Document:

Exhibit 10.1

 Exhibit 10.1 
 A MARK OF *** IN THE TEXT OF THIS EXHIBIT INDICATES THAT CONFIDENTIAL MATERIAL HAS 
 BEEN OMITTED. THIS EXHIBIT, INCLUDING THE OMITTED PORTIONS, HAS BEEN FILED 
 SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION 
 PURSUANT TO AN APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF 
 THE SECURITIES EXCHANGE ACT OF 1934. 
 

 
  

							
		 		 		  	FTI Consulting
		 		 		  	500 East Pratt Street
	Eric B. Miller	 		 		  	Suite 1400
	Executive Vice President	 		 		  	Baltimore, MD 21202
	General Counsel	 		 		  	410-951-4827 Direct
		 		 		  	410-951-4878 Fax

 Personal and Confidential 
 July 27, 2009 
 Mr. Declan Kelly

 c/o FTI Consulting, Inc. 
 Three
Times Square 
 New York, New York 
 Dear Declan: 
 Reference is made to your Employment Agreement with FD U.S. Communications Inc. (“FD US”) and FTI Consulting,
Inc. (“FTI”) dated as of October 3, 2006, as amended by that certain letter agreement dated August 1, 2008 (the “Employment Agreement”), which sets forth the terms and conditions of your employment with FTI, and to your
Restricted Stock Agreement with FTI dated as of October 4, 2006, as amended by Amendment No. 1 to Restricted Stock Agreement dated as of November 21, 2007, which, among other things, amends the restrictive covenants imposed on you
under the terms of the FD Offer (the “Amended RSA”). This agreement (“Agreement”) shall govern the terms of your separation of employment and the terms of your post-employment consulting arrangement with FD US and FTI. All of the
terms and conditions of the Employment Agreement that are not amended herein will remain valid, binding and in full force and effect. All of the terms and conditions of the Amended RSA that are not amended herein will remain valid, binding and in
full force and effect. This Agreement is subject to the approval of the Compensation Committee of the Board of Directors of FTI. 
  

	1.	Your last day of employment with FTI and its affiliates (the “Company”), including FTI LLC, and FD US will be October 5, 2009. The Employment Agreement
will be deemed terminated effective on and as of October 6, 2009, subject to the continued operation and effect of Section 31(c) of the Employment Agreement. Except as expressly set forth herein, you shall not be entitled to any payments
as a result of the termination of your employment. 

  

	2.	 Effective upon the execution of this Agreement, you will no longer serve as Executive Vice President-Chief Integration Officer of FTI, Chairman of
FD-Americas and FD-Ireland, and

 Mr. Declan Kelly 
 June 27, 2009 
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Chairman of the Executive Management Committee of FTI, and you are hereby relieved of all duties and responsibilities associated with such positions. You hereby resign as an officer and director
of all affiliates of FTI and as a trustee of the FD Employee Benefit Trust, and you shall execute promptly all documents necessary or appropriate to evidence such resignations. 

  

	3.	During the period from the date hereof through October 5, 2009, you will continue to report to the CEO of FTI and shall be entitled to receive your base salary
under the Employment Agreement (the “Base Salary”). 

  

	4.	During the period from the date hereof through October 5, 2009, you will consult and work with the CEO of FTI and other members of FTI and FD senior management
(i) to facilitate an orderly transition of leadership of the corporate integration and marketing functions, (ii) to develop and implement a plan to communicate the change in your status, duties and responsibilities to FTI and FD employees,
clients and other constituents and (iii) to develop and implement a plan reasonably calculated to facilitate the continued and uninterrupted provision of client services to FD clients, as identified on Schedule 1 hereof and referred to
collectively herein as the “Key Accounts”. You will be entitled to receive additional compensation attributable to the Key Accounts as set forth in detail on Schedule 2. 

  

	5.	Subject to Compensation Committee approval, you will be entitled to receive a bonus as set forth in detail in Schedule 3. Bonus awards shall be subject to your strict
continued compliance with the restrictive covenants set forth in paragraph 7 herein. Your bonus award, if any, will be paid in March, 2010 when bonus award payments are made to senior officers of FTI. 

  

	6.	All equity awards scheduled to vest through and including October 4, 2009, shall vest in accordance with the terms of the Amended RSA and the terms of the award
agreements related to your employment. You acknowledge that all restricted stock and options that do not vest on or before such date shall be forfeited on and as of October 6, 2009. You will not be subject to the trading window after the
trading window opens after the second quarter earnings release. 

  

	7.	 You hereby reaffirm your obligation to comply strictly with the post-employment restrictions in the Employment Agreement during the twelve month period
commencing October 6, 2009, and you hereby reaffirm your obligation under the Amended RSA, during the period up to and including June 15, 2011, not to (a) become employed by or a partner in or a consultant to any financial
communications business competing with FD and/or any of its affiliates (the “Group”) in any one or more countries in Western Europe, or in the United States or Canada or South Africa or Dubai or Hong Kong or China or India or Bahrain or
Russia (a “Competing Business”) and in a manner in which your employment, partnership or consultancy would compete with the Group, (b) solicit clients or employees of the Group

 Mr. Declan Kelly 
 June 27, 2009 
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away from the Group for the benefit of a Competing Business or (c) willfully or deliberately disclose to any person information which is confidential to the Group, subject only to the
following express exceptions: (a) your performance of services as an independent contractor 

 to FTI
during the period October 6, 2009 through and including June 15, 2011, or earlier in the event you terminate the independent contractor relationship prior thereto; and (b) your employment (whether directly or through an entity owned
by you) of Sue Bloomberg. 
  

	8.	Ownership of your mobile telephone number will be transferred to you as soon as practicable after the execution of this Agreement, and you shall be solely responsible
for all telephony fees and charges incurred on and after the date of transfer. 

  

	9.	You will be reimbursed, in accordance with standard FTI expense reimbursement practice, for all business related expenses incurred by you during the period through
October 5, 2009, and for all business related expenses incurred in connection with the Key Accounts (or approved in advance by the CEO of FTI) during the period through June 15, 2011. You must submit your requests for reimbursement of
business expenses, accompanied by proper documentation, consistent with past practice. FTI will use its best efforts to pay all expense requests eligible for reimbursement within ten (10) working days of the date of the submission of a properly
documented expense reimbursement request. 

  

	10.	 During the period from October 6, 2009 through June 15, 2011, you (or an entity to be formed and owned by you) will serve as an independent
contractor consultant to FTI and FD. During such period you will not hold yourself out as an employee, agent or authorized representative of FTI or FD or negotiate or enter into any agreements on behalf of FTI or FD. You will be entitled to receive
the compensation as set forth on Schedule 2 hereof. You acknowledge and agree that excluding you, all engagements and projects, including the Key Account engagements, will be staffed exclusively with FTI and/or FD personnel. You acknowledge and
agree that as an independent contractor consultant you may be provided or come into contact with Confidential Information of FTI, FD or their respective clients. The term “Confidential Information” shall mean any and all information which
is furnished to you by or on behalf of FTI, FD or their respective, whether in written, oral or electronic form. You agree not to use any Confidential Information for your own use or for any purpose except to carry out the provision of services
contemplated hereunder. You agree to hold such Confidential Information in strict confidence and not to disclose such Confidential Information to any third parties, except as required by law or judicial process. The parties are and intend to be
independent contractors with respect to the services contemplated under this Section 10. Neither party shall act as an agent of the other party and neither shall be entitled to enter into any agreements or incur any obligations on behalf of the
other party. No form of joint employer, joint venture, partnership or similar relationship between the parties is intended or hereby created. You shall: (i) be responsible for the timely withholding and payment of all taxes, including
federal, state and local taxes, including by way of illustration

 Mr. Declan Kelly 
 June 27, 2009 
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but not limitation, federal and state income tax, social security tax, Medicare tax, unemployment insurance taxes, and any other taxes or business license fees as required and
(ii) indemnify, defend and hold harmless FTI to the extent of any obligations imposed by law on FTI to pay any withholding taxes, social security, unemployment or disability insurance, or similar items in connection with any payment made to you
by FTI for services provided. 

  

	11.	In the event you determine to accept a position in government service that prohibits or materially impairs your performance of services as an independent contractor
consultant to FTI or FD through June 15, 2011, you will provide not less than thirty (30) days’ written notice of such decision to the CEO of FTI, and during such notice period you will consult and work with the CEO of FTI and other
members of FTI and FD senior management, as well as the pertinent client facing FD professionals, to develop and implement a plan reasonably calculated to facilitate the continued and uninterrupted provision of client services to the Key Accounts.

  

	12.	You and your family shall be entitled to continued medical and dental insurance coverage at present levels through June 15, 2011. Thereafter, you will be eligible
to continue your health insurance coverage under COBRA, as in effect at such time. You will receive further details on these conversion/continuation rights in a separate document from FlexAmerica. 

  

	13.	You will continue to have the use of a leased company car in accordance with Section 5(d) of your Employment Agreement through June 15, 2011. In the event
applicable FTI insurance arrangements do not permit the continued use of a leased company car after October 5, 2009, suitable and mutually acceptable alternative arrangements will be made. 

  

	14.	Since, as part of your employment, you have had access to information of a nature not generally disclosed to the public, you will be expected to keep confidential and
not disclose to anyone, the business, proprietary, and trade secret information in your possession, as well as the confidential, or otherwise proprietary information regarding FTI and FD’s employees, and personnel practices and related matters.
You agree that you will not take, copy, use or distribute in any form or manner confidential or proprietary documents or information, including, but not limited to, research and development materials, lists of customers or potential customers,
financial information, business and strategic plans, software programs and codes, access codes, and other similar materials or information. 

  

	15.	 You agree that as soon as practicable, you will return any and all company property in your possession, including, but not limited to, your computer,
software programs, client lists, marketing information, pricing information, personnel materials or files, handbooks, manuals, policies, memoranda, notes, and drafts thereof, and any other documents or property (and any summaries or copies thereof),
unfinished versions or reproductions of any items developed by you and/or obtained by you or on your behalf, directly or indirectly, pursuant to your employment (collectively, the “Business Records”). This includes all files

 Mr. Declan Kelly 
 June 27, 2009 
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and other company property stored in your home office. You further agree that you will not retain copies, summaries, excerpts or duplicates of any such Business Records. Notwithstanding the
foregoing, you will continue to have reasonable access to all information appropriate or necessary to perform your employment duties through October 5, 2009, and to perform independent contractor consulting services with respect to the Key
Accounts during the period from October 6, 2009 through and including June 15, 2011. Moreover, for the avoidance of doubt, all Business Records related to the Key Accounts and generated by you or on your behalf during the period from
October 6, 2009 through and including June 15, 2011 shall be considered company property, and shall be returned at the end of such period. You further agree that you will not retain copies, summaries, excerpts or duplicates of any such
Business Records. 

  

	16.	You will retain all vested retirement benefits under 401(K) and other qualified pension plans. 

  

	17.	You will continue to enjoy all rights to indemnification, and to be held harmless and to be defended under the Company by-laws, policies, corporate resolutions and
procedures, including for acts and omissions through October 5, 2009. You shall continue to be covered under all corporate insurance policies for acts and omissions in your capacity as an employee, officer and director of the Company through
October 5, 2009. 

  

	18.	 Nothing contained herein is intended to, or should be construed as, a modification of your rights (including, but not limited to, your right to receive
additional amounts in cash) and obligations under the FD offer documents in connection with FTI’s acquisition of FD, including with respect to future earnout payments and the distribution of restricted stock. For the avoidance of doubt, the
termination of your employment relationship will not impact the release of restricted stock on the third (3rd) anniversary of FTI’s acquisition of FD or the distribution and payment of any future earnout payments (it
is projected that the final payment will be made in March 2010), all as described in the FD offer documents. 

  

	19.	You acknowledge that this Agreement is a full and accurate statement of the understanding between the parties. The terms of this Agreement may not be modified, except
by mutual consent of the parties. Any and all modifications must be reduced to writing and signed by the parties to be effective. 

  

	20.	Consistent with Company policy, in response to any requests for employment references, the Company will provide only job titles and dates of service. Salary information
will be provided only with written authorization from you. 

  

	21.	 The parties shall not issue publicity, news release or other announcement, written or oral, disclosing the contents of this Agreement or the substance
of the negotiations without the prior written approval of the other party, except as required by law or legal process, and excluding announcements required under the securities laws, with respect to which you will have a reasonable opportunity to
review and comment. For the avoidance of doubt, the Company shall be entitled to discuss the fact of your impending separation from the

 Mr. Declan Kelly 
 June 27, 2009 
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Company with other employees of the Company and its affiliates, in order to avoid disruption and to facilitate a smooth transition. Each party will refrain from taking action or making
statements, written or oral, that disparage or defame the goodwill or reputation of you or the Company, its directors, officers, agents and employees. Notwithstanding any provision in this Agreement or otherwise to the contrary, both you and the
Company shall be and are authorized to provide truthful testimony under oath on any occasion you or the Company is under oath and are authorized to reply truthfully to any order of any court or other forum including, but not limited to, any
subpoena, without such constituting a violation of your or the Company’s obligations under this paragraph or otherwise. 

  

	22.	In the event of a breach of this Agreement by either party that results in the institution of legal proceedings, the prevailing party shall be entitled to recover
reasonable fees and expenses of counsel as part of its damages for such breach, in addition to any other relief to which the party may be entitled. 

  

	23.	This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and
the same agreement and shall become effective when a counterpart has been signed by each of the parties hereto and delivered to the other, electronic signatures shall be deemed original signatures for all purposes. 

  

	24.	This agreement will be governed by the laws of the state of Maryland, without regard to any conflicts of laws provisions. 

 Your signature below will confirm that you are entering into this Agreement voluntarily and with a full understanding of all of the above terms. In
addition, once signed, this Agreement will, except as otherwise provided expressly herein, set forth the entire agreement between the Company and you, and will supersede all previous agreements or discussions concerning your employment or the
termination thereof and your relationship with the Company. 
  

			
	Sincerely,	 	
		
	/S/ ERIC B. MILLER	 	
	Eric B. Miller	 	
	Executive Vice President	 	
	General Counsel	 	
		
	 Agreed and Accepted this 27th
 day of July,
2009
	 	
	 /S/ DECLAN KELLY
	 	
	Declan Kelly	 	

 A MARK OF *** IN THE TEXT OF THIS EXHIBIT INDICATES THAT CONFIDENTIAL MATERIAL HAS

 BEEN OMITTED. THIS EXHIBIT, INCLUDING THE OMITTED PORTIONS, HAS BEEN FILED 
 SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION 
 PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF 
 THE SECURITIES EXCHANGE ACT OF 1934. 
 Mr. Declan Kelly 
 June 27, 2009 
  Page
 7
 
  

 SCHEDULE 1 
 Key Accounts: 
 *** 
 For the avoidance of doubt, the Agreement is not contingent on the actual retention of the Key Accounts. In the event a Key Account should elect to terminate its relationship with FTI or FD and/or curtail
or diminish services requested of FTI or FD, or in the event FTI or FD elects to terminate or modify service to a Key Account, the Agreement shall continue in full force and effect, including with respect to the other Key Accounts and other accounts
that remain with FTI or FD. 

 A MARK OF *** IN THE TEXT OF THIS EXHIBIT INDICATES THAT CONFIDENTIAL MATERIAL HAS

 BEEN OMITTED. THIS EXHIBIT, INCLUDING THE OMITTED PORTIONS, HAS BEEN FILED 
 SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION 
 PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF 
 THE SECURITIES EXCHANGE ACT OF 1934. 
 Mr. Declan Kelly 
 June 27, 2009 
  Page
 8
 
  

 SCHEDULE 2 
 During the period July 1, 2009 through October 5, 2009, you will be entitled to additional compensation equal to the positive value, if any, of: (a) *** percent (***%) of all fees invoiced
and collected on account of your personal hours billed during such period to the Key Accounts excluding *** and *** (the “Key Account Personal Billings”), with payment to be made 10 working days after such fees are collected; plus
(b) with respect to *** (excluding ***), an amount equal to the Net Revenues (as defined below) received by FD for services rendered to such company multiplied by *** (the “*** Origination Fee”), with payment to be made 10 working
days after such fees are collected, plus (c) with respect to ***, an amount equal to the Net Revenues received by FD for services rendered to such company within the scope of the Statement of Work under the existing retainer agreement
multiplied by *** (the “*** Origination Fee”) minus (d) an amount equal to your monthly Base Salary paid. 
 During the
period October 6, 2009 through June 15, 2011, you will be entitled to receive the Key Account Personal Billings, the *** Origination Fee, and the *** Origination Fee, with payment of such fees, in each instance, to be made 10 working days
after such fees are collected. 
 During the entire period July 1, 2009 through June 15, 2011, compensation to you for new projects
originated from the *** outside the scope of the Statement of Work under the existing retainer agreement will be subject to further agreement in consultation with FTI senior management. Compensation payable to you for fees invoiced and collected on
account of your personal hours billed during such period on engagements that you originate for new clients, will be the subject of a further agreement. FD will have the final approval right with respect to new client intake, and with respect to the
terms and conditions of engagement and billing matters for new clients and Key Accounts, provided however, that you will be consulted regarding the invoices to Key Accounts before the bills are rendered, you will receive a copy of all invoices
rendered to Key Accounts at the time they are rendered and you will be notified when the invoices are paid. Furthermore, if you agree to perform services for existing FD clients other than the Key Accounts, you will also be entitled to receive ***
percent (***%) of all fees invoiced and collected on account of your personal hours billed during such period to such client engagements, with payment of such fee to be made 10 working days after such fees are collected. 
 Net Revenues shall have its usual meaning in the investor relations and public relations industry, namely: 
  

	 	(a)	Commissions including discounts and rebates not due to clients; 

  

	 	(b)	Fees; 

 Mr. Declan Kelly 
 June 27, 2009 
  Page
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	 	(c)	Mark up on production and materials purchased outside or produced in house; and 

  

	 	(d)	Hours billed (if applicable). 

 Income items excluded from the calculation are as follows: 
  

	 	(a)	Interest or other financial source income. 

  

	 	(b)	Discounts gained from early payment or prepayment of suppliers. 

  

	 	(c)	Rental income. 

  

	 	(d)	Capital gains or losses on sale of assets. 

  

	 	(e)	Foreign exchange gains or losses. 

  

	 	(f)	VAT or other local equivalent sales tax. 

 A MARK OF *** IN THE TEXT OF THIS EXHIBIT INDICATES THAT CONFIDENTIAL MATERIAL HAS

 BEEN OMITTED. THIS EXHIBIT, INCLUDING THE OMITTED PORTIONS, HAS BEEN FILED 
 SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION 
 PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF 
 THE SECURITIES EXCHANGE ACT OF 1934. 
 Mr. Declan Kelly 
 June 27, 2009 
  Page
 10
 
  

 SCHEDULE 3 
 If FTI reports 2009 earnings per share not less than $***, you will be entitled to receive a bonus in the amount of $400,000. If FTI reports 2009 earnings per share of $*** to $***, the bonus amount will
be $300,000; and if FTI reports 2009 earnings per share of $*** to $***, the bonus amount will be $350,000. If FTI reports 2009 earnings per shares of less than $*** per share, the amount of the bonus award, if any, will be set in the absolute
discretion of the CEO of FTI.Certificate of the Designations, Powers, Preferences and Rights Series One

 Exhibit 4.1 
 CERTIFICATE OF THE DESIGNATIONS, POWERS, 
 PREFERENCES AND RIGHTS 
 OF THE 
 CLASS B, SERIES ONE,
CONVERTIBLE PREFERRED STOCK 
 (Par Value $.001 Per Share) 
 of 
 REDHAWK ENERGY CORPORATION 
  
  
 Pursuant to Section 151 of the 
 General Corporation Law of the State of
Delaware 
  
  
 RedHawk Energy Corporation, a corporation organized and existing under the General Corporation Law of the State of Delaware (the
Corporation), by its President, 
 DOES HEREBY CERTIFY: 
 FIRST: That, pursuant to authority expressly vested in the Board of Directors of said Corporation by the provisions of its Certificate of
Incorporation, said Board of Directors duly adopted the following resolution providing for the designation and issuance of 450,000 shares of Class B, Series One, Convertible Preferred Stock, $.001 par value: 
 RESOLVED, that this Board of Directors, pursuant to authority expressly vested in it by the provisions of the Certificate of Incorporation of
the Corporation, hereby authorizes the issue from time to time of a series of Preferred Stock of the Corporation and hereby fixes the designation, preferences and the relative, participating, optional or other rights, and the qualifications,
limitations or restrictions thereof, in addition to those set forth in said Certificate of Incorporation, to be in their entirety as follows: 
 Section 1. Designation and Number. The series of Preferred Stock is designated and known as Class B, Series One, Convertible Preferred Stock. The number of shares constituting Class B, Series One,
Convertible Preferred Stock (the Series One Preferred Stock) is 450,000. All equity securities of the Corporation ranking as to dividends or distributions of assets on liquidation, dissolution or winding up of the Corporation
that are junior to the Series One Preferred Stock, including the Corporation’s Class B, Series Two, Convertible Preferred Stock, $.001 par value, and common stock, $.001 par value (the Common Stock), are sometimes hereinafter
referred to as Junior Securities. 
 Section 2. Liquidation Rights. In the event of any voluntary
or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, the holders of the shares of Series One Preferred Stock are entitled to receive, prior to and in preference to any distribution of any of the assets or surplus
funds of the Corporation to the holders of any Junior Securities by reason of their ownership thereof, an amount equal to $100 per share (the Liquidation Value), plus any accrued but unpaid dividends on the Series One
Preferred Stock. All of the preferential amounts to be paid to the holders of the Series One Preferred Stock under this Section 2 is paid or set apart for payment before the payment or setting apart for payment of any amount for, or the
distribution of any assets of the Corporation to, the holders of any Junior Securities, in connection with such liquidation, dissolution or winding up. If the assets or surplus funds to be distributed to the holders of the Series One Preferred Stock
are insufficient to permit the payment to such holders of their full preferential amount, the assets and surplus funds legally available for distribution are distributed ratably among the holders of the Series One Preferred Stock in proportion to
the full preferential amount each such holder is otherwise entitled to receive. 
  

 1 

 (a) After the payment or the setting apart of payment to the holders of the Series One Preferred Stock
of the preferential amounts so payable to them, the holders of the junior Securities are entitled to share ratably all remaining assets of the Corporation. 
 (b) A consolidation or merger of the Corporation (other than a merger where (i) the Corporation is the surviving corporation or (ii) the Corporation is not the surviving entity but the holders of a
majority of the voting power of the Corporation prior to such merger or consolidation hold a majority of the voting power of the surviving entity), or a sale of substantially all of the assets of the Corporation is deemed a liquidation, dissolution
or winding up of the Corporation and entitle the holders of the Series One Preferred Stock to receive the amounts specified in this Section 2, upon the terms stated herein. 
 Section 3. Conversion into Common Stock. The holder of any shares of Series One Preferred Stock shall have conversion rights
as follows: 
 (a) Right to Convert. Each share of Series One Preferred Stock is convertible, without the payment of any additional
consideration by the holder thereof and at the option of the holder thereof, at any time after the date of issuance of such share, into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing the Liquidation
Value by the Series One Conversion Price, determined as hereinafter provided, in effect at the time of conversion. The conversion price at which shares of Common Stock is deliverable upon conversion of Series One Preferred Stock without the payment
of any additional consideration by the holder thereof (the Series One Conversion Price) initially equals $0.763 per share of Common Stock. The Series One Conversion Price is subject to adjustment, in order to adjust the number
of shares of Common Stock into which the Series One Preferred Stock is convertible, as hereinafter provided. 
 (b) Mechanics of
Conversion. No fractional shares of Common Stock are issued upon conversion of the Series One Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the Corporation shall pay cash equal to such
fraction multiplied by the then effective Series One Conversion Price. Before any holder of Series One Preferred Stock is entitled to receive certificates representing shares of Common Stock issuable upon conversion of the Series One Preferred
Stock, he shall surrender the certificate or certificates therefor, duly endorsed, at the office of the Corporation or of any transfer agent for the Series One Preferred Stock, and shall, in the case of conversion under Section 3(a)
hereof, give written notice to the Corporation at such office that he elects to convert the same, and shall state therein his name or the name or names of his nominees in which he wishes the certificate or certificates for shares of Common Stock to
be issued. The Corporation shall, as soon as practicable after receipt of the certificate(s) representing Series One Preferred Stock, issue and deliver at such office to such holder of Series One Preferred Stock, or to his nominee or nominees, a
certificate or certificates for the number of shares of Common Stock to which he is entitled as aforesaid, together with cash in lieu of any fraction of a share and cash in payment of declared dividends on the shares of Series One Preferred Stock
converted through the date of conversion, and a certificate or certificates for such shares of Series One Preferred Stock as were represented by the certificates surrendered and not converted. Voluntary conversions pursuant to Section 3(a)
hereof is deemed to have been made immediately prior to the close of business on the date of such surrender of the shares of Series One Preferred Stock to be converted, and the person or persons entitled to receive the shares of Common Stock
issuable upon conversion is treated for all purposes as the record holder or holders of such shares of Common Stock on such date. 
 (c)
Adjustments to Conversion Price for Diluting Issues: 
 (i) Special Definitions. For purposes of this
Section 3(c) and the other provisions of this Certificate, the following definitions apply: 
 (1)
Option means rights, options or warrants to subscribe for, purchase or otherwise acquire either Common Stock or Convertible Securities. 
 (2) Original Issue Date means the date on which the first share of Series One Preferred Stock is originally issued. 
  

 2 

 (3) Membership Interest Purchase Agreement means that certain Membership
Interest Purchase Agreement, dated as of October 30, 2009, pertaining to the sale and purchase by the Corporation of memberships in certain subsidiaries of Xxtreme Group, L.L.C., a Louisiana limited liability company, and the Company, a copy of
which is on file at the office of the Corporation. 
 (4) Convertible Securities means any evidences of
indebtedness, shares (other than Common Stock and Series One Preferred Stock), or other securities directly or indirectly convertible into or exchangeable for Common Stock. 
 (5) Additional Shares of Common Stock means all shares of Common Stock issued (or, under Section 3(c)(iii)
hereof, is deemed to be issued) by the Corporation after the Original Issue Date, but does not include: 
 (A) Shares of
Common Stock issued or issuable upon conversion of shares of the Series One Preferred Stock; 
 (B) Shares of Common Stock
issued or issuable upon conversion of shares of Class B, Series Two, Convertible Preferred Stock. 
 (C) Shares of Common
Stock issued or issuable in connection with the acquisition of another corporation or other entity by the Corporation by merger, purchase of substantially all the stock or assets or other reorganization; provided that such acquisition and its terms
have been approved by the Board of Directors of the Corporation; and 
 (D) By way of dividend or other distribution on
shares of Common Stock excluded from the definition of Additional Shares of Common Stock by the foregoing provisions of this Section 3(c)(5) or on Common Stock so excluded. 
 (ii) No Adjustment of Conversion Price. 
 (A) No adjustment in the number of shares of Common Stock into which the Series One Preferred Stock is convertible may be made, by
adjustment in the Series One Conversion Price in respect of the issuance of Additional Shares of Common Stock or otherwise, unless the consideration per share for an Additional Share of Common Stock issued or deemed to be issued by the Corporation
is less than the Series One Conversion Price in effect on the date of, and immediately prior to, the issue of any such Additional Shares. 
 (B) Notwithstanding anything contained herein to the contrary, if the Corporation at any time after the date hereof declares or pays any dividend on the Common Stock payable in Common Stock, or effects a
subdivision or combination or consolidation of the outstanding Common Stock (by reclassification or otherwise than by payment of a dividend in Common Stock) into a greater or lesser number of Common Stock, and the result thereof is to reduce the
ownership interest of the Series One Preferred Stock in the Corporation by more than 5%, assuming all warrants, options and convertible securities outstanding are exercised, then the transaction effectuating such measures is subject to the approval
of a majority of the outstanding Series One Preferred Stock, so long as at least 100,000 shares of Series One Preferred Stock remain outstanding. 
 (iii) Issue of Securities Deemed Issue of Additional Shares of Common Stock. 
 (1) Options and Convertible Securities. If the Corporation from time to time after

  

 3 

 
the Original Issue Date issues any Options or Convertible Securities or fixes a record date for the determination of holders of any class of securities entitled to receive any such Options or
Convertible Securities, then the maximum number of shares (as set forth in the instrument relating thereto without regard to any provisions contained therein for a subsequent adjustment of such number) of Common Stock issuable upon the exercise of
such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, is deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record
date has been fixed, as of the close of business on such record date. Notwithstanding the foregoing provisions of this Section 3(c)(iii)(1) to the contrary, (y) Additional Shares of Common Stock is not deemed to have been issued
unless the consideration per share (determined under Section 3(c)(v) hereof) of such Additional Shares of Common Stock would be less than the Series One Conversion Price in effect on the date of and immediately prior to such issue, or
such record date, as the case may be; and (z) in any such case in which Additional Shares of Common Stock are deemed to be issued, then the following provisions apply: 
 (A) No further adjustment in the Series One Conversion Price is made upon the subsequent issue of Convertible Securities or shares of
Common Stock upon the exercise of such Options or conversion or exchange of such Convertible Securities; 
 (B) If such
Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any increase in the consideration payable to the Corporation, or decrease in the number of shares of Common Stock issuable, upon the exercise,
conversion or exchange thereof, the Series One Conversion Price computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, upon any such increase or decrease
becoming effective, must be recomputed to reflect such increase or decrease insofar as it affects such Options or the rights of conversion or exchange under such Convertible Securities; 
 (C) Upon the expiration of any such Options or any rights of conversion or exchange under such Convertible Securities which have not
been exercised, the Series One Conversion Price computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, upon such expiration, must be recomputed as if:

 (I) In the case of Convertible Securities or Options for Common Stock, the only Additional Shares of Common Stock
issued were the shares of Common Stock, if any, actually issued upon the exercise of such Options or the conversion or exchange of such Convertible Securities and the consideration received therefor was the consideration actually received by the
Corporation for the issue of all such Options, whether or not exercised, plus the consideration actually received by the Corporation upon such exercise, or for the issue of all such Convertible Securities which were actually converted or exchanged,
plus the additional consideration, if any, actually received by the Corporation upon such conversion or exchange, and 
 (II) In the case of Options for Convertible Securities, only the Convertible Securities, if any, actually issued upon the exercise thereof were issued at the time of issue of such Options, and the consideration received by the Corporation
for the Additional Shares of Common Stock deemed to have been then issued was the consideration actually received by the Corporation for the issue of all such Options, whether or not exercised, plus the consideration deemed to have been received by
the Corporation

  

 4 

 
(determined under Section 3(c)(v) hereof) upon the issue of the Convertible Securities with respect to which such Options were actually exercised; 
 (D) No readjustment under Sections 3(c)(iii)(B) or (C) hereof has the effect of increasing the Series One Conversion Price
to an amount which exceeds the lower of (i) the Series One Conversion Price on the original adjustment date, or (ii) the Series One Conversion Price that would have resulted from any issuance of Additional Shares of Common Stock between
the original adjustment date and such readjustment date; 
 (E) In the case of any Options which expire by their terms not
more than 30 days after the date of issue thereof, no adjustment of the Series One Conversion Price may be made until the expiration or exercise of all such Options, whereupon such adjustment is made in the same manner provided in
Section 3(c)(iii)(C) hereof; and 
 (F) If such record date has been fixed and such Options or Convertible
Securities have not been issued on the date fixed therefor, the adjustment previously made in the Series One Conversion Price which became effective on such record date is canceled as of the close of business on such record date, and thereafter the
Series One Conversion Price is adjusted in accordance with this Section 3(c)(iii) as of the actual date of their issuance. 
 (2) Stock Dividends, Stock Distributions and Subdivisions. If the Corporation after the Original Issue Date declares or pays any dividend or makes any other distribution on the Common Stock payable in Common
Stock, or effect a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in Common Stock), then and in any such event, Additional Shares of Common Stock is deemed to have been issued:

 (A) In the case of any such dividend or distribution, immediately after the close of business on the record date for
the determination of holders of any class of securities entitled to receive such dividend or distribution, or 
 (B) In
the case of any such subdivision, at the close of business on the date immediately prior to the date upon which such corporate action becomes effective. 
 If such record date has been fixed and such dividend has not been fully paid on the date fixed therefor, the adjustment previously made in the Series One Conversion Price which became effective on such record date
is canceled as of the close of business on such record date, and thereafter the Series One Conversion Price is adjusted pursuant to this Section 3(c)(iii) as of the time of actual payment of such dividend. 
 (iv) Adjustment of Conversion Price of Series One Preferred Stock Upon Issuance of Additional Shares of Common Stock. If the
Corporation issues Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued under Section 3(c)(iii) hereof, but excluding Additional Shares of Common Stock deemed to be issued under
Section 3(c)(iii)(2) hereof, which event is addressed in Section 3(c)(vi) hereof) without consideration or for a consideration per share less than the Series One Conversion Price in effect on the date of and immediately prior
to such issue, then such Series One Conversion Price is reduced, concurrently with such issue to a price (calculated to the nearest cent) determined by multiplying the Series One Conversion Price in effect immediately prior to such adjustment with
respect to the Series One Preferred Stock by a fraction: 
 (x) The numerator of which is (1) the number of shares of
Common

  

 5 

 
Stock outstanding immediately prior to such issue (including shares of Common Stock issuable upon conversion of any outstanding Series One Preferred Stock or Convertible Securities) plus
(2) the number of shares of Common Stock which the aggregate consideration received by the Corporation for the total number of Additional Shares of Common Stock so issued would purchase at such Series One Conversion Price, and 
 (y) The denominator of which is (1) the number of shares of Common Stock outstanding immediately prior to such issue (including
shares of Common Stock issuable upon conversion of any outstanding Series One Preferred Stock or Convertible Securities) plus (2) the number of such Additional Shares of Common Stock so issued; provided that the Series One Conversion Price in
effect with respect to the Series One Preferred Stock shall not be so reduced at such time if the amount of such reduction would be an amount less than $0.001, but any such amount is carried forward and reduction with respect thereto made at the
time of and together with any subsequent reduction which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.001 or more. 
 (v) Determination of Consideration. For purposes of this Section 3(c), the consideration received by the Corporation
for the issue of any Additional Shares of Common Stock is computed as follows: 
 (1) Cash and Property: Such
consideration shall: 
 (A) Insofar as it consists of cash, be computed at the aggregate amount of cash received by the
Corporation excluding amounts paid or payable for accrued interest or accrued dividends; 
 (B) Insofar as it consists of
property other than cash, be computed at the fair value thereof at the time of such issue, as determined in good faith by the Board of Directors; and 
 (C) If Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Corporation for consideration which covers both, be the proportion of such consideration so
received, computed as provided in clauses (A) and (B) of this Section 3(c)(iv)(1), as determined in good faith by the Board of Directors. 
 (2) Options and Convertible Securities. The consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued under Section 3(c)(iii)(1) hereof,
relating to Options and Convertible Securities, is determined by dividing 
 (x) the total amount, if any, received or
receivable by the Corporation as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such consideration) payable to the Corporation upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the
exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by 
 (y) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable

  

 6 

 
upon the exercise of such Options or the conversion or exchange of such Convertible Securities. 
 (vi) Adjustment for Dividends, Distributions, Subdivisions, Combinations or Consolidation of Common Stock. 
 (1) Stock Dividends, Distributions or Subdivisions. If the Corporation issues Additional Shares of Common Stock under Section 3(c)(iii)(2) in a stock dividend, stock distribution or subdivision,
the Series One Conversion Price in effect immediately prior to such stock dividend, stock distribution or subdivision shall, concurrently with the effectiveness of such stock dividend, stock distribution or subdivision, be proportionately decreased.

 (2) Combinations or Consolidations. If the outstanding shares of Common Stock is combined or consolidated, by
reclassification or otherwise, into a lesser number of shares of Common Stock, the Series One Conversion Price in effect immediately prior to such combination or consolidation shall, concurrently with the effectiveness of such combination or
consolidation, be proportionately increased. 
 (vii) Adjustment for Merger or Reorganization, etc. In case of any
consolidation or merger of the Corporation with or into another corporation or the conveyance of all or substantially all of the assets of the Corporation to another corporation, each share of Series One Preferred Stock is thereafter convertible
into the number of shares of stock or other securities or property to which a holder of the number of shares of Common Stock of the Corporation deliverable upon conversion of such Series One Preferred Stock would have been entitled upon such
consolidation, merger or conveyance. In any such case, appropriate adjustment (as determined in good faith by the Board of Directors) must be made in the application of the provisions herein with respect to the rights and interest thereafter of the
holders of the Series One Preferred Stock, so that the provisions herein (including provisions with respect to changes in and other adjustments of the Series One Conversion Price) are thereafter applicable, as nearly as reasonably may be, in
relation to any shares of stock or other property thereafter deliverable upon the conversion of the Series One Preferred Stock. 
 (d)
No Impairment. The Corporation may not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, 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 must at all times in good faith assist in the carrying out of all the provisions of this Section 3, and take
all such action as may be necessary or appropriate in order to protect the conversion rights of the holders of the Series One Preferred Stock against impairment. 
 (e) Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Series One Conversion Price under this Section 3, the Corporation at its expense shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series One Preferred Stock a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Corporation shall, upon the written request at any time of any holder of Series One Preferred Stock, furnish or cause to be furnished to such holder a like certificate setting forth (i) such adjustments
and readjustments, (ii) the Series One 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 Series One
Preferred Stock. 
 (f) Notices of Record Date. In the event of any taking by the Corporation of a record of the holders of any
class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters) or other distribution, the Corporation shall
mail to each holder of Series One Preferred Stock at least ten days prior to the record date specified for such action, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution and
describing such dividend or distribution. 
  

 7 

 (g) Common Stock Reserved. The Corporation shall reserve and keep available out of its
authorized but unissued Common Stock such number of shares of Common Stock as shall from time to time be sufficient to effect conversion of the Series One Preferred Stock. 
 Section 4. Redemption/Dividends. 
 (a) Sinking Fund. The Corporation is obligated to establish in a segregated account established solely for the purposes of paying dividends and redeeming the Series One Preferred Stock (the Sinking
Fund) under the terms of the Membership Interest Purchase Agreement (as that term is defined in Section 3(c)(3) hereof). 
 (b) Scheduled Dividend and Redemption Payments. 
 (i) On the tenth business day
following the last business day of each fiscal quarter, commencing for the quarter ending December 31, 2009, the Corporation is obligated to deposit in the Sinking Fund an amount equal to 50% of the Excess Cash Flow of the Companies on a
consolidated basis. The term Excess Cash Flow of the Companies means for the applicable fiscal period, an amount equal to EBITDA, less (A) principal payments of the Companies debt, (B) taxes, and (C) capital expenditures
incurred by the Companies not financed from a financial institution. The term Companies means Xxtreme Pipe Services, LLC, Xxtreme Pipe Storage, LLC, Xxtreme Tubular Processors, LLC, and Wolf Pack Rentals, LLC, all Texas limited
liability companies. 
 (ii) The Corporation’s obligation to make any payments of dividends or payments to redeem the
Series One Preferred Stock prior to October 30, 2014, under the terms of this instrument, is limited solely to the funds available in the Sinking Fund and it is not obligated to utilize any other funds of the Corporation for such purpose,
unless the Corporation agrees otherwise. 
 (iii) After the fiscal year ended December 31, 2009, the Corporation is
obligated to pay accrued dividends at the Dividend Rate specified in Section 4(c) hereof, on the Series One Preferred Stock on the tenth business day following the last business day of each fiscal quarter (the Dividend Payment
Date), commencing on or before January 15, 2010, and continuing on the same date each quarter thereafter, so long as any shares of Series One Preferred Stock remain outstanding. 
 (iv) The Corporation is obligated to begin redemption of the Series One Preferred Stock following the fiscal year ending on
December 31, 2012, to the full extent of funds available in the Sinking Fund, commencing on the first Dividend Payment Date immediately following the date that is within 30 days after the date of delivery of the Corporation’s annual audit
prepared by its certified public accountants for fiscal year 2012, and continuing quarterly thereafter on each subsequent Dividend Payment Date until the full redemption of all Series One Preferred Stock has been completed. Each such redemption
payment is payable after payment of all dividends accrued as of each such Dividend Payment Date. 
 (v) At the end of each
fiscal year, the Corporation shall prepare a reconciliation statement of the quarterly Dividend Payments made for such fiscal year of the Corporation showing the difference, if any, between the sum of the quarterly Dividend Payments payable during
such fiscal year, and 50% of Excess Cash Flow of the Companies on a consolidated basis. If the amount of such Dividend Payments exceeds such 50% of Excess Cash Flow, for such fiscal year, then such excess amount previously paid by the Company
will be credited against next accruing dividends owed and then any against future redemption payments. If the amount of such Dividend Payments is less than such Excess Cash Flow, then such deficient amount is due and payable on the next
scheduled quarterly Dividend Payment Date. 
 (v) The Company is obligated to redeem all outstanding, unredeemed shares of
Series One Preferred Stock and cumulative unpaid dividends computed at the Dividend Rate due and owing as of the date of such payment, on or before January 15, 2015 (the Final Redemption Date). If the Sinking Fund is insufficient
for to pay the entirety of such amounts on the Final Redemption Date, then

  

 8 

 
the Company is obligated to make such payment from other legally available funds. 
 (vii) “Claw-back” Provision. Notwithstanding anything contained herein to the contrary, the number of shares of Series One Preferred Stock and any Dividend Payments previously paid or due thereon,
are subject to reduction under the provisions of Section 1.4 of the Membership Interest Purchase Agreement, captioned “Post Closing Adjustments”. To the extent that dividends have been paid on a number of shares of
Series One Preferred Stock in excess of the number of shares resulting from the adjustment set forth in said Section 1.4 of the Membership Interest Purchase Agreement, the amount of the overpayment will be credited to the redemption
payment due upon the Final Redemption Date. 
 (c) Dividend Rate. The holders of the Series One Preferred Stock is entitled to
receive, out of the funds of the Corporation legally available therefor, cumulative cash dividends at the annual rate of 3.5% (the Dividend Rate) of the Liquidation Value, computed on a simple interest basis, from the
operations of the Corporation, upon and in connection with a liquidation, dissolution or winding up of the Corporation under Section 2 hereof, or upon and in connection with a redemption of the Series One Preferred Stock under
Section 4 hereof. Such dividends begin to accrue with respect to any shares of Series One Preferred Stock on the date of issuance of such shares. Dividends are payable to holders of record, as they appear on the stock books of the
Corporation on the date of such payment is to be made. 
 (d) Redemption Procedure/Rights. The Corporation shall, at least 30 days
but no more than 45 days prior to each date the Corporation is obligated to redeem shares of Series One Preferred Stock (a Redemption Date), mail to each holder of Series One Preferred Stock a notice setting forth the date (a
Noticed Redemption Date) and place of redemption and the number of shares and the certificate numbers thereof which are to be redeemed. Shares of Series One Preferred Stock required to be redeemed are redeemed pro rata from all
holders of Series One Preferred Stock. Except as set forth in Section 4(g) hereof, nothing contained herein restricts the right of the holders of the Series One Preferred Stock to convert their Series One Preferred Stock in accordance
with the provisions of Section 3. If shares of Series One Preferred Stock scheduled for redemption are not redeemed because of a prohibition under applicable law, such shares are redeemed as soon as such prohibition no longer exists. The
Series One Preferred Stock that has not been redeemed shall remain issued and outstanding until the Redemption Price has been paid in full and entitled to all rights and preferences provided herein. Upon the exercise of any redemption right under
this Section 4, the holder of the Series One Preferred Stock being redeemed shall deliver certificates representing such shares to the Corporation in exchange for the Redemption Price. Such shares shall no longer be deemed to be
outstanding after such date of redemption and payment of the Redemption Price has been made in full to the holders of those shares scheduled for redemption. In case less than all the shares represented by any such certificate are redeemed, a new
certificate is issued representing the unredeemed shares without cost to the holder thereof. 
 (e) Redemption Price. The
redemption price (the Redemption Price) for each share of Preferred Stock redeemed under this Section 4 equals $100 (subject to adjustment to reflect any stock dividend, stock split or other form of
recapitalization occurring after the date hereof), plus any accrued but unpaid dividends thereon through the applicable Redemption Date. 
 (f) Redeemed or Otherwise Acquired Shares to be Retired. Any shares of the Series One Preferred Stock redeemed under this Section 4 or otherwise acquired by the Corporation in any manner whatsoever is permanently retired
immediately on the acquisition thereof and may not be reissued; and the Corporation shall from time to time take such appropriate action as may be necessary to reduce the authorized number of shares of Series One Preferred Stock accordingly.

 (g) Dividends after Redemption Date. Notice of redemption having been so mailed and provision for payment of the Redemption
Price for such shares on the specified date having been made by the Corporation, then, unless default be made in the payment of the Redemption Price for such shares when and as due, the shares of Series One Preferred Stock designated for redemption
are not entitled to any dividends accruing after the date specified for redemption. 
  

 9 

 (h) Legally Available Funds. For the purpose of determining whether funds are legally available
for redemption of shares of Series One Preferred Stock as provided herein, the Corporation shall value its assets at the highest amount permissible under applicable law. If on any Redemption Date funds of the Corporation legally available therefor
is insufficient to redeem all the shares of Series One Preferred Stock required to be redeemed as provided herein, funds to the extent legally available are used for such purpose and the Corporation shall apply such funds to each holder’s
shares of Series One Preferred Stock pro rata according to the number of shares held by each holder of Series One Preferred Stock. 
 (i)
Termination of Conversion. If the Corporation has mailed written notice of redemption to the holders of record of shares of Series One Preferred Stock in accordance with the terms of Subsection 4(c) hereof, the holder’s right to
convert such shares called for redemption shall cease at the close of business on the Redemption Date, unless the Corporation defaults in the payment of the Redemption Price. 
 Section 5. Voting Rights. 
 (a) Except as otherwise required by law, the holders of the Series One Preferred Stock and the holders of the Common Stock and other Junior Securities are entitled to notice of any stockholders’ meeting and to
vote upon any matter submitted to a stockholder for a vote, on the following basis, except as otherwise provided in Subsection 5(b) hereof: 
 (i) Holders of Common Stock shall have one vote per share; and 
 (ii) Holders of Series
One Preferred Stock have the number of votes per share that equals the number of shares of Common Stock into which each such share of Series One Preferred Stock held by such holder is convertible. 
 (b) Except as otherwise required by law, the holders of Series One Preferred Stock are entitled to vote upon and approve the following matters:

 (i) The holders of the Series One Preferred Stock issued and outstanding are entitled, voting separately as a class, to
elect (A) three members of the Corporation’s Board of Directors, so long as the holders of such Series One Preferred Stock represents at least 50% of the voting shares of the Corporation, or (B) two members of such Board, if the
holders of such Series One Preferred Stock represents less than 50% of the voting shares of the Corporation, provided however, if less than 100,000 shares of such Series One Preferred Stock are outstanding, the exclusive right granted to such
holders in this subsection (i) terminate. 
 (ii) The holders of the Common Stock (and any other Junior Securities as
authorized by the Board of Directors), voting separately as a class, are entitled to elect the two members of the Corporation’s Board of Directors. 
 (iii) A majority of the holders of the issued and outstanding Series One Preferred Stock, voting separately as a class, are entitled to approve all capital expenditures in a single transaction of more than $50,000,
or a series of transactions of more than $100,000 that occurs in any 30 day period, the purchase of which capital items was not financed by the Corporation. 
 Section 6. Certain Restrictions. Whenever dividends or Redemption Payments payable on the Series One Preferred Stock as prescribed in Section 4 hereof are in arrears, or the
Corporation has failed to comply with the provisions of Sections 4(a) and 4(b)(1) hereof, thereafter and until all accrued and unpaid dividends and Redemption Payments, whether or not earned or declared, on the Series One Preferred Stock
outstanding have been paid in full, and the Corporation has complied with such provisions of Section 4 hereof, the Corporation may not do any of the following: 
 (a) Declare or pay dividends, or make any other distributions, on any shares ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series One Preferred Stock; 
  

 10 

 (b) Declare or pay dividends, or make any other distributions, on any shares of stock ranking on a
parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series One Preferred Stock, except dividends paid ratably on the Series One Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such shares are then entitled; or 
 (c) Redeem or purchase or
otherwise acquire for consideration any Junior Securities (either as to dividends or upon liquidation, dissolution or winding up) to the Series One Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire
any such Junior Securities in exchange for any other Junior Securities of the Corporation or rights, warrants or options to acquire such Junior Securities.; or 
 (d) Redeem or purchase or otherwise acquire for consideration any Class A Preferred Shares, or any shares ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the
Class A Preferred Shares, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the
respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes. 
 Section 7. Covenants. So long as any of the shares of the Series One Preferred Stock authorized hereby are outstanding, the
Corporation shall not, without first obtaining the affirmative vote or written consent of not less than 60% of such outstanding shares of Series One Preferred Stock, voting separately as a class: 
 (a) Amend or repeal any provision of, or add any provision to, the Corporation’s Certificate of Incorporation or By-laws if such action would
alter or change the preferences, rights, privileges or powers of, or the restrictions provided for the benefit of the Series One Preferred Stock; 
 (b) Reclassify any Common Stock into shares having any preference or priority as to dividends or assets superior to or on a parity with any such preference or priority of the Series One Preferred Stock; 

(c) Create or issue any securities of the Corporation which have equity features and which rank on parity with or senior to the Series One
Preferred Stock upon payment of dividends or upon liquidation or other distribution of assets; 

	(d)	Increase the authorized number of shares of Series One Preferred Stock; 

 (e) Merge, consolidate, sell, lease, exchange or otherwise dispose of all or substantially all its property and assets unless (i) the Corporation is the surviving corporation following such merger or
consolidation or (ii) the Corporation is not the surviving entity but the holders of a majority of the voting power of the Corporation prior to such merger or consolidation hold a majority of the voting power of the surviving entity; or

 (f) Increase the authorized number of directors constituting the entire Board of Directors of the Corporation to a number greater than
five. 
 SECOND: That such determination of the designation, preferences and the relative, participating, optional or other rights,
and the qualifications, limitations or restrictions thereof, relating to said Series One Preferred Stock, was duly made by the Board of Directors pursuant to the provisions of the Certificate of Incorporation of the Corporation, and in accordance
with the provisions of Section 151 of the General Corporation Law of the State of Delaware, as amended. 
 IN
WITNESS WHEREOF, RedHawk Energy Corporation has caused this Certificate of Designations to be executed this 29th day of October, 2009. 
  

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	REDHAWK ENERGY CORPORATION
		
	By:	 	 /s/ G. Darcy Klug

		 	G. Darcy Klug, its President

  

 12

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