Exhibit 10.88

# GLOBAL
MED TECHNOLOGIES, INC.

# AMENDED
AND RESTATEDCERTIFICATE OF DESIGNATION OF PREFERENCES,RIGHTS AND LIMITATIONSOF
SERIES A CONVERTIBLE PREFERRED STOCK

PURSUANT TO
SECTION 7-106-101 OF THECOLORADO BUSINESS CORPORATION ACT

The
undersigned, Michael I. Ruxin, M.D. and Kim Geist, do hereby certify that:

1.    
They are the President and Secretary,  respectively,  of Global Med Technologies,  Inc.,
a Colorado corporation (the Corporation").

2.    
The Corporation is authorized to issue 10,000,000  shares of preferred stock,  3,500,000
of which have been issued.

3.     
The following resolutions were duly adopted by the Board of Directors:

WHEREAS,
the Certificate of Incorporation of the Corporation provides for a class of its
authorized stock known as preferred stock, comprised of 10,000,000 shares, $0.01
par value, issuable from time to time in one or more series;

WHEREAS,
the Board of Directors of the Corporation is authorized to fix the dividend
rights, dividend rate, voting rights, conversion rights, rights and terms of
redemption and liquidation preferences of any wholly unissued series of
preferred stock and the number of shares constituting any series and the
designation thereof, of any of them; and

WHEREAS,
it is the desire of the Board of Directors of the Corporation, pursuant to its
authority as aforesaid, to fix the rights, preferences, restrictions and other
matters relating to a series of the preferred stock, which shall consist of,
except as otherwise set forth in the Purchase Agreement, up to 9,975 shares of
the preferred stock which the corporation has the authority to issue, as
follows:

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for
the issuance of a series of preferred stock for cash or exchange of other
securities, rights or property and does hereby fix and determine the rights,
preferences, restrictions and other matters relating to such series of preferred
stock as follows:

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# TERMS
OF PREFERRED STOCK

Section 1.
Definitions. Capitalized terms used and not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement. For the purposes hereof, the following terms shall have the
following meanings: Alternate Consideration" shall have the meaning
set forth in Section 7(e).

| | Bankruptcy
Event means any of the following events: (a) the Corporation or any
Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation  S-X)
thereof commences a case or other proceeding under any bankruptcy,  reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution,  insolvency or
liquidation or similar law of any jurisdiction relating to the  Corporation or any
Significant Subsidiary thereof; (b) there is commenced  against the Corporation or any
Significant Subsidiary thereof any such case or  proceeding that is not dismissed within
60 days after commencement; (c) the  Corporation or any Significant Subsidiary thereof is
adjudicated insolvent or  bankrupt or any order of relief or other order approving any
such case or  proceeding is entered; (d) the Corporation or any Significant Subsidiary
thereof  suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within 60 days; (e) the
Corporation or any Significant Subsidiary thereof makes a general assignment for  the
benefit of creditors; (f) the Corporation or any Significant Subsidiary  thereof calls a
meeting of its creditors with a view to arranging a composition,  adjustment or
restructuring of its debts; or (g) the Corporation or any  Significant Subsidiary
thereof, by any act or failure to act, expressly  indicates its consent to, approval of
or acquiescence in any of the foregoing or  takes any corporate or other action for the
purpose of effecting any of the  foregoing.
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| | Base
Conversion Price shall have the meaning set forth in Section 6(b).
| | -------------------------------------------------------------------------

| | Closing
Date means the Trading Day when all of the Transaction Documents have  been
executed and delivered by the applicable parties thereto, and all  conditions precedent
to (i) the Holders obligations to pay the  Subscription Amount and (ii) the
Corporations obligations to deliver the  Securities have been satisfied or waived.
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| | Commission"
means the Securities and Exchange Commission.
| | ----------------------------------------------------------

| | Common
Stock means the Corporations common stock, par value $.01 per  share, and
stock of any other class of securities into which such securities may  hereafter have
been reclassified or changed into.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Common
Stock Equivalents means any securities of the Corporation or the  Subsidiaries
which would entitle the holder thereof to acquire at any time  Common Stock, including,
without limitation, any debt, preferred stock, rights,  options, warrants or other
instrument that is at any time convertible into or  exchangeable for, or otherwise
entitles the holder thereof to receive, Common  Stock.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Conversion
Amount means the sum of the Stated Value at issue.
| | ---------------------------------------------------------------

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| | Conversion
Date shall have the meaning set forth in Section 6(a).
| | -------------------------------------------------------------------

| | Conversion
Price shall have the meaning set forth in Section 6(b).
| | --------------------------------------------------------------------

| | Conversion
Shares means, collectively, the shares of Common Stock into which the shares of
Preferred Stock are convertible in accordance with the terms hereof.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Conversion
Shares Registration Statement means a registration statement that  meets the
requirements of the Registration Rights Agreement and registers the  resale of all
Conversion Shares by the Holder, who shall be named as a  selling stockholder thereunder,
all as provided in the Registration  Rights Agreement.
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| | Dilutive
Issuance shall have the meaning set forth in Section 7(b).
| | ---------------------------------------------------------------------

| | Dilutive
Issuance  Notice shall have the meaning set forth in Section 7(b).
| | -----------------------------------------------------------------------------

| | Effective
Date means the date that the Conversion Shares Registration Statement  is
declared effective by the Commission.
| | ---------------------------------------------------------------------------------------------------------------------------

| | Equity
Conditions shall mean, during the period in question, (i) the  Corporation
shall have duly honored all conversions scheduled to occur or  occurring by virtue of one
or more Notices of Conversion of the Holder, if any,  (ii) there is an effective
Conversion Shares Registration Statement pursuant to  which the Holder is permitted to
utilize the prospectus thereunder to resell all  of the shares issuable pursuant to the
Transaction Documents (and the  Corporation believes, in good faith, that such
effectiveness will continue  uninterrupted for the foreseeable future), (iii) the Common
Stock is trading on  the Trading Market and all of the shares issuable pursuant to the
Transaction  Documents are listed for trading on a Trading Market (and the Corporation
believes, in good faith, that trading of the Common Stock on a Trading Market  will
continue uninterrupted for the foreseeable future), (iv) there is a  sufficient number of
authorized but unissued and otherwise unreserved shares of  Common Stock for the issuance
of all of the shares issuable pursuant to the  Transaction Documents, (v) there is then
existing no Triggering Event or event  which, with the passage of time or the giving of
notice, would constitute a  Triggering Event, (vi) the issuance of the shares in question
to the Holder  would not violate the limitations set forth in Section 6(c) and (vii) no
public  announcement of a pending or proposed Fundamental Transaction or acquisition
transaction has occurred that has not been consummated.
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| | Exchange
Act means the Securities Exchange Act of 1934, as amended, and the  rules and
regulations promulgated thereunder.
| | ----------------------------------------------------------------------------------------------------------------------------

Exempt
Issuance means the issuance of (a) shares of Common Stock or options  to
employees, officers or directors of the Corporation pursuant to any stock or  option plan
duly adopted by a majority of the members of the Board of Directors  of the Corporation
or a majority of the members of a committee of non-employee  directors established for
such purpose, (b) securities upon the exercise of or  conversion of any securities issued
hereunder, convertible securities, options  or warrants issued and outstanding on the
date of the Purchase Agreement,  provided that such securities have not been amended
since the date of the  Purchase Agreement to increase the number of such securities or to
decrease the  exercise or conversion price of any such securities, and (c) securities
issued  pursuant to acquisitions or strategic transactions, provided any such issuance
shall only be to a Person which is, itself or through its subsidiaries, an  operating
company in a business synergistic with the business of the Corporation  and in which the
Corporation receives benefits in addition to the investment of  funds, but shall not
include a transaction in which the Corporation is issuing  securities primarily for the
purpose of raising capital or to an entity whose  primary business is investing in
securities. 3

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| | Fundamental
Transaction shall have the meaning set forth in Section 7(e).
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| | Holder shall
have the meaning given such term in Section 2.
| | -------------------------------------------------------------

| | Junior
Securities means the Common Stock and all other equity or equity  equivalent
securities of the Corporation other than those securities which are  explicitly senior or
pari passu in rights or liquidation preference to the  Preferred Stock.
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| | Liquidation shall
have the meaning given such term in Section 5.
| | ------------------------------------------------------------------

| | New
York Courts shall have the meaning given such term in Section 11(d).
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| | Notice
of Conversion shall have the meaning given such term in Section 6(a).
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| | Original
Issue Date shall mean the date of the first issuance of any shares of  the
Preferred Stock regardless of the number of transfers of any particular  shares of
Preferred Stock and regardless of the number of certificates which may  be issued to
evidence such Preferred Stock.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Permitted
Indebtedness shall mean (a) the Indebtedness existing on the Original  Issue
Date and set forth on Schedule 3.1(gg) attached to the Purchase  Agreement and (b)
lease obligations and purchase money Indebtedness of up to  $500,000, in the aggregate,
incurred in connection with the acquisition of  capital assets and lease obligations with
respect to newly acquired or leased  assets and trade payables and debt incurred in the
ordinary course of business  (other than debt incurred to borrow money).
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| | Permitted
Lien shall mean the individual and collective reference to the  following: (a)
Liens for taxes, assessments and other governmental charges or  levies not yet due or
Liens for taxes, assessments and other governmental  charges or levies being contested in
good faith and by appropriate proceedings  for which adequate reserves (in the good faith
judgment of the management of the  Company) have been established in accordance with
GAAP, (b) Liens imposed by law  which were incurred in the ordinary course of business,
such as carriers,  warehousemens and mechanics Liens, statutory
landlords Liens,  and other similar Liens arising in the ordinary course of
business, and (x)  which do not individually or in the aggregate materially detract from
the value  of such property or assets or materially impair the use thereof in the
operation  of the business of the Company and its consolidated Subsidiaries or (y) which
are being contested in good faith by appropriate proceedings, which proceedings  have the
effect of preventing the forfeiture or sale of the property or asset  subject to such
Lien and (c) Liens incurred in connection with Permitted  Indebtedness under clause (b)
thereunder provided that such Liens are not  secured by assets of the Company or its
Subsidiaries other than the assets so  acquired or leased.
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| | Person means
a corporation, an association, a partnership, an organization, a business,  an
individual, a government or political subdivision thereof or a governmental  agency.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Preferred
Stock shall have the meaning given such term in Section 2.
| | ----------------------------------------------------------------------

| | Purchase
Agreement means the Securities Purchase Agreement, dated as of the  Original
Issue Date, to which the Corporation and the original Holders are  parties, as amended,
modified or supplemented from time to time in accordance  with its terms.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Registration
Rights Agreement means the Registration Rights Agreement, dated as of  the date
of the Purchase Agreement, to which the Corporation and the original  Holder are parties,
as amended, modified or supplemented from time to time in  accordance with its terms.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Securities
Act means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.
| | --------------------------------------------------------------------------------------------------------------------

| | Share
Delivery Date shall have the meaning given such term in Section 6(e).
| | -----------------------------------------------------------------------------

| | Stated
Value shall have the meaning given such term in Section 2.
| | -------------------------------------------------------------------

| | Subscription
Amount shall mean, as to each Purchaser, the amount to be paid for the
Preferred Stock purchased pursuant to the Purchase Agreement as specified below  such
Purchasers name on the signature page of the Purchase Agreement and  next to the
heading Subscription Amount, in United States Dollars  and in immediately
available funds.
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| | Subsidiary shall
have the meaning given to such term in the Purchase Agreement.
| | ---------------------------------------------------------------------------------

| | Threshold
Period shall have the meaning set forth in Section 8(a).
| | --------------------------------------------------------------------

| | Trading
Day means a day on which the Common Stock is traded on a Trading  Market.
| | -----------------------------------------------------------------------------------

| | Trading
Market means the following markets or exchanges on which the Common  Stock is
listed or quoted for trading on the date in question: the Nasdaq  SmallCap Market, the
American Stock Exchange, the New York Stock Exchange, the  Nasdaq National Market or the
OTC Bulletin Board.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Transaction
Documents shall have the meaning set forth in the Purchase Agreement.
| | -----------------------------------------------------------------------------------

| | Triggering
Event shall have the meaning set forth in Section 9(a).
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| | Triggering
Redemption  Amount for each share of Preferred Stock means 130% of the Stated
Value.
| | -------------------------------------------------------------------------------------------------

| | Triggering
Redemption Payment Date shall have the meaning set forth in Section  9(b).
| | ---------------------------------------------------------------------------------------

| | VWAP means,
for any date, the price determined by the first of the following clauses  that applies:
(a) if the Common Stock is then listed or quoted on a Trading  Market, the daily volume
weighted average price of the Common Stock for such  date (or the nearest preceding date)
on the Trading Market on which the Common  Stock is then listed or quoted as reported by
Bloomberg Financial L.P. (based on  a Trading Day from 9:30 a.m. Eastern Time to 4:02
p.m. Eastern Time); (b) if the  Common Stock is not then listed or quoted on a Trading
Market and if prices for  the Common Stock are then quoted on the OTC Bulletin Board, the
volume weighted  average price of the Common Stock for such date (or the nearest
preceding date)  on the OTC Bulletin Board; (c) if the Common Stock is not then listed or
quoted  on the OTC Bulletin Board and if prices for the Common Stock are then reported
in the Pink Sheets published by the Pink Sheets, LLC (or a similar
organization or agency succeeding to its functions of reporting prices), the  most recent
bid price per share of the Common Stock so reported; or (d) in all  other cases, the fair
market value of a share of Common Stock as determined by  an independent appraiser
selected in good faith by the Purchasers and reasonably  acceptable to the Corporation.
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Section
2. Designation, Amount and Par Value. The series of preferred stock shall be
designated as its Series A Convertible Preferred Stock (the Preferred
Stock) and the number of shares so designated shall be up to 9,975
(which shall not be subject to increase without the consent of all of the
holders of the Preferred Stock (each, a Holder and
collectively, the Holders)). Each share of Preferred Stock
shall have a par value of $0.01 per share and a stated value equal to $1,000
(the Stated Value). Capitalized terms not otherwise defined
herein shall have the meaning given such terms in Section 1 hereof.

Section 3.
Dividends.

|a) |  | So
long as any Preferred Stock shall remain outstanding, neither the Corporation  nor any
Subsidiary thereof shall redeem, purchase or otherwise acquire directly  or indirectly
any Junior Securities. So long as any Preferred Stock shall remain  outstanding, neither
the Corporation nor any Subsidiary thereof shall directly  or indirectly pay or declare
any dividend or make any distribution upon, nor  shall any distribution be made in
respect of, any securities of the Company  unless a proportional amount is paid to the
holders of the Preferred Stock on an  as converted basis, nor shall any monies be set
aside for or applied to the  purchase or redemption (through a sinking fund or otherwise)
of any Junior  Securities or shares pari passu with the Preferred Stock.
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|b) |  | The
Corporation acknowledges and agrees that the capital of the Corporation (as  such term is
used in Section 7-106-101 of the Colorado Business Corporation Act)  in respect of the
Preferred Stock and any future issuances of the  Corporations capital stock shall
be equal to the aggregate par value of  such Preferred Stock or capital stock, as the
case may be, and that, on or after  the date of the Purchase Agreement, it shall not
increase the capital of the  Corporation with respect to any shares of the Corporations
capital stock  issued and outstanding on such date without prior written consent of a
majority  in interest of the Holders. The Corporation also acknowledges and agrees that
it  shall not create any special reserves under the Colorado Business Corporation  Act
without the prior written consent of each Holder.
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Section
4. Voting Rights.The Preferred Stock shall have voting rights on an
as-converted basis. Except as otherwise provided herein and as otherwise
required by law, no Holder shall have aggregate voting rights, on an
as-converted basis, in excess of 9.99% of the then issued and outstanding Common
Stock, which shall include shares of Common Stock then currently beneficially
owned by the Holder together with Conversion Shares. So long as any shares of
Preferred Stock are outstanding, the Corporation shall not, without the
affirmative vote of the Holders of the shares of the Preferred Stock then
outstanding, (a) alter or change adversely the powers, preferences or rights
given to the Preferred Stock or alter or amend this Certificate of Designation,
(b) authorize or create any class of stock ranking as to dividends, redemption
or distribution of assets upon a Liquidation (as defined in Section 5) senior to
or otherwise pari passu with the Preferred Stock, (c) amend its
certificate of incorporation or other charter documents so as to affect
adversely any rights of the Holders, (d) increase the authorized number of
shares of Preferred Stock, or (e) enter into any agreement with respect to the
foregoing.

Section 5.
Liquidation.

Upon
any liquidation, dissolution or winding up of the Corporation, whether voluntary
or involuntary (a Liquidation), the Holders shall be treated as if
the Preferred Stock had been converted, on the terms set forth herein, into
shares of Common Stock immediately prior to such Liquidation.

Section 6.
Conversion.

|a) |  | Conversions
at Option of Holder. Each share of Preferred Stock shall be  convertible into that
number of shares of Common Stock (subject to the  limitations set forth in Section 6(c))
determined by dividing the Stated Value  of such share of Preferred Stock by the
Conversion Price, at the option of the  Holder, at any time and from time to time from
and after the Original Issue  Date. Holders shall effect conversions by providing the
Corporation with the  form of conversion notice attached hereto as Annex A (a
Notice  of Conversion). Each Notice of Conversion shall specify the
number of  shares of Preferred Stock to be converted, the number of shares of Preferred
Stock owned prior to the conversion at issue, the number of shares of Preferred  Stock
owned subsequent to the conversion at issue and the date on which such  conversion is to
be effected, which date may not be prior to the date that is at  least 72 hours after the
time that the Holder delivers such Notice of Conversion  to the Corporation by facsimile
(the Conversion Date). If no  Conversion Date is specified in a Notice
of Conversion, the Conversion Date  shall be the date that such Notice of Conversion to
the Corporation is deemed  delivered hereunder. The calculations and entries set forth in
the Notice of  Conversion shall control in the absence of manifest or mathematical error.
To  effect conversions of shares of Preferred Stock, a Holder shall not be required  to
surrender the certificate(s) representing such shares of Preferred Stock to  the
Corporation unless all of the shares of Preferred Stock represented thereby  are so
converted, in which case the Holder shall deliver the certificate  representing such
share of Preferred Stock promptly following the Conversion  Date at issue. Shares of
Preferred Stock converted into Common Stock or redeemed  in accordance with the terms
hereof shall be canceled and may not be reissued.
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|b) |  | Conversion
Price. The conversion price for the Preferred Stock shall  equal $.72(the
Conversion Price) subject to  adjustment herein.
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|c) |  | Beneficial
Ownership Limitation.The Corporation shall not effect  any conversion of the
Preferred Stock, and a Holder shall not have the right to  convert any portion of the
Preferred Stock to the extent that after giving  effect to such conversion, such Holder
(together with such Holders  Affiliates, and any other person or entity acting as a
group together with such  Holder or any of such Holders Affiliates), as set forth
on the applicable  Notice of Conversion, would beneficially own in excess of 9.99% of the
number of  shares of the Common Stock outstanding immediately after giving effect to such
conversion. For purposes of the foregoing sentence, the number of shares of  Common Stock
beneficially owned by such Holder and its Affiliates shall include  the number of shares
of Common Stock issuable upon conversion of the Preferred  Stock with respect to which
the determination of such sentence is being made,  but shall exclude the number of shares
of Common Stock which would be issuable  upon (A) conversion of the remaining,
nonconverted Stated Value of Preferred  Stock beneficially owned by such Holder or any of
its Affiliates and (B)  exercise or conversion of the unexercised or nonconverted portion
of any other  securities of the Corporation (including the Warrants) subject to a
limitation  on conversion or exercise analogous to the limitation contained herein
beneficially owned by such Holder or any of its Affiliates. Except as set forth  in the
preceding sentence, for purposes of this Section 6(c), beneficial  ownership shall be
calculated in accordance with Section 13(d) of the Exchange  Act and the rules and
regulations promulgated thereunder. To the extent that the  limitation contained in this
Section 6(c) applies, the determination of whether  the Preferred Stock is convertible
(in relation to other securities owned by  such Holder together with any Affiliates) and
of which shares of Preferred Stock  are convertible shall be in the sole discretion of
such Holder, and the  submission of a Notice of Conversion shall be deemed to be such
Holders  determination of whether the shares of Preferred Stock may be converted
(in  relation to other securities owned by such Holder) and which shares of the
Preferred Stock is convertible, in each case subject to such aggregate  percentage
limitations. To ensure compliance with this restriction, each Holder  will be deemed to
represent to the Corporation each time it delivers a Notice of  Conversion that such
Notice of Conversion has not violated the restrictions set  forth in this paragraph and
the Corporation shall have no obligation to verify  or confirm the accuracy of such
determination. In addition, a determination as  to any group status as contemplated above
shall be determined in accordance with  Section 13(d) of the Exchange Act and the rules
and regulations promulgated  thereunder. For purposes of this Section 6(c), in
determining the number of  outstanding shares of Common Stock, a Holder may rely on the
number of  outstanding shares of Common Stock as reflected in the most recent of the
following: (A) the Corporations most recent Form 10-QSB or Form 10-KSB, as  the
case may be, (B) a more recent public announcement by the Corporation or (C)  any other
notice by the Corporation or the Corporations transfer agent  setting forth the
number of shares of Common Stock outstanding. Upon the written  or oral request of a
Holder, the Corporation shall within two Trading Days  confirm orally and in writing to
such Holder the number of shares of Common  Stock then outstanding. In any case, the
number of outstanding shares of Common  Stock shall be determined after giving effect to
the conversion or exercise of  securities of the Corporation, including the Preferred
Stock, by such Holder or  its Affiliates since the date as of which such number of
outstanding shares of  Common Stock was reported. The limitations contained in this
paragraph shall  apply to a successor holder of Preferred Stock. The holders of Common
Stock of  the Company shall be third party beneficiaries of this Section 6(c) and the
Company may not waive this Section 6(c) without the consent of holders of a  majority of
its Common Stock.
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|d) |  | [RESERVED]
|-- |  | ----------

|e) |  | Mechanics
of Conversion
|-- |  | -----------------------

|i. |  | Delivery of Certificate Upon Conversion. Not later than 5 Trading Days
after each Conversion Date (the Share Delivery Date), the
Corporation shall deliver or cause to be delivered to the Holder (A) a
certificate or certificates which, after the Effective Date, shall be free of
restrictive legends and trading restrictions (other than those required by the
Purchase Agreement) representing the number of shares of Common Stock being
acquired upon the conversion of shares of Preferred Stock and (B) a bank check
in the amount of accrued and unpaid dividends. After the Effective Date, the
Corporation shall, upon request of the Holder, deliver any certificate or
certificates required to be delivered by the Corporation under this Section
electronically through the Depository Trust Corporation or another established
clearing corporation performing similar functions. If in the case of any Notice
of Conversion such certificate or certificates are not delivered to or as
directed by the applicable Holder by the fifth Trading Day after the Conversion
Date, the Holder shall be entitled to elect by written notice to the Corporation
at any time on or before its receipt of such certificate or certificates
thereafter, to rescind such conversion, in which event the Corporation shall
immediately return the certificates representing the shares of Preferred Stock
tendered for conversion.
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|ii. |  | Obligation Absolute. The Corporations obligations to issue and
deliver the Conversion Shares upon conversion of Preferred Stock in accordance
with the terms hereof are absolute and unconditional, irrespective of any action
or inaction by the Holder to enforce the same, any waiver or consent with
respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment,
limitation or termination, or any breach or alleged breach by the Holder or any
other Person of any obligation to the Corporation or any violation or alleged
violation of law by the Holder or any other Person, and irrespective of any
other circumstance which might otherwise limit such obligation of the
Corporation to the Holder in connection with the issuance of such Conversion
Shares. In the event a Holder shall elect to convert any or all of the Stated
Value of its Preferred Stock, the Corporation may not refuse conversion based on
any claim that such Holder or any one associated or affiliated with the Holder
has been engaged in any violation of law, agreement or for any other reason,
unless an injunction from a court, on notice, restraining and/or enjoining
conversion of all or part of this Preferred Stock shall have been sought and
obtained and the Corporation posts a surety bond for the benefit of the Holder
in the amount of 150% of the Stated Value of Preferred Stock outstanding, which
is subject to the injunction, which bond shall remain in effect until the
completion of arbitration/litigation of the dispute and the proceeds of which
shall be payable to such Holder to the extent it obtains judgment. In the
absence of an injunction precluding the same, the Corporation shall issue
Conversion Shares. Nothing herein shall limit a Holders right to pursue
actual damages for the Corporations failure to deliver certificates
representing shares of Common Stock upon the conversion within the period
specified herein and such Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief.
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|iii. |  | 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 shares of Common Stock solely for the purpose of issuance upon
conversion of the Preferred Stock, each as herein provided, free from preemptive
rights or any other actual contingent purchase rights of persons other than the
Holder (and the other Holders of the Preferred Stock), not less than such number
of shares of the Common Stock as shall (subject to any additional requirements
of the Corporation as to reservation of such shares set forth in the Purchase
Agreement) be issuable (taking into account the adjustments and restrictions of
Section 7) upon the conversion of all outstanding shares of Preferred Stock. The
Corporation covenants that all shares of Common Stock that shall be so issuable
shall, upon issue, be duly and validly authorized, issued and fully paid,
nonassessable and, if the Conversion Shares Registration Statement is then
effective under the Securities Act, registered for public sale in accordance
with such Conversion Shares Registration Statement.
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|iv. |  | Fractional Shares. Upon a conversion hereunder, the Corporation shall not
be required to issue stock certificates representing fractions of shares of the
Common Stock, but may if otherwise permitted, make a cash payment in respect of
any final fraction of a share based on the VWAP at such time. If the Corporation
elects not, or is unable, to make such a cash payment, the Holder shall be
entitled to receive, in lieu of the final fraction of a share, one whole share
of Common Stock.
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|v. |  | Transfer Taxes. The issuance of certificates for shares of the Common
Stock on conversion of this Preferred Stock shall be made without charge to the
Holder hereof for any documentary stamp or similar taxes that may be payable in
respect of the issue or delivery of such certificate, provided that the
Corporation shall not be required to pay any tax that may be payable in respect
of any transfer involved in the issuance and delivery of any such certificate
upon conversion in a name other than that of the Holder of such shares of
Preferred Stock so converted and the Corporation shall not be required to issue
or deliver such certificates unless or until the person or persons requesting
the issuance thereof shall have paid to the Corporation the amount of such tax
or shall have established to the satisfaction of the Corporation that such tax
has been paid.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 7.
Certain Adjustments.

| | a)
Stock Dividends and Stock Splits. If the Corporation, at any time while  this
Preferred Stock is outstanding: (A) pays a stock dividend or otherwise  makes a
distribution or distributions on shares of its Common Stock or any other  equity or
equity equivalent securities payable in shares of Common Stock (which,  for avoidance of
doubt, shall not include any shares of Common Stock issued by  the Corporation pursuant
to this Preferred Stock), (B) subdivides outstanding  shares of Common Stock into a
larger number of shares, (C) combines (including  by way of reverse stock split)
outstanding shares of Common Stock into a smaller  number of shares, or (D) issues by
reclassification of shares of the Common  Stock any shares of capital stock of the
Corporation, then the Conversion Price  shall be multiplied by a fraction of which the
numerator shall be the number of  shares of Common Stock (excluding treasury shares, if
any) outstanding  immediately before such event and of which the denominator shall be the
number  of shares of Common Stock outstanding immediately after such event. Any
adjustment made pursuant to this Section 7(a) shall become effective immediately  after
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, combination or re-classification.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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| | b)
Subsequent Equity Sales. While the Preferred Stock is outstanding, the
Corporation or any Subsidiary thereof shall not offer, sell, grant any option to
purchase or offer, sell or grant any right to reprice its securities, or  otherwise
dispose of or issue (or announce any offer, sale, grant or any option  to purchase or
other disposition) any Common Stock or Common Stock Equivalents  entitling any Person to
acquire shares of Common Stock, at an effective price  per share less than the then
Conversion Price (such lower price, the  Base Conversion Price and
such issuances collectively, a  Dilutive Issuance), as adjusted
hereunder (if the holder of  the Common Stock or Common Stock Equivalents so issued shall
at any time,  whether by operation of purchase price adjustments, reset provisions,
floating  conversion, exercise or exchange prices or otherwise, or due to warrants,
options or rights per share which is issued in connection with such issuance, be
entitled to receive shares of Common Stock at an effective price per share which  is less
than the Conversion Price, without the expressed written consent of the  Holders of a
majority of the outstanding Preferred Stock. Notwithstanding the  foregoing, no consent
will be required under this Section 7(b) in respect  of an Exempt Issuance.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c)
Subsequent Rights Offerings. If the Corporation, at any time while the  Preferred
Stock is outstanding, shall issue rights, options or warrants to all  holders of Common
Stock (and not to Holders) entitling them to subscribe for or  purchase shares of Common
Stock at a price per share less than the VWAP at the  record date mentioned below, then
the Conversion Price shall be multiplied by a  fraction, of which the denominator shall
be the number of shares of the Common  Stock outstanding on the date of issuance of such
rights or warrants plus the  number of additional shares of Common Stock offered for
subscription or  purchase, and of which the numerator shall be the number of shares of
the Common  Stock outstanding on the date of issuance of such rights or warrants plus the
number of shares which the aggregate offering price of the total number of  shares so
offered (assuming receipt by the Corporation in full of all  consideration payable upon
exercise of such rights, options or warrants) would  purchase at such VWAP. Such
adjustment shall be made whenever such rights or  warrants are issued, and shall become
effective immediately after the record  date for the determination of stockholders
entitled to receive such rights,  options or warrants.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d)
Pro Rata Distributions. If the Corporation, at any time while Preferred  Stock is
outstanding, shall distribute to all holders of Common Stock (and not  to Holders)
evidences of its indebtedness or assets (including cash and cash  dividends) or rights or
warrants to subscribe for or purchase any security, then  in each such case the
Conversion Price shall be adjusted by multiplying such  Conversion Price in effect
immediately prior to the record date fixed for  determination of stockholders entitled to
receive such distribution by a  fraction of which the denominator shall be the VWAP
determined as of the record  date mentioned above, and of which the numerator shall be
such VWAP on such  record date less the then fair market value at such record date of the
portion  of such assets or evidence of indebtedness so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of Directors in  good
faith. In either case the adjustments shall be described in a statement  provided to the
Holder of the portion of assets or evidences of indebtedness so  distributed or such
subscription rights applicable to one share of Common Stock.  Such adjustment shall be
made whenever any such distribution is made and shall  become effective immediately after
the record date mentioned above.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

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| | e)
Fundamental Transaction. If, at any time while this Preferred Stock is
outstanding, (A) the Corporation effects any merger or consolidation of the  Corporation
with or into another Person, (B) the Corporation effects any sale of  all or
substantially all of its assets in one or a series of related  transactions, (C) any
tender offer or exchange offer (whether by the Corporation  or another Person) is
completed pursuant to which holders of Common Stock are  permitted to tender or exchange
their shares for other securities, cash or  property, or (D) the Corporation effects any
reclassification of the Common  Stock or any compulsory share exchange pursuant to which
the Common Stock is  effectively converted into or exchanged for other securities, cash
or property  (in any such case, a Fundamental Transaction), then upon
any  subsequent conversion of this Preferred Stock, the Holder shall have the right  to
receive, for each Conversion Share that would have been issuable upon such  conversion
immediately prior to the occurrence of such Fundamental Transaction,  the same kind and
amount of securities, cash or property as it would have been  entitled to receive upon
the occurrence of such Fundamental Transaction if it  had been, immediately prior to such
Fundamental Transaction, the holder of one  share of Common Stock (the Alternate
Consideration). For  purposes of any such conversion, the determination of the
Conversion Price shall  be appropriately adjusted to apply to such Alternate
Consideration based on the  amount of Alternate Consideration issuable in respect of one
share of Common  Stock in such Fundamental Transaction, and the Corporation shall
apportion the  Conversion Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the  securities,
cash or property to be received in a Fundamental Transaction, then  the Holder shall be
given the same choice as to the Alternate Consideration it  receives upon any conversion
of this Preferred Stock following such Fundamental  Transaction. To the extent necessary
to effectuate the foregoing provisions, any  successor to the Corporation or surviving
entity in such Fundamental Transaction  shall file a new Certificate of Designation with
the same terms and conditions  and issue to the Holder new preferred stock consistent
with the foregoing  provisions and evidencing the Holders right to convert such
preferred  stock into Alternate Consideration. The terms of any agreement pursuant to
which  a Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of this Section 7(e)  and
insuring that this Preferred Stock (or any such replacement security) will  be similarly
adjusted upon any subsequent transaction analogous to a Fundamental  Transaction.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | f)
Calculations. All calculations under this Section 7 shall be made to the  nearest
cent or the nearest 1/100th of a share, as the case may be. For purposes  of this Section
7, the number of shares of Common Stock deemed to be issued and  outstanding as of a
given date shall be the sum of the number of shares of  Common Stock (excluding treasury
shares, if any) issued and outstanding.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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| | g)
Notice to Holders.
| | ---------------------

|i. |  | Adjustment to Conversion Price. Whenever the Conversion Price is adjusted
pursuant to any of this Section 7, the Corporation shall promptly mail to each
Holder a notice setting forth the Conversion Price after such adjustment and
setting forth a brief statement of the facts requiring such adjustment.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ii. |  | Notice
to Allow  Conversion  by Holder.  If (A) the  Corporation  shall  declare a dividend  (or
any other  distribution)  on the Common Stock;  (B) the  Corporation  shall  declare a
special  nonrecurring  cash dividend on or a redemption of the Common Stock;  (C) the
Corporation  shall  authorize the  granting to all holders of the Common Stock  rights or
warrants to subscribe  for or purchase any  shares of capital stock of any class or of
any rights;  (D) the approval of any  stockholders  of  the Corporation  shall be
required in connection with any  reclassification  of the Common Stock,  any
consolidation  or merger to which the Corporation is a party, any sale or transfer of all
or  substantially  all of the assets of the  Corporation,  of any compulsory  share
exchange  whereby  the Common Stock is  converted  into other  securities,  cash or
property;  (E) the  Corporation  shall  authorize  the  voluntary or  involuntary
dissolution,  liquidation  or winding up of the  affairs of the Corporation;  then, in
each case, the Corporation  shall cause to be filed at each  office or agency  maintained
for the purpose of conversion of this  Preferred  Stock,  and shall  cause to be mailed
to the Holder at its last  address as its shall  appear  upon the stock  books  of the
Corporation,  at least 20 calendar days prior to the applicable  record or effective date
hereinafter  specified,  a notice  stating  (x) the date on which a record is to be taken
for the  purpose of such dividend,  distribution,  redemption,  rights or warrants,  or
if a record is not  to be taken,  the date as of which the  holders of the Common  Stock
of record to be  entitled to  such  dividend,  distributions,  redemption,  rights or
warrants are to be  determined or (y) the  date on which such reclassification,
consolidation,  merger, sale, transfer or share exchange is  expected to become
effective or close,  and the date as of which it is expected  that holders of  the Common
Stock of record  shall be entitled to exchange  their  shares of the Common Stock for
securities,  cash or  other  property  deliverable  upon  such  reclassification,
consolidation,  merger,  sale,  transfer or share exchange;  provided that the failure to
mail such notice or any  defect  therein or in the mailing  thereof shall not affect the
validity of the corporate  action  required to be  specified  in such  notice.  The
Holder is  entitled  to convert  the  Conversion  Amount of this  Preferred  Stock (or
any part hereof)  during the 20-day  period  commencing  the  date of such notice to the
effective date of the event triggering such notice.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Section 8.
Redemption Upon Triggering Events.

| | a)
Triggering  Event" means any one or more of the following  events
(whatever the reason  and whether it shall be  voluntary  or  involuntary  or effected
by  operation  of law or pursuant to any  judgment,  decree or order of any  court,  or
any  order,  rule or  regulation  of any  administrative  or  governmental body):
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|i. |  | the
Corporation will use its best efforts to ensure that the Conversion Shares  Registration
Statement is  declared  effective  by the  Commission  on or prior to the 240th day after
the Original  Issue Date;
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ii. |  | the
Corporation  will  use its  best  efforts  to  ensure  that  during  the  Effectiveness
Period,  the  effectiveness of the Conversion Shares Registration will not lapse;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|iii. |  | unless
specifically  addressed  elsewhere in this  Certificate of Designation as a Triggering
Event, the  Corporation shall fail to observe or perform any other material  covenant,
agreement or  warranty  contained  in, or  otherwise  commit any  material  breach of the
Transaction  Documents,  provided  that such  failure or breach is solely  within the
control of the  Corporation's  management,  and such  failure  or breach  shall  not,  if
subject to the  possibility  of a cure by the  Corporation,  have been remedied  within
30 calendar days  after the date on which written notice of such failure or breach shall
have been given;
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|iv. |  | the Corporation shall redeem more than a de minimus number of Junior Securities;
|--- |  | --------------------------------------------------------------------------------

|v. |  | there shall have occurred a Bankruptcy Event;
|-- |  | ---------------------------------------------

|vi. |  | the Common Stock shall fail to be listed or quoted for trading on a Trading
Market for more than fifteen Trading Days, which need not be consecutive Trading
Days.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b)
Upon the occurrence of a Triggering Event, each Holder shall (in addition to all  other
rights it may have hereunder or under applicable law) have the right,  exercisable at the
sole option of such Holder, to require the Corporation to,  (i) with respect to the
Triggering Events set forth in Sections 8(a)(iii), (iv),  and (v)(as to voluntary filings
within the sole control of the  Corporations management only), redeem all of the
Preferred Stock then held  by such Holder for a redemption price, in cash, equal to the
Triggering  Redemption Amount; or (ii) at the option of the Holder and with respect to
the  Triggering Events set forth in Sections 8(a)(i), (ii), and (v) (as to  involuntary
filings only) and (vi), either (A) redeem all of the Preferred Stock  then held by such
Holder for a redemption price, in shares of Common Stock,  equal to a number of shares of
Common Stock equal to the Triggering Redemption  Amount divided by the Conversion Price;
provided, that in no event shall the  number of shares of Common Stock to be issued under
clause (A) above exceed the  number of authorized but unissued shares of Common Stock of
the Corporation at  the time of such redemption, and as to any remaining unredeemed
Preferred Stock,  it shall remain as Preferred Stock. For purposes of this Section, a
share of  Preferred Stock is outstanding until such date as the Holder shall have
received  Conversion Shares upon a conversion (or attempted conversion) thereof that
meets  the requirements hereof or has been paid the Triggering Redemption Amount.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

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Section 9.
Negative Covenants.

Except
with the written consent of a majority of the shares of Preferred Stock then
outstanding, so long as any shares of Preferred Stock are outstanding, the
Corporation will not and will not permit any of its Subsidiaries to directly or
indirectly:

| | a.
except for Permitted Indebtedness, enter into, create, incur, assume, guarantee
or suffer to exist any indebtedness for borrowed money of any kind, including
but not limited to, a guarantee, on or with respect to any of its property or
assets now owned or hereafter acquired or any interest therein or any income or
profits therefrom;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b.
except for Permitted Liens, enter into, create, incur, assume or suffer to exist
any liens of any kind, on or with respect to any of its property or assets now
owned or hereafter acquired or any interest therein or any income or profits
therefrom;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c.
amend its certificate of incorporation, bylaws or other charter documents so as
to materially and adversely affect any rights of any Holder;
| | -----------------------------------------------------------------------------------------------------------------------------------------------

| | d.
repay, repurchase or offer to repay, repurchase or otherwise acquire more than a
de minimis number of shares of its Common Stock or Common Stock
Equivalents (not to exceed one percent of the Corporations outstanding
shares of Common Stock) other than as to the Conversion Shares to the extent
permitted or required under the Transaction Documents or as otherwise permitted
by the Transaction Documents;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | e.
enter into any agreement with respect to any of the foregoing; or
| | --------------------------------------------------------------------

| | f. pay
cash dividends or distributions on any equity securities of the Corporation.
| | -----------------------------------------------------------------------------------

Section 10.
Miscellaneous.

| | a.
Notices. Any and all notices or other communications or deliveries to be
provided by the Holder hereunder, including, without limitation, any Notice of
Conversion, shall be in writing and delivered personally, by facsimile or sent
by a nationally recognized overnight courier service, addressed to the
Corporation, at the address set forth above, facsimile number (303) 238-3734, Attn: Michael I. Ruxinor such other address or facsimile number as
the Corporation may specify for such purposes by notice to the Holders delivered
in accordance with this Section. Any and all notices or other communications or
deliveries to be provided by the Corporation hereunder shall be in writing and
delivered personally, by facsimile, sent by a nationally recognized overnight
courier service addressed to each Holder at the facsimile telephone number or
address of such Holder appearing on the books of the Corporation, or if no such
facsimile telephone number or address appears, at the principal place of
business of the Holder. Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Section prior to 5:30 p.m. (New
York City time), (ii) the date after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Section later than 5:30 p.m. (New York City time) on any date
and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second
Business Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

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| | b.
Absolute Obligation. Except as expressly provided herein, no provision of
this Certificate of Designation shall alter or impair the obligation of the
Corporation, which is absolute and unconditional, to pay the liquidated damages
(if any) on the shares of Preferred Stock at the time, place, and rate, and in
the coin or currency, herein prescribed.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c.
Lost or Mutilated Preferred Stock Certificate. If a Holders
Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the
Corporation shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated certificate, or in lieu of or in substitution for a
lost, stolen or destroyed certificate, a new certificate for the shares of
Preferred Stock so mutilated, lost, stolen or destroyed but only upon receipt of
evidence of such loss, theft or destruction of such certificate, and of the
ownership hereof, and indemnity, if requested, all reasonably satisfactory to
the Corporation. The applicants for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs associated with
the issuance of such replacement Securities.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d.
Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Certificate of Designation shall be
governed by and construed and enforced in accordance with the internal laws of
the State of Colorado, without regard to the principles of conflicts of law
thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by any
of the Transaction Documents (whether brought against a party hereto or its
respective Affiliates, directors, officers, shareholders, employees or agents)
shall be commenced in the state and federal courts sitting in the City of New
York, Borough of Manhattan (the New York Courts). Each party
hereto hereby irrevocably submits to the exclusive jurisdiction of the New York
Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, or such New York Courts are improper or inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Certificate of Designation and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Certificate of
Designation or the transactions contemplated hereby. If either party shall
commence an action or proceeding to enforce any provisions of this Certificate
of Designation, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorneys fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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| | e.
Waiver. Any waiver by the Corporation or the Holder of a breach of any
provision of this Certificate of Designation shall not operate as or be
construed to be a waiver of any other breach of such provision or of any breach
of any other provision of this Certificate of Designation. The failure of the
Corporation or the Holder to insist upon strict adherence to any term of this
Certificate of Designation on one or more occasions shall not be considered a
waiver or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Certificate of Designation. Any
waiver must be in writing.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | f.
Severability. If any provision of this Certificate of Designation is
invalid, illegal or unenforceable, the balance of this Certificate of
Designation shall remain in effect, and if any provision is inapplicable to any
person or circumstance, it shall nevertheless remain applicable to all other
persons and circumstances. If it shall be found that any interest or other
amount deemed interest due hereunder violates applicable laws governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to
equal the maximum permitted rate of interest.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | g.
Next Business Day. Whenever any payment or other obligation hereunder
shall be due on a day other than a Business Day, such payment shall be made on
the next succeeding Business Day.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | h.
Headings. The headings contained herein are for convenience only, do not
constitute a part of this Certificate of Designation and shall not be deemed to
limit or affect any of the provisions hereof.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|i. |  | Status of Converted or Redeemed Preferred Stock. Shares of Preferred
Stock may only be issued pursuant to the Purchase Agreement. In case any shares
of Preferred Stock shall be converted, redeemed or reacquired by the
Corporation, such shares shall resume the status of authorized but unissued
shares of preferred stock, but shall not be designated as Series A Preferred
Stock.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*********************

RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the
secretary or any assistant secretary, of the Corporation be and they hereby are
authorized and directed to prepare and file a Certificate of Designation of
Preferences, Rights and Limitations in accordance with the foregoing resolution
and the provisions of Colorado law.

18

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IN
WITNESS WHEREOF, the undersigned have executed this Certificate this 29th day of
March 2006.

/s/ Michael
I. Ruxin, M.D.
             
             
             
                  /s/
Kim Geist

|Name:  Michael I. Ruxin, M.D. |  | Name:  Kim Geist         | 
|----------------------------- |  | ------------------------ | 
|Title:  Chairman and CEO      |  | Title:  Chairman and CEO | 

19

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# ANNEX
A

# NOTICE
OF CONVERSION

# (TO BE
EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERTSHARES OF PREFERRED STOCK)

The
undersigned hereby elects to convert the number of shares of Series A
Convertible Preferred Stock indicated below, into shares of common stock, par
value $0.01 per share (the Common Stock), of Global Med
Technologies, Inc., a Colorado corporation (the Corporation),
according to the conditions hereof, as of the date written below. If shares are
to be issued in the name of a person other than undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the
Corporation in accordance therewith. No fee will be charged to the Holder for
any conversion, except for such transfer taxes, if any.

Conversion
calculations:

Date
to Effect Conversion: _____________________________________________

Number
of shares of Preferred Stock owned prior to Conversion: ________________

Number of
shares of Preferred Stock to be Converted: ________________________

Stated
Value of shares of Preferred Stock to be Converted: _____________________

Number of
shares of Common Stock to be Issued: ___________________________

Applicable
Conversion Price:___________________________________________

Number
of shares of Preferred Stock subsequent to Conversion: ________________

| | [HOLDER]
By:___________________________________      Name:      Title:
| | ----------------------------------------------------------------------

20

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