Document:

Exhibit 10.1

EXHIBIT 10.1

THE SPECTRANETIC CORPORATION

MASTER CONSULTING AGREEMENT

This Master Consulting Agreement (“Agreement”) is entered into this 25th day of
March, 2009 by and between The Spectranetics Corporation, a Delaware Corporation, 9965
Federal Drive, Colorado Springs, CO 80921 (“Spectranetics”), and Craig Walker, MD, 225
Dunn Street, Houma, LA 70360 (“Consultant”) dated as of March 9, 2009.

RECITALS

A. Spectranetics is engaged in, among other things, the business of researching,
developing, and commercializing proprietary lasers, catheters, and other devices for
the treatment of coronary and peripheral vascular disease and management of cardiac
leads throughout the United States and the world.

B. Consultant represents that he or she is a qualified physician, experienced in
treatment of peripheral vascular disease techniques, including but not limited to the
use of the Spectranetics peripheral applications, and duly licensed in the state of
Louisiana with knowledge and insights regarding the treatment of coronary and
peripheral vascular disease and/or management of cardiac leads

C. Spectranetics and Consultant desire to enter into an agreement in which Consultant
will provide consulting services to Spectranetics according to the terms and
conditions set forth below.

AGREEMENT

NOW, THEREFORE, in consideration of the recitals above and the mutual promises set
forth below and other good and valuable consideration, the parties agree as follows:

Duties. Consultant shall provide consulting services as requested in writing
by an authorized employee at Spectranetics as specified in paragraph below, from time
to time in a variety of areas where, in Spectranetics’ opinion, such services would be
useful or necessary, including but not limited to the areas of laser peripheral
application treatment products, product development, non-laser products, procedures,
and/or clinical operations/studies. In addition, Consultant may be asked to directly
support clinical training, education of physicians or other medical professionals
and/or Spectranetics employees, and/or act as an advisor with respect to new marketing
materials, initiatives and programs, in each case related to treatment of peripheral
vascular disease. Spectranetics reserves the right to review and/or approve any or
all presentation materials, including not only slide presentations but also the
selection of live cases at any SPNC sponsored event, to ensure consistency with the
FDA approved indications for use. Exhibit A is a list of types of services which
Spectranetics may request.

Consultant shall perform the consulting services in accordance with all
applicable local, federal and state laws and regulations and generally accepted
standards of good clinical practice, including without limitation the Health Insurance
Portability and Accountability Act (“HIPPA”), the anti fraud and abuse provisions of
the Medicare laws, and the Food, Drug and Cosmetic Act and their implementing
regulations.

 

 

 

1. Term. The term of this agreement shall be from the date of this
Agreement until March 9, 2010.

2. Compensation. Consultant shall receive compensation from
Spectranetics as outlined in Exhibit A, plus previously agreed upon-reasonable
out-of-pocket expenses for consulting services rendered under this Agreement, provided
further than Consultant shall not be paid for consulting services in excess of 10 days
in any month without prior approval in writing from an Executive Officer of
Spectranetics. Services outside of those outlined in Exhibit A will be negotiated
separately and will be subject of a written amendment or separate agreement.

Consultant shall invoice Spectranetics monthly for services rendered pursuant to
this Agreement, which invoice shall describe the services provide and the number of
hours associated with such work. Spectranetics shall pay such invoice within 30 days
of receipt.

The compensation paid under this Agreement shall constitute revenues to
Consultant. Spectranetics shall not withhold any amounts therefrom as federal or
state income tax or as employee contributions under FICA or any federal or state
unemployment, welfare or health insurance program, and Spectranetics shall not make
any employer contributions thereunder with respect to Consultant’s compensation under
this Agreement.

3. Engagement of Consultant. An authorized Spectranetics employee shall
provide each request for a consulting service in writing in sufficient detail to
provide clear instructions to Consultant and to allow Spectranetics to verify that
Consultant performed the service requested. Only Mike Voss, Kurt Kerzic and Mike
Ferguson are authorized to engage Consulting Services. Spectranetics shall pay
Consultant for each service requested by Spectranetics and performed by Consultant at
the rate set forth above. Such rates are full consideration for the service rendered
to Spectranetics, inclusive of travel time and reasonable preparation. No additional
amounts shall be paid for such services and such rates are not in consideration for
patient care for which Consultant is otherwise compensated. Any payments due are
payable within thirty (30) days from the date Spectranetics confirms that the services
was performed in accordance with this Agreement.

4. Reimbursement for Business Expenses. Spectranetics shall
reimburse Consultant for reasonable and necessary business expenses (e.g.,
air/train/car, hotel, meals, etc.) incurred by Consultant in connection with a service
performed as requested by Spectranetics, provided that such expenses have been
pre-approved in writing by Spectranetics personnel prior to any consulting work being
performed. Reimbursement for such expenses is payable within thirty (30) days from
the date Spectranetics receives documentation from Consultant supporting the fact that
such expenses are reimbursable in accordance with this Agreement.

5. No Payments in Excess of Legal Limits. The parties acknowledge and
agree that the compensation paid under this Agreement is intended to be consistent
with applicable law, regulation and industry guidelines, and does not exceed the fair
market value of the service to be provided to Spectranetics under the Agreement. The
parties understand and agree that the payments under this Agreement are not intended,
directly or indirectly, to induce or reward Consultant for ordering, using, or
recommending Spectranetics’ products and Consultant is under
no obligation under this Agreement or otherwise to make any use or to arrange for or
recommend any use of Spectranetics products.

 

2

 

6. Non-Exclusive Activity. The parties understand that
performance under this Agreement is not the exclusive activity of Spectranetics or
Consultant and that Spectranetics and Consultant each may undertake other activities,
provided that Consultant shall not compete with Spectranetics except as expressly
permitted under Paragraph 8 below.

7. Non-Disclosure of Confidential Information. Consultant acknowledges
that the services to be rendered under this Agreement may cause each party to receive
confidential and proprietary information from the other party. Proprietary
Information shall include, without limitation, Spectranetics customer data, custom
databases, computer programs, computer applications, product development plans,
inventions, invention disclosures, intellectual property, and other business methods,
processes, techniques, plans and more (“Proprietary Information”). All Proprietary
Information disclosed to or created or developed by Consultant pursuant to this
Agreement shall be deemed to be the exclusive property of Spectranetics.

Consultant acknowledges that the Proprietary Information has economic value to
Spectranetics due to the fact that the Proprietary Information is not generally known
to the public or the trade and that the unauthorized use or disclosure of Proprietary
Information is likely to be extremely detrimental to Spectranetics’ interests.
Consultant therefore agrees to hold in strict confidence and not to disclose to any
third party any Proprietary Information acquired or created or developed by Consultant
under this Agreement. Upon termination of this Agreement, Consultant shall deliver to
Spectranetics all documents acquired or created or developed during the course of
rendering services to Spectranetics under this Agreement, whether in written or
electronic form, including without limitation, all correspondence, memoranda, and
notes and all summaries, indices and excerpts thereof, that are in Consultant’s
possession, custody or control.

Proprietary Information disclosed to a receiving party shall, for a period of
five years from the date of termination of the project or a date set forth by mutual
agreement by both parties, whichever is later, be held in confidence by the receiving
party. Such Proprietary Information shall not be disclosed to others by the receiving
party, nor shall it be used by the receiving party except for the purpose set forth
above, without the prior written approval of the disclosing party.

The conditions of this Paragraph 7 hereof shall not apply to information:

	(i)	 	which was in the public domain or generally available to the public prior
to receipt thereof by the receiving party from the disclosing party, or which
subsequently becomes part of the public domain or generally available to the
public except by wrongful act of the receiving party or an employee or agent of
the receiving party; or
	 
	(ii)	 	which the receiving party can show was in its possession prior to receipt
from the disclosing party, or was received thereafter from a third party having
no obligation of confidentiality to the disclosing party with respect to such
information.
	 
	(iii)	 	which the receiving party can show was independently developed by the
receiving party without use of or access to the disclosing party’s proprietary
information.

 

3

 

Notwithstanding anything to the contrary in this Paragraph 8, Proprietary
Information and the relationship between the parties may be disclosed by a party to
those of its employees and agents who require knowledge thereof in connection with
their duties in conducting the aforesaid purpose of the Agreement, provided such party
informs all such employees and agents of the terms of the Agreement and their duties
hereunder and obtains their consent hereto as a condition for their relationship
between the parties may be disclosed by a party to legislative, judicial, or
regulatory body requiring its disclosure, provided that prior to such disclosure, such
party has notified the other party of the requirement with an opportunity for such
other party to seek an appropriate protective order.

Upon written request of a party who has disclosed Proprietary Information to a
receiving party, the receiving party shall promptly return all Proprietary Information
except that one copy may be retained by legal counsel of the receiving part as
evidence of what was disclosed.

8. No Competition. Consultant acknowledges that Consultant’s use and
creation and development of Proprietary Information under this Agreement will render
Consultant unable to perform similar services for any person, business, company or
concern that competes or is likely to compete with Spectranetics (“Competitor”)
without using and/or disclosing one or more Proprietary Information. In consideration
of the confidence placed in Consultant by Spectranetics, Consultant agrees not to
render similar services for any Competitor from the date of this Agreement through the
first anniversary of the termination of this Agreement (the “Term”), except with the
prior written consent of Spectranetics, which consent shall not be unreasonably
withheld. During the Term, Consultant shall not solicit or cause to be solicited,
directly or indirectly, any person who is or has been a Spectranetics employee or
consultant, to work for a Competitor.

9. Termination. Either party may terminate this Agreement without cause
upon fifteen (15) days written notice to the other party. Termination for cause shall
be in writing and shall be effective as provided in such written notice. Upon
termination of this Agreement, Consultant shall be paid all compensation then owing
and unpaid. The payment of such amount, plus any properly documented reimbursable
expenses under Paragraph 3 and 5 shall satisfy all obligations of Spectranetics to
Consultant under this Agreement. The provisions of Paragraphs 8 and 9 shall survive
termination of this Agreement.

10. Status of Consultant. Consultant is not an employee of
Spectranetics and shall not participate in any employee benefit plans or other
benefits or conditions of employment available to Spectranetics employees.
Consultant shall have no authority to act as an agent of Spectranetics, except as
specially delegated in writing, and Consultant shall not represent to the contrary to
any person. Consultant shall not direct the work of any employee of Spectranetics,
make any management decisions, or undertake to commit Spectranetics to any course of
action in relation to any third party. Consultant shall not be subject to any
control or direction of Spectranetics in the manner or performance of rendering
services hereunder, Spectranetics being interested only in the end product of
Consultant’s efforts as requested by Spectranetics.

 

4

 

11. Qualifications of Consultant. Consultant represents and warrants
that Consultant has not: (i) been convicted of any felony, any business crime, or any
crime relating to Consultant’s honesty or integrity; (ii) had Consultant’s license to
practice any licensed profession
in any state is suspended, revoked, or limited; (iii) been reprimanded or
censured by any federal or state licensing or regulatory agency; or the delivery of
healthcare items or services, or (iv) been excluded from participation in Medicare,
Medicaid or another Federal Health Care Program (as defined in 42 U.S.C. § 1320a-7b(f)
or been disbarred or suspended from participation in any activity regulated by the
Food and Drug Administration or in any federal procurement or non procurement program.
Consultant shall promptly notify Spectranetics if any of these events occur.

12.  Authority. The parties represent and warrant that they have full
right and authority to enter into this Agreement under applicable law. Consultant
will secure any required or necessary notifications or approvals to provide Services
under this Agreement.

13.  Indemnification. Consultant agrees to indemnify and hold forever
harmless Spectranetics and its officers, directors, shareholders, and employees from
any claims, costs, or expenses, including attorneys’ and experts’ fees, arising from
any action against Spectranetics and/or Consultant concerning Consultant’s actions or
failure to act in accordance with this Agreement.

14. Assignment. Spectranetics may assign its interest in this Agreement
to any entity directly or indirectly controlled by Spectranetics or to any successor
by merger or sale of substantially all of its assets. The provisions of this
Agreement shall inure to the benefit of the permitted assigns and successors in
interest of Spectranetics. Consultant may not assign or transfer this Agreement, it
being deemed personal to him only.

15. Entire Agreement. This Agreement is the complete, final and
exclusive statement of the agreement between the parties with respect to the subject
matter hereof. This Agreement supersedes all prior or contemporaneous agreements,
negotiations, representations, understandings, and discussions between the parties
and/or their respective agents and counsel with respect to the subject matter covered
hereby.

16. Amendments. This Agreement may be modified or amended only by a
written instrument signed by the party sought to be bound.

17. Captions. All paragraph headings are for convenience only and shall
not be considered in interpreting any provision of this Agreement.

18. Severability. If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or
unenforceable in any respect and for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be affected or impaired in any way, it being intended that
all of the parties’ rights and privileges arising hereunder shall be enforceable to
the fullest extent permitted by law.

19. Waiver. Failure by any party to enforce any obligation of the other
party shall not constitute a waiver of any further or other obligation of the other
party.

 

5

 

20. Compliance with Law and Regulations. Each party shall comply with any law,
statute, ordinance, directive, code, regulation, rule or order of any Federal, state or local
governmental body or agency. Consultant shall be familiar with the Indications for Uses for
any Spectranetics product that he or she may describe, discuss, teach or train at any
Spectranetics sponsored event. Consultant further agrees that all aspects of his or her
training of others at any Spectranetics sponsored event shall stay within the Indications for
Use of the product. Spectranetics reserves the right to review and/or approve any or all
presentation materials, including not only slide presentations but also the selection of live
cases at any Spectranetics sponsored event, to ensure consistency with the FDA approved
indications for use. Physician shall provide Spectranetics with a copy of all presentation
materials, including a summary of the live cases anticipated at any training event, no later
than 48 hours in advance of any such event

21. Applicable Law. This Agreement and the rights of the parties
hereunder shall be governed by and enforced in accordance with the internal laws of
the State of Colorado.

22. Arbitration. Any controversy or claim arising out of or relating to
this Agreement, or breach thereof, shall be settled by arbitration in accordance with
the Rules of the American Arbitration Association, and judgment upon any proper award
rendered by the arbitrators may be entered in any court having jurisdiction thereof.
There shall be one arbitrator, chosen by the mutual agreement of Spectranetics and
Consultant. Each party shall pay the fees of his, her or its own attorneys, as well
as the expenses of his, her or its own witnesses and all other costs connected with
the arbitration. The costs of the arbitration (including the cost of the arbitrator,
and any record or transcripts thereof, if any, administrative fees, and all other fees
and costs) shall be borne equally by the parties.

23. Notices. All notices provided for or permitted hereunder shall be in
writing, signed by the party giving the same and shall be deemed properly given and
received when personally delivered; or upon receipt of a confirmation of transmission
by the other party, if sent by telecopy, telefax, or other electronic media capable of
transmitting written instruments; or three (3) days after deposit in the United States
first class mail, sent certified or registered, return receipt requested, postage
prepaid and addressed to the other party as its last known address.

24. Counterparts. This Agreement may be executive in any number of
counterparts and by the parties in separate counterparts, each of which so executive
shall be deemed to be an original, and such counterparts together shall constitute one
and the same Agreement.

 

6

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

	 	 	 	 
	The Spectranetics Corporation

 	 
	By:  	/s/ Mike Voss
 	 
	 	Name:  	Mike Voss 	 
	 	Title:  	Vice-President and 
General Manager of Vascular Interventions 	 
				

	 	 	 	 
	Consultant

 	 
	/s/ Craig Walker M.D.
 	 
	Dr. Craig Walker 	 
	225 Dunn Street

Houma, LA  70360
985-876-0300	 

 

7

 

EXHIBIT A

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Reimbursable Business
	Type of Engagement	 	Description	 	Honorarium	 	Expenses
	A.
	 	 	 	 	 	 
	Project Consulting

	 	Consultant will
provide input,
feedback, or advice
on a specific
project (i.e.
product concepts,
training process,
sales & marketing
collateral/strategy,
clinical studies,
manuscripts, etc).
	 	$300/hour up to a
maximum of
$2500/day or
$3000 if overnight
stay is required
	 	Reasonable coach air
travel, ground
transportation to and
from home to airport and
airport to meeting
venue. One night
lodging (if applicable
and reimbursement for
meals.
	 
	 	 	 	 	 	 
	B.
	 	 	 	 	 	 
	Educational
Presentations

	 	Consultant will
provide educational
presentations on
treatment of
peripheral vascular
disease and laser
peripheral
applications
(indications,
techniques, cases,
etc.) to various
audiences that may
include physician,
allied health
professionals, or
Spectranetics
personnel.
	 	$300/hour up to a
maximum of $2500
per day or $3000 if
overnight stay is
required.

Master Summits will
be paid out
separately at
$300/hr up to a
maximum of $4500
per event, $5000 if
an overnight stay
is required.
	 	Reasonable coach air
travel, ground
transportation to and
from home to airport and
airport to meeting
venue. One night
lodging (if applicable
and reimbursement for
meals.
	 
	 	 	 	 	 	 
	C.
	 	 	 	 	 	 
	Offsite Lab
Training or
Proctorships

	 	Physicians involved
with training other
physicians in a lab
other than their
own (3 case
minimum). Training
involves but is not
limited to live
cases (hands-on),
presentations, case
examples, and Q&A.
	 	$300/hour up to a
maximum of $2500
per day or $3000 if
overnight stay is
required.

No payment for
training another
physician from
Consultants
practice group or
LLP.
	 	Reasonable coach air
travel, ground
transportation to and
from home to airport and
airport to meeting
venue. One night
lodging (if applicable
and reimbursement for
meals.
	 
	 	 	 	 	 	 
	D.
	 	 	 	 	 	 
	Observational
Peripheral
Application
Treatment Training

	 	Consultant will
provide
observational
peripheral
application
treatment training
at their own
institution for
visiting physicians
and staff. Training
involves but is not
limited to live
cases (minimum of
3 cases with laser
assistance),
didactic
presentations, case
examples, and Q&A.
	 	$300/hour up to a
maximum of $3000
per day.

$300/hour up to a
maximum of $2500
per event if
Spectranetics is
the secondary
sponsor.

No payment for
training another
physician from
Consultants
practice group or
LLP.
	 	No expense reimbursement.
	 
	 	 	 	 	 	 
	E.
	 	 	 	 	 	 
	Peripheral
Application
Treatment Off-site
Proctorships

	 	Consultant will
serve as a
proctoring trainer
of physicians in a
lab other than
their own.
Training involves
but is not limited
to live cases (for
a minimum of 3
cases by trainee
with laser
assistance),
didactic
presentations, case
examples, and Q&A.
	 	$300/hour up to a
maximum of $2500
per day or $3000 if
overnight stay is
required.
 

No payment for
training another
physician from
Consultants
practice group or
LLP.
	 	Reasonable coach air
travel, ground
transportation to and
from home to airport and
airport to meeting
venue. One night
lodging (if applicable
and reimbursement for
meals.

 

8Exhibit 4.4

Exhibit 4.4

	 	 	 
	

	 	ROSS MILLER

Secretary of State

204 North Carson Street, Ste 1

Carson City, Nevada 89701-4299

(775) 684 5708

Website: www.nvsos.gov

Certificate of Designation

(PURSUANT TO NRS 78.1955)

			
	 	 	 
	USE BLACK INK ONLY — DO NOT HIGHLIGHT
	 	ABOVE SPACE IS FOR OFFICE USE ONLY
	 	 	 

Certificate of Designation For

Nevada Profit Corporations 

(Pursuant to NRS 78.1955)

1. Name of corporation:

Immediatek, Inc.

2. By resolution of the board of directors pursuant to a provision in the articles of incorporation
this certificate establishes the following regarding the voting powers, designations, preferences,
limitations, restrictions and relative rights of the following class or series of stock.

RESOLVED, that, pursuant to the authority vested in the Board of Directors by the provisions of
Article V of the Restated Articles and in accordance with the provisions of NRS 78.1955, the Board
of Directors hereby creates and provides for the issue of a series of Preferred Stock consisting of
69,726 shares herein designated as the “Series B Convertible Preferred Stock” (the “Series B
Preferred Stock”), having the powers, designations, preferences and relative, participating,
optional or other special rights, and the qualifications, limitations or restrictions thereof, of
the shares of such series (in addition to the powers, designations preferences and relative,
participating, optional or other special rights, and the qualifications, limitations or
restrictions thereof, set forth in the Restated Articles that are applicable to the Preferred Stock
of all series) are hereby fixed as follows (certain terms used herein being defined in Section B.1. hereof):

Continuation attached.

3. Effective date of filing: (optional)

(must not be later than 90 days after the certificate is filed)

4. Signature: (required)

Signature of Officer

Filing Fee: $175.00

IMPORTANT: Failure to include any of the above information and submit with the proper fees may
cause this filing to be rejected.

			
	 	 	 
	This form must be accompanied by appropriate fees.
	 	Nevada Secretary of State Stock Designation
	 
	 	Revised: 7-1-08
	 	 	 

 

 

 

A. PROVISIONS RELATING TO THE SERIES B PREFERRED STOCK

1. Dividends. The holders of the Series B Preferred Stock shall not be entitled to any
preferential dividends. The holders of the Series B Preferred Stock shall be entitled to
participate on an as-converted basis in any cash dividends declared and paid on the Common Stock.

2. Liquidation.

(a) Upon any Liquidation Event, the holders of shares of Series B Preferred Stock then
outstanding, pari passu with holders of the Series A Convertible Preferred Stock (the “Series A
Preferred Stock”) then outstanding, shall be entitled to receive, out of the funds and assets of
the Corporation legally available therefor (the “Available Assets and Funds”), before any payment
shall be made to the holders of shares of Junior Stock, an amount per share equal to the greater of
(i) the Stated Value for a share of Series B Preferred Stock or (ii) the amount such holder would
have received had such holder converted such share of Series B Preferred Stock into shares of
Common Stock immediately prior to such Liquidation Event. If, upon any such Liquidation Event, the
Available Assets and Funds shall be insufficient to pay the holders of shares of Series B Preferred
Stock and the Series A Preferred Stock the full amount to which they shall be entitled, the holders
of shares of Series B Preferred Stock and Series A Preferred Stock and any other Parity Stock shall
share ratably in any distribution of the Available Assets and Funds in proportion to the respective
amounts that would otherwise be payable in respect of the shares held by them upon such
distribution if all amounts payable on or with respect to such shares were paid in full.

3. Ranking. The Series B Preferred Stock shall, with respect to redemption rights,
rights on liquidation, winding up, corporate reorganization and dissolution, rank pari passu with
Series A Preferred Stock and senior to the Junior Stock.

4. Optional Redemption.

(a) Holders’ Redemption Rights. Upon an Event of Default, the holders of a
Majority-in-Interest of the Series B Preferred Stock then outstanding may require the Corporation
to redeem the Series B Preferred Stock at any time or from time to time, in whole but not in part,
at a redemption price per share equal to the Stated Value, plus declared and unpaid dividends, if
any, to the Redemption Date (the “Redemption Price”). Such redemption shall be effected in
accordance with the procedures set forth in subsections A.4.(b) and A.4.(c) hereof.

(b) Notice. Upon an Event of Default, the Corporation shall mail notice of such Event
of Default within ten (10) days of such Event of Default to the holders of record of the Series B
Preferred Stock. Within a twenty-day period following such notice by the Company to the holders of
the Series B Preferred Stock, each record holder of the Series B Preferred Stock shall be entitled
to provide notice to the Corporation of his election to require the Company to redeem the
outstanding shares of Series B Preferred Stock. In the event that the holders of a
Majority-in-Interest of the Series B Preferred Stock then outstanding elect to require the
Corporation to redeem shares of the Series B Preferred Stock pursuant to this subsection
A.4., the Corporation shall mail notice of such redemption by first-class mail, postage
prepaid, and mailed not less than ten (10) days nor more than sixty (60) days after the date the
holders of a Majority-in-Interest of the Series B Preferred Stock elected to cause the redemption
of

 1

 

 

 

the Series B Preferred Stock (each such date, a “Redemption Date”) to the holders of record of the shares of
Series B Preferred Stock to be redeemed, at their respective addresses as such addresses shall
appear in the records of the Corporation; provided, however, that failure to give such notice or
any defect therein or in the mailing thereof shall not affect the validity of the proceeding for
the redemption of any shares so to be redeemed. Each such notice shall state: (i) the Redemption
Date, (ii) the number of shares of Series B Preferred Stock to be redeemed, (iii) the Redemption
Price, and (iv) the place or places where certificates for such shares are to be surrendered for
payment of the Redemption Price.

(c) Right of the Holders of Series B Preferred Stock upon Redemption. Following
the Redemption Date, said shares of Series B Preferred Stock to be redeemed shall no longer be
deemed to be outstanding and shall not have the status of shares of Series B Preferred Stock, and
all rights of the holders thereof as stockholders of the Company (except the right to receive the
applicable Redemption Price on the Redemption Date) shall cease, unless the Corporation defaults in
the payment of the Redemption Price on the Redemption Date, in which case all rights of the holders
to whom payment of the Redemption Price was not made on the Redemption Date shall continue until
the Redemption Price is paid to such holders, and such holders shall have the rights of the terms
of the Series B Preferred Stock set forth herein.

5. Conversion.

(a) Right to Convert. Subject to and in compliance with this Section A.5.,
each share of Series B Preferred Stock shall be convertible, at the option of the holder thereof,
at any time and from time to time, into that number of fully paid and nonassessable shares of
Common Stock as is determined by dividing the Stated Value for such share by the Conversion Price
(defined below) for such share in effect at the time of conversion. The price at which shares of
Common Stock shall be deliverable upon conversion of Series B Preferred Stock without the payment
of additional consideration by the holder thereof (the “Conversion Price”) shall initially be
$2.162676 per share. Such initial Conversion Price shall be subject to adjustment from time to time
as provided in this Section A.5.

(b) Mechanics of Conversion. Each holder of Series B Preferred Stock who desires to
convert the same into shares of Common Stock shall surrender the certificate or certificates
therefor, duly endorsed, at the office of the Corporation or of any transfer agent for the Series B
Preferred Stock or Common Stock, and shall give written notice to the Corporation at such office
that such holder elects to convert the same and shall state therein the number of shares of Series
B Preferred Stock being converted. Thereupon, the Corporation shall promptly issue and deliver at
such office to such holder a certificate or certificates for the number of shares of Common Stock
to which such holder is entitled. Such conversion shall be deemed to have been made immediately
prior to the close of business on the date of such surrender of the certificate representing the
shares of Series B Preferred Stock to be converted, and the person entitled to receive the shares
of Common Stock issuable upon such conversion shall be treated for all purposes as the record
holder of such shares of Common Stock on such date.

 

2

 

(c) Adjustments for Stock Splits and Combinations. If the Corporation at any time or
from time to time after the Original Issue Date (as defined below) effects a subdivision of the
outstanding Common Stock, the Conversion Price then in effect immediately before the subdivision
shall be proportionately decreased, and conversely, if the Corporation at any time or from time to
time after the Original Issue Date combines the outstanding shares of Common
Stock into a smaller number of shares, the Conversion Price then in effect immediately before the
combination shall be proportionately increased. Any adjustment under this subsection
A.5.(c) shall become effective at the close of business on the date the subdivision or
combination becomes effective. “Original Issue Date” means the date on which shares of Series B
Preferred Stock are originally issued under this Certificate of Designation.

(d) Adjustments for Certain Dividends and Distributions. If the Corporation at any
time or from time to time after the Original Issue Date makes or issues, or fixes a record date for
the determination of holders of Common Stock entitled to receive, a dividend or other distribution
payable in Additional Shares of Common Stock, then and in each such event the Conversion Price then
in effect shall be adjusted as of the time of such issuance or, in the event such record date is
fixed, as of the close of business on such record date, so that it will equal the price determined
by multiplying the Conversion Price then in effect by a fraction (1) the numerator of which is the
total number of shares of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date and (2) the denominator of which shall be the
total number of shares of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date plus the number of shares of Common Stock
issuable in payment of such dividend or distribution; provided, however, that if such record date
is fixed and such dividend is not fully paid or if such distribution is not fully made on the date
fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on
such record date and thereafter the Conversion Price shall be adjusted pursuant to this
subsection A.5.(d) as of the time of actual payment of such dividends or distributions.

(e) Adjustments for Dividends and Other Distributions. In the event the Corporation at
any time or from time to time after the Original Issue Date makes or issues, or fixes a record date
for the determination of holders of Common Stock entitled to receive, a dividend or other
distribution payable in securities of the Corporation other than shares of Common Stock, then and
in each such event provision shall be made so that the holders of Series B Preferred Stock shall
receive upon conversion thereof, in addition to the number of shares of Common Stock receivable
thereupon, the amount of securities of the Corporation which they would have received had their
Series B Preferred Stock been converted into Common Stock on the date of such event and had they
thereafter, during the period from the date of such event to and including the conversion date,
retained such securities receivable by them as aforesaid during such period, subject to all other
adjustments called for during such period under this Section A.5 with respect to the rights
of the holders of the Series B Preferred Stock.

(f) Adjustment for Reclassification, Exchange and Substitution. In the event that, at
any time or from time to time after the Original Issue Date, the Common Stock issuable upon the
conversion of the Series B Preferred Stock is changed into the same or a different number of shares
of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other
than a subdivision or combination of shares or stock dividend or a reorganization, merger,
consolidation or sale of assets, provided for elsewhere in this Section A.5), then and in
any such event each holder of Series B Preferred Stock shall have the right thereafter to convert
such Series B Preferred Stock into the kind and amount of stock and other securities and property
receivable upon such recapitalization, reclassification or other change, by holders of shares of
Common Stock into which such shares of Series B Preferred Stock could have been converted
immediately prior to such recapitalization, reclassification or change, all subject to further
adjustment as provided herein.

 

3

 

(g) No Adjustment for Certain Issuances. Notwithstanding anything to the
contrary herein, no adjustment will be made to the Conversion Price (1) for issuances of Common
Stock upon conversion of shares of the Series B Preferred Stock or the Series A Preferred Stock; or
(2) for issuances of Common Stock, options, warrants or other convertible securities as a dividend
or distribution on the Series B Preferred Stock.

(h) Sale of Shares.

(1) If at any time or from time to time after the Original Issue Date, the Corporation
issues or sells, or is deemed by the express provisions of this subsection A.5.(h)
to have issued or sold, Additional Shares of Common Stock (as hereinafter defined), other
than as a dividend or other distribution on any class of stock as provided in subsection
A.5.(d) above and other than upon a subdivision or combination of shares of Common Stock
as provided in subsection A.5.(c) above, then and in each such event the Conversion
Price then in effect shall be adjusted as of the time of such issuance or sale so that it
will equal the price determined by multiplying the Conversion Price then in effect by a
fraction (1) the numerator of which is the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or sale and (2) the denominator
of which shall be the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or sale plus the number of shares of Common
Stock issued or sold.

(2) For the purpose of the adjustment required under this subsection A.5.(h),
if the Corporation issues or sells any rights or options for the purchase of, or stock or
other securities convertible or exchangeable, with or without consideration, into Additional
Shares of Common Stock (such convertible or exchangeable stock or securities being
hereinafter referred to as “Convertible Securities”), then in each case the Corporation
shall be deemed to have issued at the time of the issuance of such rights or options or
Convertible Securities the maximum number of Additional Shares of Common Stock issuable upon
exercise or conversion thereof. No further adjustment of the Conversion Price, adjusted upon
the issuance of such rights, options or Convertible Securities, shall be made as a result of
the actual issuance of Additional Shares of Common Stock on the exercise of any such rights
or options or the conversion of any such Convertible Securities.

If any such rights or options, or the conversion or exchange privilege represented by
any such Convertible Securities, shall expire without having been exercised, the Conversion
Price adjusted upon the issuance of such rights, options or Convertible Securities shall be
readjusted to the Conversion Price which would have been in effect had an adjustment been
made on the basis that the only Additional Shares of Common Stock so issued were the
Additional Shares of Common Stock, if any, actually issued or sold on the exercise of such
rights or options or rights of conversion or exchange of such Convertible Securities.
Further, if any shares of Common Stock issuable upon the exercise or conversion of options
or warrants that are issued and outstanding on the Original Issue Date shall no longer be
issuable thereunder due to expiration, termination or otherwise, the Conversion Price shall
be adjusted as of the time of such expiration so that it will equal the price determined by
multiplying the Conversion
Price then in effect by a fraction (1) the numerator of which is the total number of
 shares of Common Stock issued and outstanding immediately prior to the time of such
expiration,
plus the number of shares of Common Stock no longer exercisable pursuant to such option or
warrant and (2) the denominator of which shall be the total number of shares of Common Stock
issued and outstanding immediately prior to the time of such expiration.

 

4

 

(3) For the purpose of the adjustment required under this subsection
A.5.(h), if the Corporation issues or sells any rights or options for the purchase of
Convertible Securities, then in each such case the Corporation shall be deemed to have
issued at the time of the issuance of such rights or options the maximum number of
Additional Shares of Common Stock issuable upon conversion or exchange of the total amount
of Convertible Securities covered by such rights or options. No further adjustment of the
Conversion Price, adjusted upon the issuance of such rights or options, shall be made as a
result of the actual issuance of the Convertible Securities upon the exercise of such rights
or options or upon the actual issuance of Additional Shares of Common Stock upon the
conversion of such Convertible Securities. The provisions of paragraph (2) above for the
readjustment of the Conversion Price upon the expiration of rights or options or the rights
of conversion or exchange of Convertible Securities shall apply mutatis
mutandis to the rights, options and Convertible Securities referred to in this
paragraph (3).

(i) Notices of Record Date. In the event of (a) any taking by the Corporation
of record of the holders of any class of securities for the purpose of determining the holders
thereof who are entitled to receive any dividend or other distribution, or (ii) any capital
reorganization of the Corporation, any reclassification or recapitalization of the capital stock of
the Corporation, any merger or consolidation of the Corporation with or into any other corporation,
or any transfer of all or substantially all of the assets of the Corporation to any other Person or
any voluntary or involuntary dissolution, liquidation or winding up of the Corporation, the
Corporation shall mail to each holder of Series B Preferred Stock at least thirty (30) days prior
to the record date specified therein, a notice specifying (1) the date on which any such record is
to be taken for the purpose of such dividend or distribution and a description of such dividend or
distribution, (2) the date on which any such reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding up is expected to become effective, and
(3) the date, if any, that is to be fixed, as to when the holders of record of Common Stock (or
other securities) shall be entitled to exchange their shares of Common Stock (or other securities)
for securities or other property deliverable upon such reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding up.

(j) Fractional Shares. No fractional shares of Common Stock shall be issued
upon conversion of Series B Preferred Stock. If more than one share of Series B Preferred Stock
shall be surrendered for conversion at any one time by the same holder, the number of full shares
of Common Stock issuable upon conversion thereof shall be computed on the basis of the aggregate
number of shares of Series B Preferred Stock so surrendered. In lieu of any fractional share to
which the holder would otherwise be entitled, the Corporation shall pay cash equal to the product
of such fraction multiplied by the Fair Market Value of one share of the Corporation’s Common Stock
on the date of conversion.

 

5

 

(k) Reservation of Stock Issuable Upon Conversion. The Corporation shall at all
times reserve and keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of the shares of the Series B Preferred Stock, such
number of its shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Series B Preferred Stock; and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion
of all then outstanding shares of the Series B Preferred Stock, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

(1) Notices. All notices and other communications required by the provisions of
this Section A.5 shall be in writing and shall be deemed to have been duly given if
delivered personally, mailed by certified mail (return receipt requested) or sent by overnight
delivery service, cable, telegram, facsimile transmission or telex to each holder of record at the
address of such holder appearing on the books of the Corporation. Notice so given shall, in the
case of notice so given by mail, be deemed to be given and received on the fourth calendar day
after posting, in the case of overnight delivery service, on the date of actual delivery and, in
the case of notice so given by cable, telegram, facsimile transmission, telex or personal delivery,
on the date of actual transmission or, as the case may be, personal delivery.

(m) Payment of Taxes. The Corporation will pay all taxes (other than taxes based
upon income) and other governmental charges that may be imposed with respect to the issue or
delivery of shares of Common Stock upon conversion of shares of Series B Preferred Stock,
including, without limitation, any tax or other charge imposed in connection with any transfer
involved in the issue and delivery of shares of Common Stock in a name other than that in which the
shares of Series B Preferred Stock so converted were registered.

(n) No Dilution or Impairment. The Corporation shall not amend its Amended and
Restated Articles of Incorporation or participate in any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, for
the purpose of avoiding, or seeking to avoid, the observance or performance of any of the terms to
be observed or performed hereunder by the Corporation, but will at all times in good faith assist
in carrying out all such action as may be reasonably necessary or appropriate in order to protect
the conversion rights of the holders of the Series B Preferred Stock against dilution or other
impairment.

6. Voting. The holders of shares of Series B Preferred Stock shall be entitled
to vote on all matters required or permitted to be voted upon by the stockholders of the
Corporation and, except to the extent specifically provided herein, each holder shall be entitled
to the number of votes equal to the largest number of full shares of Common Stock into which all
shares of Series B Preferred Stock held by such holder could be converted, pursuant to the
provisions of Section A.5, at the record date for the determination of the stockholders
entitled to vote on such matters or, if no record date is established, at the date such vote is
taken or any written consent of stockholders is first executed. Except as otherwise expressly
provided herein or as required by law, the holders of Series B Preferred Stock shall vote together
as a single class with the holders of Series A Preferred Stock and Common Stock on all matters.

 

6

 

B. GENERAL PROVISIONS

1. Definitions. As used herein with respect to the Series B Preferred
Stock, the following terms have the following meanings:

“Additional Shares of Common Stock” means all shares of Common Stock issued after the
Original Issue Date, in each event other than shares of Common Stock issued upon conversion of the
Series A Preferred Stock or the Series B Preferred Stock.

“Common Stock”  means the common stock of the Corporation, $0.001 par value per share.

An “Event of Default” shall exist if within 45 days from the Original Issue Date any representation
or warranty made or deemed made by or on behalf of the Corporation in the Purchase Agreement, or
any amendment or modification thereof or waiver thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection the Purchase
Agreement, or any amendment or modification thereof or waiver thereunder, shall prove to have been
materially incorrect when made or deemed made.

“Fair Market Value” means (i) if the Common Stock is listed on a national securities exchange, the
closing sale price per share on the principal exchange on which the Common Stock is listed as
reported by such exchange, (ii) if the Common Stock is quoted in the National Market System, the
closing sale price per share as reported by Nasdaq, (iii) if the Common Stock is traded in the
over-the-counter market but not quoted in the National Market System, the average of the closing
bid and asked quotations per share as reported by Nasdaq, or any other nationally accepted
reporting medium if Nasdaq quotations shall be unavailable, or (iv) if none of the foregoing
applies, the fair market value of such stock as reasonably determined in good faith by the Board of
Directors of the Corporation.

“Junior Stock” means shares of Common Stock and any other class or series of capital stock of the
Corporation that by its express terms provides that is ranks junior to the Series A Preferred Stock
and Series B Preferred Stock as to distribution of assets on liquidation, dissolution or winding
up.

“Liquidation Event”means the liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, and also includes (i) the acquisition of the Corporation by another
entity by means of any transaction or series of related transactions (including, without
limitation, any reorganization, merger or consolidation) that results in the sale, disposition or
other transfer of more than fifty percent (50%) of the outstanding voting power of the Corporation
or (ii) a sale, exclusive license or other disposition of all or substantially all of the assets of
the Corporation.

“Majority-in-Interest” means the holders of a majority of the Series B Preferred Stock.

“Parity Stock” means Series A Preferred Stock and any class or series of capital stock of the
Corporation ranking on a parity with the Series B Preferred Stock as to distribution of assets on
liquidation, dissolution or winding up.

“Person” means any individual, corporation, partnership, trust, joint venture, organization,
association, government or agency or political subdivision thereof, or any other entity.

“Purchase Agreement” means that certain Securities Purchase Agreement, dated as of July 18, 2008,
by and between the Corporation and Radical Holdings LP.

“Stated Value” means a stated value per share equal to $7.17092619 with respect to the Series B
Preferred Stock.

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]