Document:

2012 Q3 Ex 10.4 Parker Contract

        

EXHIBIT 10.4

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”), entered into as of 
September 11, 2012, between Coca-Cola Enterprises, Inc., a Delaware corporation (the “Company”), and John Parker (the “Executive”).  This Agreement amends and restates the employment agreement between the Company and the Executive dated August 18, 2010 (the “Prior Agreement”).  The Company and the Executive may be referred to herein collectively as the “Parties,” or individually as a “Party.”

WHEREAS, following the consummation of the transactions contemplated by the Business Separation and Merger Agreement (the “Merger Agreement”) by and between 
Coca-Cola Enterprises Inc. (“Legacy CCE”), the Company, The Coca-Coca Company and Cobalt Subsidiary LLC dated February 25, 2010 (such consummation is hereinafter referred to as the “Closing”), the Company became an independent publicly traded company;

WHEREAS, the Executive transferred employment from Legacy CCE to the Company and entered into the Prior Agreement in connection with the Closing; and

WHEREAS, the Parties wish to amend and restate the Prior Agreement to reflect the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Agreement, the Parties agree as follows:

1.    Employment; Employment Term.  The Company agrees to continue to employ the Executive as Senior Vice President & General Counsel of the Company and any successor thereto, and the Executive agrees to continue to be employed by the Company, subject to the terms and provisions of this Agreement.  The term of employment under this Agreement shall expire on December 29, 2014 (the “Term”); provided that the term of this Agreement may be extended by mutual written agreement between the Executive and the Company.  If the Parties agree to any such extension, the Parties shall specify the terms and conditions of the Executive’s continuing employment, and the provisions of this Agreement that applied during the Continued Term shall not apply during any extension period except as explicitly provided under this Agreement or by the Parties in connection with the extension.

2.     Duties.  During the Term, the Company and the Executive agree that the Executive shall have all responsibilities and authorities and perform such duties that are usually incident to his positions with the Company as provided in the Company’s Certificate of Incorporation, By-Laws, and written policies together with such other duties and responsibilities as may be assigned to his from time to time by the Chief Executive Officer of the Company.  During his employment hereunder, the Executive shall devote his entire time, energy, and skill during regular business hours (other than during periods of illness, vacation, and other approved absences) to the Company and its Affiliates, and the Executive shall render his services solely and exclusively for the Company and its Affiliates, provided that (i) exceptions to such exclusivity in effect on the date hereof shall continue in effect, subject to the discretion of the 

#PageNum#

        

Board of Directors (the “Board”) to withdraw such exception if such exception involves a conflict of interest or materially interferes with the Executive’s ability to perform his duties, (ii) the Board shall grant additional exceptions to such exclusivity upon request unless such exceptions involve a conflict of interest or materially interfere with the Executive’s ability to perform his duties with the Company, and (iii) the Executive shall be permitted to serve on one public company board of directors, subject to the approval of the Board in its sole discretion.
    
For purposes of this Agreement, “Affiliate” means a company that would be considered a single employer together with the Company under Sections 414(b) or 414(c) of the Internal Revenue Code (the “Code”).

3.    Location of Executive’s Principal Office.  During the Term, the Executive’s principal office shall be in the Company’s headquarters office which shall be based in the Atlanta, Georgia metropolitan area, unless mutually agreed otherwise by the Executive and the Company.

4.    Base Salary.  During the Term, the Company shall pay the Executive a Base Salary at an annual rate of not less than $530,000.  The Base Salary shall be subject to review and possible increase, but not decrease, by the Human Resources and Compensation Committee of the Board (the “HRCC”) each February, and any increases shall be effective the following April 1.  Adjustments to the Base Salary shall be based on the Executive’s performance and other factors that the HRCC deems appropriate.  Following each adjustment, the term Base Salary shall thereafter refer to the adjusted amount.  

5.    Annual Incentive.  The Executive shall have the opportunity to receive an annual incentive award in accordance with the terms of the Executive Management Incentive Plan (the “MIP Award”).  During the Term, the Executive’s annual target MIP Award shall be at least 80% of his annual Base Salary, payable upon the achievement of goals established and approved by the HRCC.  The MIP Award shall be payable in a single lump-sum payment in March following the end of the applicable performance period.

6.    Long-Term Incentive Awards.  During the Term, the Executive shall receive two annual long-term incentive awards, each with a target award value of at least $1,000,000 (each, an “LTIP Award”), provided that the Executive is employed by the Company at the time such award is to be granted.  The LTIP Awards may be delivered in one or more forms, including but not limited to stock options, restricted stock units (“RSUs”), restricted stock, or performance stock units (“PSUs”).  The 2012 LTIP Award may be made at any time during the remainder of 2012 or the first quarter of 2013, and the 2013 LTIP Award may be made at any time in 2013 or the first quarter of 2014, provided that the vesting schedule shall be no less favorable than if the LTIP Awards had been made in November 2012 and November 2013, respectively.  The target award value shall be determined (i) for stock options, based on the grant date fair value using the valuation methodology applied for Company financial reporting purposes and (ii) for stock units or restricted stock, based on the number of shares subject to the award (determined at target for PSUs) multiplied by the fair market value of Company stock at grant.

Vesting for each type of LTIP Award shall be as follows.  Stock options granted in 2012 shall vest 1⁄2 on the first anniversary of the grant date in 2013 and 1⁄2 on the second 

#PageNum#

        

anniversary of the grant date in 2014.  Stock options granted in 2013 shall vest 1⁄2 on the first anniversary of the grant date in 2014 and 1⁄2 on the second anniversary of the grant date in 2015.  Stock options shall have a 10-year term.  PSUs granted in 2012 shall have service-based cliff vesting requiring service through December 29, 2014, and PSUs, RSUs, and restricted stock granted in 2013 shall have service-based cliff vesting requiring service through December 29, 2015.  In addition, PSUs granted in 2012 and 2013 shall have a performance-vesting requirement based on such metrics as are established by the HRCC.  PSUs (if and to the extent vested) shall be paid after vesting on the following basis:  PSUs granted in 2012 shall be paid on or about April 30, 2016, and PSUs granted in 2013 shall be paid on or about April 30, 2017.  With respect to each LTIP Award made in 2012 and 2013, the service-based vesting condition shall take into account service as an employee and as a consultant following the Executive’s termination of employment in accordance with the Sections 10(a) and 10(b), as applicable, as well as Section 11(i).  Such continued vesting shall apply as long as the Executive is willing and available to provide the consulting services during the twelve month period specified in Section 11(i), without regard to whether the Company utilizes such services or terminates the consulting relationship, provided that if the Company terminates the consulting relationship for Cause, the continued vesting shall cease to apply.

7.    Retention Award.  The Company shall pay the Executive $2,500,000, plus interest at the rate specified below (the “Retention Award”) in a lump-sum cash payment in July 2014, provided that the Executive remains employed through December 31, 2013.  The Retention Award shall be credited with interest based on the Prime Rate of SunTrust Bank, Atlanta.  For the avoidance of doubt, if the Executive is employed through December 31, 2013, the Company shall pay the Retention Award in July 2014 without regard for the Executive’s termination of employment for any reason between December 31, 2013 and July 2014.

8.    Benefits.  During the Term, the Executive shall be entitled to participate in any employee benefit plans or programs for which he is eligible that are provided by the Company to its management employees based in the United States, such as retirement, health, life insurance, and disability plans, vacation and sick leave policies, business expense reimbursement policies, and international assignment programs that the Company has in effect from time to time.  All prior service recognized by Legacy CCE for benefit plan purposes as of the Closing shall be recognized by the Company for benefit plan purposes. The Company retains the right to terminate or alter the terms of any benefit programs that it may establish, provided that no such termination or alteration shall adversely affect any vested benefit under any benefit program.

9.    Indemnification.  During the Executive’s employment and thereafter for the period during which the Executive may be subject to liability relating to his services as an officer or director of the Company or any of its Affiliates, the Company will maintain a directors and officers liability policy, and the Executive shall be covered by such directors and officers liability policy at the same level as applicable to the Company’s other directors and officers, and the Executive shall be indemnified to the fullest extent permitted by law and by the Company’s Certificate of Incorporation and By-Laws.  Furthermore, the Executive shall be entitled to indemnification with respect to his services for CCE prior to the Closing in accordance with Section 6.19 of the Merger Agreement. 

10.    Payments upon Termination of Employment.  

#PageNum#

        

(a)      Voluntary Termination by the Executive.  If the Executive voluntarily terminates employment with the Company during the Term, the Company shall pay the Executive any earned but unpaid Base Salary and any amounts to which the Executive is legally entitled under the generally applicable terms of pension, savings, disability, or other programs.  Any MIP Award that is already fully earned by service through the end of the applicable measurement period but not yet paid shall be payable in accordance with its terms, but the Company shall not be under any obligation to make payment with respect to MIP Award measurement periods that have not been completed.  The Company shall also not be under any obligation to make payment with respect to any unvested LTIP Awards or, in the event such termination occurs prior to December 31, 2013, the Retention Award, except that if the Executive’s termination of employment occurs on or after the first day of November following the grant of the 2012 or 2013 equity award, the consulting services to be credited under Section 6, above, shall be included for purposes of satisfying the service-vesting requirements of such awards.  Payments of earned but unpaid Base Salary under this Section 10(a) shall be made as soon as administratively practicable following the Executive’s termination of employment, but no later than 60 days following the Executive’s termination of employment.

(b)      Termination by the Company for Reasons Other Than for Cause.  If the Company terminates the Executive’s employment for reasons other than for Cause during the Term, the Executive shall be entitled to the payments and rights described in this Section 10(b).

Provided the Executive is in compliance with the requirements of Section 11 at the time of the relevant payment, the Company shall make the following lump-sum cash payments to the Executive: (i) the amounts described in Section 10(a), (ii) a pro rata MIP Award based on actual results for the year of the Executive’s termination of employment and the number of months of the Executive’s employment in the year, (iii) an amount equal to the Executive’s annual Base Salary plus the amount of the Executive’s most recent target MIP Award, and (iv) in the event such termination occurs prior to December 31, 2013, an amount equal to the Retention Award, with interest through the date of termination of employment.   Payments made under clauses (i), (iii) and (iv) of this paragraph shall be made as soon as administratively practicable following the Executive’s termination of employment, but no later than 60 days following the Executive’s termination of employment, subject to any different payment schedule required pursuant to Section 14.  Payment under clause (ii) of this paragraph shall be made in March of the year following the year of the Executive’s termination of employment.

In addition, provided the Executive complies with the requirements of Section 11, (A) all equity awards that were converted from Legacy CCE equity awards shall be fully vested upon termination; (B) the service-vesting conditions for 2012 LTIP Awards shall be waived on a pro rata basis, which pro rata determination will be made by dividing the number of months of service between the grant date and the date of the Executive’s termination of employment plus the number of months of consulting services credited under Section 6, above, by the number of months of service that would have been required to vest in such award (not to exceed 100% vesting); and (C) the service-vesting conditions for 2013 LTIP Awards shall be waived on a pro rata basis , which pro rata determination will be made by dividing the number of months of service between the grant date and the Executives termination date plus the number of months of consulting services provided under Section 6, above, by the number of months of service that 

#PageNum#

        

would have been required to vest in such an award; provided, however, that if the Executive is at least age 55 and has at least five years of service with the Company and Legacy CCE as of the termination date, the months of service used in the numerator for the pro rata determination shall be increased by 12 (not to exceed 100% vesting).  Notwithstanding the foregoing, PSUs granted in either 2012 or 2013 shall not automatically satisfy the performance condition to vesting as a result of this paragraph, but must satisfy the performance condition on the basis of actual performance in accordance with the terms of the awards.  All option awards that are vested shall remain exercisable for the balance of the original term of the grant.

          (c)      Termination by the Company for Cause.  If the Company terminates the Executive’s employment for Cause during the Term, the Company shall pay the Executive only any earned but unpaid Base Salary and any amounts to which the Executive is legally entitled under the generally applicable terms of pension, savings, disability, or other programs.  Payments of earned but unpaid Base Salary shall be made as soon as administratively practicable, but no later than 60 days following the Executive’s termination of employment.

For purposes of this Agreement, “Cause” means (i) willful or gross misconduct by the Executive that is materially detrimental to the Company or an Affiliate, including but not limited to a willful violation of the Company’s trading policy or code of business conduct that is materially detrimental to the Company or an Affiliate, (ii) acts of personal dishonesty or fraud by the Executive toward the Company or an Affiliate, (iii) the Executive’s conviction of a felony, except for a conviction related to vicarious liability based solely on his or his position with the Company or an Affiliate, provided that the Executive had no involvement in actions leading to such liability or had acted upon the advice of the Company’s or an Affiliate’s counsel, or (iv) the Executive’s refusal to cooperate in an investigation of the Company of an Affiliate if requested to do so by the Board.  For purposes of this definition of Cause, no act or failure to act by the Executive shall be considered “willful” unless it occurs without the Executive’s good faith belief that such act or failure to act was in, or not contrary to, the best interests of the Company. Before the Executive may be terminated for Cause he shall be given 30 days to cure his misconduct, if cure is possible.

(d)      Termination Due to Death. In the event of the Executive’s death during the Term and prior to January 1, 2014, the Company shall pay to the Executive’s estate the following lump-sum cash amounts:  (i) an MIP Award for the full year of the Executive’s death, based on actual performance results, (ii), an amount equal to the Executive’s annual Base Salary plus the most recent target MIP Award multiplied by a fraction, the numerator of which is the number of months remaining in the Initial Term and the denominator of which is 12, (iii) an amount equal to the Retention Award, with interest through the date of the Executive’s death, and (iv) only in the event that the Executive’s death occurs prior to the grant date of the 2012 LTI Award, an amount equal to the target value of one LTIP Award as described under Section 6.  In the event of the Executive’s death during the Term and after December 31, 2013, the Executive’s estate shall receive a payment of the Executive’s MIP Award for the full year of his death, based on actual performance results.  Payment made under clause (i) of this Section 10(d) shall be made in March of the year following the year of the Executive’s death.  Payments made under this Section 10(d) shall be made as soon as administratively practicable, but no later than 90 days following the Executive’s death, except that the payment of a MIP Award based on actual performance shall be paid in March following the end of the applicable performance period.

#PageNum#

        

In addition, in the event of the Executive’s Death during the Term of the Agreement, the Company shall fully vest all of the Executive’s outstanding equity grants, with the performance vesting of any PSUs based on actual results for performance periods that have concluded and based on target award levels for performance periods in progress.  All option awards that are vested shall remain exercisable for the lesser of 60 months following termination of employment or the balance of the original term of the grant.  

(e)     Termination Due to Disability.  In the event that the Executive’s employment is terminated due to Disability, the Company shall make the payments to the Executive set forth in Section 10(d), substituting references to the Executive’s Disability for references to the Executive’s death.

For purposes of this Agreement, “Disability” means the Executive’s inability by reason of a medically determinable physical or mental impairment, to engage in the ordinary duties of his position with the Company, which condition, in the opinion of a doctor mutually agreed upon by the Executive and the Company, is expected to have a duration of not less than one year.

(f)     Termination Following Change in Control.  If a Change in Control of the Company occurs and, within 24 months following such Change in Control, the Company terminates the Executive’s employment for reasons other than for Cause or the Executive terminates employment for Good Reason, the Company or its successor shall provide to the Executive the following payments and benefits, subject to the requirements of Section 11: (i) the amounts described in Section 10(a), (ii) a pro rata MIP Award based on actual results for the year of the Executive’s termination of employment and the number of months of the Executive’s employment in the year, (iii) an amount equal to the Executive’s annual Base Salary plus the most recent target MIP Award multiplied by 1.5, (iv) full vesting of all outstanding equity grants, and (v) in the event such Change in Control occurs prior to December 31, 2013, an amount equal to the Retention Award, with interest through the date of termination of employment.  

For purposes of the Agreement, “Change in Control” shall have the meaning specified in the Company’s 2010 Incentive Award Plan; and “Good Reason” means (A) a material diminution of duties, responsibilities or authority or a material adverse change in the scope of authority, as measured from the Executive’s first role with the Company following the execution of this Agreement, (B) a reduction in Base Salary or annual target MIP Award opportunity, or (C) a change from the work location specified in this Agreement that was not mutually agreed upon in writing by the Executive and the Company, provided, however, that (I) the Executive does not consent in writing to such event, (II) the Executive gives written notice to the Company within 60 days of the date on which the Executive first receives notice of  the circumstances giving rise to the event, (III) the Company has not remedied the matter within 30 days, and (IV) if the matter is not remedied, the Executive actually separates from service.

(g)    No Duty to Seek New Employment in Mitigation of Damages.  In the event of termination of the Executive’s employment with the Company for any reason, the Executive shall be under no duty to seek new employment or otherwise seek to mitigate damages arising from termination in order to be eligible for the provisions of this Section 10.  In the event 

#PageNum#

        

that the Executive does obtain new employment there shall be no reduction or offset to payments made under this Section 10 on account of such employment.

11.    Executive’s Obligations.  

(a)    General.  All payments and benefits provided under this Agreement are expressly conditioned on the Executive’s compliance with the obligations contained in Sections 11(b) through 11(i).  If the Executive violates any of the obligations set forth in this Section 11 in the 36 months following his termination of employment, the Executive shall forfeit any remaining payments, any unvested or unpaid restricted stock or stock units, and any outstanding stock options (whether or not vested).

(b)    Mutual Release of Claims.  All payments and benefits provided under Sections 10(b), (e) and (f) of  this Agreement are subject to the Executive’s execution and delivery of a mutual release of claims waiving any and all claims, except for those reserved in the form of release, that the Executive may have against the Company and its Affiliates, and vice-versa.  Such release shall be in the form attached hereto as Exhibit A and must be signed by the Executive and returned to the Company no later than 45 days after the Executive’s separation from service with the Company.  If the Company has executed and delivered the mutual release of claims to the Executive and has not revoked such release, but the Executive fails to execute and deliver such release, or the Executive revokes such release as provided therein, then the Executive shall not be entitled to further payments or benefits under this Agreement, and the Executive must reimburse the Company for any such payments made in anticipation of the execution and non-revocation of the release.

(c)    Noncompetition.  Provided the Company is not in breach of its obligations to make any of the payments or provide any of the benefits provided in Sections 4 through 10 of this Agreement, during the period beginning with the Executive’s termination of employment during the Term for any reason and ending on the 12-month anniversary of the Executive’s termination of employment (hereinafter be referred to as the “Restricted Period”), the Executive (i) shall not accept a position on the board of any business entity without the approval of the HRCC, which approval shall not be unreasonably withheld and (ii) shall not directly or indirectly, on the Executive’s own behalf or on behalf of any person or entity, compete with the Company by performing activities or duties substantially similar to the activities or duties performed by the Executive for the Company during the year preceding the Executive’s termination of employment for any business entity that is a Direct Competitor of the Company within the Restricted Area.

A “Direct Competitor” of the Company is any business or operations in direct competition with the Company within the Restricted Area owned or operated by (i) PepsiCo, Inc.; (ii) Dr. Pepper Snapple Group, Inc.; (iii) if PepsiCo, Inc. or Dr. Pepper Snapple Group, Inc. do not have the highest or next highest market share among the producers and distributors of non-alcoholic beverages within the Restricted Area at the time the Executive’s employment terminates, then any company that has the highest or next highest market share among the producers and distributors of non-alcoholic beverages within the Restricted Area at the time the Executive’s employment with the Company terminates; or (iv) any company that provides bottling operations to the companies listed in subparts (i), (ii), and (iii) within the Restricted 

#PageNum#

        

Area.  The “Restricted Area” is any geographic area within the scope of the Executive’s management authority.  The Executive expressly acknowledges and agrees that, because of the nature of the services the Executive has provided to the Company, the Executive has provided services throughout the Restricted Area and, therefore, the Restricted Area is reasonably defined to protect the Company’s legitimate business interests.

(d)    Nonsolicitation.  The Executive shall not, during the Restricted Period, directly or indirectly, on his own behalf or on behalf of any person or entity, solicit, divert, or appropriate to any non-alcoholic beverage business or operations, any person who transacted business with the Company or its Affiliates during the year preceding the date of the Executive’s termination of employment, provided that such person or entity is a person or entity with whom the Executive has had direct contact or has been a party to marketing or sales strategies with regard to.

The Executive further shall not, during the Restricted Period, directly or indirectly, on his own behalf or on behalf of any person or entity, solicit, divert, or hire away, or attempt to solicit, divert, or hire away to any person or entity, any person employed by the Company or an Affiliate on the date of the Executive’s termination of employment or at any time during the one-year period preceding the Executive’s termination of employment.  Notwithstanding the foregoing, the Executive may provide an employment reference setting forth his personal views about any former non-executive employee of the Company at the unsolicited request of such former employee or any third party.     

(e)    Confidentiality and Non-Disclosure.  Except as required by law or pursuant to the order of a Court or government entity or in any legal proceeding to enforce this Agreement, the Executive shall not knowingly use, reveal, disclose, or divulge to any entity other than the Company without the express written authorization of the Company (i) any trade secrets of the Company for so long as they remain trade secrets and (ii) any Confidential Information after the Executive’s termination of employment, provided that the Executive knew at the time that such information was a trade secret or Confidential Information of the Company and provided that such information has not otherwise been disclosed to the public or is not otherwise in the public domain.

“Confidential Information” means any data or information with respect to the business conducted by the Company or its Affiliates that is not generally known to the public and that is a valuable asset to the Company, including, but not limited to, sales reports, product pricing, sales materials, selling procedures, marketing agreements and programs, customer lists, customer requirements, specifications for new products, sources of supply for ingredients, packaging, and other materials used in the Company’s products, and the business plans and financial data of the Company, except to the extent that any such information is readily available in the public domain through no fault of the Executive.

(f)    Nondisparagement.  The Executive shall not disparage the Company, its Affiliates, or their employees, products, or services in any form or fashion that would cause any third party to lower its perception about the integrity, public or private image, professional competence, or quality of products or service of said entities or persons following the Executive’s termination of employment.  The Company agrees that it will not, and it will instruct its officers and directors not to, disparage the Executive in any form or fashion that would cause 

#PageNum#

        

any third party to lower its perception about the integrity, public or private image, professional competence, or quality of the Executive.  Notwithstanding the foregoing, nothing contained herein shall prevent any person from (i) responding publicly to incorrect, disparaging or derogatory public statements to the extent reasonably necessary to correct or refute such public statements or (ii) making any truthful statement to the extent necessary to enforce this Agreement or required by law or by any court, arbitrator or administrative or legislative body (including any committee thereof) with apparent jurisdiction to order such person to disclose or make accessible such information.   

(g)    Records/Company Property.  The Executive shall, following his termination of employment, return to the Company all documents (including copies and computer records thereof) of any nature that relate to or contain proprietary or confidential information concerning the Company, its Affiliates, its customers, or employees (except for documents describing or relating to the Executive’s employment terms, compensation or employee benefits and awards), and any and all property of the Company in his possession, including, but not limited to, computers, electronic recording media, business records, papers, documents, and other Company property.

(h)    Cooperation.  The Executive shall cooperate with the Company and its counsel in any litigation or human resources matters in which he may be a witness or potential witness or have knowledge of the relevant facts or evidence by making himself available ( on reasonable notice and consistent with the Executive’s other reasonable commitments) to testify at the request of the Company or Affiliate in any action, suit or proceeding, whether civil, criminal, administrative or investigative, and otherwise to assist the Company in any such action, suit or proceeding by providing information and meeting and consulting with members of management of, or other representatives of, or counsel to, the Company as reasonably requested in relation to a matter of which the Executive had knowledge or for which he was responsible before termination of employment.  The Company shall promptly reimburse the Executive for reasonable and necessary expenses incurred in the course of complying with this provision, including, but not limited to, reasonable attorney’s fees in the event that the Executive reasonably desires to be represented in such matters by independent counsel.  If such cooperation requires the Executive to commit more than 5 days (8 hours per day) within a 30 day rolling period, the Company will pay the Executive a per diem amount equal to the daily amount of the Executive’s final annual Base Salary from the Company.
(i)    Consulting Services.  For a period of 12 months following the date of the Executive’s voluntary termination for any reason or involuntary termination without Cause, the Executive agrees to provide the Company with a minimum of 10 hours per month of consulting services regarding corporate strategy and other business affairs of the Company, as requested by the Chief Executive Officer or the Board of Directors.  The Company shall reimburse the Executive for all out-of-pocket expenses incurred by the Executive in providing such consulting services, provided such expenses are approved in advance by a senior officer of the Company.
(j)    Repayment of Benefits in Certain Cases.  If a two-thirds majority of the independent members of the Board, after permitting the Executive to respond on his own behalf or through counsel to all charges against his, determines (i) within two years of the Executive’s termination of employment that the Executive could have been terminated for Cause, (ii) that the Executive has violated any of the obligations of Section 11(c) or (d), or (iii) that the Executive 

#PageNum#

        

engaged in fraud or ethical misconduct that resulted in or directly contributed to the restatement of the Company’s financial results, then (A) such event shall be treated as a violation of the obligations of this Section 11 and the forfeitures described in Section 11(a) shall be applicable, and (B) the Executive shall promptly repay to the Company an amount equal to the sum of all payments provided under Section 10(b) other than those payments that would have been provided under Section 10(c) and all gains from the vesting of Company restricted stock and restricted or performance stock units and upon the exercise of Company stock options occurring upon or subsequent to separation from service with the Company.  If clause (iii) is applicable, the Board may also require the Executive to repay some or all of the Executive’s incentive compensation for the year or years affected by the restatement and gains from the vesting of Company restricted stock and stock units and upon the exercise of Company stock options occurring in or after the year or years affected by the restatement.  Any dispute regarding this Section 11(j), including, without limitation, a dispute regarding whether the Executive could have been terminated for Cause, shall be subject to the arbitration provisions of Section 13.
(k)    Remedies with Respect to Covenants.  In the event of any breach by the Executive of the covenants and representations contained in this Section 11 (a “Breach”), or threatened Breach, the Company shall be entitled, in addition to any other remedies and damages available, to an injunction to restrain such Breach or threatened Breach.  Any member of an Affiliate for which the Executive performs services may enforce this Agreement, and any injunction or other remedy under this Section 11(k) shall be enforceable in the United States and any other jurisdiction.

12.    Notices.  All notices and demands shall be deemed given when mailed and addressed as follows:

(a)    if to the Company:

Corporate Secretary
Coca-Cola Enterprises, Inc.
2500 Windy Ridge Parkway
Atlanta, GA  30339
        

(b)    if to the Executive:

148 Springdale Dr NE
Atlanta, GA 30305
        
13.    Arbitration.  Any dispute regarding the terms of this Agreement shall be resolved through binding arbitration before a sole arbitrator in Atlanta, Georgia, administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules then in effect.  Judgment upon any award rendered by the arbitrator, including any injunctive relief, may be entered in any court having jurisdiction thereof.  Each Party shall pay its own expenses, including but not limited to attorneys’ fees, of the arbitration or of any litigation arising out of this employment agreement, provided, however, that the arbitrator shall have the authority to award attorneys’ fees to the prevailing party.  Notwithstanding the foregoing, any dispute 

#PageNum#

        

regarding the terms of a plan or arrangement referenced in this Agreement shall be resolved as specified in such plan or arrangement.  For the avoidance of doubt, any dispute regarding the noncompetition and non-solicitation provisions set forth in Sections 11(c) and (d) shall not be subject to arbitration, but shall be brought in a court of competent jurisdiction. 

14.      Compliance with Section 409A.  This Agreement is intended to comply with Section 409A of the Code and shall be interpreted, administered and operated in a manner consistent with that intent.  Notwithstanding anything herein to the contrary, if at the time of the Executive’s separation from service with the Company the Executive is a “specified employee” as defined in Section 409A of the Code (and the regulations thereunder) and any payments or benefits otherwise payable hereunder as a result of such separation from service are subject to Section 409A of the Code, then the Company shall defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided) until the date that is six months following the Executive’s separation from service with the Company (or the earliest date as is permitted under Section 409A of the Code), and the Company shall pay any such delayed amounts in a lump sum at such time.  If, in order to comply with Section 409A of the Code and Treas. Reg. §1.409A-3(f), some or all of the payments described in Section 10(b)(iii) are required to be paid in installments in the manner set forth in the CCE Executive Severance Plan as in effect on the date of the Closing, then such amounts shall be paid in such installments rather than in a lump sum.  If any payments or other benefits due to the Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Company, that does not cause such an accelerated or additional tax.  Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.  References to “termination of employment” and similar terms used in this Agreement are intended to refer to “separation from service” within the meaning of Section 409A of the Code to the extent necessary to comply with Section 409A of the Code.  

15.    Section 280G Payments.  Notwithstanding anything herein to the contrary, to the extent that any severance pay, Retention Award, stock option, restricted stock, RSUs, or other equity awards or benefits paid to, distributed to, or vested in the Executive pursuant to this Agreement or any other agreement or arrangement between the Company and the Executive (collectively, the “280G Payments”) (a) constitute a “parachute payment” within the meaning of Section 280G of the Code and (b) but for this Section 15 would be subject to the excise tax imposed by Section 4999 of the Code, then the 280G Payments shall be payable either (i) in full or (ii) in such lesser amount which would result in no portion of such 280G Payments being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state, and local income or excise taxes (including the excise tax imposed by Section 4999) results in the Executive’s receipt on an after-tax basis, of the greatest amount of benefits under this Agreement, notwithstanding that all or a portion of such benefits may be taxable under Section 4999 of the Code.

All calculations required by this Section 15 shall be made in good faith by the Company or such third party designated by the Company. Such calculations shall be provided to the 

#PageNum#

        

Executive in writing as soon as practicable and shall be subject to the Executive’s review and comment, which the Company shall consider in good faith.  Following the Executive’s comment, such calculations shall be conclusive and binding on the Parties for purposes of this Section 15.   Notwithstanding the foregoing, if the calculations indicate that the Executive’s 280G Payments would be reduced pursuant to the preceding paragraph, the Executive may elect that an independent third party jointly designated by the Executive and the Company verify the calculations.  If the Executive and the Company cannot agree on an independent third party, each shall designate an independent third party and the two designated parties shall choose a third party.  The third party’s calculations shall be provided to the Executive and the Company in writing as soon as practicable and shall be subject to the Executive’s and Company’s review and comment, which the third party shall consider in good faith.  Following the Executive’s and Company’s comment, such third party calculations shall be conclusive and binding on the Parties for purposes of this Section 15.

The reduction in any 280G Payments, if applicable, shall be effected in the following order:  (i) any cash payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c); (ii) any equity awards that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c); (iii) any cash payments that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c), in order of the cash payments with the largest 280G Payment value; (iv) acceleration of vesting of any stock options subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) for which the exercise price exceeds the then fair market value of the underlying stock, in order of the option tranches with the largest 280G Payment value; (v) acceleration of vesting of any equity award subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) that is not a stock option, in order of the equity tranches with the largest 280G Payment value; and (vi) acceleration of vesting of any stock options subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) for which the exercise price is less than the fair market value of the underlying stock in such manner as would net the Executive the largest remaining spread value if the options were all exercised as of the Code Section 280G event.

16.    Miscellaneous.

(a)    Entire Agreement.  This Agreement sets forth the entire and final agreement and understanding of the Parties and contains all of the agreements made between the Parties with respect to the subject matter hereof.  This Agreement supersedes any and all other agreements in effect as of the date hereof, either oral or in writing, between the Parties hereto, with respect to the subject matter hereof, including, without limitation, the Prior Agreement. 

(b)    Amendments.  This Agreement may not be amended or modified other than by a written agreement signed by the Parties to this Agreement or their respective successors and legal representatives.

(c)    Headings.  The headings in this Agreement are inserted for convenience only and are not to be considered a construction of the provisions hereof.

(d)    Severability.  If any provision of this Agreement is held to be invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of the 

#PageNum#

        

Agreement, and the Agreement shall be construed and enforced as if such provision had not been included.   

(e)    Survival.  The respective rights and obligations of the Parties under Sections 6 through 16 shall survive any termination or expiration of this Agreement and shall continue to apply upon any extension of the term of this Agreement.

(f)    Assignment and Successors.  This Agreement shall be binding upon and shall inure to the benefit of any successors or assigns to the Company.  The Executive may not assign any of his rights, except to his beneficiaries or heirs in accordance with the terms of an equity award or benefit plan, or delegate any of his duties or obligations under this Agreement or any portion hereof.  If the Company changes its name, then references in this Agreement to the Company’s new name shall be deemed to be substituted for references to the Company’s prior name.

(g)    Governing Law. This Agreement is intended to be governed by the laws of the state of Delaware, without regard for any choice of law principles of any jurisdiction. 

 (h)           Consent to Jurisdiction.  With respect to disputes regarding matters that are expressly excluded from the mandatory arbitration provision set forth in Section 13 of this Agreement, the following provisions apply:

(i)              Each of the parties consents to the exclusive jurisdiction of the Chancery Courts of the State of Delaware and the United Sates District Court for the District of Delaware, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, for the purpose of any suit, action or other proceeding arising out of, or in connection with, this Agreement. 

(ii)             Each party expressly waives any and all rights to bring any suit, action or other proceeding in or before any court or tribunal other than the Courts described above and covenants that it shall not seek in any manner to resolve any dispute other than as set forth in this Section 16(h) or to challenge or set aside on the basis of lack of jurisdiction, inconvenient venue, or improper forum any decision, award or judgment obtained in accordance with the provisions of this Agreement.   

(iii)           Each of the parties expressly waives any and all objections it may have to venue, including, without limitation, the inconvenience of such forum, in any of such courts.  In addition, each of the Parties consents to the service of process by personal service or any manner in which notices may be delivered in accordance with Section 12 of this Agreement.

(i)    Withholding.  The Company shall be entitled to withhold or cause to be withheld from amounts to be paid to the Executive under this Agreement any federal, state, or local withholding or other taxes or amounts that it is from time to time required to withhold. 

(j)    Waiver.  Waiver by any Party hereto of any breach or default by the other Party of any of the terms of this Agreement shall not operate as a waiver of any other breach or default, whether similar to or different from the breach or default waived.  No waiver of any 

#PageNum#

        

provision of this Agreement shall be implied from any course of dealing between the Parties hereto or from any failure by either Party hereto to assert its or his rights hereunder on any occasion or series of occasions.

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement as of the day and year first above written.

COCA-COLA ENTERPRISES, INC.

By: /s/ Pamela O. Kimmet            Date:    September 10, 2012                
    Pamela O. Kimmet
    Senior Vice President, Human Resources

JOHN PARKER

 /s/ John Parker            Date:    September 11, 2012                

#PageNum#

EXHIBIT A

FORM OF MUTUAL RELEASE AGREEMENT

THIS MUTUAL RELEASE AGREEMENT (“Release”), entered into as of the date(s) indicated below, between Coca-Cola Enterprises, Inc., a Delaware corporation (the “Company”), and _____________(the “Executive”).  

WHEREAS, the Company and the Executive have entered into an Employment Agreement dated _____________ (“Agreement”); and 

WHEREAS, the Executive will separate or has separated from service with the Company effective __________.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in the Agreement and releases contained in this Release, the Company and the Executive agree as follows:

1.    Executive Release.  The Executive agrees, for himself, his spouse, heirs, executor or administrator, assigns, insurers, attorneys and other persons or entities acting or purporting to act on his behalf, to irrevocably and unconditionally release, acquit and forever discharge the Company, its affiliates, subsidiaries, directors, officers, employees, shareholders, partners, agents, representatives, predecessors, successors, assigns, insurers, attorneys, benefit plans sponsored by the Company and said plans’ fiduciaries, agents and trustees (collectively, “Company Parties”), from any and all actions, cause of action, suits, claims, obligations, liabilities, debts, demands, contentions, damages, judgments, levies and executions of any kind, whether in law or in equity, known or unknown, which the Executive has, or has had, against any of the Company Parties as of the date of execution of this Release arising out of or relating to the Executive’s employment or separation from service with the Company.  This Release specifically includes without limitation any claims arising in tort or contract, any claim based on wrongful discharge, any claim based on breach of contract, any claim arising under federal, state or local law prohibiting race, sex, age, religion, national origin, handicap, disability or other forms of discrimination, any claim arising under federal, state or local law concerning employment practices, and any claim relating to compensation or benefits.  This specifically includes, without limitation, any claim which the Executive has or has had under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act, as amended, the Americans with Disabilities Act, as amended, and the Employee Retirement Income Security Act of 1974, as amended.  Nothing herein shall release the Company from any claims or damages based on (i) any right the Executive may have to enforce this Release or the Agreement, (ii) any right or claim that arises after the date of this Release, (iii) any right the Executive may have to benefits or entitlements under any applicable plan, agreement, program, award, policy or arrangement of the Company, (iv) the Executive’s eligibility for indemnification in accordance with the certificate of incorporation and by-laws of the Company, or any applicable insurance policy, with respect to any liability the Executive incurs or incurred as an employee or officer of the Company, or (v) any right the Executive may have to obtain contribution as permitted by law in 

the event of entry of judgment against the Executive as a result of any act or failure to act for which the Executive and the Company are jointly liable.

2.    Company Release.  The Company agrees, for itself and its successors and assigns, to irrevocably and unconditionally release, acquit and forever discharge the Executive, his spouse, heirs, executor or administrator (collectively, “Executive Parties”) from any and all actions, cause of action, suits, claims, obligations, liabilities, debts, demands, contentions, damages, judgments, levies and executions of any kind, whether in law or in equity, known or unknown, which the Company has, or has had, against the Executive Parties as of the date of execution of this Release arising out of or relating to the Executive’s employment or separation from service with the Company including but not limited to any claim, demand, obligation, liability or cause of action arising under any federal, state, or local employment law or ordinance, tort, contract, or breach of public policy theory, or alleged violation of any other legal obligation.  Nothing herein shall release the Executive from any claims or damages based on (i) any right the Company may have to enforce this Release or the Agreement, including, but not limited to, claims for reimbursement of payments made under Section 11(b) of the Agreement in the event of revocation of the Release and any rights or claims that arise under Section 11(j) of the Agreement, (ii) any right or claim that arises after the date of this Release, (iii) any right the Company may have to obtain contribution as permitted by law in the event of entry of judgment against it as a result of any act or failure to act for which the Company and the Executive are jointly liable, and (iv) any claims the Company is required to pursue under applicable federal or state law, including, but not limited to, the Sarbanes-Oxley Act of 2002.  

3.    Age Discrimination Claims.  As part of this Release, the Executive understands that he is waiving all claims for age discrimination under the Age Discrimination in Employment Act.  The Executive represents and acknowledges that he has carefully read and understands all of the provisions of this Release, and that he is voluntarily entering into this Release.  The Executive represents and acknowledges that he has been advised in writing to, and has been afforded the right and opportunity to, consult with an attorney prior to executing this Release.  The Executive has [twenty-one (21)] [forty-five (45)] days within which to consider this Release, and seven (7) days following its execution to revoke this Release by written notice to the Company.    

THIS RELEASE CONTAINS A WAIVER AND GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  THE EXECUTIVE ACKNOWLEDGES THAT HE HAS CAREFULLY READ AND UNDERSTANDS THIS RELEASE, AND THAT HE HAS HAD THE OPPORTUNITY TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS RELEASE.

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Release on the date(s) indicated below.

COCA-COLA ENTERPRISES, INC.

By:              Date:                    
    [NAME]
    [TITLE]

[EXECUTIVE]

Date:                    
[NAME]Exhibit 10.20

 

 

 

 

Name of Purchaser:_________________

 

    	1

    	 

    

 

Offering Log #:_________

 

BIZZINGO, INC.

 

SERIES A PREFERRED STOCK PURCHASE AGREEMENT

 

EXHIBITS

 

Exhibit
A   Schedule of Investors

Exhibit
B    Certificate of Designation of Rights and Preferences

Exhibit
C    Restrictive Legend

 

    	2

    	 

    

 

PREFERRED STOCK PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT is made as of the 23 day of October, 2012, by and among BIZZINGO, INC., a Nevada corporation (the ‘Company’),
with its principal office at 640 Mission Street, 5th Floor San Francisco CA 94103 formally of 63 Main Street, 202 Flemington
NJ 08822 and the investors listed on Exhibit A hereto, each of which is herein referred to as an ‘Investor.’

 

1. Purchases and Sale of Stock.

 

	1.1		Sale and Issuance of Series A Preferred Stock.

 

(a)
The Company shall adopt and file with the Secretary of State of Nevada on or before the Closing (as defined below) the Designation
of Rights and Preferences of Series A Preferred Stock in the form attached hereto as Exhibit B (the ‘Designation’).

 

(b)
Subject to the terms and conditions of this Agreement, each Investor agrees, severally, to purchase at the Closing and the Company
agrees to sell and issue to each Investor at the Closing that number of shares of the Company’s Series A Preferred Stock
(the ‘Series A Preferred’) set forth opposite each Investor’s name on Exhibit A hereto for the purchase price
per share of $1.00 as set forth thereon. The shares of Series A Preferred to be sold pursuant to this Agreement are collectively
referred to herein as the ‘Shares.’

 

1.2
Closing. The purchase and sale of the Shares shall take place at the offices of Daniel Luciano, 242A West Valley Brook Rd., Califon,
NJ 07830, or at such other time and place as the Company and Investors acquiring in the aggregate more than half the Shares sold
pursuant hereto mutually agree upon orally or in writing (which time and place are designated as the ‘Closing’). Within
ten (10) days from Closing, the Company shall deliver to each Investor a certificate or certificates representing the Series A
Preferred that such Investor is purchasing against payment of the purchase price therefor by check, wire transfer or any combination
thereof.

 

2.
Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor as follows:

 

2.1
Organizations, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada and has all requisite corporate power and authority to carry on its business as currently
conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure
to so qualify would have a material adverse effect on its business or properties. True and accurate copies of the Company’s
Certificate of Incorporation and Bylaws, each as amended and in effect at the Closing, has been delivered to the special counsel
to the Investors.

 

    	3

    	 

    

 

2.2
 Capitalization. The authorized capital stock of the Company consists of Five Hundred Million (500,000,000) shares of Common Stock
(‘Common Stock’), of which One Hundred Eight Million Eight Hundred Thirty Four Thousand Five Hundred Twenty-Five (108,834,525)
shares are issued and outstanding on the date of this Agreement and One Hundred Million (100,000,000) shares of Preferred Stock
(‘Preferred Stock’), of which Two Million (2,000,000) are designated as Series A Preferred Stock, and none of which
is issued and outstanding. All such issued and outstanding shares have been duly authorized and validly issued and are fully paid
and nonassessable. The Company has reserved; (i) Fifty Million, (50,000,000) shares of Common Stock for issuance upon conversion
of the Series A Preferred, (ii) Thirteen Million (13,000,000) shares of Common Stock for issuance under the 2011 Stock Option
Plan, (iii) Nine Million (9,000,000) in stock grants under employment agreements to existing officers, (iv) Twenty Million (20,000,000)
shares of Common Stock for issuance under the 2012 Stock Option Plan, and (v) a total of Thirty Three Million Two Hundred Thirteen
Thousand Nine Hundred Seventy Six (33,213,976) to be issued upon exercise of various stock purchase warrants.

Other than the shares reserved for issuance described in this paragraph,
there are no outstanding rights, options, warrants, preemptive rights, rights of first refusal or similar rights for the purchase
or acquisition from the Company of any securities of the Company. All outstanding shares have been issued in compliance with state
and federal securities laws.

 

2.3
 Subsidiaries. The Company does not presently own or control, directly or indirectly, any interest in any other corporation, association,
or other business entity other than UDM LLC and Phreadz LLC.

 

2.4 
Authorization. All corporate action on the part of the Company, its officers, directors and shareholders necessary for the authorization,
execution and delivery of this Agreement, the performance of all obligations of the Company hereunder and thereunder, and the
authorization, issuance (or reservation for issuance), sale and delivery of the Shares being sold hereunder and the Common Stock
issuable upon conversion of the Shares has been taken or will be taken prior to the Closing, and this Agreement constitute valid
and legally binding obligations of the Company, enforceable in accordance with their respective terms, subject to: (i) judicial
principles limiting the availability of specific performance, injunctive relief, and other equitable remedies; (ii) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’
rights.

 

2.5
Valid Issuance of Preferred and Common Stock. The shares of Series A Preferred that are being purchased by the Investors hereunder,
when issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be
duly and validly issued, fully paid, and nonassessable, and will be free of restrictions on transfer directly or indirectly created
by the Company other than restrictions on transfer under this Agreement and under applicable state and federal securities laws.
The Common Stock issuable upon conversion of the Series A Preferred purchased under this Agreement has been duly and validly reserved
for issuance and, upon issuance in accordance with the terms of the Designation, will be duly and validly issued, fully paid,
and nonassessable and will be free of restrictions on transfer directly or indirectly created by the Company other than restrictions
on transfer under this Agreement, and under applicable state and federal securities laws.

 

    	4

    	 

    

 

2.6
 Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration
or filing with, any federal, state or local governmental authority on the part of the Company is required in connection with the
offer, sale or issuance of the Shares (and the Common Stock issuable upon conversion of the Shares) or the consummation of any
other transaction contemplated hereby, except for the following: (i) the filing of the Designations in the office of the Secretary
of State of the State of Nevada, which shall be filed by the Company on or prior to the Closing Date; (ii) the filing of such
notices as may be required under the Securities Act of 1933, as amended (the ‘Securities Act’); and (iii) the compliance
with SEC and any other applicable state securities laws, which compliance will have occurred within the appropriate time periods
therefor. Based in part on the representations of the Investors set forth in Section 3 below, the offer, sale and issuance of
the Shares in conformity with the terms of this Agreement are exempt from the registration requirements of Section 5 of the Securities
Act, and from any similar requirement under SEC securities law.

 

2.7
Litigation. There is no material action, suit, proceeding or investigation pending or, to the best of the Company’s knowledge,
currently threatened before any court, administrative agency or other governmental body against the Company which questions the
validity of this Agreement or the right of the Company to enter into any of them, or to consummate the transactions contemplated
hereby or thereby, or which would be reasonably likely to result, either individually or in the aggregate, in any material adverse
change in the condition (financial or otherwise), business, property, assets or liabilities of the Company. The foregoing includes,
without limitation, actions, suits, proceedings or investigations pending or, to the best knowledge of the Company, threatened
(or any basis therefor known to the Company) involving the prior employment of any of the Company’s employees, their use
in connection with the Company’s business of any information or techniques allegedly proprietary to any of their former
employers, or their obligations under any agreements with prior employers. The Company is not a party or subject to, and none
of its assets is bound by, the provisions of any order, writ, injunction, judgment or decree of any court or government agency
or instrumentality which would be reasonably likely to have a material adverse effect on the Company.

 

2.8 
Employees. To the best knowledge of the Company, no officer or key employee is in violation of any employee agreement. No employees
of the Company are represented by any labor union or covered by any collective bargaining agreement. There is no pending or, to
the best of the Company’s knowledge, threatened labor dispute involving the Company and any group of its employees.

 

    	5

    	 

    

 

2.9 
Patents and Trademarks. The Company has sufficient title to and ownership of all trade secrets, and, to its knowledge, copyrights,
information, proprietary rights and processes, patents, trademarks, service marks and trade names necessary for its business as
now conducted without any material conflict with or infringement of the rights of others. There are no material outstanding options,
licenses, or agreements of any kind relating to the foregoing, nor is the Company bound by or a party to any material options,
licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets,
licenses, information, proprietary rights and processes of any other person or entity. The Company has not received any written,
or to its knowledge, oral communications alleging that the Company has violated or, by conducting its business as proposed, would
violate any of the patents, trademarks, service marks, trade names, copyrights or trade secrets or other proprietary rights of
any other person or entity. To the Company’s knowledge, none of the Company’s employees is obligated under any contract
(including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of
any court or administrative agency, that would interfere with the use of his or her best efforts to promote the interests of the
Company or that would conflict with the Company’s business as proposed to be conducted. To the Company’s knowledge,
neither the execution nor delivery of this Agreement nor the carrying on of the Company’s business by the employees of the
Company, nor the conduct of the Company’s business as proposed, will conflict with or result in a breach of the terms, conditions
or provisions of, or constitute a default under, any contract, covenant or instrument under which any of such employees is now
obligated. The Company covenants that it will not, at any time, knowingly conduct its business in such a way as to conflict with
or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument
under which any of such employees is obligated. The Company does not believe it is or will be necessary to utilize any inventions
of any of its employees (or people it currently intends to hire) made prior to their employment by the Company.

 

2.10 
Compliance with Other instruments. The Company is not in violation or default of any provision of its Certificate of Incorporation
or Bylaws, each as amended and in effect on and as of the Closing. The Company is not in violation or default of any material
provision of any instrument, mortgage, deed of trust, loan, contract, commitment, judgment, decree, order or obligation to which
it is a party or by which it or any of its properties or assets are bound which would materially adversely affect the condition
(financial or otherwise), business, property, assets or liabilities of the Company or, to the best of its knowledge, of any provision
of any federal, state or local statute, rule or governmental regulation which would materially adversely affect the condition
(financial or otherwise), business, property, assets or liabilities of the Company.

The
execution, delivery and performance of and compliance with this Agreement and the issuance and sale of the Shares, will not result
in any such violation, be in conflict with or constitute, with or without the passage of time or giving of notice, a default under
any such provision, require any consent or waiver under any such provision (other than any consents or waivers that have been
obtained), or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets
of the Company pursuant to any such provision.

 

    	6

    	 

    

 

2.11
 Permits. The Company has all franchises, permits, licenses, and any similar authority necessary for the conduct of its business
as now being conducted by it, the lack of which could reasonably be expected to materially and adversely affect the business,
properties, prospects, or financial condition of the Company, and the Company believes it can obtain, without undue burden or
expense, any similar authority for the conduct of its business as planned to be conducted. The Company is not in default in any
material respect under any of such franchises, permits, licenses, or other similar authority.

 

2.12 Environmental and Safety Laws. To the best of its knowledge, the Company is not in violation of any applicable statute, law or
regulation relating to the environment or occupational health and safety, and to the best of its knowledge, no material expenditures
are or will be required in order to comply with any such existing statute, law or regulation,

 

2.13
Disclosure. No representation, warranty or statement by the Company in this Agreement, or in any written statement or certificate
furnished to the Investors pursuant to this Agreement, contains any untrue statement of a material fact or, when taken together,
omits to state a material fact necessary to make the statements made herein or therein, in light of the circumstances under which
they were made, not misleading. However, as to any projections furnished to the Investors, such projections were prepared in good
faith by the Company, but the Company makes no representation or warranty that it will be able to achieve such projections.

 

2.14
Title to Property and Assets. The Company has good and marketable title to all of its properties and assets free and clear of
all mortgages, liens and encumbrances, except liens for current taxes and assessments not yet due and possible minor liens and
encumbrances which do not, in any case, in the aggregate, materially detract from the value of the property subject thereto or
materially impair the operations of the Company. With respect to the property and assets it leases, the Company is in compliance
with such leases and, to the best of its knowledge, holds a valid leasehold interest free of all liens, claims or encumbrances.
The Company’s properties and assets are in good condition and repair in all material respects.

 

2.15
Financial Statements. The Company has delivered to the Investors (a) a balance sheet and income statement of the Company as of
and for the fiscal year ended May 31, 2012, and (b) a balance sheet and income statement of the Company as of and for the three-month
period ended August 31, 2012. The foregoing financial statements, all of which are audited, are herein referred to as the ‘Financial
Statements.’ The balance sheet of the Company as of August 31, 2012 is herein referred to as the ‘Company Balance
Sheet. The Financial Statements fairly present, in all material respects, the financial position and results of operations of
the Company as of the dates and/or the periods indicated. The Company has no material liabilities or obligations which are not
reflected or reserved against in the Company Balance Sheet, except liabilities or obligations incurred since the date of the Company
Balance Sheet in the ordinary course of business.

 

    	7

    	 

    

 

2.16
Agreements; Action.

 

(a)
Except as stated in the Company’s filings with the Securities and Exchange Commission (“Company’s SEC Filings”),
there are no agreements, understandings or proposed transactions between the Company and any of its officers, directors, affiliates,
or any affiliate thereof.

 

(b)
Except as stated in the Company’s SEC Filings, there are no agreements, understandings, instruments, contracts, proposed
transactions, judgments, orders, writs or decrees to which the Company is a party or by which it is bound that may involve (i)
obligations (contingent or otherwise) of, or payments by the Company in excess of, $50,000, or (ii) the license of any patent,
copyright, trade secret or other proprietary right to or from the Company, or (iii) provisions restricting or adversely affecting
the development, manufacture or distribution of the Company’s products or services or (iv) indemnification by the Company
with respect to infringements of proprietary rights.

 

(c)
Except as stated in the Company’s SEC Filings, the Company has not (i) declared or paid any dividends or authorized or made
any distribution upon or with respect to any class or series of its capital stock, (ii) incurred any indebtedness for money borrowed
or any other liabilities individually in excess of $75,000 or, in the case of indebtedness and/or liabilities individually less
than $75,000, in excess of $150,000 in the aggregate, (iii) made any loans or advances to any person, other than ordinary advances
for travel expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or rights, other than the sale of its
inventory in the ordinary course of business.

 

(d)
For the purposes of subsections (b) and (c) above, all indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same person or entity (including persons or entities the Company has reason to believe
are affiliated therewith) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsections.

 

(e)
The Company is not a party to and is not bound by any contract, agreement or instrument, or subject to any restriction under its
Certificate of Incorporation or its Bylaws that adversely affects its business as now conducted or as proposed to be conducted,
its properties or its financial condition.

 

2.17
Shareholder Agreements. Except for agreements contemplated hereby of even date herewith, there are no agreements, other than agreements,
true and complete copies of which the Company has provided to special counsel to the Investors, between the Company and any of
the Company’s shareholders, or to the best knowledge of the Company, among any of the Company’s shareholders, which
in any way affect any shareholder’s ability or right freely to alienate or vote such shares (except restrictions designed
to provide compliance with securities laws).

 

    	8

    	 

    

 

2.18
Brokers or Finders. The Company has not agreed to incur, directly or indirectly, any liability for brokerage or finders’
fees, agents’ commissions or other similar charges in connection with this Agreement or any of the transactions contemplated
hereby.

 

3.
Representations and Warranties of the Investors. Each Investor hereby represents and warrants that:

 

3.1
Experience. Such Investor is experienced in evaluating start-up companies such as the Company, is able to fend for itself in transactions
such as the one contemplated by this Agreement, has such knowledge and experience in financial and business matters that such
Investor is capable of evaluating the merits and risks of such Investor’s prospective investment in the Company, and has
the ability to bear the economic risks of the investment.

 

3.2
Investment. Such Investor is acquiring the Shares (and the Common Stock issuable upon conversion of the Shares) for investment
for such Investor’s own account and not with the view to, or for resale in connection with, any distribution thereof. Such
Investor understands that the Shares (and the Common Stock issuable upon conversion of the Shares) have not been registered under
the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, which depends upon,
among other things, the bona fide nature of the investment intent as expressed herein. Such Investor further represents that it
does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to
any third person with respect to any of the Shares (or any Common Stock acquired upon conversion thereof). Such Investor understands
and acknowledges that the offering of the Shares pursuant to this Agreement will not, and any issuance of Common Stock on conversion
may not, be registered under the Securities Act on the ground that the sale provided for in this Agreement and the issuance of
securities hereunder is exempt from the registration requirements of the Securities Act.

 

3.3
Rule 144. Such Investor acknowledges that the Shares (and the Common Stock issuable upon conversion of the Shares) must be held
indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available. Such
Investor is aware of the provisions of Rule 144 promulgated under the Securities Act, which permit limited resale of shares purchased
in a private placement subject to the satisfaction of certain conditions. Such Investor covenants that, in the absence of an effective
registration statement covering the stock in question, such Investor will sell, transfer, or otherwise dispose of the Shares (and
any Common Stock issued on conversion thereof) only in a manner consistent with such Investor’s representations and covenants
set forth in this Section 3. In connection therewith, such Investor acknowledges that the Company will make a notation on its
stock books regarding the restrictions on transfers set forth in this Section 3 and will transfer securities on the books of the
Company only to the extent not inconsistent therewith.

 

    	9

    	 

    

 

3.4
No Public Market. Such Investor understands that no public market now exists for the preferred securities issued by the Company,
and that it is unlikely that a public market will ever exist for the Shares.

 

3.5
Access to Data. Such Investor has received and reviewed information about the Company and has had an opportunity to discuss the
Company’s business, management and financial affairs with its management and to review the Company’s facilities.

Such Investor understands that such discussions, as well as any
written information issued by the Company, were intended to describe the aspects of the Company’s business and prospects
which the Company believes to be material, but were not necessarily a thorough or exhaustive description. The foregoing, however,
does not limit or modify the representations and warranties of the Company in Section 2 of this Agreement or the right of the Investors
to rely thereon.

 

3.6
Authorization. This Agreement when executed and delivered by such Investor will constitute a valid and legally binding obligation
of the Investor, enforceable in accordance with its terms, subject to: (i) judicial principles respecting election of remedies
or limiting the availability of specific performance, injunctive relief, and other equitable remedies; (ii) bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’
rights.

 

3.7
Accredited Investor. Such Investor acknowledges that it is an ‘accredited investor’ as defined in Rule 501 of Regulation
D as promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further
assurances of such status as may be reasonably requested by the Company. For state securities law purposes, the principal address
of the Investor is that set forth on Exhibit A.

 

3.8
Company’s SEC Filings. Such Investor and read and reviewed the Company’s SEC Filings, and acknowledges that an investment
in the Company involves certain risks.

 

4.
Conditions of Investor’s Obligations at Closing. The obligations of each Investor under subsection 1.1(b) of this Agreement
are subject to the fulfillment on or before the Closing of each of the following conditions, the waiver of which shall not be
effective against any Investor who does not consent in writing thereto:

 

4.1 
Representations and Warranties. The representations and warranties of the Company contained in Section 2 shall be true on and
as of the Closing with the same effect as though such representations and warranties had been made on and as of the date of such
Closing.

 

    	10

    	 

    

 

4.2
Performance. The Company shall have performed and complied with all agreements, obligations and conditions contained in this

Agreement that is required to be performed or complied with by it
on or before the Closing.

 

4.3
Compliance Certificate. The Chief Financial Officer of the Company shall deliver to each Investor at the Closing a certificate
stating that the conditions specified in Sections 4.1 and 4.2 have been fulfilled and stating that there shall have been no adverse
change in the business, affairs, prospects, operations, properties, assets or condition of the Company since the date of this
Agreement.

 

4.4
Board of Directors. Effective upon the Closing, the directors of the Company shall be Messrs. Douglas J. Toth, Gilbert Davila,
Elliot Stein, Roger Wood, David Schamouelian, Ephraim Linderbaum, Kim Cranston, _TBD_ and _TBD .

 

4.5
Blue Sky. The Company shall have obtained all necessary permits and qualifications, if any, or secured an exemption therefrom,
required by any state or country prior to the offer and sale of the

Shares.

 

5.
Conditions of the Company’s Obligations at Closing. The obligations of the Company to each Investor under this Agreement
are subject to the fulfillment on or before the Closing of each of the following conditions by that Investor:

 

5.1
Representations and Warranties. The representations and warranties of the Investor contained in Section 3 shall be true on and
as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing.

 

5.2
Payment of Purchase Price. The Investor shall have delivered the purchase price specified in Section 1.2 against delivery of the

Shares set forth in the Schedule of Investors attached hereto as
Exhibit A by the Company to such Investor.

 

5.3
Blue Sky. The Company shall have obtained all necessary permits and qualifications, if any, or secured an exemption therefrom,
required by any state or country for the offer and sale of the Shares.

 

5.4
Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing
hereby, and all documents and instruments incident to these transactions, shall be reasonably satisfactory in substance to the
Company and its counsel.

  

    	11

    	 

    

 

6. Miscellaneous.

 

6.1
Governing Law. This Agreement shall be governed in all respects by the laws of the State of Nevada, without regard to any provisions
thereof relating to conflicts of laws among different jurisdictions.

 

6.2
Survival. The representations, warranties, covenants and agreements made herein shall survive any investigation made by any Investor
and the closing of the transactions contemplated hereby for a period of one (1) year, whereupon they shall cease and be of no
further force and effect. All statements as to factual matters contained in any certificate or exhibit delivered by or on behalf
of the Company pursuant hereto shall be deemed to be the representations and warranties of the Company hereunder as of such date
of such certificate or exhibit.

 

6.3
Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the parties hereto; provided, however, that the rights of
an Investor to purchase Shares shall not be assignable without the consent of the Company.

 

6.4
Entire Agreement; Amendment. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding
and agreement among the parties with regard to the subjects hereof and thereof. Neither this Agreement nor any term hereof may
be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of
any such amendment, waiver, discharge or termination is sought; provided, however, that holders of a majority of the outstanding
Shares (whether or not converted) may waive or amend, on behalf of all Investors and other holders of Shares, any provisions hereof
benefitting the Investors so long as the effect thereof will be that all such Investors and other holders of Shares will be treated
equally.

 

6.5
Notices, Etc. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by
registered or certified mail, postage prepaid, return receipt requested, or otherwise delivered by hand or by messenger, addressed
(a) if to an Investor, at such Investor’s address set forth on Exhibit A, or at such other address as such Investor shall
have furnished to the Company in writing, or (b) if to any other holder of any Shares, at such address as such holder shall have
furnished the Company in writing, or, until any such holder so furnishes an address to the Company, then to and at the address
of the last holder of such Shares who has so furnished an address to the Company, or (c) if to the Company, at its address set
forth on the first page of this Agreement addressed to the attention of the Corporate Secretary, or at such other address as the
Company shall have furnished to the Investors. If notice is provided by mail, notice shall be deemed to be given three (3) business
days after proper deposit in the U. S. Mail.

 

    	12

    	 

    

 

6.6
Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any holder of any Shares upon any
breach or default of the Company under this Agreement shall impair any such right, power or remedy of such holder, nor shall it
be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any holder of any breach
or default under this Agreement, or any waiver on the part of any holder of any provisions or conditions of this Agreement, must
be in writing and shall be effective only to the extent specifically set forth in such writing or as provided in this Agreement.
All remedies, either under this Agreement or by law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

6.7
Expenses. The Company and each Investor shall bear their own expenses and legal fees incurred on its behalf with respect to this

Agreement and the transactions contemplated hereby.

 

6.8
Finder’s Fee. The Company and the Investors shall each indemnify and hold the other harmless from any liability for any
commission or compensation in the nature of a finder’s fee (including the costs, expenses and legal fees of defending against
such liability) for which the Company or the Investors, or any of their respective partners, employees, or representatives, as
the case may be, is responsible.

 

6.9
Counterparts. This Agreement may be executed in any number of counterparts, each of whom may be executed by less than all

Investors, each of which shall be enforceable against the parties
actually executing such counterparts, and all of which together shall constitute one instrument.

 

6.10
Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to
be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that
no such severability shall be effective if it materially changes the economic benefit of this Agreement to any party.

 

* * *

 

    	13

    	 

    

 

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

 

	BIZZINGO, INC.	 
	 	 	 
	By:	 /s/ Douglas Toth	 
	 	Douglas Toth, Chairman and	 
	 	Chief Executive Officer	 

 

INVESTOR:

 

Shamrock One Capital, LLC

 

	By:	 /s/ Richard A. Griffey 	 
	 	Managing Member by Richard Shanks with permission	 

_________________________

 

[SIGNATURE PAGE FOR SERIES A PREFERRED STOCK
PURCHASE AGREEMENT]

 

    	14

    	 

    

 

EXHIBIT A

 

SCHEDULE OF INVESTORS

 

			NO OF SHARES OF SERIES A 	 	AGGREGATE PURCHASE PRICE OF 
	 INVESTOR	 	PURCHASED	 	SERIES A PURCHASED
	 	 	 	 	 
	Shamrock One Capital, LLC	 	2,000,000	 	2,000,000
	1001 South Loop West, Suite 700	 	 	 	 
	Houston, TX 77027	 	 	 	 

 

    	15

    	 

    

  

EXHIBIT B

 

CERTIFICATE OF DESIGNATIONS

 

    	16

    	 

    

  

CERTIFICATE OF DESIGNATIONS

SERIES A CONVERTIBLE PREFERRED STOCK

OF

BIZZINGO, INC.

a Nevada corporation

 

Pursuant to Section 78.1955 of the

Nevada Revised
Statutes

 

The undersigned, on behalf of Bizzingo, Inc.,
a Nevada corporation (the “Company”), hereby certifies that pursuant to the authority contained in Article Four
of the Company’s Articles of Incorporation, as amended (the “Articles of Incorporation”), and in accordance
with the provisions of the Nevada Revised Statutes (the “NRS”), the Company’s Board of Directors (the
“Board”) has adopted the following resolutions creating a series of its preferred stock designated as Series
A Convertible Preferred Stock:

 

Whereas, the Articles of Incorporation provides
for a class of shares known as preferred stock, par value $0.001 per share, and 100,000,000 of which are issuable from time to
time in one or more series (the “Preferred Stock”); and

 

Whereas, the Board is authorized to determine
or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued shares of Preferred
Stock, to fix the number of shares constituting any such series, and to determine the designation thereof, or any of them.

 

Now, Therefore, Be It Resolved, that the Board
hereby fixes and determines the designations of, the number of shares constituting, and the rights, preferences, privileges and
restrictions relating to, a new series of Preferred Stock as follows:

 

A. Designation.
The series of Preferred Stock is hereby designated Series A Convertible Preferred Stock with a par value of $0.001 per share (the
“Series A Preferred”).

 

B. Authorized
Shares. The number of authorized shares constituting the Series A Preferred shall be 2,000,000 shares of such series.

 

C. The
rights, preferences, privileges, restrictions and other matters relating to the Series A Preferred are as follows:

 

    	17

    	 

    
 

1. Dividend
Rights.

 

(a) Series
A Preferred Dividend. Subject to the rights of any series of Preferred Stock of the Company that may come into existence
from time to time, the holders of shares of Series A Preferred, in preference to the holders of any other capital stock of
the Company, will be entitled to receive an annual dividend equal to five cents ($0.05) per share, payable in Common Stock of
the Company as determined in the following sentence. For each share of Series A Preferred Stock, the holder shall receive as
a dividend, the number of shares of Common Stock of the Company resulting from the following formula (expressed a whole
number):

 

Y divided by (0.8 times Z)

 

Where;

Y equals 0.05, and

Z equals the average closing price of the Company’s
Common Stock as traded on any Regulated Securities Market (as defined below) for the 20 trading day period ending (and including)
December 31 of each year.

 

“Regulated Securities Market” shall mean any securities
market, electronic bulletin board (including the OTCBB, OTCQB or OTCQX market), “pink sheet” market, or other third
party market, if any, on which Shares are primarily traded, but if no shares of Company Common Stock were traded on such date,
then on the last previous date on which any Share was so traded, or (B) if shares of Company Common Stock are not listed on any
stock exchange or market, than the value as established by the Board of Directors for such date using any reasonable method of
valuation.

 

Except as stated in Section 4(c), the Dividend will be payable on
or before February 15 of the subsequent year. The foregoing calculation shall be adjusted for any stock splits, stock dividends,
combinations, recapitalizations or the like.

 

(b) The
“Original Issue Price” of the Series A Preferred shall be $1.00 per share.

 

(c) Except
as stated in 1(d) and 1(e) below, so long as any shares of Series A Preferred are outstanding, the Company shall not pay or declare
any dividend, whether in cash or property, or make any other distribution on the Company’s common stock, par value $0.001
(the “Common Stock”), or purchase, redeem or otherwise acquire for value any shares of Common Stock until all
dividends set forth in Section 1(a) above shall have been paid and set apart, except for acquisitions of Common Stock by the Company
pursuant to agreements which permit the Company to repurchase such shares at cost upon termination of services to the Company or
in exercise of the Company’s right of first refusal upon a proposed transfer.

 

(d) The
Company is authorized to pay dividends on its Common Stock, provided that, it pays an additional dividend on all outstanding shares
of Series A Preferred in a per share amount equal (on an as-if-converted to Common Stock basis) to the amount paid or set aside,
and in the same form of consideration, for each share of Common Stock.

 

    	18

    	 

    

 

(e) The
provisions of Sections 1(c) and 1(d) shall not apply to:

 

(i) a dividend
payable in Common Stock to which the provisions Section 4 apply; or

 

(ii) any repurchase
of any outstanding securities of the Company that is approved by the Board, including the affirmative vote of the representatives
of the Series A Director (defined below).

 

(f) The
right of the holders of Series A Preferred to receive payments of dividends under Section 1(a) may be waived by the holders of
a majority of the outstanding Series A Preferred voting together as a single class.

 

2. Voting
Rights.

 

(a) General
Rights. Each holder of shares of Series A Preferred shall be entitled to the number of votes equal to the number of shares of Common
Stock into which such shares of Series A Preferred could be converted (pursuant to Section 4 hereof) immediately after the close
of business on the record date fixed for such meeting or the effective date of such written consent and shall have voting rights
and powers equal to the voting rights and powers of the Common Stock and shall be entitled to notice of any stockholders’
meeting in accordance with the Bylaws of the Company. Except as otherwise provided herein or as required by law, the Series A Preferred
shall vote together with the Common Stock as a single class on an as-if-converted to Common Stock basis at any annual or special
meeting of the stockholders and not as a separate class, and may act by written consent in the same manner as the Common Stock
with respect to any question upon which holders of Common Stock have the right to vote.

 

(b) Separate
Vote of Series A Preferred. For so long holders of the Series A Preferred hold twenty-five percent (25%) of the Company’s
outstanding capital stock on an as-converted-to Common Stock basis (as adjusted for any stock splits, stock dividends, combinations,
recapitalizations or the like after the filing date hereof), in addition to any other vote or consent required herein or by law,
the vote or written consent of the holders of at least a majority of the outstanding Series A Preferred voting as a single class
shall be necessary for effecting or validating the following actions (including by way of merger or consolidation or otherwise):

 

(i) any amendment,
alteration, repeal or waiver of any provision of the Articles of Incorporation or the Company’s Bylaws (including any filing
of a Certificate of Designation);

 

(ii) any increase
or decrease in the authorized number of shares of Preferred Stock, including the Series A Preferred;

 

(iii) any authorization
or any designation, whether by reclassification or otherwise, of any new class or series of stock or any other securities convertible
into or exercisable for equity securities of the Company ranking on a parity with or senior to the Series A Preferred in right
of redemption, conversion, liquidation preference, registration rights, voting or dividends or any increase in the authorized or
designated number of any such new class or series; or

 

    	19

    	 

    

  

(iv) the entry
into any agreement to which the Company is a party regarding an Asset Transfer or Acquisition (each as defined in Section 3) or
any other merger (whether or not the Company is the surviving corporation), consolidation, corporate reorganization, reclassification
or recapitalization of the Company.

 

(c) Election
of Board of Directors.

 

(i) For so long
holders of the Series A Preferred hold twenty-five percent (25%) of the Company’s outstanding capital stock on an as-converted-to
Common Stock basis (as adjusted for any stock splits, stock dividends, combinations, recapitalizations or the like after the filing
date hereof), the holders of Series A Preferred, voting together as a single class on an as-if-converted to Common Stock basis,
shall be entitled to elect two (2) members of the Board (the “Series A Directors”) at each meeting or
pursuant to each consent of the Company’s stockholders for the election of directors, and to remove from office such director
and to fill any vacancy caused by the resignation, death or removal of such director. Each Series A Director shall be elected by
the affirmative vote or consent of the holders of at least a majority of the then-outstanding Series A Preferred outstanding capital
stock, voting together as a single class on an as-converted-to Common Stock basis.

 

(ii) The holders
of Common Stock and the then-outstanding Preferred Stock (including the Series A Preferred), voting together as a single class
on an as-if-converted to Common Stock basis, shall be entitled to elect all remaining members of the Board at each meeting or pursuant
to each consent of the Company’s stockholders for the election of directors, and to remove from office such directors and
to fill any vacancy caused by the resignation, death or removal of such directors.

 

(iii) Notwithstanding
the provisions of Section 78.335 of the NRS, any Series A Director may be removed at any time (with or without cause) by the
vote of the holders of at least a majority of all of the then-outstanding shares of Series A Preferred, voting as a separate
class by (y) written consent, if the consenting holders of Series A Preferred hold a sufficient number of shares to remove
such director at a meeting of stockholders or (z) in person or by proxy at a special meeting of holders of shares of Series A
Preferred called for such purpose. A Series A Director may not be removed by the vote or consent of the holders of Common
Stock. Any vacancy created by the removal, death or resignation of a Series A Director may be filled by the vote of holders
of at least a majority of all of the then-outstanding shares of Series A Preferred by (y) written consent, if the consenting
holders of Series A Preferred hold a sufficient number of shares to elect their designee at a meeting of stockholders or (z)
in person or by proxy at a special meeting of holders of shares of Series A Preferred called for such purpose.

 

    	20

    	 

    

  

3. Liquidation,
Asset Transfer or Acquisition Rights.

 

(a) Liquidation
Preference of the Series A Preferred. Upon any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary,
or any Acquisition or Asset Transfer (each, a “Liquidation Event”), and before any distribution or payment shall
be made to the holders of any Common Stock, subject to the right of any other series of Preferred Stock that may from time to time
come into existence, the holders of Series A Preferred shall be entitled to be paid out of the assets of the Company legally available
for distribution, or the consideration received in such Liquidation Event, for each share of Series A Preferred held by them, an
amount per share of Series A Preferred equal to the greater of: (i) the Original Issue Price (as adjusted for any stock
dividends, combinations, splits, recapitalizations and the like with respect to such shares after the filing date hereof) plus
any accrued but unpaid cumulative dividends (the “Series A Liquidation Amount”) or (ii) the amount a share of
Series A Preferred would be entitled to receive in such Liquidation Event if such share of Series A Preferred were to be converted
to Common Stock immediately prior to such Liquidation Event. If, upon any such Liquidation Event, the assets of the Company (or
the consideration received in such transaction) shall be insufficient to make payment in full to all holders of Series A Preferred
of the Series A Liquidation Amount, then such assets (or consideration) shall be distributed among the holders of Series A Preferred
at the time outstanding, ratably in proportion to the full amounts to which they would otherwise be respectively entitled to receive.

 

(b) Deemed Conversion.
Notwithstanding Section 3(a) above, solely for purposes of determining the amount each holder of shares of Series A Preferred is
entitled to receive with respect to a Liquidation Event, the Series A Preferred shall be treated as if all holders of such series
had converted such holder’s shares of such series into shares of Common Stock immediately prior to the Liquidation Event
if, as a result of an actual conversion of the Series A Preferred (including taking into account the operation of this paragraph
(b) with respect to all Series A Preferred), holders of such series would receive (with respect to such series), in the aggregate,
an amount greater than the amount that would be distributed to holders of Series A Preferred which had not converted such Series
A Preferred into shares of Common Stock. If holders of Series A Preferred are treated as if they had converted shares of Series
A Preferred into Common Stock pursuant to this paragraph, then such holders shall not be entitled to receive any distribution pursuant
to Section 3(a) that would otherwise be made to holders of such series of Series A Preferred.

 

    	21

    	 

    

   

(c) Remaining
Assets. After the payment of the full liquidation preferences of the Series A Preferred as set forth in Section 3(a) above, the
remaining assets of the Company legally available for distribution in such Liquidation Event (or the consideration received in
such transaction), if any, shall be distributed to the holders of the Common Stock, pro rata based on the number of shares
of Common Stock held by each holder.

 

(d) Acquisition
and Asset Transfer. For the purposes of this Certificate of Designations: (i) “Acquisition” shall mean (A) any
consolidation, share exchange or merger of the Company with or into any other corporation or other entity or person, or any other
corporate reorganization, in which the stockholders of the Company immediately prior to such consolidation, share exchange, merger
or reorganization, own less than fifty percent (50%) of the voting power of the surviving or successor entity (or in the event
stock or ownership interests of an affiliated entity are issued in such transaction, less than fifty percent (50%) of the voting
power of such affiliated entity) immediately after such consolidation, share exchange, merger or reorganization; or (B) any transaction
or series of related transactions to which the Company is a party in which in excess of fifty percent (50%) of the Company’s
outstanding voting power is transferred; provided that an Acquisition shall not include any transaction or series of transactions
principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of
the Company is cancelled or converted or a combination thereof; and (ii) ”Asset Transfer” shall mean a sale,
lease, conveyance, exclusive license or other disposition of all or substantially all of the assets of the Company. At the election
of the holders of at least a majority of the outstanding Series A Preferred voting together as a single class on an as-if-converted
to Common Stock basis, an Acquisition or Asset Transfer may be determined not to be considered a Liquidation Event under this Section
3.

 

(e) Determination
of Value if Proceeds Other than Cash. In any Acquisition or Asset Transfer, if the consideration to be received by the Company
is other than cash, the Board in accordance with this Section 3(e) will deem its value its fair market value as determined in good
faith.

 

4. Conversion
Rights.

 

The holders of the Series A Preferred shall have the following rights
with respect to the conversion of the Series A Preferred into shares of Common Stock (the “Conversion Rights”):

 

(a) Optional
Conversion. Subject to and in compliance with the provisions of this Section 4, any shares of Series A Preferred may, at the option
of the holder, be converted at any time into fully-paid and nonassessable shares of Common Stock. Each share of Series A Preferred
shall be convertible into the number of shares of Common Stock which results from dividing (x) the Original Issue Price by (y)
the conversion price in effect on the date of conversion (the “Series A Preferred Conversion Price”). The initial Series
A Preferred Conversion Price shall be four cents ($0.04).

 

    	22

    	 

    

   

(b) Mechanics
of Conversion. Each holder of Series A Preferred who desires to convert the same into shares of Common Stock pursuant to this Section
4 shall surrender the certificate or certificates therefor, duly endorsed, or an affidavit of loss and a written agreement reasonably
acceptable to the Company to indemnify the Company from any loss, damage, cost or expense incurred by the Company arising out of
or relating to such lost certificate, at the office of the Company or any transfer agent for the Series A Preferred, and shall
give written notice to the Company at such office that such holder elects to convert the same. Such notice shall state the number
of shares of Series A Preferred being converted. Thereupon, the Company 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 to receive as a
result of such conversion. Upon such conversion, payment of a dividend calculated through the date of such conversion also shall
be made by the Company. Such conversion shall be deemed to have been made at the close of business on the date of such surrender
of the certificates representing the shares of Series A Preferred 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.

 

(c) Adjustment
for Stock Splits and Combinations. If at any time or from time to time after the date that the first share of Series A Preferred
is issued (the “Series A Original Issue Date”) the Company effects a split or subdivision of the outstanding
Common Stock into a larger number of shares without a corresponding split or subdivision of the Series A Preferred, the Series
A Preferred Conversion Price in effect immediately before that split or subdivision shall be proportionately decreased. Conversely,
if at any time or from time to time after the Series A Original Issue Date the Company combines the outstanding shares of Common
Stock into a smaller number of shares without a corresponding combination of the Series A Preferred, the Series A Preferred Conversion
Price in effect immediately before the combination shall be proportionately increased. Any adjustment under this Section 4(c) shall
become effective at the close of business on the date the subdivision or combination becomes effective.

 

(d) Adjustment
for Reclassification, Exchange, Substitution, Reorganization, Merger or Consolidation. If at any time or from time to time after
the Series A Original Issue Date, the Common Stock issuable upon the conversion of the Series A Preferred is changed into the same
or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification, merger, consolidation
or otherwise (other than an Acquisition or Asset Transfer (as defined in Section 3) or a subdivision or combination of shares or
stock dividend or a reorganization, merger, consolidation or sale of assets provided for elsewhere in this Section 4), in any such
event each holder of Series A Preferred shall then have the right to convert such stock into the kind and amount of stock and other
securities and property receivable upon such recapitalization, reclassification, merger, consolidation or other change by holders
of the maximum number of shares of Common Stock into which such shares of Series A Preferred could have been converted immediately
prior to such recapitalization, reclassification, merger, consolidation or change, all subject to further adjustment as provided
herein or with respect to such other securities or property by the terms thereof. In any such case, appropriate adjustment shall
be made in the application of the provisions of this Section 4 with respect to the rights of the holders of Series A Preferred
after the capital reorganization to the end that the provisions of this Section 4 (including adjustment of the Series A Preferred
Conversion Price then in effect and the number of shares issuable upon conversion of the Series A Preferred) shall be applicable
after that event and be as nearly equivalent as practicable. As a condition to any such recapitalization, reclassification, merger,
consolidation or other transaction contemplated above, the Company shall reserve a sufficient number of the shares or securities,
or a sufficient amount of the property, received or to be received to allow for the conversion of all outstanding shares of Series
A Preferred in accordance with this Section 4(e).

 

    	23

    	 

    

  

(e) Sale
of Shares Below Series A Preferred Conversion Price.

 

(i) If at any
time or from time to time after the Series A Original Issue Date, the Company issues or sells, or is deemed by the express provisions
of this Section 4(e) to have issued or sold, Additional Shares of Common Stock (as defined below), other than as provided in Sections
4(c) or 4(d) above, without consideration (in which case the Company shall be deemed to have received an aggregate of $0.001 of
consideration for all such Additional Shares of Common Stock issued or deemed to be issued) or for an Effective Price (as defined
below) less than four cents ($0.04) per share (a “Qualifying Dilutive Issuance”), then and in each such case,
the then existing Series A Preferred Conversion Price shall be reduced, as of the opening of business on the date of such issue
or sale, to a price determined by multiplying the Series A Preferred Conversion Price in effect immediately prior to such issuance
or sale by a fraction:

 

(A) the numerator
of which shall be (y) the number of shares of Common Stock deemed outstanding (as determined below) immediately prior to such issue
or sale, plus (z) the number of shares of Common Stock that the Aggregate Consideration (as defined below) received or deemed
received by the Company for the total number of Additional Shares of Common Stock so issued would purchase at such then-existing
Series A Preferred Conversion Price, and

 

(B) the denominator
of which shall be (y) the number of shares of Common Stock deemed outstanding (as determined below) immediately prior to such issue
or sale plus(z) the total number of Additional Shares of Common Stock so issued.

 

    	24

    	 

    

   

For the purposes of the preceding sentence, the number
of shares of Common Stock deemed to be outstanding as of a given date shall be the sum of (x) the number of shares of Common Stock
outstanding immediately preceding the event giving rise to the Qualifying Dilutive Issuance, (y) the number of shares of Common
Stock into which the then outstanding shares of Series A Preferred could be converted if fully converted immediately preceding
the event giving rise to the Qualifying Dilutive Issuance, and (z) the number of shares of Common Stock that could be obtained
through the exercise or conversion of all other vested rights, options and convertible securities outstanding immediately preceding
the event giving rise to the Qualifying Dilutive Issuance.

 

(ii) No adjustment
shall be made to the Series A Preferred Conversion Price in an amount less than one cent per share. Any adjustment otherwise required
by this Section 4(e) that is not required to be made due to the preceding sentence shall be included in any subsequent adjustment
to the Series A Preferred Conversion Price.

 

(iii) For the
purpose of making any adjustment required under this Section 4(e), the aggregate consideration received by the Company for any
issue or sale of securities (the “Aggregate Consideration”) shall be defined as: (A) to the extent it consists
of cash, be computed at the net amount of cash received by the Company after deduction of any underwriting or similar commissions,
compensation or concessions paid or allowed by the Company in connection with such issue or sale but without deduction of any expenses
payable by the Company in connection with such issue or sale, (B) to the extent it consists of property other than cash, be computed
at the fair value of that property as determined in good faith by the Board, and (C) if Additional Shares of Common Stock, Convertible
Securities (as defined below) or rights or options to purchase either Additional Shares of Common Stock or Convertible Securities
are issued or sold together with other stock or securities or other assets of the Company for a consideration that covers both,
be computed as the portion of the consideration so received that may be reasonably determined in good faith by the Board to be
allocable to such Additional Shares of Common Stock, Convertible Securities or rights or options.

 

    	25

    	 

    

   

(iv) For the purpose
of the adjustment required under this Section 4(e), if the Company issues or sells (x) Preferred Stock or other stock, options,
warrants, purchase rights or other securities (including any notes) convertible into or exchangeable for, Additional Shares of
Common Stock (such convertible stock or securities being herein referred to as “Convertible Securities”) or
(y) rights or options for the purchase of Additional Shares of Common Stock or Convertible Securities, and if the Effective Price
of such Additional Shares of Common Stock issued or deemed to be issued as provided below is less than the Series A Preferred Conversion
Price, in each case the Company 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 and to have received
as consideration for the issuance of such shares an amount equal to the total amount of the consideration, if any, received by
the Company for the issuance of such rights or options or Convertible Securities, plus:

 

(A) in the case
of such rights or options, the minimum amounts of consideration, if any, payable to the Company upon the exercise of such rights
or options;

 

(B) in the case
of Convertible Securities, the minimum amounts of consideration, if any, payable to the Company upon the conversion thereof (other
than by cancellation of liabilities or obligations evidenced by such Convertible Securities); provided that if the
minimum amounts of such consideration cannot be ascertained, but are a function of antidilution or similar protective clauses,
the Company shall be deemed to have received the minimum amounts of consideration without reference to such clauses;

 

(C) If the minimum
amount of consideration payable to the Company upon the exercise or conversion of rights, options or Convertible Securities is
reduced over time or on the occurrence or non-occurrence of specified events other than by reason of antidilution adjustments,
the Effective Price shall be recalculated using the figure to which such minimum amount of consideration is reduced; provided
further, that if the minimum amount of consideration payable to the Company upon the exercise or conversion of such rights,
options or Convertible Securities is subsequently increased, the Effective Price shall be again recalculated using the increased
minimum amount of consideration payable to the Company upon the exercise or conversion of such rights, options or Convertible Securities.
In either such case, the Series A Preferred Conversion Price shall be readjusted accordingly; and

 

    	26

    	 

    

   

(D) No further
adjustment of the Series A Preferred Conversion Price, as 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 or 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 privilege represented by
any such Convertible Securities shall expire without having been exercised, the Series A Preferred Conversion Price as adjusted
upon the issuance of such rights, options or Convertible Securities shall be readjusted to the Series A Preferred Conversion Price
that 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 of such Convertible Securities, and such Additional Shares of Common Stock, if any, were issued or sold for the consideration
actually received by the Company upon such exercise, plus the consideration, if any, actually received by the Company for the granting
of all such rights or options, whether or not exercised, plus the consideration received for issuing or selling the Convertible
Securities actually converted, plus the consideration, if any, actually received by the Company (other than by cancellation of
liabilities or obligations evidenced by such Convertible Securities) on the conversion of such Convertible Securities, provided
that such readjustment shall not apply to prior conversions of Series A Preferred.

 

(v) Notwithstanding
any other provisions of this Section 4(e), except to the limited extent provided for in Section 4(e)(iv), no adjustment of the
Series A Preferred Conversion Price pursuant to this Section 4(e) shall have the effect of increasing such Series A Preferred Conversion
Price above the Series A Preferred Conversion Price in effect immediately prior to such adjustment.

 

(vi) Notwithstanding
anything contained in this instrument to the contrary, for the purpose of making any adjustment to the Series A Preferred Conversion
Price required under this Section 4(e), “Additional Shares of Common Stock” shall mean all shares of Common
Stock issued by the Company or deemed to be issued pursuant to this Section 4(e) (including shares of Common Stock subsequently
reacquired or retired by the Company), other than:

 

(A) shares of
Common Stock issued upon conversion of the Series A Preferred or as a dividend or distribution on the Series A Preferred;

 

(B) shares of
Common Stock and/or options, warrants or other Common Stock purchase rights and the Common Stock issued pursuant to such stock
grants, options, warrants or other rights issued or issuable to employees, officers or directors of, or consultants or advisors
to, the Company or any of its subsidiaries pursuant to stock purchase, stock option plans (including the 2011 and the 2012 Stock
Option Plans), stock warrants, stock grants, or other similar arrangements approved by the Board;

 

    	27

    	 

    

   

(C) shares of
Common Stock issued pursuant to the exercise of Convertible Securities outstanding as of the Series A Original Issue Date;

 

(D) shares of
Common Stock or Convertible Securities issued pursuant to any equipment loan or commercial credit or leasing arrangement, real
property leasing arrangement or debt financing from a bank or similar financial institution entered into primarily for non-equity
financing approved by the Board;

 

(E) shares of
Common Stock issued in connection with any stock split, stock dividend, reclassification or similar non-economic event by the Company;

 

(F) shares of
Common Stock or Convertible Securities issued pursuant to a transaction or series of related transactions with respect to which
the holders of at least a majority of the outstanding shares of the Series A Preferred have waived any adjustment of the Series
A Preferred Conversion Price pursuant to this Section 4(h) in connection with the issuance of such securities;

 

(G) shares of
Common Stock and/or Convertible Securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition,
strategic alliance or similar business combination by the Board;

 

(H) all securities
issued or issuable to the purchasers of Series A Preferred pursuant to the Series A Preferred Stock Purchase Agreement dated on
or about the Series A Original Issue Date (the “Series A Purchase Agreement”), including shares of Series A
Preferred (whether issued initially pursuant to the Series A Purchase Agreement) and all shares of Common Stock issued or issuable
upon conversion of Series A Preferred; and

 

(I) all securities
issued or issuable to the purchasers of Series A Preferred pursuant to agreements with investors entered into subsequent to the
Series A Original Issue Date but which agreements contain terms that are substantially similar to the Series A Purchase Agreement.

 

    	28

    	 

    

   

(J) (i) An agreement dated May 23, 2011 by and between
the Company and Professional Capital Partners, Ltd., a British Virgin Islands company

 

References to Common Stock in the subsections of this clause (vi)
above shall mean all shares of Common Stock issued by the Company or deemed to be issued pursuant to this Section 4(e). The “Effective
Price” of Additional Shares of Common Stock shall mean the quotient determined by dividing the total number of Additional
Shares of Common Stock issued or sold, or deemed to have been issued or sold by the Company under this Section 4(e), into the Aggregate
Consideration received, or deemed to have been received by the Company for such issue under this Section 4(e), for such Additional
Shares of Common Stock. In the event that the number of shares of Additional Shares of Common Stock or the Effective Price cannot
be ascertained at the time of issuance, such Additional Shares of Common Stock shall be deemed issued immediately upon the occurrence
of the first event that makes such number of shares or the Effective Price, as applicable, determinable.

 

(vii) In the event
that the Company issues or sells, or is deemed to have issued or sold, Additional Shares of Common Stock in a Qualifying Dilutive
Issuance (the “First Dilutive Issuance”), then in the event that the Company issues or sells, or is deemed to
have issued or sold, Additional Shares of Common Stock in a Qualifying Dilutive Issuance other than the First Dilutive Issuance
pursuant to the same instruments as the First Dilutive Issuance (a “Subsequent Dilutive Issuance”), then and
in each such case upon a Subsequent Dilutive Issuance the Series A Preferred Conversion Price shall be reduced to the Series A
Preferred Conversion Price that would have been in effect had the First Dilutive Issuance and each Subsequent Dilutive Issuance
all occurred on the closing date of the First Dilutive Issuance.

 

(i) Other Distributions.
Subject to the terms of Section 1, in the event the Company shall declare a distribution payable in securities of other persons,
evidences of indebtedness issued by the Company or other persons, assets (excluding cash dividends) or options or rights not referred
to in this Section 4, then, in each such case for the purpose of this Section 4, the holders of Series A Preferred shall be entitled
to a proportionate share of any such distribution as though they were the holders of the number of shares of Common Stock of the
Company into which their shares of Series A Preferred are convertible as of the record date fixed for the determination of the
holders of Common Stock of the Company entitled to receive such distribution.

 

    	29

    	 

    

  

(j) Certificate
of Adjustment. In each case of an adjustment or readjustment of the Series A Preferred Conversion Price for the number of shares
of Common Stock or other securities or property issuable upon conversion of the Series A Preferred, if such series of the Series
A Preferred is then convertible pursuant to this Section 4, the Company, at its expense, shall compute such adjustment or readjustment
in accordance with the provisions hereof and prepare a certificate showing such adjustment or readjustment, and shall mail such
certificate, by first class mail, postage prepaid, to each registered holder of such series of the Series A Preferred at the holder’s
address as shown in the Company’s books. The certificate shall set forth such adjustment or readjustment, showing in detail
the facts upon which such adjustment or readjustment is based, including a statement of (i) the Aggregate Consideration received
or deemed to be received by the Company for any Additional Shares of Common Stock issued or sold or deemed to have been issued
or sold, (ii) the Series A Preferred Conversion Price at the time in effect, (iii) the number of Additional Shares of Common Stock
issued or sold or deemed to have been issued or sold, and (iv) the type and amount, if any, of other securities or property that
at the time would be received upon conversion of such series of the Series A Preferred.

 

(k) Notices of
Record Date. Upon (i) any taking by the Company of a record of the holders of any class of securities for the purpose of determining
the holders thereof who are entitled to receive any dividend or other distribution, or (ii) any Acquisition (as defined in Section
3) or other capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company,
any merger or consolidation of the Company with or into any other corporation, or any Asset Transfer (as defined in Section 3),
or any Liquidation Event or other voluntary or involuntary dissolution, liquidation or winding up of the Company, the Company shall
mail to each holder of Series A Preferred at least ten (10) days prior to (x) the record date, if any, specified therein, or (y)
if no record date is specified, the date upon which such action is to take effect (or, in either case, such shorter period approved
by the holders of at least a majority of the then outstanding Series A Preferred voting together as a single class on an as-if-converted
to Common Stock basis) a notice specifying (A) 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, (B) the date on which any such Acquisition, reorganization,
recapitalization, reclassification, transfer, consolidation, merger, Asset Transfer, Liquidation Event, dissolution, liquidation
or winding up is expected to become effective, and (C) 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 Acquisition, reorganization, recapitalization, reclassification, transfer, consolidation,
merger, Asset Transfer, Liquidation Event, dissolution, liquidation or winding up.

 

    	30

    	 

    

  

(f) Automatic
Conversion.

 

(i) Each share
of Series A Preferred shall automatically be converted into shares of Common Stock, based on the then-effective Series A Preferred
Conversion Price, at any time upon the affirmative election of the holders of at least a majority of the then outstanding shares
of the Series A Preferred voting together as a single class on an as-if-converted to Common Stock basis.

 

(ii) Upon the
occurrence of the events specified in Section 4(f)(i) above, the outstanding shares of Series A Preferred shall be converted automatically
without any further action by the holders of such shares and whether or not the certificates representing such shares are surrendered
to the Company or its transfer agent and the holder thereof shall have all rights with respect to the Common Stock to be received
regardless of the timing of the delivery of new stock certificates; provided, however, that the Company shall not
be obligated to issue certificates evidencing the shares of Common Stock issuable upon such conversion unless the certificates
evidencing such shares of Series A Preferred are either delivered to the Company or its transfer agent as provided below, or the
holder notifies the Company or its transfer agent that such certificates have been lost, stolen or destroyed and executes an agreement
reasonably satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates
and provides a surety bond with respect thereto. Upon the occurrence of such automatic conversion of any series of the Series A
Preferred, the holders of such series of the Series A Preferred shall surrender the certificates representing such shares at the
office of the Company or any transfer agent for the Series A Preferred. Thereupon, there shall be issued and delivered to such
holder promptly at such office and in its name as shown on such surrendered certificate or certificates, a certificate or certificates
for the number of shares of Common Stock into which the shares of such series of the Series A Preferred surrendered were convertible
on the date on which such automatic conversion occurred, and any dividends declared but unpaid thereon shall be paid in accordance
with the provisions of Section 4(d).

 

(g) Fractional
Shares. No fractional shares of Common Stock or Series A Preferred shall be issued upon conversion of any Series A Preferred. All
shares of Common Stock (including fractions thereof) or Series A Preferred, as applicable, issuable in connection with the conversion
of shares of Series A Preferred by a holder thereof shall be aggregated for purposes of determining whether the conversion would
result in the issuance of any fractional share. If, after the aforementioned aggregation, the conversion would result in the issuance
of any fractional share, the Company shall, in lieu of issuing any fractional share, pay cash equal to the product of such fraction
multiplied by the Common Stock’s or Series A Preferred’s fair market value as applicable (as determined in good faith
by the Board) on the date of conversion.

 

    	31

    	 

    

  

(h) Reservation
of Stock Issuable Upon Conversion. The Company 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 A Preferred, 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 A Preferred. 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 A Preferred, the Company 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.

 

(i) Notices.
Any notice required by the provisions of this Section 4 shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified; (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours
of the recipient; if not, then on the next business day; (iii) five (5) business days after having been sent by registered or certified
mail, return receipt requested, postage prepaid; or (iv) one (1) business day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with verification of receipt. All notices shall be addressed to each holder of record at
the address of such holder appearing on the books of the Company.

 

(j) Payment
of Taxes. The Company 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 A Preferred, excluding 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 A Preferred so converted were registered.

 

(k) No Dilution
or Impairment. The Company will not, by amendment of this Certificate of Designation or its Articles of Incorporation or through
any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company,
but will at all times in good faith assist in carrying out the provisions of this Section 4 and in the taking of all such action
as may be necessary or appropriate in order to protect the Conversion Rights of the holders of the shares of Series A Preferred
against impairment.

 

    	32

    	 

    

   

5. No Reissuance of Series
A Preferred.

 

Any shares of Series A Preferred that are redeemed or otherwise
acquired by the Company or any of its subsidiaries by reason or purchase, conversion, or otherwise shall be automatically and immediately
canceled and shall not be reissued, sold or transferred. Neither the Company nor any of its subsidiaries may exercise any voting
or other rights granted to the holders of Series A Preferred following redemption.

 

6. Waiver.

 

Any of the rights, powers, preferences and other terms of the Series
A Preferred set forth herein may be waived on behalf of all holders of Series A Preferred by the affirmative written consent or
vote of the holders of at least a majority of the then outstanding shares of Series A Preferred voting as a single class on an
as-if-converted to Common Stock basis.

 

[The remainder of this page is intentionally
left blank.]

 

    	33

    	 

    

  

EXHIBIT C

 

RESTRICTIVE LEGEND

 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
AND MAY NOT BE SOLD OR TRANSFERRED FOR VALUE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION THEREOF UNDER THE SECURITIES ACT OF 1933
AND/OR THE SECURITIES ACT OF ANY STATE HAVING JURISDICTION OR AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER SUCH ACT OR ACTS.

 

    	34

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]