EX-3.8 4 cardiff_ex0308.htm CERTIFICATE OF CORRECTION OF CERTIFICATE OF DESIGNATION OF SERIES E PREFERRED STOCK OF CARDIFF LEXINGTON CORPORATION

Exhibit 3.8

 

 

Business Number E13806962021-2 FiledintheOfficeof SecretaryofState StateOfNevada FilingNumber 20243792279 FiledOn 1/30/202410:39:00AM NumberofPages 4

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EXHIBIT A Section7. Conversion. (a) ConversionsatOptionofHolder. EachshareofSeriesEPreferred Stockshallbeconvertible,atanytimeandfromtimetotimeattheoptionoftheholderthereof, intosuchnumberoffullypaidandnon-assessablesharesofCommonStockasisdeterminedas follows:(i)iftheclosingmarketpriceoftheCommonStockontheprincipaltradingmarketon whichtheCommon Stockisthentradedorquoted(the"ClosingPrice")islessthan$4.00per share,theneachshareofSeriesEPreferredStockshallbeconvertibleintoanumberofsharesof CommonStockequaltotwo(2)timestheStatedValue,dividedbytheClosingPriceonthedate ofconversion;or(ii)iftheClosingPriceisequaltoorgreaterthan$4.00pershare,theneachshare of Series E Preferred Stock shall be convertible into two (2) shares of Common Stock (the "Conversion Price").TheConversion Price, andtherateatwhichsharesof SeriesE Preferred StockmaybeconvertedintosharesofCommonStock,shallbesubjecttoadjustmentasprovided below.Exceptasaforesaid,theSeriesEPreferredStockisnotconvertibleintoCommonStockor anyothersecuritiesoftheCorporation. (b) Mechanics of Conversion. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as Annex A (a "NoticeofConversion").EachNoticeofConversionshallspecifythenumberofsharesofSeries EPreferredStocktobeconverted,thenumberofsharesofSeriesEPreferredStockownedprior totheconversionatissue,thenumberofsharesofSeriesEPreferredStockownedsubsequentto theconversionatissueandthedateonwhichsuchconversionistobeeffected,whichdatemay not be prior to the date the applicable holder delivers by email or facsimile such Notice of Conversion to the Corporation (such date, the "Optional Conversion Date"). If no Optional ConversionDateisspecifiedinaNoticeofConversion,theOptionalConversionDateshallbethe datethatsuchNoticeofConversiontotheCorporationisdeemeddeliveredhereunder.Noink originalNoticeofConversionshallberequired,norshallanymedallionguarantee(orothertype ofguaranteeornotarization)ofanyNoticeofConversionformberequired.Thecalculationsand entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematicalerror.ToeffectconversionsofsharesofSeriesEPreferredStock,aholdershallnot berequiredtosurrenderthecertificate(s)representingthesharesofSeriesEPreferredStocktothe Corporation unless all of the shares of Series E Preferred Stock represented thereby are so converted,inwhichcasesuchholdershalldeliverthecertificaterepresentingsuchsharesofSeries E Preferred Stock, if any, promptly following the Optional Conversion Date at issue. The Corporationshall,assoonaspracticableaftertheOptionalConversionDate,issueanddeliverto suchholderofSeriesEPreferredStock,ortohis,heroritsnominees,anotificationofbookentry forthenumberoffullsharesofCommonStockissuableuponsuchconversioninaccordancewith theprovisionshereofandanotificationofbookentryforthenumber(ifany)ofthesharesofSeries EPreferredStockrepresentedbythesurrenderedcertificatethatwerenotconvertedintoCommon Stock. (c) MandatoryConversion.Upontheearliertooccurof:(a)theclosing ofthesaleofsharesofCommonStocktothepublicatapriceofatleast$3.00pershare(subject toappropriateadjustment intheeventofany stockdividend,stocksplit,combination orother similarrecapitalizationwithrespecttotheCommonStock)inapublicoffering pursuant toan effectiveregistrationstatementorofferingstatementundertheSecuritiesActof1933,asamended, resultinginatleast$3,000,000ofgrossproceedstotheCorporation,(b)thedateonwhichthe

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shares of Common Stock of the Corporation are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consentoftheholdersof atleast67% ofthethen outstandingsharesof SeriesE PreferredStock, votingtogetherasasingleclass(thetimeofsuchclosingorthedateandtimespecifiedorthetime of the event specified in such vote or written consent is referred to herein as the "Mandatory Conversion Time"), each share of Series E Preferred Stock shall be automatically converted (withoutthe payment ofadditionalconsideration by theholderthereof),intosuch numberoffully paid and non-assessableshares of Common Stock as isdetennined in accordance with Section 7(a). AllholdersofrecordshallbesentwrittennoticeoftheMandatory Conversion Timeandthe place designated for conversion of all such shares of Series E Preferred Stock pursuant to this Section 7(c). Such notice need not be sent in advance of the occurrence of the Mandatory ConversionTime. Uponreceiptofsuchnotice,eachholdershallsurrenderhis,heroritscertificate orcertificates,ifany,forallsuch shares(or,ifsuch holderallegesthatsuchcertificatehas been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation and itstransferagent toindemnify theCorporation and/orthetransferagent against any claim that may be madeagainst theCorporation and/orthetransferagenton account ofthe alleged loss, theft or destruction of such certificate)to the Corporation at the placedesignatedin such notice. All rights with respect to the Series E Preferred Stock converted pursuant to this Section 7(c), including the rights, if any, to receive notices and vote (other than as a holder of Common Stock), will terminate at the Mandatory Conversion Time (notwithstanding the failure of a holderto surrenderthe certificatesat orpriorto suchtime), except only fortherightsofthe holders to receive the items provided for in the next sentence. As soon as practicable after the Mandatory Conversion Time and the surrender of the certificate or certificates, if any (or lost certificateaffidavit and agreement), for Series E Preferred Stock, the Corporation shall issue and delivertosuch Holder,or tohis, heror itsnominees, a notificationof book entryforthenumber of full shares of Common Stock issuable on such conversion in accordance with the provisions hereof. (d) Reservation of Shares Issuable Upon Conversion. The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued sharesofCommonStockforthesolepurposeofissuanceuponconversionoftheSeriesEPreferred Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons otherthan the holdersof SeriesE PreferredStock, not less than such aggregate number of shares of the Common Stock as shall be issuable(taking into account the adjustments and restrictions of Section 8) upon the conversion of the then outstanding shares of Series E Preferred Stock. The Corporation covenants that all shares of Common Stock that shall be so issuableshall,uponissue,bedulyauthorized, validlyissued,fullypaidandnonassessable. (e) Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Series E Preferred Stock. As to any fractionof a share which a holderwould otherwisebe entitledto purchaseupon such conversion, theCorporationshallrounduptothenextwholeshare.

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Section8. Certain Adjustments. (a) StockDividendsandStockSplits.If theCorporation,atanytime whiletheSeriesEPreferredStockisoutstanding:(i)paysastockdividendorotherwisemakesa distributionordistributionspayableinsharesofCommonStockonsharesofCommonStock,(ii) subdividesoutstandingsharesofCommonStockintoalargernumberofsharesor(iii)issues,in the event of a reclassification of shares of Common Stock, any shares of capital stock of the CorporationtotheholdersofCommonStock,thentheConversionPriceshallbemultipliedbya fractionofwhichthenumeratorshallbethenumberofsharesofCommonStock(excludingany treasurysharesoftheCorporation)outstandingimmediatelybeforesuchevent,andofwhichthe denominatorshallbethenumberofsharesofCommonStockoutstandingimmediatelyaftersuch event.AnyadjustmentmadepursuanttothisSection8(a)shallbecomeeffectiveimmediatelyafter the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,combinationorre-classification.Fortheavoidanceofdoubt,noadjustmentshallbe madetotheConversionPriceintheeventthattheCorporationcombines(includingbywayofa reversestocksplit)outstandingsharesofCommonStockintoasmallernumberofshares.

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