Document:

Exhibit 10.4

    

    Execution Version

      

     

    

     

    

    EMERALD EXPOSITIONS EVENTS, INC.

    2017 OMNIBUS EQUITY PLAN

    

    

    PERFORMANCE BASED SHARE AWARD AGREEMENT

    

    

    Pursuant to Section 10 of the 2017 Omnibus Equity Plan (the “Plan”) of Emerald Expositions Events, Inc. (the “Company”), on [June 3], 2019 (the “Grant Date”) the Company authorized a grant to Sally Shankland (the “Recipient”) of a
        performance based Share Award, subject to the terms and conditions of this agreement between the Company and the Recipient (this “Agreement”). By accepting
        this award, the Recipient agrees to all of the terms and conditions of this Agreement. The Company and the Recipient understand and agree that any capitalized terms used herein, if not otherwise defined, shall have the same meanings as in the Plan
        (the Recipient being referred to in the Plan as a Participant).

    1. Award and Terms. The Company awards to the Recipient under the Plan the right to
        receive a number of Shares calculated as set forth in Section 1(a) below (the “Award”), subject to the restrictions, conditions and limitations set forth in
        this Agreement and in the Plan, which is incorporated herein by reference. The Recipient acknowledges receipt of a copy of the Plan and acknowledges that the definitive records pertaining to the grant of this Award, and exercises of rights
        hereunder, shall be retained by the Company.  To the extent the Award remains unvested on the 10th anniversary of the Grant Date, the Award will be forfeited without any consideration being payable therefor.

    (a) Vesting Dates. Subject to the provisions of this Agreement and the Plan, the
        Recipient’s right to receive Shares pursuant to this Agreement shall vest based upon achievement of the closing Share prices as set forth in the schedule below (which prices may be adjusted in accordance with Section 12 of the Plan) for a period of
        at least sixty (60) out of the preceding ninety (90) Trading Days (each such Share price a “Vesting Threshold”).  Upon achievement of each relevant Vesting
        Threshold, subject to Section 1(f), the Recipient shall be issued a number of Shares equal to the corresponding Award Value identified in the schedule below, divided by the closing price per Share on the Trading Day upon which the relevant Vesting
        Threshold was satisfied.  For the avoidance of doubt, there shall be no ratable vesting for achievement of a closing Share price that falls between the levels stated in the schedule below and in no event shall any individual Vesting Threshold vest
        more than once.  For purposes of the foregoing, a “Trading Day” is any day on which the New York Stock Exchange is open for trading.

    	
            60/90 Trading Day Closing Share Price

            (Vesting Thresholds)

          	
            Award Value

          
	
            At least $18.00 per Share

          	
            $2 million

          
	
            At least $20.00 per Share

          	
            $3 million

          
	
            At least $22.00 per Share

          	
            $4 million

          
	
            At least $24.00 per Share

          	
            $5 million

          

    In the event of a Change in Control, if the price per Share paid by the buyer is greater than any of
        the Vesting Thresholds above (to the extent still unsatisfied), such portion of the Award shall vest upon the closing of such Change in Control by treating such price per Share paid by the buyer as having satisfied the applicable Vesting
        Threshold(s), and any remaining unvested portion of the Award shall be forfeited as of the closing of such Change in Control.

    (b) Forfeiture of Award on Termination of Employment. If the Recipient Terminates for any
        reason, the unvested portion of the Award shall terminate. However, if the Recipient’s employment is terminated (i) by the Company or a Subsidiary other than for Cause, or (ii) by the Executive for Good Reason, in either case, within three months
        prior to the earlier of (x) the date of the execution of a definitive agreement resulting in a Change in Control, or (y) the date of the Change in Control, then any unvested Shares subject to this Awards shall remain eligible to vest in accordance
        with this Agreement.  Upon a termination for Cause, both the vested and unvested portion of the Award shall be immediately and automatically forfeited for no consideration.  For this purpose, “Cause” and “Good Reason” have the meanings given to such terms in the Employment Agreement between the Recipient and
        Emerald Expositions, LLC dated as of May 12, 2019.

    (c) Restrictions on Transfer. The Recipient may not sell, transfer, assign, pledge or
        otherwise encumber or dispose of the Award other than to the extent permitted by Section 11.2 of the Plan. The Recipient further agrees not to sell, transfer, assign, pledge or otherwise encumber or dispose of any Shares issued upon settlement of
        any portion of the Award prior to the first to occur of (i) one year following the applicable settlement date, and (ii) the occurrence of a Change in Control.

    (d) No Shareholder Rights. The Recipient shall have no rights as a shareholder with
        respect to the Award or the Shares underlying the Award until the underlying Shares are issued to the Recipient.

    (e) Delivery Date for the Shares Underlying the Award. As soon as practicable, but in no
        event later than 15 days following a date on which any portion of the Award vests, the Company will issue to the Recipient the Shares underlying the then-vested portion of the Award, subject to Section 1(f). The Shares will be issued in the
        Recipient’s name or, in the event of the Recipient’s death after the date of vesting but before the date of delivery, in the name of either (i) the beneficiary designated by the Recipient on a form supplied by the Company or (ii) if the Recipient
        has not designated a beneficiary, the person or persons establishing rights of ownership by will or under the laws of descent and distribution.

    (f) Taxes and Tax Withholding. The Recipient acknowledges and agrees that no election
        under Section 83(b) of the Internal Revenue Code of 1986, as amended, can or will be made with respect to the Award. The Recipient acknowledges that on each date that Shares underlying the Award are issued to the Recipient (each, a “Settlement Date”), the Fair Market Value on that date of the Shares so issued will be treated as ordinary compensation income for federal and state income and
        FICA tax purposes, and that the Company will be required to withhold taxes on these income amounts. To satisfy the withholding amount (determined in accordance with applicable law), the Company will withhold from the Shares otherwise issuable upon
        a Settlement Date a number of Shares having a Fair Market Value equal to the withholding amount (up to the statutory maximum amount) or the Committee may in its sole discretion authorize another method to be utilized under procedures established by
        the Company.

    (g) Not a Contract of Employment. Nothing in the Plan or this Agreement shall confer upon
        Recipient any right to be continued in the employment of the Company or any Affiliate, or to interfere in any way with the right of the Company or any parent or subsidiary by whom Recipient is employed to Terminate the Recipient’s employment at any
        time or for any reason, with or without Cause, or to decrease Recipient’s compensation or benefits.

    2. Prohibited Conduct; Restatements.

    (a) Consequences of Prohibited Conduct. In consideration of and as a condition to the
        grant of the Award, the Recipient agrees to not engage in Prohibited Conduct (as defined in Section 2(b)). If the Company determines that the Recipient has engaged in any Prohibited Conduct, then the Recipient shall immediately forfeit the Award
        and shall have no right to receive the underlying Shares.

    (b) Prohibited Conduct. For purposes of this Agreement, Prohibited Conduct means that the
        Recipient has violated any restrictive covenant contained in the Employment Agreement.

    (c) Restatement of Financial Statements. In addition to the other provisions in this
        Section 2, this Agreement, the Award and any Shares issued under the Award shall be subject to any policies of the Company in effect on the Grant Date or adopted by the Company at any time thereafter that provide for forfeiture of the Award and
        recoupment of any Shares issued under the Award or of any gain received by the Recipient in connection with the sale of Shares received in settlement of the Award in the event of any restatement of the Company’s financial statements.

    (d) Determinations. The Committee shall, following a reasonable, good faith investigation,
        make all determinations regarding this Section 2 in its sole discretion, including whether any Prohibited Conduct has occurred, and the determinations by the Committee shall be final and binding on all parties.

    3. Securities Laws. The obligation of the Company, as applicable, to issue and deliver
        any Shares hereunder shall be subject to all applicable laws, rules and regulations, and such approvals by governmental agencies as may be required.  The Recipient hereby agrees not to offer, sell or otherwise attempt to dispose of any Shares
        issued to the Recipient pursuant to this Agreement in any way which would: (x) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar filing under state law or the laws of any other
        county) or to amend or supplement any such filing or (y) violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, or any other
        Federal, state or local law, or the laws of any other country.

    4. Notices. All notices, consents and other communications required or permitted to be
        given under or by reason of this Agreement shall be in writing, shall be delivered personally or by e-mail or as described below or by reputable overnight courier, and shall be deemed given on the date on which such delivery is made. If delivered
        by e-mail or fax, such notices or communications shall be confirmed by a registered or certified letter (return receipt requested), postage prepaid. Any such delivery shall be addressed to the intended recipient at the following addresses (or at
        such other address for a party as shall be specified by such party by like notice to the other party):

    

    
      
        	 	
                To the Company:

              	
                Emerald Expositions Events, Inc.

                31910 Del Obispo, Suite 200

                San Juan Capistrano, CA 92675

                Attention: David Gosling

                Email: David.Gosling@emeraldexpo.com

              
	 	 	 
	 	
                To the Recipient:

              	
                At the most recent address or email contained in the Company’s records.

              

      

    

    5. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.  This Agreement shall
        in all respects be governed by, and construed in accordance with, the laws (excluding conflict of laws rules and principles) of the State of New York applicable to agreements made and to be performed entirely within such State, including all
        matters of construction, validity and performance.  Any litigation against any party to this Agreement arising out of or in any way relating to this Agreement shall be brought in any federal or state court located in the State of New York in New
        York County and each of the parties hereby submits to the exclusive jurisdiction of such courts for the purpose of any such litigation; provided, that a final judgment in any such litigation shall be conclusive and may be enforced in other
        jurisdictions by suit on the judgment or in any other manner provided by law.  Each party irrevocably and unconditionally agrees not to assert (i) any objection which it may ever have to the laying of venue of any such litigation in any federal or
        state court located in the State of New York in New York County, (ii) any claim that any such litigation brought in any such court has been brought in an inconvenient forum and (iii) any claim that such court does not have jurisdiction with respect
        to such litigation.  To the extent that service of process by mail is permitted by applicable law, each party irrevocably consents to the service of process in any such litigation in such courts by the mailing of such process by registered or
        certified mail, postage prepaid, at its address for notices provided for herein.  Each party hereto irrevocably and unconditionally waives any right to
          a trial by jury and agrees that either of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary and bargained-for agreement among the parties irrevocably to waive its right to trial by jury in any
          litigation.

    6. Specific Performance.  Each of the parties agrees that any breach of the terms of this
        Agreement will result in irreparable injury and damage to the other party, for which there is no adequate remedy at law.  Each of the parties therefore agrees that in the event of a breach or any threat of breach, the other party shall be entitled
        to an immediate injunction and restraining order to prevent such breach, threatened breach or continued breach, and/or compelling specific performance of the Agreement, without having to prove the inadequacy of money damages as a remedy or
        balancing the equities between the parties.  Such remedies shall be in addition to any other remedies (including monetary damages) to which the other party may be entitled at law or in equity.  Each party hereby waives any requirement for the
        securing or posting of any bond in connection with any such equitable remedy.

    7. Binding Effect. This Agreement shall (subject to the provisions of Section 1(d)
        hereof) be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

    8. Severability. Each provision of this Agreement will be treated as a separate and
        independent clause and unenforceability of any one clause will in no way impact the enforceability of any other clause. Should any of the provisions of this Agreement be found to be unreasonable or invalid by a court of competent jurisdiction, such
        provision will be enforceable to the maximum extent enforceable by the law of that jurisdiction.

    9. Amendments and Waivers. Subject to applicable law, this Agreement and any of the
        provisions hereof may be amended, modified, supplemented or cancelled, in whole or in part, prospectively or retroactively, in each case by the Committee; provided that no such action shall adversely affect the Recipient’s material rights under
        this Agreement without the Recipient’s consent. The waiver by a party hereto of a breach by another party hereto of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach by such other
        party or as a waiver of any other or subsequent breach by such other party, except as otherwise explicitly provided for in the writing evidencing such waiver. Except as otherwise expressly provided herein, no failure on the part of any party to
        exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by
        such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

    10. Counterparts. This Agreement may be executed by .pdf or facsimile signatures and in
        any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

    

    

    [signature page follows]

    

    

    
      
        

    

    IN WITNESS WHEREOF, the Company and the Recipient have caused this Agreement to be executed on their behalf, by their duly
        authorized representatives, all on the day and year first above written.

    

      
        
          
            
              
                

                

                
                  	
                           

                        	EMERALD EXPOSITIONS EVENTS, INC.

                        	 
	 	 	 	 
	 	By: 

                        	

                        	 
	
                           

                        	 	David Gosling

                          	 
	 	 	SVP, General Counsel and Secretary

                        	 

                

                

                

                

                

                

                

                
                  	
                           

                        	 RECIPIENT:

                        	 
	 	 	 
	 	

                        	 
	
                           

                        	Sally Shankland	 

                  

                  

                

              

               [Signature Page to Performance Based Share Award Agreement]Exhibit 4.8

CERTIFICATE OF DESIGNATION OF

SERIES D CONVERTIBLE PREFERRED STOCK OF 

BIOHITECH GLOBAL, INC.

 

BioHiTech Global, Inc., a corporation
organized and existing under the laws of the State of Delaware ("Company"), hereby certifies that the Board of
Directors of the Company (the "Board of Directors" or the "Board"), pursuant to authority of
the Board of Directors as required by applicable corporate law, and in accordance with the provisions of its certificate of incorporation
and bylaws, has and hereby authorizes a series of the Company's previously authorized Preferred Stock, par value $0.0001 per share
(the "Preferred Stock"), and hereby states the designation and number of shares, and fixes the rights, preferences,
privileges, powers and restrictions thereof, as follows: 

 

1.           Designation
and Number of Shares. There shall hereby be created and established a series of preferred stock of the Company designated as
 “Series D Convertible Preferred Stock” (the “Preferred Shares”). The authorized number of Preferred
Shares shall be 20,000 shares. Each Preferred Share shall have a par value of $0.0001. Capitalized terms not defined herein shall
have the meanings as set forth in Section 23 below.

 

2.           Ranking.
Except with respect to any other existing or future series of preferred stock of senior rank to the Preferred Shares in respect
of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding-up of the Company
(collectively, the “Senior Preferred Stock”) or any existing or future series of preferred stock of pari passu
rank to the Preferred Shares in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company (collectively, the “Parity Stock”), all shares of capital stock of the Company
shall be junior in rank to all Preferred Shares with respect to the preferences as to dividends, distributions and payments upon
the liquidation, dissolution and winding-up of the Company (collectively, the “Junior Stock”). The rights of
all such shares of capital stock of the Company shall be subject to the rights, powers, preferences and privileges of the Preferred
Shares. In the event of the merger or consolidation of the Company with or into another corporation, the Preferred Shares shall
maintain their relative rights, powers, preferences, privileges, and designations provided for herein and no such merger or consolidation
shall result inconsistent therewith.

 

3.           Dividends.

 

(a) Commencing on the first day
of the next calendar year after the date of issuance (the “Dividend Commencement Date”) of any Preferred Shares
(the “Initial Issuance Date”), each holder of such Preferred Shares (each, a “Holder” and
collectively, the “Holders”) shall be entitled to receive dividends (the “Dividends”), subject
to the provisions of Section 3(c) below, at the greater of:

 

    	 	1	 

     

    

 

(i)          The
Dividend Rate in cash or at the sole option of the Company shares of Common Stock as set forth herein (the “Regular Dividend”).
Regular Dividends shall be payable on each Dividend Date at the sole and exclusive option of the Company, subject to the provisions
of Section 3(c) below, in either: (i) cash (a “Cash Dividend”); (ii) shares of Common Stock (the “Dividend
Shares”) so long as the delivery of Dividend Shares would not violate the provisions of Section 4(e); or (iii) in a combination
of a Cash Dividend and Dividend Shares. The Company shall deliver a written notice (each, a “Dividend Election Notice”)
to each Holder on the Dividend Notice Due Date (the date such notice is delivered to all of the Holders, the “Dividend
Notice Date”), which notice either (A) confirms that Dividends to be paid on such Dividend Date shall be paid entirely
in Dividend Shares or (B) elects to pay Dividends as Cash Dividends, (C) or as a combination of Dividend Shares and Cash Dividends
and, in any event, specifies the amount of Dividends that shall be paid as Cash Dividends and the amount of Dividends, if any,
that shall be paid in Dividend Shares. The Dividend payable to such Holder on such Dividend Date in Dividend Shares shall be paid
in a number of fully paid and non-assessable shares (rounded up to the next whole share) of Common Stock equal to the quotient
of (1) the amount of Dividends payable to such Holder on such Dividend Date less any Cash Dividends paid and (2) the Conversion
Price in effect on the applicable Dividend Date.

 

(ii)         An
alternative dividend (the “Alternative Dividend”) based on a participation interest formula (“Participation
Interest Formula”) in the Target Facility. The Participation Interest Formula shall include any distributions of free
cash flow (net income, plus amortization and depreciation, less capital expenditures) received by or benefiting the Company from
the Target Facility (“Target Distributions”), as adjusted for short-term loans and advances for operations,
on a pari passu basis with all of the contributed capital by the Company into the Target Facility (“Committed Capital”).
The Participation Interest Formula shall be represented by the following equation:

 

(Target Distributions
/ Committed Capital) x Stated Value

 

[By way of example, if the
Target Distributions amount was $2,000,000, the Company’s Committed Capital was $8,000,000 (inclusive of the Series D Preferred
then outstanding) and the holder’s Series D Preferred Stated Value was $100,000, the Alternative Dividend would be as follows:
($2,000,000 / $8,000,000) x $100,000=$25,000.]

 

(iii)        Notwithstanding
anything to contrary contained herein, Holder shall only be paid either the Dividends set forth in Section 3(a)(i) or Section 3(a)(ii)
hereof, whichever is greater.

 

(b)          Dividends
on the Preferred Shares shall commence accumulating on the Initial Issuance Date and shall be computed on the basis of a 365-day
year and actual days elapsed. Subject to Section 3(c) and Section 4(c), Dividends shall be payable annually in arrears commencing
on the first anniversary of the Dividend Commencement Date and continuing each anniversary of the Dividend Commencement Date thereafter
(each, a “Dividend Date”). If a Dividend Date is not a Business Day (as defined below), then the Dividend shall
be due and payable on the Business Day immediately following such Dividend Date.

 

    	 	2	 

     

    

 

(c)          The
Company may only pay a Cash Dividend or an Alternative Dividend (individually, a “Cash Payment Dividend”) to
a Holder provided that the payment of such a Cash Payment Dividend would not breach any provision of any agreement or obligation
of the Company outstanding on the Initial Issuance Date and still outstanding on the Dividend Date (a “Company Restriction”).
Cash Payment Dividends shall be paid by the Company out of funds legally available therefor, in cash by wire transfer of immediately
available funds, in the amount of any Cash Payment Dividend. If the Company is unable to make a Cash Payment Dividend due to a
Company Restriction, such Cash Payment Dividend shall continue to accrue at the respective Dividend Rate until paid by the Company.

 

(d)          The
Company may only pay Dividend Shares on a Dividend Date to any Holder provided that the Company has not defaulted under any of
the provisions of this Certificate of Designation and the resale of the Dividend Shares and the Warrant Shares (as that term is
defined in the Transaction Documents), is available to the Holder under Rule 144 of the Securities Act which availability shall
be determined on the Dividend Notice Date. On the applicable Dividend Date the Company shall issue and deliver to the Holder the
Dividend Shares either through electronic book entry form with the Transfer Agent or a certificate, registered in the name of such
Holder or its designee, for the number of Dividend Shares to which such Holder shall be entitled and with respect to each Dividend
Date. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery of Dividend Shares.

 

4.           Conversion.
Each Preferred Share shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock (as defined
below) on the terms and conditions set forth in this Section 4.

 

(a)          Holder’s
Conversion Right.

 

(i)          Subject
to the provisions of Section 4(e) and Section 5, at any time or times after the Initial Issuance Date (the “Initial Conversion
Date”) each Holder shall be entitled to convert any whole number of Preferred Shares and any accrued but unpaid Dividends
into validly issued, fully paid and non-assessable shares of Common Stock in accordance with Section 4(c) at the Conversion Rate
(as defined below).

 

(ii)         The
number of validly issued, fully paid and non-assessable shares of Common Stock issuable upon conversion (the “Conversion
Shares”) of each Preferred Share pursuant to Section 4(a) shall be determined according to the following formula (the
 “Conversion Rate”):

 

Conversion Amount

Conversion Price

 

No fractional shares of Common
Stock are to be issued upon the conversion of any Preferred Shares. If the issuance would result in the issuance of a fraction
of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the next whole share.

 

    	 	3	 

     

    

 

(b)          Holder’s
Alternate Conversion. Subject to the provisions of Section 4(e) and Section 5, at any time or times after the Initial Conversion
Date each Holder shall be entitled to convert any whole number of previously unconverted Preferred Shares and any accrued but unpaid
Dividends and provided (i) the Target Facility has commenced operations for at least ninety (90) days and (ii) the unaffiliated
market capitalization of the Company’s Common Stock, on a fully-diluted basis, exceeds One Hundred Million Dollars ($100,000,000),
into validly issued, fully paid and non-assessable shares of Common Stock upon providing an Alternate Conversion Notice in the
form attached hereto as Exhibit A, which would include the conversion of Series D Preferred and forfeiture of any future dividends
not yet accrued, for a number of shares of Common Stock equal to the “Alternative Conversion Value” which shall
be determined as follows:

 

((Annualized EBITDA x 8.5) – Outstanding
Debt)/

(Total Equity Capital x Stated Value)

 

Where “Annualized EBITDA”
is calculated on the number of complete calendar months from the commencement of Target Facility’s operations to the receipt
of the Alternate Conversion Notice in the first year of operations, and on the trailing twelve months thereafter and “Total
Equity Capital” is defined as cumulative capital invested in the Target Facility by all owners, less any capital redeemed
by the Target Facility.

 

By way of example, if the Stated
Value of the Holder’s Preferred Shares was $100,000, representing a 1% interest in the Target Facility which had $10,000,000
in total equity capital and the Target Facility had annualized EBITDA of $8 million with total debt outstanding of $30 million,
the Holder’s Alternative Exchange Value would equal:

 

((($8,000,000 x 8.5) –
$30,000,000)/$10,000,000) x $100,000=$380,000

 

The Alternative Exchange Value
may than be converted into shares of Common Stock at the greater of the Conversion Rate or the “Trading Price.”.

 

(c)          Mechanics
of Conversion. The conversion of each Preferred Share shall be conducted in the following manner:

 

(i)        Holder’s
Conversion. Subject to the provisions of Section 4(e) and Section 5, to convert Preferred Shares into validly issued, fully
paid and non-assessable shares of Common Stock on any date (a “Conversion Date”), a Holder shall deliver (via
electronic mail), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion
of Preferred Shares subject to such conversion in the form attached hereto as Exhibit B (the “Conversion
Notice”) to the Company, which Conversion Notice shall be subject to adjustment pursuant to Section 8. If required by
Section 4(c)(vi), within three (3) Trading Days following a conversion of any such Preferred Shares as aforesaid, such Holder shall
surrender to a nationally recognized overnight delivery service for delivery to the Company the original certificates representing
the share(s) of Preferred Shares (the “Preferred Share Certificates”) so converted as aforesaid.

 

    	 	4	 

     

    

 

(ii)         Company’s
Response. On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice, the Company
shall transmit by facsimile or electronic mail an acknowledgment of confirmation, in the form attached hereto as Exhibit
C, of receipt of such Conversion Notice to such Holder and the Transfer Agent, which confirmation shall constitute an instruction
to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before the second (2nd)
Trading Day following the date of receipt by the Company of such Conversion Notice, the Company shall (1) provided that (x) the
Transfer Agent is participating in DTC Fast Automated Securities Transfer Program and (y) such Conversion Shares to be so issued
are registered for resale pursuant to the terms of a registration statement or are eligible for resale pursuant to Rule 144 of
the Securities Act credit such aggregate number of Conversion Shares to which such Holder shall be entitled to such Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (2) if either of the immediately
preceding clauses (x) or (y) are not satisfied, issue and deliver the Conversion Shares either through electronic book entry form
with the Transfer agent (or via reputable overnight courier) to the address as specified in such Conversion Notice, a certificate,
registered in the name of such Holder or its designee, for the number of Conversion Shares to which such Holder shall be entitled.
If the number of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion pursuant to Section
4(c)(vi) is greater than the number of Preferred Shares being converted, then the Company shall if requested by such Holder, as
soon as practicable and in no event later than three (3) Trading Days after receipt of the Preferred Share Certificate(s) and at
its own expense, issue and deliver to such Holder (or its designee) a new Preferred Share Certificate representing the number of
Preferred Shares not converted.

 

(iii)         Record
Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares
shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(iv)         Intentionally
Omitted.

 

(v)         Pro
Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the same Conversion
Date and the Company can convert some, but not all, of such Preferred Shares submitted for conversion, the Company shall convert
from each Holder electing to have Preferred Shares converted on such date a pro rata amount of such Holder’s Preferred Shares
submitted for conversion on such date based on the number of Preferred Shares submitted for conversion on such date by such Holder
relative to the aggregate number of Preferred Shares submitted for conversion on such date. In the event of a dispute as to the
number of shares of Common Stock issuable to a Holder in connection with a conversion of Preferred Shares, the Company shall issue
to such Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 22.

 

(vi)         Book-Entry.
Notwithstanding anything to the contrary set forth in this Section 4, upon conversion of any Preferred Shares in accordance with
the terms hereof, no Holder thereof shall be required to physically surrender the certificate representing the Preferred Shares
to the Company following conversion thereof unless (A) the full or remaining number of Preferred Shares represented by the certificate
are being converted (in which event such certificate(s) shall be delivered to the Company as contemplated by this Section 4(c)(vi))
or (B) such Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting
reissuance of Preferred Shares upon physical surrender of any Preferred Shares. Each Holder and the Company shall maintain records
showing the number of Preferred Shares so converted by such Holder and the dates of such conversions or shall use such other method,
reasonably satisfactory to such Holder and the Company, so as not to require physical surrender of the certificate representing
the Preferred Shares upon each such conversion. In the event of any dispute or discrepancy, such records of the Company establishing
the number of Preferred Shares to which the record holder is entitled shall be controlling and determinative in the absence of
manifest error. A Holder and any transferee or assignee, by acceptance of a certificate, acknowledge and agree that, by reason
of the provisions of this paragraph, following conversion of any Preferred Shares, the number of Preferred Shares represented by
such certificate may be less than the number of Preferred Shares stated on the face thereof. Each certificate for Preferred Shares
shall bear the following legend:

 

    	 	5	 

     

    

 

ANY TRANSFEREE OR ASSIGNEE OF THIS CERTIFICATE
SHOULD CAREFULLY REVIEW THE TERMS OF THE COMPANY’S CERTIFICATE OF DESIGNATION RELATING TO THE SHARES OF SERIES D PREFERRED
STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 4(c)(vi) THEREOF. THE NUMBER OF SHARES OF SERIES D PREFERRED STOCK REPRESENTED
BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SHARES OF SERIES D PREFERRED STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION
4(c)(vi) OF THE CERTIFICATE OF DESIGNATION RELATING TO THE SHARES OF SERIES D PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE.

 

(d)           Taxes.
The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof), issuance
and other similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon the conversion
of Preferred Shares.

 

(e)           Limitation
on Beneficial Ownership.

 

(i)        Notwithstanding
anything to the contrary contained in this Certificate of Designation, the Preferred Shares held by a Holder shall not be convertible
by such Holder, and the Company shall not affect any conversion of any Preferred Shares held by such Holder, to the extent (but
only to the extent) that such Holder or any of its affiliates would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the then issued and outstanding shares of Common Stock. To the extent the above limitation applies,
the determination of whether the Preferred Shares held by such Holder shall be convertible (vis-à-vis other convertible,
exercisable or exchangeable securities owned by such Holder or any of its affiliates) and of which such securities shall be convertible,
exercisable or exchangeable (as among all such securities owned by such Holder and its affiliates) shall, subject to such Maximum
Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as
the case may be). No prior inability of a Holder to convert Preferred Shares, or of the Company to issue shares of Common Stock
to such Holder, pursuant to this Section 4(e) shall have any effect on the applicability of the provisions of this Section 4(e)
with respect to any subsequent determination of convertibility or issuance (as the case may be). For purposes of this Section 4(e),
beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage
ownership) shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder.
The provisions of this Section 4(e) shall be implemented in a manner otherwise in strict conformity with the terms of this Section
4(e) to correct this Section 4(e) (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage
beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such Maximum Percentage limitation. The limitations contained in this Section 4(e) shall apply to a successor holder of Preferred
Shares. For any reason at any time, upon the written or oral request of a Holder, the Company shall within one (1) Business Day
confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding, including by virtue of any
prior conversion or exercise of convertible or exercisable securities into Common Stock, including, without limitation, pursuant
to this Certificate of Designation or securities issued pursuant to the other Transaction Documents (as defined in the Securities
Purchase Agreement). Notwithstanding anything to the contrary contained herein, by written notice to the Company, any Holder may
increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that
(i) any such increase will not be effective until the 61st day after such notice is delivered to the Company, and (ii)
any such increase or decrease will apply only to such Holder sending such notice and not to any other Holder.

 

    	 	6	 

     

    

 

Notwithstanding anything contained
in this Section 4(e) to the contrary, the Holder may, at its option and in its sole discretion, determine (A) whether the Preferred
Shares held by such Holder shall be convertible (vis-à-vis other convertible, exercisable or exchangeable securities owned
by such Holder or any of its affiliates) and (B) of which such securities shall be convertible, exercisable or exchangeable (as
among all such securities owned by such Holder and its affiliates) on any basis, order, or amounts for conversion, exercise or
exchange (as the case may be).

 

(ii)         Principal
Market Regulation. Notwithstanding anything herein to the contrary, the Company shall not issue any shares of Common Stock
upon conversion of any Preferred Shares or otherwise pursuant to this Certificate of Designation, until the Company obtains the
Stockholder Approval, if and to the extent such Stockholder Approval is necessary for such issuance.

 

(f)           Anti-Dilution.
If, at any time while the Preferred Shares are outstanding, the Company sells or grants any option to purchase or sells or grants
any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other disposition),
any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at or with a conversion formula
that creates an effective price per share that is lower than the then Conversion Price (such lower price or conversion formula,
the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of
the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which
are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that
is lower than the Conversion Price, without the prior written consent of a majority of the Holders of the Preferred Shares, such
issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the Conversion
Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such Common Stock or Common Stock
Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 4(f) in respect of an Exempt
Issuance. The Company shall notify the Holders in writing, no later than the Trading Day following the issuance of any Common Stock
or Common Stock Equivalents subject to this Section 4(f), indicating therein the applicable issuance price, or applicable reset
price, exchange price, conversion price, conversion formula and other pricing terms (such notice, the “Dilutive Issuance
Notice”). For the avoidance of doubt, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section
4(f), upon the occurrence of any Dilutive Issuance, the Holders will be entitled to receive a number of Conversion Shares based
upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers
to the Base Conversion Price in the Notice of Conversion.

 

    	 	7	 

     

    

 

5.            Events
of Default. Each of the following events shall constitute an event of default: 

 

(a)          the
suspension from trading or failure of the Common Stock to be traded or listed (as applicable) on an Eligible Market for a period
of five (5) consecutive Trading Days;

 

(b)          the
Company’s written notice to any holder of the Preferred Shares, including, without limitation, by way of public announcement
or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion of any Preferred
Shares into shares of Common Stock that is requested in accordance with the provisions of this Certificate of Designation, other
than pursuant to Section 4(e) hereof;

 

(c)          the
Company’s Board of Directors fails to declare any Dividend to be paid on the applicable Dividend Date in accordance with
Section 3;

 

(d)          the
Company’s failure to pay to any Holder any Dividend (whether or not declared by the Board of Directors) or any other amount
when and as due under this Certificate of Designation (including, without limitation, the Company’s failure to pay any redemption
payments or amounts hereunder) or any other Transaction Document or any other agreement, document, certificate or other instrument
delivered in connection with the transactions contemplated hereby, except, in the case of a failure to pay Dividends and late charges
when and as due, in each such case only if such failure remains uncured for a period of at least three (3) Trading Days;

 

(e)          the
occurrence of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $500,000 of indebtedness
of the Company or any Subsidiaries;

 

(f)           bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed
within sixty (60) days of their initiation;

 

    	 	8	 

     

    

 

(g)          the
commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company or
any subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the
consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence
of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts
generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any such action
or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under
federal, state or foreign law;

 

(h)          the
entry by a court of (A) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary
or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other
similar law or (B) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or insolvent,
or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in
respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (C) a decree, order, judgment or
other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation of its affairs,
and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment or
other similar document unstayed and in effect for a period of thirty (30) consecutive days;

 

(i)           a
final judgment or judgments for the payment of money aggregating in excess of $500,000 are rendered against the Company and/or
any of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged, settled
or stayed pending appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however, any
judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $500,000
amount set forth above so long as the Company provides each Holder a written statement from such insurer or indemnity provider
(which written statement shall be reasonably satisfactory to each Holder) to the effect that such judgment is covered by insurance
or an indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity
within sixty (60) days of the issuance of such judgment;

 

    	 	9	 

     

    

 

(j)           other
than as specifically set forth in another clause of this Section 5, the Company or any Subsidiary breaches any representation or
warranty in any material respect (other than representations or warranties subject to material adverse effect or materiality, which
may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, except, in the case
of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of five
(5) consecutive Trading Days, unless such breach does not have a Material Adverse Effect (as defined below);

 

(k)          any
breach or failure in any respect by the Company or any Subsidiary to comply with any covenants of this Certificate of Designation,
unless such breach does not have a Material Adverse Effect;

 

6.            Rights
Upon Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the
Successor Entity assumes in writing all of the obligations of the Company under this Certificate of Designation and the other Transaction
Documents in accordance with the provisions of this Section 6 pursuant to written agreements in form and substance satisfactory
to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver
to each holder of Preferred Shares in exchange for such Preferred Shares a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Certificate of Designation, including, without limitation, having
a Stated Value and Dividend Rate equal to the stated value and dividend rate of the Preferred Shares held by the Holders and having
similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders and (ii) the Successor Entity
(including its Parent Entity) is a publicly traded corporation whose shares of common stock are quoted on or listed for trading
on an Eligible Market. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designation and the
other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of the Company under this Certificate of Designation
and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein and therein.
In addition to the foregoing, upon consummation of a Fundamental Transaction, the Successor Entity shall deliver to each Holder
confirmation that there shall be issued upon conversion of the Preferred Shares at any time after the consummation of such Fundamental
Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the conversion
of the Preferred Shares prior to such Fundamental Transaction, such shares of publicly traded common stock (or their equivalent)
of the Successor Entity (including its Parent Entity) which each Holder would have been entitled to receive upon the consummation
of such Fundamental Transaction had all the Preferred Shares held by each Holder been converted immediately prior to such Fundamental
Transaction (without regard to any limitations on the conversion of the Preferred Shares contained in this Certificate of Designation),
as adjusted in accordance with the provisions of this Certificate of Designation. The provisions of this Section 6 shall apply
similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion
of the Preferred Shares.

  

7.           Certain
Covenants.

 

(a)          Without
the prior written consent of the majority of the Holders, the Company shall be prohibited from selling or otherwise disposing of
its ownership interest in the Target Facility equal to the amount of the aggregate of the Holders’ Stated Value outstanding
(the “Measuring Value”) at the time of such sale or disposition (a “Proposed Transfer”) if
such Proposed Transfer is for consideration (i) in cash less than the Measuring Value or (ii) a non-cash form of compensation (including
in exchange for repayment of debt).

 

    	 	10	 

     

    

 

(b)         Cash
distributions resulting from the sale of the Target Facility (“Sale Distributions”) shall first be credited
as return of capital, whereby the Company acquires the holder’s Series D Preferred stock at its stated value and the remaining
Distribution is paid as a dividend. In the event that the Target Facility is sold and the proceeds to each investor is less than
the stated value of the total of the investor’s Series D Preferred shares, the shares of Series D Preferred with a stated
value in excess of the proceeds shall remain outstanding, but not subject to redemption by way of the Alternative Dividend or the
Alternative Conversion.

 

8.            Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Section 12, if the Company
at any time on or after the Initial Issuance Date subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately
prior to such subdivision will be proportionately reduced. Without limiting any provision of Section 12, if the Company at any
time 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 pursuant to this Section 8 shall become effective immediately after the effective date of such subdivision or combination.
If any event requiring an adjustment under this Section 8 occurs during the period that a Conversion Price is calculated hereunder,
then the calculation of such Conversion Price shall be adjusted appropriately to reflect such event.

 

9.            Authorized
Shares.

 

(a)          Reservation.
The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of Common Stock equal to
100% of the Conversion Rate with respect to the Conversion Amount of each Preferred Share as of the Initial Issuance Date (assuming
for purposes hereof, that such Preferred Shares are convertible at the Conversion Price and without taking into account any limitations
on the conversion of such Preferred Shares set forth in herein). So long as any of the Preferred Shares are outstanding, the Company
shall take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely
for the purpose of effecting the conversion of the Preferred Shares, as of any given date, 100% of the number of shares of Common
Stock as shall from time to time be necessary to effect the conversion of all of the Preferred Shares issued or issuable pursuant
to the Transaction Documents assuming for purposes hereof, have been issued and without taking into account any limitations on
the issuance of securities set forth herein, provided that at no time shall the number of shares of Common Stock so available be
less than the number of shares required to be reserved by the previous sentence (without regard to any limitations on conversions
contained in this Certificate of Designation) (the “Required Amount”). The initial number of shares of Common
Stock reserved for conversions of the Preferred Shares and each increase in the number of shares so reserved shall be allocated
pro rata among the Holders based on the number of Preferred Shares held by each Holder on the Initial Issuance Date or increase
in the number of reserved shares (as the case may be) (the “Authorized Share Allocation”). In the event a Holder
shall sell or otherwise transfer any of such Holder’s Preferred Shares, each transferee shall be allocated a pro rata portion
of such Holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases
to hold any Preferred Shares shall be allocated to the remaining Holders of Preferred Shares, pro rata based on the number of Preferred
Shares then held by such Holders.

 

    	 	11	 

     

    

 

 

(b)          Insufficient
Authorized Shares. If, notwithstanding Section 9(a) and not in limitation thereof, at any time while any of the Preferred Shares
remain outstanding the Company does not have a sufficient number of authorized and unissued shares of Common Stock to satisfy its
obligation to have available for issuance upon conversion of the Preferred Shares at least a number of shares of Common Stock equal
to the Required Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary
to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve and have
available the Required Amount for all of the Preferred Shares then outstanding. Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety
(90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting or obtain written consent of
its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting,
the Company shall provide each stockholder with a proxy statement or information statement, as applicable, and shall use its best
efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its Board
to recommend to the stockholders that they approve such proposal.

  

10.          Voting
Rights. Holders of Preferred Shares shall have no voting rights, except as required by law (including, without limitation,
the DGCL) and as expressly provided in this Certificate of Designation. To the extent that under the DGCL the vote of the holders
of the Preferred Shares, voting separately as a class or series as applicable, is required to authorize a given action of the Company,
the affirmative vote or consent of the holders of all of the Preferred Shares, voting together in the aggregate and not in separate
series unless required under the DGCL, represented at a duly held meeting at which a quorum is presented or by written consent
of all of the Preferred Shares (except as otherwise may be required under the DGCL), voting together in the aggregate and not in
separate series unless required under the DGCL, shall constitute the approval of such action by both the class or the series, as
applicable. Subject to Section 4(e), to the extent that under the DGCL holders of the Preferred Shares are entitled to vote on
a matter with holders of shares of Common Stock, voting together as one class, each Preferred Share shall entitle the holder thereof
to cast that number of votes per share as is equal to the number of shares of Common Stock into which it is then convertible (subject
to the ownership limitations specified in Section 4(e) hereof) using the record date for determining the stockholders of the Company
eligible to vote on such matters as the date as of which the Conversion Price is calculated. Holders of the Preferred Shares shall
be entitled to written notice of all stockholder meetings or written consents (and copies of proxy materials and other information
sent to stockholders) with respect to which they would be entitled by vote, which notice would be provided pursuant to the Company’s
bylaws and the DGCL).

 

    	 	12	 

     

    

 

11.          Liquidation,
Dissolution, Winding-Up. In the event of a Liquidation Event, the Holders shall be entitled to receive in cash out of the assets
of the Company, whether from capital or from earnings available for distribution to its stockholders (the “Liquidation
Funds”), before any amount shall be paid to the holders of any of shares of Junior Stock, an amount per Preferred Share
110% of the Conversion Amount thereof on the date of such payment, provided that if the Liquidation Funds are insufficient to pay
the full amount due to the Holders and holders of shares of Parity Stock, then each Holder and each holder of Parity Stock shall
receive a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder and such holder
of Parity Stock as a liquidation preference, in accordance with their respective certificate of designations (or equivalent), as
a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and all holders of shares of Parity
Stock. To the extent necessary, the Company shall cause such actions to be taken by each of its Subsidiaries so as to enable, to
the maximum extent permitted by law, the proceeds of a Liquidation Event to be distributed to the Holders in accordance with this
Section 11. All the preferential amounts to be paid to the Holders under this Section 11 shall be paid or set apart for payment
before the payment or setting apart for payment of any amount for, or the distribution of any Liquidation Funds of the Company
to the holders of shares of Junior Stock in connection with a Liquidation Event as to which this Section 11 applies.

 

12.          Participation.
In addition to any adjustments pursuant to Section 8, the Holders shall, as holders of Preferred Shares, be entitled to receive
such dividends paid and distributions made to the holders of shares of Common Stock to the same extent as if such Holders had converted
each Preferred Share held by each of them into shares of Common Stock (without regard to any limitations on conversion herein or
elsewhere) and had held such shares of Common Stock on the record date for such dividends and distributions. Payments under the
preceding sentence shall be made concurrently with the dividend or distribution to the holders of shares of Common Stock (provided,
however, to the extent that a Holder’s right to participate in any such dividend or distribution would result in such Holder
exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such dividend or distribution to such
extent (or the beneficial ownership of any such shares of Common Stock as a result of such dividend or distribution to such extent)
and such dividend or distribution to such extent shall be held in abeyance for the benefit of such Holder until such time, if ever,
as its right thereto would not result in such Holder exceeding the Maximum Percentage).

   

13.          Vote
to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the vote or
written consent of the holders of a greater number of shares is required by law or by another provision of the Certificate of Incorporation,
without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting
of the Required Holders, voting together as a single class, the Company shall not amend or repeal any provision of, or add any
provision to, its Certificate of Incorporation or bylaws, or file any certificate of designations or articles of amendment of any
series of shares of preferred stock, if such action would adversely alter or change in any respect the preferences, rights, privileges
or powers, or restrictions provided for the benefit, of the Preferred Shares, regardless of whether any such action shall be by
means of amendment to the Certificate of Incorporation or by merger, consolidation or otherwise; provided, however, the Company
shall be entitled, without the consent of the Required Holders unless such consent is otherwise required by the DGCL, to (a) amend
the Certificate of Incorporation to effectuate one or more reverse stock splits of its issued and outstanding Common Stock for
purposes of maintaining compliance with the rules and regulations of the Principal Market; (b) purchase, repurchase or redeem any
shares of capital stock of the Company junior in rank to the Preferred Shares (other than pursuant to equity incentive agreements
(that have in good faith been approved by the Board) with employees giving the Company the right to repurchase shares upon the
termination of services); or (c) issue any preferred stock that is junior in rank to the Preferred Shares.

 

    	 	13	 

     

    

 

14.          Lost
or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of any certificates representing Preferred Shares (as to which a written certification and the indemnification
contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of an indemnification undertaking
by the applicable Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation
of the certificate(s), the Company shall execute and deliver new certificate(s) of like tenor and date.

 

15.          Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of Designation
shall be cumulative and in addition to all other remedies available under this Certificate of Designation and any of the other
Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and no
remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy. Nothing herein shall
limit any Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms
of this Certificate of Designation. The Company covenants to each Holder that there shall be no characterization concerning this
instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion
and the like (and the computation thereof) shall be the amounts to be received by a Holder and shall not, except as expressly provided
herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the Holders and that the remedy at law for any such breach may
be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, each Holder shall be entitled,
in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without
the necessity of showing economic loss and without any bond or other security being required, to the extent permitted by applicable
law. The Company shall provide all information and documentation to a Holder that is requested by such Holder to enable such Holder
to confirm the Company’s compliance with the terms and conditions of this Certificate of Designation.

  

16.          Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, 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 of this Certificate of
Designation, and will at all times in good faith carry out all the provisions of this Certificate of Designation and take all action
as may be required to protect the rights of the Holders. Without limiting the generality of the foregoing or any other provision
of this Certificate of Designation, the Company (i) shall not increase the par value of any shares of Common Stock receivable
upon the conversion of any Preferred Shares above the Conversion Price then in effect, (ii) shall take all such actions as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of
Common Stock upon the conversion of Preferred Shares and (iii) shall, so long as any Preferred Shares are outstanding, take all
action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose
of effecting the conversion of the Preferred Shares, the maximum number of shares of Common Stock as shall from time to time be
necessary to effect the conversion of the Preferred Shares then outstanding (without regard to any limitations on conversion contained
herein).

 

    	 	14	 

     

    

 

17.          Failure
or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and
signed by an authorized representative of the waiving party. This Certificate of Designation shall be deemed to be jointly drafted
by the Company and all Holders and shall not be construed against any Person as the drafter hereof.

 

18.          Notices.
The Transaction Documents shall provide each Holder of Preferred Shares with prompt written notice of all actions taken pursuant
to the terms of this Certificate of Designation, including in reasonable detail a description of such action and the reason therefor.
Whenever notice is required to be given under this Certificate of Designation, unless otherwise provided herein, such notice must
be in writing and shall be given in accordance with the signature page of the Transaction Documents. Without limiting the generality
of the foregoing, the Company shall give written notice to each Holder (i) promptly following any adjustment of the Conversion
Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen (15) days
prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon
the Common Stock, (B) with respect to any grant, issuances, or sales of any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property to all holders of shares of Common Stock as a class or (C) for determining rights
to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided, in each case, that such information
shall be made known to the public prior to, or simultaneously with, such notice being provided to any Holder.

  

19.          Transfer
of Preferred Shares. A Holder may transfer some or all of its Preferred Shares without the consent of the Company.

 

20.          Preferred
Shares Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall record the name,
address and facsimile number of the Persons in whose name the Preferred Shares have been issued, as well as the name and address
of each transferee. The Company may treat the Person in whose name any Preferred Shares is registered on the register as the owner
and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events recognizing any properly made
transfers.

 

    	 	15	 

     

    

 

21.         
Amendment. This Certificate of Designation or any provision hereof may be amended by obtaining the affirmative vote at a
meeting duly called for such purpose, or written consent without a meeting in accordance with the DGCL, of the Required Holders,
voting separate as a single class, and with such other stockholder approval, if any, as may then be required pursuant to the DGCL
and the Certificate of Incorporation. Notwithstanding anything to the contrary contained herein, for so long as that certain Senior
Secured Term Note made in favor of Michaelson Capital Special Finance Fund II, L.P. (“Michaelson”) dated February
2, 2018 in the original principal amount of Five Million Dollars ($5,000,000) remains outstanding, the Company shall not amend
Section 3(c) without the prior, written consent of Michaelson.

 

22.          Dispute
Resolution.

 

The Company shall have three
(3) Business Days after receipt of the Conversion Notice to advise the Holder in writing via facsimile or electronic mail that
the Company disputes the calculation of the Conversion Shares.  The Company shall promptly (no later than two (2) Business
Days) issue to the Holder any number of Conversion Shares that is not disputed and shall advise the Holder of the disputed amount
within two (2) Business Days following the Company’s receipt of such Holder’s Conversion Notice. If such Holder and
the Company are unable to promptly resolve such dispute relating to such Conversion Notice, at any time after the second (2nd)
Business Day following such initial notice by the Company of such dispute to the Holder, then such dispute shall
be submitted by arbitration according to the Commercial Arbitration Rules of the American Arbitration Association located in New
York City before a single arbitrator. Notwithstanding the prior sentence, any other action commenced by either party herein shall
be venued in the appropriate court of competent jurisdiction located in the county of New York, State of New York.

 

23.          Certain
Defined Terms. For purposes of this Certificate of Designation, the following terms shall have the following meanings:

 

(a)          “1934
Act” means the Securities Exchange Act of 1934, as amended.

 

(b)         
 “Alternative Conversion Rate” means the greater of the Conversion Price or the Trading Price.

 

(c)         
 “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.

 

(d)          “Certificate of Designation” means the Certificate of Designation of Series D Convertible Preferred Stock of
BioHiTech Global, Inc.

 

(e)         
 “Common Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii)
any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of
such common stock.

 

(f)          
“Common Stock Equivalents” means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt,
preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable
for, or otherwise entitles the holder thereof to receive, Common Stock. 

 

    	 	16	 

     

    

 

(g)         
 “Conversion Amount” means, with respect to each Preferred Share, as of the applicable date of determination,
the product of (1) the Stated Value thereof, times (2) the number of Preferred Shares the Holder is attempting to market.

 

(h)          “Conversion
Price” means $3.50, subject to adjustment as provided in this Certificate of Designation.

 

(i)           “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any
shares of Common Stock.

 

(j)          
 “Dividend Notice Due Date” means the eleventh (11th) Trading Day immediately prior to the applicable
Dividend Date.

 

(k)         
 “Dividend Rate” means nine percent (9.0%).

 

(l)          
 “Eligible Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the
Nasdaq Global Market, the Nasdaq Capital Market, or the Principal Market.

 

(m)        
 “Exempt Issuance” means any
offer, issuance or agreement to issue any Common Stock or securities convertible into or exercisable for shares of common stock
(or modify any of the foregoing which may be outstanding) in connection with (i) full or partial consideration in connection with
a strategic merger, consolidation or purchase of substantially all of the securities or assets of the Company or other entity,
(ii) the Company’s issuance of securities in connection with strategic license agreements and other partnering arrangements
so long as such issuances are not for the purpose of raising capital, (iii) the Company’s issuance of Common Stock or the
issuance or grants of options to purchase Common Stock pursuant to the Company’s equity incentive and employee stock purchase
plans, (iv) issuance of securities to consultants or vendors as payment for services rendered, (v) the conversion of any of the
Preferred Shares, (vi) the payment of any dividends on the Preferred Shares, and (vii) the issuance of any Securities and/or other
securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the Issuance Date,
provided that such securities have not been amended since the date of this Agreement to increase the number of such securities
or to decrease the exercise price, exchange price or conversion price of such securities or to extend the term of such securities.

 

    	 	17	 

     

    

 

(n)          “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of the
Company’s properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange
offer that is accepted by the holders of more than fifty percent (50%) of the outstanding shares of Voting Stock of the Company
(not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated
with the Persons making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with any other Person whereby such other Person acquires more than fifty percent (50%) of the outstanding shares of Voting Stock
of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party
to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business
combination), or (5) reorganize, recapitalize or reclassify the Common Stock, or (ii) any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder)
is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
fifty percent (50%) of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

   

(o)          “Liquidation Event” means, whether in a single transaction or series of transactions, the voluntary or involuntary
liquidation, dissolution or winding up of the Company or such Subsidiaries the assets of which constitute all or substantially
all of the assets of the business of the Company and its Subsidiaries, taken as a whole.

 

(p)          “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities,
operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any subsidiary, either
individually or taken as a whole, (ii) the transactions contemplated hereunder or (iii) the authority or ability of the Company
to perform any of its obligations hereunder.

 

(q)          “Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

(r)          
 “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(s)        
 “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(t)           “Principal
Market” means the Eligible Market, OTC PINK, OTCQB, OTCQX, or OTCBB.

 

    	 	18	 

     

    

 

(u)          “Required Holders” means the holders of at least two-thirds of the outstanding Preferred Shares.

 

(v)         
 “Securities” means, collectively, the Preferred Shares and the shares of Common Stock issuable upon conversion
of the Preferred Shares.

 

(w)         “Securities
Act” means the Securities Act of 1933, as amended.

 

(x)          “Stated Value” shall mean $100.00 per share, subject to adjustment for stock splits, stock dividends, recapitalizations,
reorganizations, reclassifications, combinations, subdivisions or other similar events occurring after the Initial Issuance Date
with respect to the Preferred Shares.

  

(y)          “Stockholder Approval” means, for the purposes of this Certificate of Designation and any other Transaction
Document, the affirmative approval of the stockholders of the Company providing for the Company’s issuance of all of the
Securities as described in the Transaction Documents if and to the extent required in accordance with applicable law and the rules
and regulations of the Principal Market.

 

(z)           “Subsidiary”
or “Subsidiaries” means any subsidiary of the Company, including,
where applicable, any direct or indirect subsidiary of the Company formed or acquired after the date hereof. 

 

(aa)        “Successor Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity)
with which such Fundamental Transaction shall have been entered into.

 

(bb)       “Target
Facility” means the next HEBioT facility that the Company constructs or operates specifically excluding the Company’s
facility located in Martinsburg, West Virginia.

 

(cc)        “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00p.m., New York time) unless such day is otherwise designated
as a Trading Day in writing by the Required Holders.

 

    	 	19	 

     

    

 

(dd)        “Trading
Price” shall mean the dollar volume-weighted average sale price for the Common Stock on the Principal Market over the
five (5) consecutive Trading Days immediately following the Company’s receipt of the Alternate Exchange Notice.

 

(ee)        “Transaction
Documents” means the Certificate of Designation plus the Subscription Agreement and Series D Common Stock Purchase Warrant
entered into contemporaneously with the Holder’s subscription of the Preferred Shares.

 

(ff)          “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers, trustees
or other similar governing body of such Person (irrespective of whether or not at the time capital stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency).

 

24.          Disclosure.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate of Designation, unless the
Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries, the Company shall simultaneously with any such receipt or delivery publicly
disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes
that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall
indicate to each Holder contemporaneously with delivery of such notice, and in the absence of any such indication, each Holder
shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information relating
to the Company or its Subsidiaries. Nothing contained in this Section 24 shall limit any obligations of the Company, or any rights
of any Holder.

 

(Remainder of the page left intentionally blank.)

 

    	 	20	 

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Certificate of Designation of Series D Convertible Preferred Stock of Inc.
to be signed by its duly authorized officer on this 11th day of February 2019.

 

	 	BioHiTech Global, Inc.
	 	 	 	 
	 	By:  	 
	 	 	Name:  	Brian C. Essman
	 	 	Title:  	Chief Financial Officer

 

    	 	21

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