exhibit4-1.htm


    EXHIBIT 4.1

    

      CERTIFICATE
OF DESIGNATIONS OF PREFERENCES AND RIGHTS OF

      SERIES
A CONVERTIBLE PREFERRED STOCK

      OF

      ECO2
PLASTICS, INC.

      a
Delaware corporation

       

      Pursuant
to Section 151 of the Delaware General Corporation Law

       

      The
undersigned, Rodney S. Rougelot, certifies that:

       

      1. He is the
duly acting Chief Executive Officer and Secretary of ECO2 PLASTICS, INC., a
corporation organized and existing under the Delaware General Corporation Law
(the “Corporation”).

       

      2. Pursuant
to authority conferred upon the Board of Directors by the Third Amended and
Restated Certificate of Incorporation of the Corporation (the “Certificate of
Incorporation”), which
authorizes 500,000,000 shares of preferred stock, par value $0.001 per share
(“Preferred
Stock”), of which no
shares are issued and outstanding, and pursuant to the provisions of the
Delaware General Corporation Law, said Board of Directors, pursuant to unanimous
written consent dated April 25, 2008, adopted a resolution establishing the
rights, preferences, privileges and restrictions of, and the number of shares
comprising, the Corporation's Series A Convertible Preferred Stock, which
resolution is as follows:

       

      RESOLVED,
that a series of preferred stock in the Corporation, having the rights,
preferences, privileges and restrictions, and the number of shares constituting
such series and the designation of such series, set forth below be, and it
hereby is, authorized by the Board of Directors of the Corporation pursuant to
authority given by the Corporation's Certificate of Incorporation.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors hereby fixes and
determines the designations of, the number of shares constituting, and the
rights, preferences, privileges and restrictions relating to, each new series of
preferred stock as follows:

       

      (a) Designation.  The
series of preferred stock is hereby designated Series A Convertible Preferred
Stock (the “Series A
Preferred Stock”).  

       

      (b) Authorized
Shares.  The number of authorized shares constituting the
Series A Preferred Stock shall be 152,843,414.

       

      (c) Original Issue
Price.  The Original Issue Price of the Series A Preferred
Stock shall be $0.030 per share (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like with respect to such
shares).

       

      (d) Dividends.  Commencing
on the dates of issuance of the Series B Convertible Preferred Stock (the “Series B
Preferred Stock”) and the Series A Convertible Preferred Stock of the
Corporation (together the “Senior
Preferred
Stock”), and subject to
the rights of any series of Preferred Stock that may from time to time come into
existence, each holder of an
outstanding share of Senior Preferred Stock shall be entitled to receive, on a
pari passu basis, when,
as and if declared by the Board of Directors, out of any assets of the
Corporation legally available therefor, dividends at a rate equal to 5% per
share of the Original Issue Price of such share of Senior Preferred Stock (in
each case, as adjusted for any stock dividends, combinations, splits,
recapitalizations and the like with respect to such shares) per annum prior and
in preference to the holders of the Corporation’s Common Stock (the “Common
Stock”), and in
preference to the holders of any other equity securities of the Corporation that
may from time to time come into existence to which the Senior Preferred Stock
ranks senior (such junior securities, together with the Common Stock,
“Junior
Securities”).  No dividends
will be paid on the Junior Securities in any year unless such dividends of the
Senior Preferred Stock are paid in full or declared and set
apart.  Additionally, whenever the Corporation shall pay a dividend on
the Common Stock, each holder of a share of Senior Preferred Stock shall be
entitled to receive, at the same time the dividend is paid on the Common Stock,
out of the assets of the Corporation legally available therefor, a dividend
equal to the amount that would have been paid in respect of the Common Stock
issuable upon conversion of such share of Senior Preferred Stock immediately
prior to the close of business on the record date for determining the holders
entitled to receive such dividend on the Common Stock, or, if no such record is
taken, the date on which the record holders of Common Stock entitled to such
dividend is determined.

       

      (e) Liquidation Preference.

       

      (i) Preference upon Liquidation,
Dissolution or Winding Up.  In the event of any dissolution or
winding up of the Corporation, whether voluntary or involuntary, and subject to the rights of any series
of Preferred Stock that may from time to time come into existence,
holders of each outstanding share of Series A Preferred Stock shall be
subordinated to holders of Series B Preferred Stock and will not be entitled to
be paid out of the assets of the Corporation available for distribution to
shareholders, whether such assets are capital, surplus or earnings, until the
holders of Series B Preferred Stock have been paid in full all amounts due under
Section 2(e) of the Certificate of Designations of Preferences and Rights of the
Series B Preferred Stock, or funds necessary for such payment shall have been
set aside by the Corporation in trust for the account of the holders of Series B
Preferred Stock.  After such payment shall have been made in full to
holders of Series B Preferred Stock, or funds necessary for such payment shall
have been set aside by the Corporation in trust for the account of the holders
of Series B Preferred Stock so as to be available for such payment, and subject to the rights of any series
of Preferred Stock that may from time to time come into existence, the
holders of Series A Preferred Stock shall be entitled to be paid out of the
assets of the Corporation available for distribution to shareholders, whether
such assets are capital, surplus or earnings, before any payment shall be made
to the holders of the Common Stock or any other stock of the Corporation ranking
junior to the Series A Preferred with regard to any distribution of asset upon
liquidation, dissolution or winding up of the Corporation, an amount equal to
$0.030 per share of Series A Preferred Stock held (as adjusted for any stock
splits, stock dividends or recapitalizations of the Series A Preferred Stock)
plus any declared but unpaid dividends on such share.  If, upon any
liquidation, dissolution or winding up of the Corporation, the assets available
to be distributed to the holders of the Series A Preferred Stock shall be
insufficient to permit payment to such shareholders of the full preferential
amounts aforesaid, then all of the assets of the Corporation available for
distribution to the holders of Series A Preferred Stock shall be distributed to
the holders of Series A Preferred Stock on a pro rata basis.  Each
holder of the Series A Preferred Stock shall be entitled to receive that portion
of the assets available for distribution to the holders of Series A Preferred
Stock as the number of outstanding shares of Series A Preferred Stock held by
such holder bears to the total number of shares of Series A Preferred
Stock.   Such payment shall constitute payment in full to the
holders of the Series A Preferred Stock upon the liquidation, dissolution or
winding up of the Corporation.  After such payment shall have been
made in full, or funds necessary for such payment shall have been set aside by
the Corporation in trust for the account of the holders of Series A Preferred
Stock so as to be available for such payment, such holders of Series A Preferred
Stock shall be entitled to no further participation in the distribution of the
assets of the Corporation.

       

      (ii) Consolidation, Merger and Other
Corporate Events. Unless otherwise agreed by holders of a majority of the
Series B Preferred Stock of the Corporation then outstanding, (A) A
consolidation or merger of the Corporation (except into or with a subsidiary
corporation), (B) any reclassification of the stock of the Corporation (other
than a change in par value or from no par to par, or from par to no par or as
the result of an event described in subsection (v), (vi), (vii) or (ix) of
paragraph (f)), or (C) a sale, lease, exclusive license or other disposition of
all or substantially all of the assets of the Corporation requiring approval of
the Corporation’s stockholders shall be regarded as a liquidation, dissolution
or winding up of the affairs of the Corporation within the meaning of this
paragraph (e); provided, however, in the case
of a merger, if (a) the Corporation is the surviving entity, (b) the
Corporation’s shareholders retain, solely in respect of the shares of
capital stock of the Corporation held by them prior to the merger, a majority of the shares
of the surviving entity, and (c) the Corporation’s directors hold a majority of
the seats on the board of directors of the surviving entity, then such merger
shall not be regarded as a liquidation, dissolution or winding up within the
meaning of this paragraph (d).  In no event shall the issuance of new
classes of stock, whether senior, junior or on a parity with the Series A
Preferred Stock, or any stock splits, be deemed a “reclassification” under or
otherwise limited by the terms hereof.

       

      (iii) Change of Control.  A “Change of
Control” of the Corporation means such time as (A) the Corporation shall
consummate a merger, consolidation or similar transaction approved by the Board
of Directors, or there shall occur the consummation of a tender offer for, or
other acquisition of, Common Stock, in which an individual, corporation,
partnership, limited liability company, joint venture, trust or unincorporated
organization or a government or agency or political subdivision thereof (a
“Person”)
or group (as such term is defined in Rule 13d-5 under the Exchange Act) of
Persons who are not
stockholders of the Company immediately following the initial issuance of the
Series B Preferred Stock become the beneficial owners (as determined
pursuant to Rule 13d-3 under the Exchange Act), directly or indirectly, of 45%
or more of the voting power of the outstanding shares of Common Stock, (B) the
majority of the seats of the Board of Directors is occupied by persons other
than the directors occupying such seats as of the date of the initial issuance
of shares of Series B Preferred Stock (the “Current
Directors”) or persons nominated by Current Directors or their nominated
successors, or (C) there shall occur a change in the Chief Executive Officer of
the Corporation without the consent of holders of a majority of the outstanding
shares of Series B Preferred Stock.  A Change of Control will be
treated as a liquidation, dissolution or winding up of the affairs of the
Corporation within the meaning of this paragraph (e), except as otherwise
agreed by holders of a majority of the then outstanding Series B Preferred
Stock.

       

      (iv) Distribution of Cash and Other
Assets.  In the event of a liquidation, dissolution or winding
up of the Corporation resulting in the availability of assets other than cash
for distribution to the holders of the Series A Preferred Stock, the holders of
the Series A Preferred Stock shall be entitled to a distribution of cash and/or
assets equal to the value of the liquidation preference stated in subsection (i)
of this paragraph (e), which valuation shall be determined in good faith by the
Board of Directors and shall be conclusive.  Any securities shall be
valued as follows:

       

      (A) Securities
not subject to investment letter or other similar restrictions on free
marketability covered by (B) below:

       

      (1)           If
traded on a securities exchange, the value shall be deemed to be the average of
the closing prices of the securities on such quotation system over the thirty
(30) day period ending three (3) days prior to the closing;

       

      (2)           If
actively traded over-the-counter, the value shall be deemed to be the average of
the closing bid or sale prices (whichever is applicable) over the thirty (30)
day period ending three (3) days prior to the closing; and

       

      (3)           If
there is no active public market, the value shall be the fair market value
thereof, as determined in good faith by the Board of Directors.

       

      (B)           The
method of valuation of securities subject to investment letter or other
restrictions on free marketability (other than restrictions arising solely by
virtue of a stockholder’s status as an affiliate or former affiliate) shall be
to make an appropriate discount from the market value determined as above in (A)
(1), (2) or (3) to reflect the approximate fair market value thereof, as
determined in good faith by the Board of Directors.

       

      (v)           Distribution to Junior Security
Holders.  After the payment or distribution to the holders of
the Series A Preferred Stock of the full preferential amounts aforesaid, the
holders of Common Stock then outstanding, or any other stock of the Corporation
ranking junior to the Series A Preferred Stock as to assets upon liquidation,
dissolution or winding up of the Corporation, shall be entitled to receive the
remaining assets of the Corporation available for distribution.

       

      (vi)           Preference;
Priority.  References to a stock that is “senior”
to, on a “parity”
with or “junior” to
other stock as to liquidation shall refer, respectively, to rights of priority
of one series or class of stock over another in the distribution of assets on
any liquidation, dissolution or winding up of the Corporation. The Series B
Preferred Stock shall be senior to the Series A Preferred Stock and the Common
Stock of the Corporation with regard to liquidation, dissolution or winding up
of the Corporation. The Series A Preferred Stock shall be senior to the Common
Stock of the Corporation with regard to liquidation, dissolution or winding up
of the Corporation.

       

       

      (vii)           Greater-of Treatment. 
Notwithstanding Section 2(e)(i) above, for purposes of determining the amount
each holder of Series A Preferred Stock is entitled to receive with respect to a
liquidation, dissolution or winding up of the Corporation (including without
limitation the events to be treated as a liquidation, dissolution or winding up
as set forth in Sections 2(e)(ii) and 2(e)(iii) above), the holders of Series A
Preferred Stock shall receive at the closing of such event (and at each
date after the closing of such event on which additional amounts, such as earn
out payments, escrow amounts or other contingent payments are paid to
stockholders of the Corporation as a result of the event, but only to the extent
of the portion of such additional amount to which the holders of Series A
Preferred Stock are entitled), an amount equal to the greater of (A) the
amount specified in Section 2(e)(i) above, and (B) the amount that the holders
of Series A Preferred Stock would have been entitled to receive had the holders
of all Series A Preferred Stock and, if any, all convertible stock ranking
junior to the Series A Preferred Stock with regard to any distribution of assets
upon liquidation, dissolution or winding up of the Corporation, converted their
shares into Common Stock immediately prior to such event at the then applicable
conversion price for such shares.

       

      (f) Voting
Rights.

       

       

      (i)           Each
share of Series A Preferred Stock shall entitle the holder thereof to vote, in
person or by proxy, at a special or annual meeting of the stockholders of the
Corporation, on all matters except as required by law or as set forth herein,
voted on by holders of Common Stock, voting together as a single class with the
holders of the Common Stock and all other shares entitled to vote thereon as a
single class with the Common Stock.  With respect to all such matters,
each issued and outstanding share of Series A Preferred Stock shall entitle the
holder thereof to cast that number of votes per share as is equal to the number
of votes that such holder would be entitled to cast had such holder converted
such holder’s Series A Preferred Stock into Common Stock on the record date for
determining the stockholders of the Corporation eligible to vote on any such
matters.

       

      (ii)           For
so long as any shares of Series A Preferred Stock remain outstanding, the
affirmative vote of the holders of a majority of the outstanding shares of
Series A Preferred Stock, voting separately as a single class, shall be
necessary to amend the rights, preferences or privileges of the Series A
Preferred Stock, however effected, whether by amendment, merger, consolidation,
recapitalization or otherwise, provided that no such separate consent of the
Series A Preferred Stock shall be required with respect to any such amendment of
the rights, preferences or privileges of the Series A Preferred Stock if (i) a
similar amendment is contemporaneously effected  with respect to the
rights, preferences or privileges of the Series B Preferred Stock and (ii) the
amendment is approved by holders of a majority of the Series B Preferred Stock
then outstanding.

      


      (g) Conversion
Rights.  The holders of Series A Preferred Stock will have the
following conversion rights:

       

      (i) Right to
Convert.  Subject to and in compliance with the provisions of
this paragraph (g), any issued and outstanding shares of Series A Preferred
Stock may, at the option of the holder, be converted at any time or from time to
time into fully paid and non-assessable shares of Common Stock at the conversion
rate in effect at the time of conversion, determined as provided
herein.

       

      (ii) Automatic
Conversion.  Subject to and in compliance with the provisions
of this paragraph (g), upon election by holders of a majority of the then
outstanding shares of Series B Preferred Stock, all issued and outstanding
shares of Senior Preferred Stock shall be automatically converted into fully
paid and non-assessable shares of Common Stock at the conversion rate in effect
at the time of conversion.

       

      (iii) Mechanics of
Conversion.  Before any holder of Series A Preferred Stock
shall be entitled to convert the same into shares of Common Stock, he shall
surrender the certificate or certificates therefor, duly endorsed, at the office
of the Corporation or of any transfer agent for the Common Stock, and shall give
written notice to the Corporation at such office that he elects to convert the
same and shall state therein the number of shares of Series A Preferred Stock
being converted.  Thereupon, the Corporation shall promptly issue and
deliver at such office to such holder of Series A Preferred Stock a certificate
or certificates for the number of shares of Common Stock to which he shall be
entitled.  Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of the
shares of Series A Preferred Stock to be converted, and the Person or Persons
entitled to receive the shares of Common Stock issuable upon such conversion
shall be treated for all purposes as the record holder or holders of such shares
of Common Stock on such date.  Promptly following a conversion
pursuant to paragraph (g)(ii) above, the Corporation shall send each holder of
Series A Preferred Stock a written notice thereof.  Thereafter, as
soon as practicable following the surrender of one or more certificates
representing the Series A Preferred Stock that is so converted, the Corporation
shall issue and deliver to such holder one or more certificates for the number
of whole shares of Common Stock issuable upon conversion in accordance with the
provisions hereof.

       

      (iv) Conversion
Price.  The number of shares into which one share of Series A
Preferred Stock shall be convertible shall be determined by dividing the
Original Issue Price of the Series A Preferred Stock by the then existing Series
A Conversion Price (as set forth below).  The “Series A
Conversion Price” shall initially be equal to the Original Issue Price of
the Series A Preferred Stock, and shall be subject to adjustment upon the
occurrence of any event in paragraph (g)(v)-(vii).

       

      (v) Adjustment for Stock Splits and
Combinations.  If the Corporation shall at any time, or from
time to time after the date shares of the Series A Preferred Stock are first
issued (the “Original Issue
Date”), effect a subdivision of the outstanding Common Stock, the Series
A Conversion Price in effect immediately prior thereto shall be proportionately
decreased, and conversely, if the Corporation shall at any time or from time to
time after the Original Issue Date combine the outstanding shares of Common
Stock, the Series A Conversion Price then in effect immediately before the
combination shall be proportionately increased.  Any adjustment under
this paragraph (g)(v) shall become effective at the close of business on the
date the subdivision or combination becomes effective.

       

      (vi) Adjustment for Certain Dividends and
Distributions.  In the event the Corporation at any time, or
from time to time after the Original Issue Date, shall make or issue, or fix a
record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution payable in additional shares of Common
Stock, then and in each such event the Series A Conversion Price then in effect
shall be decreased as of the time of such issuance or, in the event such a
record date shall have been fixed, as of the close of business on such record
date, by multiplying the Series A Conversion Price then in effect by a
fraction:

       

      (A) the
numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date, and

       

      (B) the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution; provided, however, if such
record date shall have been fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Series A
Conversion Price shall be recomputed accordingly as of the close of business on
such record date and thereafter, the Series A Conversion Price shall be adjusted
pursuant to this paragraph (g)(vi) as of the time of actual payment of such
dividends or distributions.

       

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

       

      (viii) Adjustment for
Reclassification Exchange or
Substitution.  If the Common Stock issuable upon the conversion
of the Series A Preferred Stock shall be changed into the same or a different
number of shares of any class or classes of stock, whether by capital
reorganization, reclassification or otherwise (other than a subdivision or
combination of shares or stock dividend provided for above, or a reorganization,
merger, consolidation or sale of assets provided for elsewhere in this paragraph
(g)), then and in each such event the holder of each share of Series A Preferred
Stock shall have the right thereafter to convert such share into the kind and
amount of shares of stock and other securities and property receivable upon such
reorganization, reclassification or other change, by holders of the number of
shares of Common Stock into which such shares of Series A Preferred Stock might
have been converted immediately prior to such reorganization, reclassification,
or change, all subject to further adjustment as provided herein.

       

      (ix) Reorganization, Mergers,
Consolidations or Sales of Assets.  If at any time or from time
to time there shall be a capital reorganization of the Common Stock (other than
a subdivision, combination, reclassification or exchange of shares provided for
elsewhere in this paragraph (g)) or a merger or consolidation of the Corporation
with or into another corporation, or the sale of all or substantially all of the
Corporation’s properties and assets to any other Person, then, as a part of such
reorganization, merger, consolidation or sale, provision shall be made so that
the holders of the Series A Preferred Stock shall thereafter be entitled to
receive upon conversion of such Series A Preferred Stock, the number of shares
of stock or other securities or property of the Corporation or of the successor
corporation resulting from such merger or consolidation or sale, to which a
holder of Common Stock deliverable upon conversion would have been entitled on
such capital reorganization, merger, consolidation or sale.  In any
such case, appropriate adjustment shall be made in the application of the
provisions of this paragraph (g) with respect to the rights of the holders of
the Series A Preferred Stock after the reorganization, merger, consolidation or
sale to the end that the provisions of this paragraph (g) (including adjustment
of the Series A Conversion Price then in effect and the number of shares
purchasable upon conversion of the Series A Preferred Stock) shall be applicable
after that event as nearly equivalent as may be practicable.

       

      (x) Certificate of
Adjustment.  In each case of an adjustment or readjustment of
the Series A Conversion Price or the securities issuable upon conversion of the
Series A Preferred Stock, the Corporation shall compute such adjustment or
readjustment in accordance herewith and the Corporation’s Chief Financial
Officer shall prepare and sign a certificate showing such adjustment or
readjustment, and shall mail such certificate by first class mail, postage
prepaid, to each registered holder of the Series A Preferred Stock at the
holder’s address as shown in the Corporation’s books. The certificate shall set
forth such adjustment or readjustment, showing in detail the facts upon which
such adjustment or readjustment is based.

       

      (xi) Notices of Record
Date.  In the event of (A) any taking by the Corporation of a
record of the holders of any class or series of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend or
other distribution or (B) any reclassification or recapitalization of the
capital stock of the Corporation, any merger or consolidation of the Corporation
or any transfer of all or substantially all of the assets of the Corporation to
any other corporation, entity or Person, or any voluntary or involuntary
dissolution, liquidation or winding up of the Corporation, the Corporation shall
mail, via facsimile, regular or electronic mail, or nationally recognized overnight
courier service to each holder of Series A Preferred Stock at least 10
days prior to the record date specified therein, a notice specifying (1) the
date on which any such record is to be taken for the purpose of such dividend or
distribution and a description of such dividend or distribution, (2) the date on
which any such reorganization, reclassification, transfer, consolidation,
merger, dissolution, liquidation or winding up is expected to become effective
and (3) the time, if any is to be fixed, as to when the holders of record of
Common Stock (or other securities) shall be entitled to exchange their shares,
of Common Stock (or other securities) for securities or other property
deliverable upon such reorganization, reclassification, transfer, consolidation,
merger, dissolution, liquidation or winding up.

       

      (xii) Fractional
Shares.  No fractional shares of Common Stock shall be issued
upon conversion of the Series A Preferred Stock. All shares of Common Stock (including
fractions thereof) issuable upon conversion of more than one share of Series A
Preferred Stock by a holder thereof shall be aggregated for purposes of
determining whether the conversion would result in the issuance of any
fractional share.  In lieu of any fractional shares to which
the holder would otherwise be entitled, the Corporation shall pay cash equal to
the product of such fraction multiplied by the fair market value of one share of
the Corporation’s Common Stock on the date of conversion, as determined in good
faith by the Board of Directors.

       

      (xiii) Reservation of Stock Issuable Upon
Conversion.  The Corporation shall at all times reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of the shares of the Series A
Preferred Stock, such number of shares of Common Stock as shall from time to
time be sufficient to effect the conversion of all outstanding shares of Series
A Preferred Stock.  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 Series A Preferred Stock, the Corporation will
take such corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purpose.

       

      (xiv) Notices. Any notice required
by the provisions of this paragraph (f) to be given to the holders of shares of
Series A Preferred Stock shall be deemed given (A) if deposited in the United
States mail, postage prepaid, or (B) if given by any other reliable or generally
accepted means (including by facsimile, electronic mail or by a nationally
recognized overnight courier service), in each case addressed to each holder of
record at his address (or facsimile number) appearing on the books of the
Corporation.

       

      (xv) Payment of
Taxes.  The Corporation will pay all transfer taxes and other
governmental charges that may be imposed in respect of the issue or delivery of
shares of Common Stock upon conversion of shares of Series A Preferred
Stock.

       

      (xvi) No Dilution or
Impairment.  The Corporation shall not amend its Certificate of
Incorporation or participate in any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, for the purpose of avoiding or seeking to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Corporation, without the approval of a majority of the then outstanding Series A
Preferred Stock.

       

      (h) No Reissuance of Preferred
Stock.  Any shares of Series A Preferred Stock acquired by the
Corporation by reason of purchase, conversion or otherwise shall be canceled,
retired and eliminated from the shares of Series A Preferred Stock that the
Corporation shall be authorized to issue.  All such shares shall upon
their cancellation become authorized but unissued shares of preferred stock and
may be reissued as part of a new series of preferred stock subject to the
conditions and restrictions on issuance set forth in the Certificate of
Incorporation or in any certificate of designations creating a series of
preferred stock or any similar stock or as otherwise required by law.


       

      (i) Not
Redeemable.  The Series A Preferred Stock is not redeemable,
except that, in the event of a Change of Control that is deemed by the
Corporation to be a liquidation, dissolution or winding up of the Corporation
pursuant to Section 2(e)(iii) above, holders of a majority of the then
outstanding shares of Series A Preferred Stock can require redemption of the
Series A Preferred Stock at a redemption price per share equal to the amount per
share to which holders of Series A Preferred Stock would be entitled upon a
liquidation, dissolution or winding up pursuant to Section 2(e)(i) or 2(e)(vii)
above, as applicable (the “Redemption
Price”), and any such shares of Series A Preferred Stock so requested to
be redeemed, but not repurchased on the designated repurchase date, will begin
to accrue dividends at an annual rate equal to 6% of the Redemption Price per
share of Series A Preferred Stock held, compounded semiannually from the date
originally set for redemption, and will at all times until actual redemption
remain convertible into Common Stock.

       

      (j) Severability.  If
any right, preference or limitation of the Series A Preferred Stock set forth
herein is invalid, unlawful or incapable of being enforced by reason of any
rule, law or public policy, all other rights, preferences and limitations set
forth herein that can be given effect without the invalid, unlawful or
unenforceable right, preference or limitation shall nevertheless remain in full
force and effect, and no right, preference or limitation herein shall be deemed
dependent upon any other such right, preference or limitation unless so
expressed herein.

       

      3. The
number of authorized shares of preferred stock of the Corporation is five
hundred million (500,000,000).  The number of shares of Series A
Preferred Stock, none of which has been issued, is 152,843,414.

       

      


       

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      Each of
the undersigned declares under penalty of perjury that the matters set out in
the foregoing Certificate are true of his own knowledge.  Executed at
San Francisco, California, on June 3, 2008.

       

      


       

       

      

                                                                                                                                        
/s/ Rodney S.
Rougelot                                                      

        Name: Rodney S. Rougelot

        Title: Chief Executive Officer and
Secretary