock Exchange member firm
selected from time to time by the Corporation for that purpose.

      

      Section
7.              Any
payment made by the Company to the Holder, on account of this Convertible Note
shall be applied in the following order of priority: (i) first, to any amounts
other than principal and accrued interest, if any, hereunder, (ii) second, to
accrued interest, if any, through and including the date of payment, and (iv)
then, to principal of the Convertible Note.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Section
8.             
The outstanding principal of this Convertible Note may be prepaid in cash in
whole or in part at the option of the Company without
penalty.   All payments contemplated to be made “in cash” and
shall be made in immediately available good funds of United States of America
currency by wire transfer to an account designated in writing by the Holder to
the Company (which account may be changed by notice similarly given). For
purposes of the Convertible Note, the phrase "date of payment" means the date
good funds are received in the account designated by the notice which is then
currently effective.

      

      Section
9.              This
Convertible Note shall be governed by and interpreted in accordance with the
laws of the State of Texas for contracts to be wholly performed in such state
and without giving effect to the principles thereof regarding the conflict of
laws. Each of the parties consents to the exclusive jurisdiction of the state
courts of the State of Texas located in Harris County and the United States
District Court for the Southern District of Texas in connection with any dispute
arising under this Agreement and hereby waives, to the maximum extent permitted
by law, any objection, including any objection based on forum non convenes, to
the bringing of any such proceeding in such jurisdictions.

      

      Section
10.            The
Company covenants that it will at all times reserve and keep available out of
its authorized and unissued shares of Common Stock solely for the purpose of
issuance upon Conversion of the Convertible Note, free from preemptive rights or
any other actual contingent purchase rights of persons other than the Holder,
not less than such number of shares of the Common Stock as shall be issuable
upon the conversion of the outstanding principal amount of the Convertible
Note.  The Company covenants that all shares of Common Stock that
shall be so issuable shall, upon issue, be duly and validly authorized, issued
and fully paid and nonassessable.

      

      Section 11.            Upon
a Conversion hereunder the Company shall not be required to issue stock
certificates representing fractions of shares of the Company’s common stock, but
may if otherwise permitted, make a cash payment in respect of any final fraction
of a share.  If the Company elects not, or is unable, to make such a
cash payment, the Holder shall be entitled to receive, in lieu of the final
fraction of a share, one whole shares of the Company’s common
stock.

      

      Section
12.            Any
and all notices or other communications or deliveries to be provided by the
Holder hereunder, including, without limitation, any notice of conversion, shall
be in writing and delivered personally, by facsimile, sent by a nationally
recognized overnight courier service, addressed to the Company, at 2121 Sage
Road, Suite, 200, Houston, Texas 77056, facsimile number 713-626-7890, Attn: CEO
or such other address or facsimile number as the Company may specify for such
purposes by notice to the Holder delivered in accordance with this
Section.  Any and all notices or other communications or deliveries to
be provided by the Company hereunder shall be in writing and delivered
personally, to Holder at 19607 Piney Place Ct., Houston, Texas 77094, facsimile
number 832-553-2803, Attn: CEO or such other address or facsimile number as the
Holder may specify for such purposes by notice to the Company delivered in
accordance with this Section.  Any notice or other communication or
deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile telephone number specified in this Section prior to
5:30 p.m. Houston, Texas time), (ii) the date after the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified in this Section later than 5:30 p.m. (Houston, Texas
time) on any date and earlier than 11:59 p.m. (Texas time) on such date, (iii)
the second Business Day following the date of mailing, if sent by nationally
recognized overnight courier service, or (iv) upon actual receipt by the party
to whom such notice is required to be given. Whenever any payment or other
obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Section
13.            If
this Convertible Note shall be mutilated, lost, stolen or destroyed, the Company
shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Convertible Note, or in lieu of or in substitution
for a lost, stolen or destroyed Convertible Note, a new Convertible Note for the
principal amount of this Convertible Note so mutilated, lost, stolen or
destroyed but only upon receipt of evidence of such loss, theft or destruction
of such Convertible Note, and of the ownership hereof, and indemnity, if
requested, all reasonably satisfactory to the Company.

      

      Section
14.            If
any provision of this Convertible Note is invalid, illegal or unenforceable, the
balance of this Convertible Note shall remain in effect, and if any provision is
inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances.  If it shall be
found that any interest or other amount deemed interest due hereunder violates
applicable laws governing usury, the applicable rate of interest due hereunder
shall automatically be lowered to equal the maximum permitted rate of interest.
The Company covenants (to the extent that it may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the
principal of or interest on this Convertible Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this indenture, and the Company (to the extent
it may lawfully do so) hereby expressly waives all benefits or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has
been enacted.

      

      IN
WITNESS WHEREOF, the Company has caused this Convertible Note to be duly
executed by a duly authorized officer as of the date first above
indicated.

      

      

      
        	 
      	
                EXOBOX
      TECHNOLOGIES, CORP.

              
	 	 	 
	 	 	 
	 
      	
                By:

              	 
      	 
	 
      	
                Name:

              	 
      	 
	 
      	
                Title:ex10_4.htm

    
      

    

    
      Exhibit
10.4

      

      CERTIFICATE
OF THE DESIGNATION, PREFERENCES,

      RIGHTS
AND LIMITATIONS OF SERIES E

      CONVERTIBLE
PREFERRED STOCK OF EXOBOX TECHNOLOGIES CORP

      

      Exobox
Technologies Corp, hereinafter called the "Corporation," a corporation organized
and existing under the laws of the State of Nevada,

      

      DOES
HEREBY CERTIFY:

      

      That,
pursuant to authority conferred upon the Corporation by its Articles of
Incorporation, and pursuant to the provisions of the Nevada Domestic and Foreign
Corporation Laws, the board of directors of the Corporation, by unanimous
consent dated October ___, 2009, adopts the following resolutions providing for
the issuance of a series of 1,163,000 shares of Series E Convertible Preferred
Stock, $0.001 par value ("Series E Preferred Stock"), stated value $10.00 per
share (the “Original Issue Price”), which resolution is as follows:

      

      RESOLVED,
that pursuant to the authority conferred upon the Corporation by its Articles of
Incorporation, the Series E Preferred Stock is hereby authorized and created,
said series to consist of up to 2,000,000 shares;

      

      FURTHER
RESOLVED, that the voting powers, preferences and relative, optional and other
special rights, and the qualifications, limitations or restrictions of such
Series E Preferred Stock shall be as follows:

      

      1.            
Dividends on Series E
Preferred Stock.

      

      a.         
   Cumulative
Dividends.  Beginning on March 31, 2010, the holders of shares
of Series E Preferred Stock shall be entitled to receive dividends at the rate
of 7.5% per annum of an amount equal to the Conversion Price (as defined herein)
then in effect on the payment date. These dividends shall be paid quarterly on
March 31, June 30, September 30, and December 31 of each year the Series E
Preferred Stock remains outstanding.  The dividends shall accrue from
the date of issuance of such shares of Series E Preferred Stock, and shall be
deemed to accrue from day to day whether or not earned or
declared.  These dividends shall be cumulative and shall be paid prior
and in preference to the payment of dividends on any other class of shares and
if in any year or years dividends at the rate of 7.5% calculated on the amount
set forth herein shall not have been paid on the outstanding shares of Series E
Preferred Stock, the amount of the deficiency shall be fully paid before any
distribution shall be declared or paid on common stock (the “Dividend
Preference”).  All dividends shall be paid in cash out of any funds of
the Corporation unless (i) the holder elects to convert accrued dividends
pursuant to paragraph 2(a) or (ii) the Series E Preferred Stock is subject to
mandatory conversion into Common Stock pursuant to paragraph 2(l), in which case
all accrued dividends will be converted into Common Stock.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      b.         
  Dividends
in Kind.  In the event the Corporation shall make or issue, or
shall fix a record date for the determination of holders of Series E Preferred
Stock entitled to receive, a dividend or other distribution with respect to the
Common Stock payable in (i) securities of the Corporation other than shares of
Common Stock or Series E Preferred Stock or (ii) assets, then and in each such
event the holders of Series E Preferred Stock shall receive, at the same time
such distribution is made with respect to Common Stock, the number of securities
or such other assets of the Corporation which they would have received had their
Series E Preferred Stock been converted into Common Stock immediately prior to
the record date for determining holders of Common Stock entitled to receive such
distribution.

      

      2.            
Conversion of Series E
Preferred Stock into Common Stock.

      

      a.           
 Optional
Conversion.  Each holder of shares of Series E Preferred Stock
may, at his option and at any time, convert any or all such shares, plus all
dividends accrued and unpaid on such Series E Preferred Stock up to the
Conversion Date (as defined below), on the terms and conditions set forth
herein, into fully paid and non-assessable shares of the Corporation's Common
Stock.  The number of shares of
Common Stock into which each share of Series E Preferred Stock may be converted
shall be determined by dividing the number of shares of Series E Preferred Stock
to be converted by the Conversion Price (as defined below) in effect at the time
of conversion.    The “Conversion Price” at which
shares of Common Stock shall be issuable upon conversion of any shares of Series
E Preferred Stock shall initially be $0.477 per share, subject to adjustment as
provided below.

      

      b.      
     To exercise his conversion privilege, the holder
of any shares of Series E Preferred Stock shall surrender to the Corporation
during regular business hours at the principal executive offices of the
Corporation or the offices of the transfer agent for the Series E Preferred
Stock or at such other place as may be designated by the Corporation, the
certificate or certificates for the shares to be converted, duly endorsed for
transfer to the Corporation (if required by it), accompanied by written notice
stating that the holder irrevocably elects to convert such
shares.  Conversion shall be deemed to have been effected on the date
when such delivery is made, and such date is referred to herein as the
"Conversion Date."  Within three (3) business days after the date on
which such delivery is made, the Corporation shall issue and send (with receipt
to be acknowledged) to the holder thereof or the holder's designee, at the
address designated by such holder, a certificate or certificates for the number
of full shares of Common Stock to which the holder is entitled as a result of
such conversion, and cash with respect to any fractional interest of a share of
Common Stock as provided in paragraph 2(c).  The holder shall be
deemed to have become a stockholder of record of the number of shares of Common
Stock into which the shares of Series E Preferred Stock have been converted on
the applicable Conversion Date unless the transfer books of the Corporation are
closed on that date, in which event he shall be deemed to have become a
stockholder of record of such shares on the next succeeding date on which the
transfer books are open, but the Conversion Price shall be that in effect on the
Conversion Date.  Upon conversion of only a portion of the number of
shares of Series E Preferred Stock represented by a certificate or certificates
surrendered for conversion, the Corporation shall within three (3) business days
after the date on which such delivery is made, issue and send (with receipt to
be acknowledged) to the holder thereof or the holder's designee, at the address
designated by such holder, a new certificate covering the number of shares of
Series E Preferred Stock representing the unconverted portion of the certificate
or certificates so surrendered.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      c.          
  No fractional shares of Common Stock or scrip shall be issued upon
conversion of shares of Series E Preferred Stock.  If more than one
share of Series E Preferred Stock shall be surrendered for conversion at any one
time by the same holder, the number of full shares of Common Stock issuable upon
conversion thereof shall be computed on the basis of the aggregate number of
shares of Series E Preferred Stock so surrendered.  Instead of any
fractional shares of Common Stock which would otherwise be issuable upon
conversion of any shares of Series E Preferred Stock, the Corporation shall make
an adjustment in respect of such fractional interest equal to the fair market
value of such fractional interest, to the nearest 1/100th of a share of Common
Stock, in cash at the Current Market Price (as defined below) on the business
day preceding the effective date of the conversion.  The "Current
Market Price" of publicly traded shares of Common Stock or any other class of
Common Stock or other security of the Corporation or any other issuer for any
day shall be deemed to be the average of the daily "Closing Prices" for the 10
consecutive trading days preceding the Conversion Date.  The "Current
Market Price" of the Common Stock or any other class of capital stock or
securities of the Corporation or any other issuer which is not publicly traded
shall mean the fair value thereof as determined by an independent investment
banking or appraisal firm experienced in the valuation of such securities or
properties selected in good faith by the Board of Directors of the Corporation
or a committee thereof or, if no such investment banking or appraisal firm is,
in the good faith judgment of the Board of Directors of the Corporation or such
committee, available to make such determination, as determined in good faith
judgment of the Board of Directors of the Corporation or such
committee.  The "Closing Price" shall mean the last reported sales
price on the principal national securities exchange on which the Common Stock is
listed or admitted to trading or, if not listed or admitted to trading on any
national securities exchange, on Nasdaq, or, if the Common Stock is not listed
or admitted to trading on any national securities exchange or quoted on Nasdaq,
the average of the closing bid and asked prices in the over-the-counter market
as furnished by any New York Stock Exchange member firm selected from time to
time by the Corporation for that purpose.

      
 

      d.           
 The Corporation shall pay any and all issue and other taxes that may be
payable in respect of any issue or delivery of shares of Common Stock on
conversion of Series E Preferred Stock pursuant hereto, other than any taxes
payable with respect to income by the holders thereof.

      

      e.        
    The Corporation shall at all times reserve for issuance
and maintain available, out of its authorized but unissued Common Stock, solely
for the purpose of effecting the conversion of the Series E Preferred Stock, the
full number of shares of Common Stock deliverable upon the conversion of all
Series E Preferred Stock from time to time outstanding.  The
Corporation shall from time to time (subject to obtaining necessary director and
stockholder action), in accordance with the laws of the State of Nevada,
increase the authorized number of shares of its Common Stock if at any time the
authorized number of shares of its Common Stock remaining unissued shall not be
sufficient to permit the conversion of all of the shares of Series E Preferred
Stock at the time outstanding.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      f.         
   If any shares of Common Stock to be reserved for the purpose
of conversion of shares of Series E Preferred Stock require registration or
listing with, or approval of, any governmental authority, stock exchange or
other regulatory body under any federal or state law or regulation or otherwise,
including registration under the Securities Act of 1933 (the “Act”), and
appropriate state securities laws, before such shares may be validly issued or
delivered upon conversion, the Corporation will in good faith and as
expeditiously as possible meet such registration, listing or approval, as the
case may be.

      

      g.        
    All shares of Common Stock which may be issued upon
conversion of the shares of Series E Preferred Stock will upon issuance by the
Corporation be validly issued, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issuance thereof.

      

      h.          
  The Conversion Price in effect shall be subject to adjustment from time
to time as follows:

      

      i.         Stock Splits, Dividends and
Combinations.  In the event that the Corporation shall at any
time subdivide the outstanding shares of Common Stock, or shall pay or make a
dividend or distribution on any class of capital stock of the Corporation in
Common Stock, the Conversion Price in effect immediately prior to such
subdivision or the issuance of such dividend shall be proportionately decreased,
and in case the Corporation shall at any time combine the outstanding shares of
Common Stock, the Conversion Price in effect immediately prior to such
combination shall be proportionately increased, effective at the close of
business on the date of such subdivision, dividend or combination, as the case
may be.

      

      ii.         Non-Cash Dividends, Stock Purchase
Rights, Capital Reorganization and Dissolutions.  In the
event:

      

      A.           that
the Corporation shall take a record of the holders of its Common Stock for the
purpose of entitling them to receive a dividend, or any other distribution,
payable otherwise than in cash; or

      

      B.           that
the Corporation shall take a record of the holders of its Common Stock for the
purpose of entitling them to subscribe for or purchase any shares of stock of
any class or other securities, or to receive any other rights; or

      

      C.           of
any (1) capital reorganization of the Corporation, reclassification of the
capital stock of the Corporation (other than a subdivision or combination of its
outstanding shares of Common Stock), consolidation or merger of the Corporation
with or into another corporation, unless the shareholders of the Corporation
immediately prior to such transaction own 50% of the entity resulting from the
transaction, or (2) sale, lease or transfer of all or substantially all of the
assets or shares of the Corporation to another corporation in one or a series of
transactions (collectively (C)(1) and (C)(2) are referred to as a
“Reorganization”); or

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      D.           of
the voluntary or involuntary dissolution, liquidation or winding up of the
Corporation;

      

      then, and
in any such case, provision shall be made so that the holders of the Series E
Preferred Stock shall be entitled, upon conversion, to receive the number and
kind of securities of other property of the Corporation, or successor
corporation, to which he would have been entitled to receive had he converted
immediately prior to such event.  Furthermore, the Corporation shall
cause to be mailed to the holders of record of the outstanding Series E
Preferred Stock, at least 10 days prior to the date hereinafter specified, a
notice stating the date on which (x) a record is to be taken for the purpose of
such dividend, distribution or rights, or (y) such reclassification,
reorganization, consolidation, merger, share exchange, conveyance, dissolution,
liquidation or winding up is to take place and the date, if any is to be fixed,
as of which holders of Corporation securities of record shall be entitled to
exchange their shares of Corporation securities for securities or other property
deliverable upon such reclassification, reorganization, consolidation, merger,
share exchange, conveyance, dissolution, liquidation or winding up.

      

      i.           
  The Corporation will not, by amendment of its Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, share exchange, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Corporation, but will at
all times in good faith assist in the carrying out of all the provisions of
paragraph 2(h) and in the taking of all such action as may be necessary or
appropriate in order to protect the conversion rights of the holders of the
Series E Preferred Stock against impairment.  Without limiting the
generality of the foregoing, the Corporation (a) will not increase the par value
of any shares of stock receivable on the conversion of the Series E Preferred
Stock above the amount payable therefor on such conversion, (b) will take all
such action as may be necessary or appropriate in order that the Corporation may
validly and legally issue fully paid and nonassessable shares of stock on the
conversion of all Series E Preferred Stock from time to time outstanding, or (c)
will not consolidate with or merge into any other person or permit any such
person to consolidate with or merge into the Corporation (if the Corporation is
not the surviving person), unless such other person shall expressly assume in
writing and will be bound by all of the terms of the Series E Preferred stock
set forth herein).

      

      j.            
 Upon the occurrence of each adjustment or readjustment of the Conversion
Price pursuant to paragraph 2(h), the Corporation at its expense shall promptly
compute such adjustment or readjustment in accordance with the terms hereof, and
prepare and furnish to each holder of Series E Preferred Stock a certificate
signed by the president and chief financial officer (or, in the absence of a
person designated as the chief financial officer, by the officer serving in an
equivalent or similar financial capacity) of the Corporation setting forth (i)
such adjustment or readjustment, (ii) the Conversion Price at the time in
effect, and (iii) the number of shares of Common Stock and the amount, if any,
of other property which at the time would be received upon the conversion of
such holder's shares.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      k.         
   In case any shares of Series E Preferred Stock shall be
converted pursuant to paragraph 2(g) hereof, the shares so converted shall be
restored to the status of authorized but unissued shares of preferred stock,
without designation as to class or series, and may thereafter be reissued, but
not as shares of Series E Preferred Stock.

      

      l.           
 Mandatory
Conversion.  Each share of Series E Preferred Stock shall
automatically convert, together will all accrued dividends, into shares of
Common Stock, as described in paragraph 2(a), at the then applicable Conversion
Price, upon the closing of an equity, equity equivalent or debt offering
resulting in minimum gross proceeds to the Corporation of $20 million
(“Mandatory Conversion Event”).

      

      The
Corporation will provide notice to holder within 10 days of the occurrence of a
Mandatory Conversion Event (failure of the Corporation to timely give such
notice does not void the mandatory conversion).  Holder shall
surrender to the Corporation, within 20 days of receiving such notice, the
certificate(s) representing the shares of Series E Preferred Stock to be
converted into Common Stock.  In the event holder does not surrender
such certificate(s) within 20 days of receiving such notice, the Corporation
shall deem such certificate(s) cancelled and void.  As soon as
practicable, after the certificate(s) are either surrendered by the holder or
cancelled by the Corporation, as the case may be, the Corporation will issue and
deliver to holder a new certificate for the number of full shares of Common
Stock issuable upon such mandatory conversion in accordance with the provisions
hereof and cash as provided in paragraph 2(c) in respect of any fraction of a
share of Common Stock otherwise issuable upon such mandatory
conversion.  Holder will be deemed a Common Stock holder of record as
of the date of the occurrence of a Mandatory Conversion Event.

      

      3.         
   Voting.  The
shares of Series E Preferred Stock shall be entitled to vote, together with the
shares of the Corporation's Common Stock, on all matters presented at any annual
or special meeting of stockholders of the Corporation, or may act by written
consent in the same manner as the holders of the Corporation's Common Stock,
upon the following basis: each holder of Series E Preferred Stock shall be
entitled to cast such number of votes for each share of Series E Preferred Stock
held by such holder on the record date fixed for such meeting, or on the
effective date of such written consent, as shall be equal to the number of
shares of the Corporation's Common Stock into which each of such holder's shares
of Series E Preferred Stock is convertible immediately after the close of
business on the record date fixed for such meeting or the effective date of such
written consent.  The Series E Preferred Stock and any other stock
having voting rights shall vote together as one class, except as otherwise
provided by law and herein.

      

      4.         
   Liquidation
Rights.

      

      a.          
  A “Liquidation” shall mean a dissolution or winding up, voluntary or
involuntary, of the Corporation.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      b.       
     In the event of any Liquidation, the holders of shares
of Series E Preferred Stock then outstanding shall be entitled to receive out of
assets of the Corporation available for distribution to stockholders, before any
distribution of assets is made to holders of any other class of capital stock of
the Corporation, an amount equal to the Original Issue Price, plus accumulated
and unpaid dividends thereon to the date fixed for distribution (the “Base
Liquidation Preference”).  If upon any Liquidation, the amounts
payable with respect to the Series E Preferred Stock and any other shares of
stock of the Corporation ranking as to any such distribution on a parity with
the Series E Preferred Stock are not paid in full, the holders of the Series E
Preferred Stock and of such other shares shall share ratably in any such
distribution of assets of the Corporation in proportion to the full respective
preferential amounts to which they are entitled.  After the payment of
the Base Liquidation Preference shall have been made in full to the holders of
the Series E Preferred Stock or funds necessary for such payment shall have been
set aside by the Corporation in trust for the account of holders of the Series E
Preferred Stock so as to be available for such payments, the remaining assets of
the Corporation legally available for distribution to its shareholders shall be
distributed to the holders of Common Stock.

      

      c.            
In the event of any Liquidation, the Board of Directors of the Corporation shall
promptly engage competent independent appraisers to determine the value of the
assets to be distributed to the holders of shares of Series E Preferred
Stock.  The Corporation shall, upon receipt of such appraiser's
valuation, give prompt written notice to each holder of shares of Series E
Preferred Stock of the appraiser's valuation.

      

      5.          
  Limitations.

      

      a.           
 So long as 50% of the shares of Series E Preferred Stock originally issued
remain outstanding, the Corporation shall not, without the affirmative vote or
the written consent of the holders of at least 51% of the outstanding shares of
Series E Preferred Stock, voting separately as a class:

      

      i.         
create, authorize or issue any equity security, or any security convertible into
or exercisable for any equity security, unless such security is junior to the
Series E Preferred Stock;

      

      ii.         effect
a Reorganization, unless (a) the Corporation shall be the surviving corporation,
(b) the Series E Preferred Stock shall continue to be outstanding, (c) there
shall be no change in the preference, privileges or other rights and
restrictions with respect to the Series E Preferred Stock and (d) there shall
not be created or thereafter exist as a result of thereof any new class of
shares having preference over the Series E Preferred Stock with respect to
dividends, distribution of assets or rights upon liquidation; or

      

      iii.        Increase
the total number of authorized shares of Series E Preferred Stock.

      

      6.           
 Notice.  All
notices required to be delivered hereunder to the holders of the Series E
Preferred Stock shall be sent by facsimile transmission (such notice shall be
deemed received by the recipient on the first business day following
transmission and electronic confirmation of receipt), prepaid overnight courier
or first class or registered or certified mail, return receipt requested, with
postage prepaid thereon, to the holder at holder’s last address shown on the
records of the Corporation for the Series E Preferred Stock.

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      IN WITNESS WHEREOF, the
Corporation has caused its corporate seal to be hereunto affixed and this
certificate to be signed by its president, this 22nd day
of October, 2009.

      

      
        	 
      	
                EXOBOX
      TECHNOLOGIES CORP.

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By
      _________________________________________________________,
      President and CEO

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