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CERTIFICATE OF DESIGNATION OF
SERIES A PREFERRED STOCK
OF
SPO MEDICAL INC.
PursuanttoSection151ofthe
GeneralCorporationLawoftheStateofDelaware
CERTIFICATE OF DESIGNATION OF SERIES A PREFERRED STOCK
SPO Medical INC. (the “Corporation”), a corporation organized and existing under the GeneralCorporationLawoftheStateofDelaware(the"DGCL"),certifiesthat,pursuantto authorityconferredupontheboardofdirectors oftheCorporation(the"Board") by the FOURTHArticleoftheAmended and Restated Certificate ofIncorporation oftheCorporation, asamendedfrom time to time(the"Certificate ofIncorporation"), and pursuantto theprovisions ofDGCL Section 151,the Board adopted and approved thefollowing resolution providing for thedesignations, preferencesand relative, participating, optional and other rights,and the qualifications, limitations and restrictionsof the Series A Preferred Stock:
WHEREAS,theCertificateofIncorporationprovidesfortwoclassesofsharesofcapital stockknownascommonstock,parvalue $0.01 per share(the "Common Stock"),and preferred stock,par value$0.01 per share(the "Preferred Stock");
WHEREAS,theCertificateofIncorporationauthorizestheissuanceof2,000,000sharesof Preferred Stock;and
WHEREAS,theBoardisauthorizedbytheCertificateofIncorporationaspermittedbythe DGCLtoprovidefortheissuanceoftheshares ofPreferredStock inone ormore series and to establishfrom time totime the numberofshares to be included ineach such series and tofix the voting powers,designations,preferences and relative, participating, optionaland other rights of the shares ofeachsuch series and thequalifications,limitations and restrictionsthereof.
NOW,THEREFORE,BEITRESOLVED,thattheBoarddoesherebyprovideforthe issuanceofaseries ofPreferredStock and doeshereby establish and fix thenumberofshares to be includedinsuchseries ofPreferred Stock and thevotingpowers,designations,preferences, rights, qualifications,limitations and restrictions of the shares ofsuchseries of Preferred Stock asfollows:
I. NAMEOFTHECORPORATION
SPOMedicalInc.
II.DESIGNATIONANDAMOUNT;DIVIDENDS
A.Designation.Thedesignationofsaidseriesofpreferredstockshallbe SeriesAPreferredStock,$0.01parvaluepershare (the"Series APreferred").
B.NumberofShares.ThenumberofsharesofSeriesAPreferred authorizedshallbeonehundred(100)shares.EachshareofSeriesAPreferred shall have a stated value equal to $0.01 (asmaybe adjusted foranystockdividends, combinations orsplits withrespect tosuch shares).
C.Dividends:Initially,therewillbenodividendsdueorpayableonthe SeriesAPreferred.Anyfutureterms with respectto dividendsshall bedeterminedbythe Board consistent withthe Corporation's Articles ofIncorporation. Any andallsuch futureterms concerning dividendsshall bereflected in anamendment to this Certificate ofDesignation, whichthe Board shallpromptly file orcause tobefiled.
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III.LIQUIDATIONRIGHTS
The holdersofSeriesAPreferredStockshallhavenorights(whetherintheformof distributionsorotherwise) in respect ofany liquidation,dissolutionorwinding upof the Corporation, eithervoluntary orinvoluntary, and shall be subordinate to allother classes ofthe Corporation'scapital stock in respect thereto.
IV.MANDATORYREDEMPTION
Unless otherwisevotedonbythedisinterestedmembersoftheBoard,theCompanyshall redeemallsharesofSeriesAPreferred,in cash,for theaggregate amount of $1.00 on August 26, 2015.
V.RANK
All sharesoftheSeriesAPreferredshallrank(i)seniortotheCorporation's(A)common stock,$0.01 par value pershare ("CommonStock") and (B)any other classor series of capital stock of theCorporationhereafter created, except asotherwiseprovided inclauses (ii) and (iii) of this ArticleV, (ii)paripassuwith any class or series ofcapital stock of theCorporation hereafter createdand specifically ranking, by its terms, on parwiththeSeries A Preferred(the "Pari PassuShares") and (iii) junior toany classorseries ofcapital stock oftheCorporationhereafter createdspecificallyranking, by its terms, senior to theSeries APreferred(the "Senior Shares"), ineach case as to distribution of assets upon liquidation, dissolution or windingup of the Corporation, whethervoluntary or involuntary.
VI.VOTINGRIGHTS
Each one(1)shareoftheSeriesAPreferredshallhavevotingrightsequalto(x)0.019607multipliedbythe totalissued and outstandingshares of Common Stock eligible tovote at the timeof the respective vote(the "Numerator"),divided by(y) 0.49,minus(z) the Numerator. For purposesof illustration only, if the totalissued and outstanding sharesof Common Stockeligible to voteat the timeof the respective vote is 5,000,000,the voting rights of one shareof the SeriesA Preferredshall beequalto 102,036 [(0.019607x 5,000,000) /0.49)- (0.019607 x 5,000,000)=102,036].
With respecttoallmattersuponwhichstockholdersareentitledtovoteortowhich stockholdersareentitledtogiveconsent,theholders oftheoutstanding shares of SeriesA PreferredStock shall votetogether with theholders ofCommonStock without regard toclass, except astothosematterson whichseparate class voting isrequiredby applicable law orthe Articles ofIncorporation orbylaws.
VII.PROTECTIONPROVISIONS
So long asanysharesofSeriesAPreferredareoutstanding,theCorporationshallnot, withoutfirstobtainingtheunanimouswrittenconsent oftheholders ofSeriesAPreferred, (i) alter or changetherights, preferencesor privileges of the SeriesAPreferredso as to affect adversely theholders ofSeriesA Preferred or(ii)create PariPassu Shares or Senior Shares.
VIII.MISCELLANEOUS
A.StatusofRedeemedStock:IncaseanysharesofSeriesAPreferredshall beredeemedorotherwisereacquired,theshares so redeemed orreacquired shall resume the status ofauthorizedbut unissued sharesofpreferredstock,andshall no longerbe designated as Series APreferred.
B.LostorStolenCertificates:UponreceiptbytheCorporationof(i) evidenceoftheloss,theft,destructionormutilationofanyPreferredStockcertificate(s)and(ii) (A) in thecase ofloss, theft ordestruction, indemnity(with a bond orother security) reasonably satisfactoryto theCorporation or(B) in thecase of mutilation, the PreferredStock certificate(s) (surrendered for cancellation), theCorporation shallexecute anddeliver new PreferredStock certificate(s).
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C.Waiver:NotwithstandinganyprovisioninthisCertificateofDesignation tothecontrary,anyprovisioncontainedhereinandanyrightoftheholdersofSeriesAPreferred granted hereunder may be waivedas to all shares ofSeries APreferred(and the holders thereof) upon theunanimouswritten consent oftheholders oftheSeries APreferred.
D.Notices:Anynoticesrequiredorpermittedtobegivenundertheterms hereofshallbesent byprepaid certifiedorregistered mail (return receipt requested), ordelivered personally, bynationallyrecognized overnightcarrier orbyconfirmed facsimiletransmission, and shallbeeffective five (5)days after beingplaced inthemail,if mailed, orupon receipt or refusal ofreceipt, if delivered personally, bynationallyrecognized overnightcarrier or confirmed facsimiletransmission,in each case addressed toa party asset forth below, orsuch other address and telephone and fax number asmay be designated inwriting hereafter inthe samemanner asset forth in this Section.
If totheCorporation:
SPO Medical INC.
3GavishStreet,POB2454
KfarSaba,Israel
Attention:MichaelBraunold,ChiefExecutiveOfficer
Telephone:972-9-966-2520
If totheholderofSeriesAPreferred,totheaddresslistedintheCorporation'sbooksand records.
IN WITNESSWHEREOF,theundersignedhassignedthiscertificateasofthe26thday ofAugust,2013.
SPOMEDICALINC.
By:lsiMichaelBraunold
Name:MichaelBraunold
Title:ChiefExecutiveOfficer
ChairmanoftheBoard
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