| (a)   | Conversion Upon      Election of Holders. At any time each holder of shares of the      Series A Preferred Stock shall be entitled, upon written notice to the      transfer agent (or to the Corporation if the Corporation serves as its own      transfer agent) to convert all or any part of the Series A Preferred Stock      then held by such holder into a number of fully paid and nonassessable      shares of Common Stock. |
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| (b)   | 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 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 Stock; |
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|            | and      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 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,      including, without limitation, engaging in best efforts to obtain the      requisite shareholder approval of any necessary amendment to the      Corporation’s Certificate of Incorporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| (c)        | No      Impairment.  The Corporation shall not avoid or seek to      avoid the observance or performance of any of the terms to be observed or      performed hereunder by the Corporation, but shall at all times in good      faith assist in carrying out all such action as may be reasonably      necessary or appropriate in order to protect the rights of the holders of      the Series A Preferred Stock against impairment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| (d)        | Mechanics of Conversion. Before      any holder of Series A Preferred Stock shall be entitled to convert shares      of Series A Preferred Stock into shares of Common Stock, the holder shall      surrender the certificate for such shares of Series A Preferred Stock (or,      if such registered holder alleges that such certificate has been lost,      stolen or destroyed, a lost certificate affidavit and agreement reasonably      acceptable to the Corporation to indemnify the Corporation against any      claim that may be made against the Corporation on account of the alleged      loss, theft or destruction of such certificate), at the office of the      transfer agent for the Series A Preferred Stock (or at the principal      office of the Corporation if the Corporation serves as its own transfer      agent), together with written notice that such holder elects to convert      all or any number of the shares of the Series A Preferred Stock      represented by such certificate and, if applicable, any event on which      such conversion is contingent.  The notice shall state the      holder’s name or the names of the nominees in which such holder wishes the      certificate or certificates for shares of Common Stock to be issued. If      required by the Corporation, certificates surrendered for conversion shall      be endorsed or accompanied by a written instrument or instruments of      transfer, in form reasonably satisfactory to the Corporation, duly      executed by the registered holder or his, her or its attorney duly      authorized in writing. |
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| (e)        | New Stock      Certificate.  In the event less than all the shares      represented by a certificate are converted, the Corporation shall promptly      issue to the holder thereof a new certificate representing the unconverted      shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| (f)        | Conversion Time.  The      conversion time shall be the date notice is provided by the holder of      Series A Preferred Stock to theCorporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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| (a)   | the Corporation shall offer      for subscription pro      rata to the holders of its Common Stock any additional shares of      stock of any class or other rights; or |
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| (b)        | there      shall be any Change of Control, as defined below, of the      Corporation;                                                                                   |

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