Exhibit 10.50

AMENDMENT
T0
SUBSCRIPTION AGREEMENT

The Subscription Agreement made as of March 10, 2008 (the "Subscription
Agreement") by and among Modtech Holdings, Inc., a Delaware corporation (the
“Company”), and the parties set forth on the signature pages affixed thereto
(the “Buyers”) is hereby amended by this amendment made between the Company and
the Buyers (the "Amendment"). Capitalized terms used in this Amendment that are
not defined herein shall have the meanings given them in the Subscription
Agreement.

1. Notwithstanding the provisions of the Certificate of Determination attached
as Exhibit A to the Subscription Agreement, the Buyers shall not have the right
to receive upon conversion of the Series B Preferred Stock and Series C
Preferred Stock (the “Securities”) shares of common stock of the Company which
in the aggregate exceed 19.99% of the Company's common stock outstanding on
March 10, 2008 or which would otherwise exceed the number of shares of common
stock that the Company may issue to the Buyers in compliance with The Nasdaq
Marketplace Rules (the "Conversion Cap"). The Conversion Cap will not apply if
the Company obtains stockholder approval of the issuance of the common stock
upon conversion of the Securities in excess of the Conversion Cap as required by
the Nasdaq Marketplace Rules ("Stockholder Approval").

2. The Company will use its best efforts to obtain Stockholder Approval at its
next annual meeting scheduled for June 17, 2008. If Stockholder Approval is not
obtained at the June 17, 2008 meeting, the Company will continue to use its best
efforts to obtain stockholder approval during each calendar quarter thereafter
until Stockholder Approval is obtained or is no longer necessary.

3. Until Stockholder Approval is obtained or determined by the Company to no
longer be necessary for the Buyers to be able to fully convert the Securities,
no Buyer will be issued upon conversion of their Securities shares of common
stock in an amount greater than the product of the Conversion Cap multiplied by
a fraction, the numerator of which is the number of shares of Company common
stock into which the Securities held by such Buyer are convertible without
regard to the Conversion Cap and the denominator of which is the number of
shares of Company common stock into which all of the Securities issued to the
Buyers and still outstanding are convertible without regard to the Conversion
Cap.

4. As reflected in the Second Amended and Restated Certificate of Determination
attached hereto as Exhibit A, the Securities will have that number of votes per
share equal to the number of shares of common stock into which the Securities
are convertible at their respective conversion prices on the date of issuance of
the Securities (which equal or exceed the market price of the common shares on
that date), excluding for the purpose of such calculation any dividends that may
accrue or be paid on the Series B Preferred Stock. The Schedule of Buyers
attached to the Subscription Agreement is amended and restated by the attached
Schedule of Buyers to reflect an adjustment of 50 shares of Series C Preferred
Stock purchased by two Buyers.
 
 
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5. This Amendment shall be binding on the parties hereto and their respective
successors and assigns.

6. Except as specifically amended hereby, the provisions of the Subscription
Agreement shall remain unaltered. This Amendment constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof and
may be amended only by a writing executed by all parties. This Amendment shall
be enforced, governed and construed in all respects in accordance with the laws
of the State of California.
 
 
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IN WITNESS WHEREOF, the Buyers and the Company have caused this Amendment to be
duly executed effective as of the date first above written.
 

        COMPANY:       Modtech Holdings, Inc.  
   
   
    By:   /s/ Dennis Shogren   Name:

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Dennis Shogren   Title: CEO      

  BUYERS:               /s/ Charles McGettigan  

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Charles McGettigan               /s/ Robert Campbell  

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Robert Campbell               /s/ Stanley Gaines  

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Stanley Gaines               /s/ Daniel Donahoe  

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Daniel Donahoe               /s/ Thomas McGovern  

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Thomas McGovern               /s/ Kenneth Keska  

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Kenneth Keska               R & R Opportunity Fund    
    By: /s/ John J. Borer, III    

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John J. Borer, III     Authorized Signatory

 
 
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IN WITNESS WHEREOF, the Buyers and the Company have caused this Amendment to be
duly executed effective as of the date first written above.
 

  BUYERS:               /s/ Dennis Shogren  

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Dennis Shogren               /s/ Kenneth Cragun  

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Kenneth Cragun               /s/ Ronald Savona  

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Ronald Savona               /s/ Richard Bartolotti  

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Richard Bartolotti               /s/ Harold Clark  

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Harold Clark               /s/ Karen Andreasen  

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Karen Andreasen           /s/ Richard Von Hor  

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Richard Von Hor           /s/ Danny Ewing  

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Danny Ewing

 
 
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IN WITNESS WHEREOF, the Buyers and the Company have caused this Amendment to be
duly executed effective as of the date first written above.
 

  BUYERS:               Dolphin Offshore Partners, L.P.    
    By: /s/ Peter E. Salas    

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Peter E. Salas     General Partner               /s/ Thomas Peckosh  

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Thomas Peckosh               /s/ Charles R. Skemp  

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Charles R. Skemp               /s/ Charles Gwirtsman  

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Charles Gwirtsman               GCA Strategic Investment Fund Limited          
    By: /s/ Lewis N. Lester    

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Lewis N. Lester     Authorized Signatory               Maythorpe Holdings
Limited               By: /s/ Joel Handel    

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Joel Handel     Authorized Signatory               /s/ Myron Wick, III  

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Myron Wick, III

 
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SCHEDULE OF BUYERS
 
Buyer’s Name
 
Buyer’s (Address
and Facsimile Number
 
Number of
Securities
 
Purchase
Price

Charles McGettigan
 
McGettigan, Wick & Co.
50 Osgood Place, Penthouse
San Francisco, CA 94133
Facsimile # (415) 986-3617
 
588 shares of Series C Preferred Stock
 
$58,800
Myron Wick
 
McGettigan, Wick & Co.
50 Osgood Place, Penthouse
San Francisco, CA 94133
Facsimile # (415) 986-3617
 
500 shares of Series C Preferred Stock
 
$50,000
Robert Campbell
 
B. Riley & Co
4675 MacArthur Court, Suite 1500
Newport Beach, CA 92660
Facsimile # (949) 852-0430
 
10 shares of Series C Preferred Stock
 
$1,000
Stanley Gaines
 
1473 North Ocean Blvd.
Palm Beach, FL 33480
Facsimile # (561) 840-9011
 
500 shares of Series C Preferred Stock
 
$50,000
Daniel Donahoe
 
Red Rock Resorts
7114 East Stetson Drive, Suite 205
Scottsdale, AZ 85251
Facsimile # (480) 994-3521
 
100 shares of Series C Preferred Stock
 
$10,000
Dennis Shogren
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 943-9655
 
200 shares of Series C Preferred Stock
 
$20,000
Kenneth Cragun
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 943-9655
 
10 shares of Series C Preferred Stock
 
$1,000
Ronald Savona
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 943-9655
 
10 shares of Series C Preferred Stock
 
$1,000
Richard Bartolotti
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 943-9655
 
100 shares of Series C Preferred Stock
 
$10,000
Harry Clark
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 943-9655
 
50 shares of Series C Preferred Stock
 
$5,000
Karen Andreasen
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 943-9655
 
50 shares of Series C Preferred Stock
 
$5,000
Richard Von Hor
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile # (951) 436-4088
 
18 shares of Series C Preferred Stock
 
$1,800
Thomas McGovern
 
Modtech Holdings, Inc.
1602 Industrial Park Dr.
Plant City, FL 33566
Facsimile # 813-759-0576
 
50 shares of Series C Preferred Stock
 
$5,000

 
 
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Buyer’s Name
 
Buyer’s (Address
and Facsimile Number
 
Number of
Securities
 
Purchase
Price

Kenneth Keska
 
Modtech Holdings, Inc.
5301 W. Madison
Phoenix, AZ 85043
Facsimile # 602-233-9458
 
10 shares of Series C Preferred Stock
 
$1,000
Danny Ewing
 
Modtech Holdings, Inc.
2830 Barrett Avenue
Perris, CA 92571
Facsimile #951-943-3725
 
10 shares of Series C Preferred Stock
 
$1,000
R&R Opportunity Fund
 
R&R Opp. Fund - care of Noari Holdings LLC
1 Bridge Street
Suite #126
Irvington, N.Y. 10533
 
2000 shares of Series B Preferred Stock
 
$200,000
Peter Salas, General Partner Dolphin Offshore Partners, L.P.
 
129 East 17TH Street
New York, NY 10003
Facsimile # (904) 491-5011
 
7,500 shares of Series B Preferred Stock
 
$750,000
 
Thomas Peckosh
 
2310 Simpson Street
Dubuque, Iowa 52003
 
960 shares of Series B Preferred Stock
 
$96,000
Charles R. Skemp
 
The Skemp Company
1950 John F. Kennedy Road
Dubuque, Iowa 52002
Facsimile # (563) 557-3143
 
480 shares of Series B Preferred Stock
 
$48,000
Charles Gwirtsman
 
KRG Capital Partners, LLC
1515 Arapahoe Street
Tower One - Suite 1500
Denver, CO 80202
Facsimile # (303) 390-5015
 
1250 shares of Series B Preferred Stock
 
$125,000
GCA Strategic Investment Fund Limited
 
Mechanics Building, 12 Church Street
Hamilton, Bermuda HM11
 
1000 shares of Series B Preferred Stock
 
$100,000
Maythorpe Holdings Limited
 
2nd Floor, Geneva Place
333 Waterfront Drive
Road Town, Tortola, British Virgin Islands
Facsimile #. (284) 494-3088
 
1000 shares of Series B Preferred Stock
 
$100,000

 
 
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Exhibit A
 
SECOND AMENDED AND RESTATED
CERTIFICATE OF DESIGNATION OF
PREFERENCES, RELATIVE, PARTICIPATING, OPTIONAL, AND OTHER SPECIAL
RIGHTS, QUALIFICATIONS, LIMITATIONS AND RESTRICTIONS
OF
SERIES B PREFERRED STOCK
AND SERIES C PREFERRED STOCK
OF
MODTECH HOLDINGS, INC.

The undersigned, Dennis Shogren and Kenneth Cragun, certify that:

ONE.  They are the duly elected Chief Executive Officer and Secretary,
respectively, of the above-named corporation.

TWO.  Pursuant to and in accordance with the provisions of Section 151 of the
Delaware General Corporation Law and the Certificate of Incorporation of this
corporation, the Board of Directors of this corporation has duly adopted the
following recitals and resolutions.

WHEREAS, the Certificate of Incorporation of this corporation provides for a
class of its authorized shares known as Preferred Stock comprised of 5,000,000
shares issuable from time to time in one or more series; and

WHEREAS, the Board of Directors of this corporation is authorized to fix the
number of shares of any series of Preferred Stock and to determine the
designation of any such series and the rights, preferences, privileges and
restrictions granted to or imposed upon any wholly unissued series of Preferred
Stock; and

WHEREAS, the Board of Directors has previously fixed and determined the
designation of, the number of shares constituting, and the rights, preferences,
privileges and restrictions relating to a Series A Preferred Stock; and
 
WHEREAS, pursuant to a Certificate of Designation filed with the Delaware
Secretary of State on March 11, 2008, the Board of Directors of this corporation
has previously established two additional classes of Preferred Stock , one
designated as the "Series B Preferred Stock" and the other designated as “Series
C Preferred Stock,” and fixed the number of shares in each class and the rights,
preferences, privileges, restrictions and other matters relating thereto; and

WHEREAS, the Board of Directors wishes to amend and restate the Certificate of
Designation filed March 11, 2008 in its entirety;

NOW, THER.EFORE, BE IT RESOLVED, that a series consisting of 50,000 shares of
Preferred Stock, $0.01 par value per share, is hereby established and designated
as the "Series B Preferred Stock" of this corporation (the "Series B Preferred
Stock"), and that the Series B Preferred Stock shall have the rights,
preferences and privileges, and shall be subject to the restrictions, as are
hereinafter set forth; and

 
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RESOLVED FURTHER, that a series consisting of 50,000 shares of Preferred Stock,
$0.01 par value per share, is hereby established and designated as the "Series C
Preferred Stock" of this corporation (the "Series C Preferred Stock"), and that
the Series C Preferred Stock shall have the rights, preferences and privileges,
and shall be subject to the restrictions, as are hereinafter set forth:

1.  Dividend Provisions.

(a) Series B Dividends. The holders of outstanding Series B Preferred Stock
shall be entitled to receive when, as and if declared by the Board of Directors,
out of unissued shares of Series B Preferred Stock at the time legally available
therefor, dividends, in whole and/or fractional shares of such Series B
Preferred Stock, at the rate of Eight Percent (8%) per share of outstanding
Series B Preferred Stock per annum. Dividends shall accrue on each share of
Series B Preferred Stock from the date of its original issuance and shall accrue
from day to day, whether or not earned or declared. Such dividends shall be
cumulative so that if such dividends in respect of any previous year at said
rate per share per annum shall not have been paid or declared and set apart for
all shares of Series B Preferred Stock at the time outstanding, the deficiency
shall be fully paid on or declared and set apart for such shares before this
corporation pays any dividend (except a dividend in shares of Common Stock) on
Common Stock or any dividend on Series C Preferred Stock or on any Preferred
Stock issued subsequent to the Series B Preferred Stock. Undeclared or unpaid
dividends shall not bear or accrue interest.

(b) Series C Dividends. No dividend shall be declared or paid on the Common
Stock of this corporation (other than in Common Stock of this corporation) or on
any other series of Preferred Stock, except Series B Preferred Stock as provided
above, unless prior to and in preference thereof a dividend of equal amount per
share is declared and paid on the outstanding shares of the Series C Preferred
Stock out of any assets legally available therefore. Unless and until declared,
no dividends shall accrue on outstanding shares of Series C Preferred Stock.

2. Liquidation Preference.

(a) Series B Liquidation Preference. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of this corporation, the
holders of each then outstanding share of Series B Preferred Stock shall be
entitled to receive, prior and in preference to any distribution of the assets
or surplus funds of this corporation to the holders of Common Stock, Series C
Preferred Stock, or any series of Preferred Stock issued subsequent to the
Series B Preferred Stock, an amount equal to One Hundred Dollars ($100.00) per
share, (appropriately adjusted to reflect stock splits, stock dividends,
reorganizations, consolidations and similar changes with respect to the Series B
Preferred Stock occurring after the date of the first issuance of shares of the
Series B Preferred Stock), plus all accrued but unpaid cumulative dividends on
such share of Series B Preferred Stock (the "Series B Liquidation Preference").
The Series B Liquidation Preference shall be paid or set apart for payment
before, in connection with any liquidation, dissolution or winding up of the
corporation, the payment or setting apart for payment of any amount for, or the
distribution of any assets of this corporation to, the holders of Series C
Preferred Stock, Common Stock or any series of Preferred Stock issued subsequent
to the Series B Preferred Stock. If the assets or surplus funds to be
distributed to the holders of the Series B Preferred Stock are insufficient to
permit the payment to such holders of the full Series B Liquidation Preference,
then the entire assets and surplus funds of this corporation legally available
for distribution shall be distributed ratably among the holders of the Series B
Preferred Stock in proportion to the share of the Series B Liquidation
Preference each such holder is otherwise entitled to receive in respect of the
shares of Series B Preferred Stock then held by such holder.

 
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(b)  Series C Liquidation Preference. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of this corporation and after
the payment or setting apart for payment of the Series B Liquidation Preference,
the holders of each then outstanding share of Series C Preferred Stock shall be
entitled to receive, by reason of their ownership thereof, prior and in
preference to any distribution of any of the assets of this corporation to the
holders of the Common Stock or any series of Preferred Stock issued subsequent
to the Series C Preferred Stock an amount equal to One Hundred Dollars ($100.00)
per share (appropriately adjusted to reflect stock splits, stock dividends,
reorganizations, consolidations and similar changes with respect to the Series C
Preferred Stock occurring after the date of the first issuance of shares of the
Series C Preferred Stock), plus any declared but unpaid dividends on such share
of Series C Preferred Stock (the "Series C Liquidation Preference"). The Series
C Liquidation Preference shall be paid or set apart for payment before, in
connection with any liquidation, dissolution or winding up of the corporation,
the payment or setting apart for payment of any amount for, or the distribution
of any assets of this corporation to, the holders of Common Stock or any series
of Preferred Stock issued subsequent to the Series C Preferred Stock. If the
remaining assets or surplus funds to be distributed to the holders of the Series
C Preferred Stock are insufficient to permit the payment to such holders of the
full Series C Liquidation Preference, then the entire remaining assets and
surplus funds of this corporation legally available for distribution shall be
distributed ratably among the holders of the Series C Preferred Stock in
proportion to the share of the Series C Liquidation Preference each such holder
is otherwise entitled to receive in respect of the shares of Series C Preferred
Stock then held by such holder.

(c)  Remaining Assets. After the payment or setting apart for payment in full of
the Series B Liquidation Preference and the Series C Liquidation Preference, any
remaining assets or surplus funds of this corporation shall be distributed to
the holders of Series B Preferred Stock, the holders of Series C Preferred Stock
and the holders of Common Stock, ratably on the basis of the number of shares of
Common Stock then held by them and then issuable upon conversion of the Series B
Preferred Stock and Series C Preferred Stock then held by them.
 
 
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3. Redemption.

(a) Optional. Following the twentieth (20th) consecutive trading day on which
the closing price of the Common Stock (or the closing bid price if there is no
closing price) equals or exceeds Two Dollars ($2.00) per share on the exchange
or market on which the Common Stock is then traded, this corporation may at any
time thereafter to the extent it may lawfully do so, at the option of its Board
of Directors, redeem in whole or in part (i) the Series B Preferred Stock by
paying in cash therefor a sum equal to One Hundred Dollars ($100.00) per share
of Series B Preferred Stock (appropriately adjusted to reflect stock splits,
stock dividends, reorganizations, consolidations and similar changes with
respect to the Series B Preferred Stock occurring after the date of the first
issuance of shares of Series B Preferred), together with all accrued but unpaid
dividends on such shares to the date of redemption (the "Series B Redemption
Price") and (ii) the Series C Preferred Stock by paying in cash therefor a sum
equal to One Hundred Dollars ($100.00) per share of Series C Preferred Stock
(appropriately adjusted to reflect stock splits, stock dividends,
reorganizations, consolidations and similar changes with respect to the Series C
Preferred Stock occurring after the date of the first issuance of shares of
Series C Preferred Stock), together with all declared but unpaid dividends on
such shares to the date of redemption (the "Series C Redemption Price"). Any
redemption of Series B Preferred Stock and Series C Preferred Stock shall be pro
rata among the outstanding shares of Series B Preferred Stock and Series C
Preferred Stock based upon the number of shares held by each holder thereof.

(b) Notice of Redemption. The corporation shall give written notice at least
thirty (30) days prior to the redemption date, of its intention to redeem the
Series B Preferred Stock and Series C Preferred Stock as provided herein, to
each holder thereof, such notice to be addressed to each holder at the address
of such holder as it appears on the stock transfer books of the corporation and
to specify (i) the total number of shares of Series B Preferred Stock and Series
C Preferred Stock being redeemed; (ii) the number of shares of Series B
Preferred Stock and Series C Preferred Stock held by the holder which the
corporation intends to redeem; (iii) the date of redemption, the Series B
Redemption Price and the Series C Redemption Price; and (iv) the date on which
the conversion rights with respect to such shares terminate in accordance with
Section 4 below. On or after the date of redemption, each holder of Series B
Preferred Stock and Series C Preferred Stock shall surrender his certificate for
the number of shares to be redeemed as stated in the notice provided by the
corporation (other than those shares properly converted pursuant to Section 4
below). If less than all the shares represented by such certificates are to be
redeemed, the corporation shall forthwith issue a new certificate for the
unredeemed shares.

 
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4. Conversion. 

The holders of the Series B Preferred Stock and Series C Preferred Stock shall
have conversion rights as follows:

(a) Optional Conversion into Common Stock. Each share of Series B Preferred
Stock and Series C Preferred Stock shall be convertible at the option of the
holder thereof, at any time after the date of issuance of such share and on or
prior to the fifth day prior to the redemption date for such share fixed by a
redemption notice in accordance with Section 3 above, at the office of the
corporation or any transfer agent for such stock, into such number of fully paid
and nonassessable shares of Common Stock as is determined by, in the case of
Series B Preferred Stock, dividing One Hundred Dollars ($100.00), plus accrued
but unpaid dividends on the Series B Preferred Stock by the "Series B Conversion
Price" in effect at the time and, in the case of Series C Preferred Stock,
dividing One Hundred Dollars ($100.00), plus declared but unpaid dividends on
the Series C Preferred Stock by the "Series C Conversion Price" in effect at the
time. The initial Series B Conversion Price per share is Forty Cents ($0.40) and
the initial Series C Conversion Price per share is Forty-Nine Cents ($0.49);
provided, however, that the Series B Conversion Price and the Series C
Conversion Price shall be subject to adjustment as set forth in subsection 4(c).

(b) Mechanics of Conversion from Preferred Stock to Common Stock. No fractional
shares of Common Stock shall be issued upon conversion of Series B Preferred
Stock or Series C Preferred Stock. In lieu of any fractional shares to which the
holder would otherwise be entitled, the corporation shall pay cash equal to such
fraction multiplied by the then effective Series B Conversion Price or Series C
Conversion Price, as applicable. Before any holder of Series B Preferred Stock
or Series C Preferred Stock shall be entitled to convert the same into shares of
Common Stock pursuant to Section 4(a) hereof, he shall surrender the certificate
or certificates therefor, duly endorsed, at the office of the corporation or of
any transfer agent for the Series B Preferred Stock or Series C Preferred Stock,
and shall give written notice to the corporation at such office that he elects
to convert the same and shall state therein his name or the name or names of his
nominees in which he wishes the certificate or certificates for shares of Common
Stock to be issued. The corporation shall, as soon as practicable thereafter,
issue and deliver at such office to such holder of Series B Preferred Stock or
Series C Preferred Stock, or to his nominee or nominees, a certificate or
certificates for the number of shares of Common Stock to which he shall be
entitled as aforesaid, together with cash in lieu of any fraction of a share.
Such conversion shall be deemed to have been made immediately prior to the close
of business on the date of such surrender of the shares of Preferred Stock to be
converted, and the person or persons entitled to receive the shares of Common
Stock issuable upon conversion shall be treated for all purposes as the record
holder or holders of such shares of Common Stock on such date.

  (c) Adjustment in Conversion Price. 

(i) Combinations or Subdivisions. If the corporation at any time or from time to
time after the date of the first issuance of shares of the Series B Preferred
Stock and Series C Preferred Stock ( the “Original Issue Date”) declares or pays
any dividend on its Common Stock payable in Common Stock or in any right to
acquire Common Stock, or effects a subdivision of the outstanding shares of
Common Stock into a greater number of shares of Common Stock (by stock split,
reclassification or otherwise), or if the outstanding shares of Common Stock is
combined or consolidated, by reclassification or otherwise, into a lesser number
of shares of Common Stock, then the Series B Conversion Price and Series C
Conversion Price in effect immediately prior to such event shall, concurrently
with the effectiveness of such event, be proportionately decreased or increased,
as appropriate.

 
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(ii)  Reorganization; Recapitalization. If at any time or from time to time
there shall be a reclassification or recapitalization of the capital stock of
the corporation (other than a subdivision, reclassification, stock split or
combination provided for elsewhere in this Section 4), any consolidation,
merger, or reorganization of the corporation with or into another entity or
entities, or the conveyance of all or substantially all of the assets of the
corporation to another entity, each share of Series B Preferred Stock and Series
C Preferred Stock shall thereafter be convertible into the number of shares of
stock or other securities or property (including cash) to which to which a
holder of the number of shares of Common Stock deliverable upon conversion of
such shares would have been entitled on such reclassification, recapitalization,
consolidation, merger, reorganization or conveyance. 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 the Series B
Preferred Stock and Series C Preferred Stock after the reclassification,
recapitalization, consolidation, merger, reorganization or conveyance to the end
that the provisions of this Section 4 (including adjustment of the Series B
Conversion Price and Series C Conversion Price then in effect and the number of
shares to be issued upon conversion of the Series B Preferred Stock and Series C
Preferred Stock) shall be applicable after that event as nearly equivalent as
may be practicable. 

(iii) Issuance of Additional Securities; Other Adjustments. Except as otherwise
provided in this Section 4(c), the Series B Conversion Price and the Series C
Conversion Price will not be adjusted upward or downward because of the issuance
of additional securities after the Original Issue Date.

(d) No Impairment. This corporation will not, by amendment of its Certificate of
Incorporation, or through reorganization, recapitalization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by this corporation, but will at
all times in good faith assist in the carrying out of all 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
Series B Preferred Stock and Series C Stock, respectively, against impairment.

(e) Certificate as to Adjustments Upon the occurrence of each adjustment or
readjustment of the Series B Conversion Price and Series C Conversion Price
pursuant to this Section 4, this corporation, at its expense, shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and
prepare and furnish to each holder of Series B Preferred Stock and each holder
of Series C Preferred Stock a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. This corporation shall, upon the written request at any
time of any holder of Series B Preferred Stock or Series C Preferred Stock,
furnish or cause to be furnished to such holder a like certificate setting forth
(a) such adjustment and readjustment, (b) the conversion price for such series
of Preferred Stock at the time in effect, and (c) the number of shares of Common
Stock and the amount, if any, of other property which at the time would be
received upon the conversion of a share of Series B Preferred Stock and Series C
Preferred Stock.
 
 
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(f)  Reservation of Stock Issuable Upon Conversion. This corporation shall at
all times reserve and keep available out of its authorized but unissued shares
of Common Stock, solely for the purpose of effecting the conversion of the
shares of the Series B Preferred Stock and Series C Preferred Stock, such number
of its shares of Common Stock as shall from time to time be sufficient to effect
the conversion of all then outstanding shares of the Series B Preferred Stock
and Series C Preferred Stock.

(g)  Notices. Any notice required by the provisions of this Section 4 to be
given to the holders of shares of Series B Preferred Stock or Series C Preferred
Stock shall be deemed given if deposited in the United States mail, postage
prepaid, and addressed to each holder of record at his address appearing on the
books and the shares of this corporation.
 
5.   Voting Rights. Except as otherwise required by law and the provisions of
this Section 5, the holders of Series B Preferred Stock and Series C Preferred
Stock shall be entitled to notice of any stockholders' meeting in accordance
with the Bylaws of the Corporation and to vote together with the holders of
Common Stock as a single class of capital stock upon any matter submitted to
stockholders for a vote. Holders of Series B Preferred Stock and Series C
Preferred Stock shall have that number of votes per share equal to the number of
shares of Common Stock into which each such share of each such series of
Preferred Stock held by such holder, excluding any dividends accrued or paid on
the Series B Preferred Stock, is convertible into at the record date for the
determination of the stockholders entitled to vote on such matters or, if no
such record date is established, at the date such vote is taken or any written
consent of stockholders is solicited. Fractional votes shall not, however, be
permitted and any fractional voting rights resulting from the foregoing formula
(after aggregating all shares into which shares of Series B Preferred Stock and
Series C Preferred Stock held by each holder could be converted) shall be
rounded to the nearest whole number (with one-half being rounded upward).

6.   Protective Provisions. So long as at least 75% of the aggregate number of
shares of Series B Preferred Stock and Series C Preferred Stock issued on the
Original Issue Date (appropriately adjusted to reflect stock splits, stock
dividends, reorganizations, consolidations and similar changes with respect to
the Series B Preferred Stock and the Series C Preferred Stock occurring after
the Original Issue Date), are outstanding, the corporation shall not, without
the vote or written consent by the holders of at least a majority of the
aggregate number of outstanding shares of Series B Preferred Stock and Series C
Preferred Stock authorize or issue, or obligate itself to issue, any other
equity security senior to the Series B Preferred Stock or Series C Preferred
Stock as to dividend or redemption rights, liquidation preferences, conversion
rights, voting rights or otherwise, or create any obligation or security
convertible into or exchangeable for, or having any option rights to purchase,
any such equity security which is senior to the Series B Preferred Stock or
Series C Preferred Stock.

 
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7. Status of Converted Stock. In the event any shares of Series B Preferred
Stock or Series C Preferred Stock shall be converted pursuant to Section 4
hereof, the shares so converted shall be cancelled and shall not be reissuable
by the corporation, but shall be returned to the status of undesignated shares
of Preferred Stock.

IN WITNESS WHEREOF, the undersigned have executed this certificate. Each of the
undersigned declares under penalty of perjury that the matters set forth in the
foregoing certificate are true of his own knowledge. Executed at Riverside,
California effective April ___, 2008.
 

       
   
   
    By:   /s/ Dennis Shogren  

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Dennis Shogren   Chief Executive Officer

       
   
   
    By:   /s/ Kenneth Cragun  

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Kenneth Cragun   Secretary

 
 
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