Document:

ex4_1.htm

    
      

    

    Exhibit
4.1

     

    POSITRON
CORPORATION

    (a
Texas Corporation)

    

    STATEMENT
OF DESIGNATION ESTABLISHING

    SERIES
S CONVERTIBLE PREFERRED STOCK

    

    To the
Secretary of the State of Texas:

    

    Pursuant
to the provisions of Article 3.007 of the Texas Business Organization Code, the
undersigned corporation submits the following statement for the purposes of
establishing and designating a series of shares and determining and fixing the
relative rights and preferences thereof:

     

    A.          
The
name of the corporation is Positron Corporation (the
“Corporation”);

    

    B.           The
following resolution, establishing and designating a series of shares and
determining and fixing the relative rights and preferences thereof, was duly
adopted by the Board of Directors of the Corporation on September 25,
2006;

    

    RESOLVED, that pursuant to the
authority vested in the Board of Directors of the Corporation by its Articles of
Incorporation, as amended, there hereby is created, out of the 10,000,000 shares
of preferred stock authorized in Article Four of its Articles of Incorporation,
as amended, a series of One Hundred Thousand (100,000) shares of Preferred
Stock, par value $1.00 per share (the “Series S Preferred Stock”), of the
Corporation, and the designation, amount and stated value of such series of
Preferred Stock and the voting powers, preferences, and relative, participating,
optional and other special rights of the shares of such series, and the
qualifications, limitations or restrictions thereon, are set forth as
follows:

    

    1.           
 Designation and
Number of Shares.  The designation of said series of preferred
stock authorized by this resolution shall be Series S Convertible Preferred
Stock (the “Series S Preferred Stock”) which shall consist of a maximum of One
Hundred Thousand (100,000) shares of such Series S Preferred Stock, $1.00 par
value per share, which shall have the preferences, rights, qualifications,
limitations and restrictions set forth below.

    

    2.           
 Rank.  All
shares of the Series S Preferred Stock shall rank, both as the payment of
dividends and as to distributions of assets upon liquidation or winding up of
the Corporation, whether voluntary or involuntary, (x) junior to: (i) the shares
of Series A 8% Cumulative Convertible Redeemable Preferred Stock (the “Series A
Preferred Stock”), (ii) to the shares of Series B Preferred Stock of the
Corporation that may from time-to-time be outstanding, and (iii) to the shares
of Series S Convertible Preferred Stock and (y) prior to (i) all of the
Corporation’s now and hereafter issued common stock, par value $0.01 per share
(the “Common Stock”), and (ii) all of the Corporation’s hereafter issued capital
stock ranking junior to the Series S Preferred Stock both as to payment of
dividends and as to distribution of assets upon liquidation, dissolution or
winding up of the Corporation, whether voluntary or involuntary, when and if
issued (the Common Stock and any other junior capital stock being herein
referred to as “Junior Stock”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.            
Voting
Rights.  Except as otherwise expressly provided herein or by
law, the holder of shares of the Series S Preferred Stock shall be entitled to
vote on all matters and shall be entitled to Ten Thousand (10,000) votes for
each share of the Series S Preferred Stock held by such holder, such number of
votes to be appropriately adjusted in the event of any split, reverse split or
dividend of the common stock.  Except as otherwise expressly provided
herein or as expressly required by law, the holders of shares of the Series S
Preferred Stock and holder of shares of the Corporation’s common stock shall
vote together as a single class on all matters.  As used in this
Section 3, the term “Common Stock” shall mean and include the Corporation’s
authorized common stock, par value $.01 per share, as constituted on the date of
filing of this certificate of designation (the “Designation
Certificate”).

    

    4.            
Dividend
Provisions.  The holders of the Series S Preferred Stock are
not entitled to receive any dividends.

    

    5.            
Conversion of Series S
Preferred Stock Preferred Stock into Common Stock.  The holders
of record of shares of Series S Preferred Stock shall have the right, at their
option, to convert such shares into shares of the Common Stock, at any time from
the date of the issuance of such Series S Preferred Stock Preferred Stock in
accordance with and subject to the following terms and conditions:

    

    a.      At
any time following the issuance of the shares of Series S Preferred Stock, the
Series S Preferred Stock shall, on five days prior written notice to the
Corporation, be convertible into a number of fully paid and non-assessable
shares of Common Stock equal to the number of Series S Preferred Stock being
converted multiplied by Ten Thousand (10,000) (the “Conversion Rate”), subject
to adjustment as hereinafter provided in Section 6.  The exchange
shall be consummated at the office of the transfer agent for the Corporation’s
Common Stock (or at such other place or places as may be designated by the
Corporation with notice to the holders of record of the shares of Series S
Preferred Stock).

    

    b.      In
order to convert shares of Series S Preferred Stock into Common Stock, the
holder thereof shall surrender the certificate or certificates for shares of
Series S Preferred Stock, duly endorsed to the Corporation or in blank, or
accompanied by proper instruments of transfer to the Corporation (or, in the
case of a lost or destroyed certificate, proof of loss or destruction and
indemnity as required by the Corporation), at the office of the Corporation’s
transfer agent, and shall give written notice to the Corporation that he elects
to convert the same and shall state therein the name or names in which he wishes
the certificate or certificates for Common Stock to be issued.  If the
certificates for Common Stock are to be issued in a name or names other than
that in which such shares of Series S Preferred Stock was registered, the holder
of the certificates being surrendered shall with such written notice pay to the
transfer agent a sum to cover any tax which may be payable in respect of any
transfer involved in such issuance, or shall establish to the satisfaction of
the transfer agent that such tax has been paid or is not due and
payable.  The transfer agent will, as soon as practicable thereafter,
deliver at such office to such holder, or to its nominee or nominees, a
certificate or certificates for the number of full shares of Common Stock to
which it shall be entitled as aforesaid.  Shares of the Series S
Preferred Stock shall be deemed to have been converted as of the date of the
surrender of such shares for conversion as provided above, and the person or
persons entitled to receive the shares of Common Stock issuable upon such
conversion shall be treated for all purposes as the record holders of such
shares of Common Stock on such date;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    c.      All
shares of the Series S Preferred Stock which shall have been converted into
Common Stock as herein provided shall not be reissued as shares of Series S
Preferred Stock but shall have the status of authorized and unissued shares of
Preferred Stock undesignated as to series; and

    

    d.      Fractional
shares of Common Stock shall not be issued upon the conversion of the shares of
Series S Preferred Stock but shall be addressed by the Corporation through the
rounding of such fraction to the next whole share of Common Stock.

    

    6.            
Adjustment of
Conversion Rate.  The rate at which each share of Series S
Preferred Stock may be converted into Common Stock (hereinafter called the
conversion rate) shall be subject to the following adjustments;

    

    a.      While
any such shares of the Series S Preferred Stock shall be outstanding, in case
the Corporation shall subdivide the outstanding shares of Common Stock into a
greater number of shares of common stock, or combine the outstanding shares of
Common Stock into a smaller number of  shares of Common
Stock,  the number of shares the Series S Preferred Stock are
convertible into shall be
proportionately  increased  or  decreased, as the
case may require, such increase or
decrease  to  become  effective  immediately
after the  opening of  business on the date following the
day upon which such subdivision or combination becomes effective;

    

    b.      Any
dividend to holders of Common Stock in shares of Common Stock
shall  be considered a  subdivision of  the
outstanding shares of Common Stock and an adjustment in the Conversion Rate
shall be made in accordance with the provisions of Section 5 with respect to the
subdivision of outstanding shares of Common Stock.

    

    c.      No
adjustment of the Conversion Rate shall be made by reason of the issuance of
Common Stock to non shareholders of the Corporation in exchange for cash,
property or services provided that if the Corporation shall offer to the holders
of the Corporation’s Common Stock any rights to subscribe for any securities of
the Corporation then the holders of the shares of Series S Preferred Stock shall
be entitled to subscribe for the purchase of the same number of securities on
identical terms as they would have been entitled had they held that number of
shares of Common Stock into which the shares of Series S Preferred Stock was
convertible on such date; and

    

    d.      In
case the Corporation shall be reorganized or recapitalized or shall be
consolidated with or merged into another corporation, or shall sell or transfer
its property and assets as, or substantially as, an entirety, proper provisions
shall be made as part of the terms of such reorganization, recapitalization,
consolidation, merger, sale or transfer whereby the holder of any shares of the
Series S Preferred Stock outstanding immediately prior to such event shall
thereafter be entitled to such conversion rights with respect to securities of
the Corporation resulting from such reorganization, recapitalization,
consolidation of merger, or to which such sale or transfer shall be made, as
shall be substantially equivalent to the conversion rights provided for herein
with respect to such shares of Series S Preferred Stock.

    

    7.            
Prior Notice of
Certain Events.  In the event:

    

    (i) the
Corporation shall (1) declare any dividend (or any other distribution) on its
Common Stock, other than (A) a dividend payable in shares of Common Stock or (B)
a dividend payable in cash out of its retained earnings other than any special
or nonrecurring or other extraordinary dividend or (2) declare or authorize a
redemption or repurchase of the then-outstanding shares of Common Stock;
or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (ii)           the
Corporation shall authorize the granting to all holders of Common Stock of
rights, or warrants to subscribe for or purchase any shares of stock of any
class or series or of any other rights or warrants; or

    

    (iii)           of
any reclassification of Common Stock (other than a subdivision or combination of
the outstanding Common Stock, or a change in par value, or from par value to no
par value; or from no par value to par value), or of any consolidation or merger
to which the Company is a partly and for which approval of any stockholders of
the Corporation shall be required, or of the sale or transfer of all or
substantially all of the assets of the Corporation or of any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or
other property, or

    

    (iv)           of
the voluntary or involuntary dissolution, liquidation or winding up of the
Corporation;

    

    then the
Corporation shall cause to be mailed to the holders of record of the Series S
Preferred Stock, at their last addresses as they shall appear upon the stock
transfer books of the Corporation, at least fifteen (15) days prior to the later
of the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record (if any) is to be taken for the purpose
of a dividend, distribution, redemption, repurchase, rights or warrants or, if a
record id not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, redemption, rights or warrants are to be
determined or (y) the date on which a reclassification, consolidation, merger,
sale, transfer, share exchange, dissolution, liquidation or winding up is
expected to become effective, and the date as of which it is expected that
holders of Common Stock of record shall be entitled to exchange their shares of
Common Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, share exchange,
dissolution, liquidation or winding up (but no failure to mail such notice or
any defect therein or in the mailing thereof shall affect the validity of the
corporate action required to be specified in such notice.

    

    8.            
Reservation of Common
Shares.  The Corporation shall at all times reserve and keep
available, out of its authorized and unissued Common Stock a sufficient number
of shares of Common Stock in order to issue such Common Stock upon conversions
of all outstanding shares of Series S Preferred Stock;

    

    9.            
Amendments.  The
terms of the Series S Preferred Stock shall not be amended without the consent
of the holders of not less than a majority of the outstanding shares of Series S
Preferred Stock.

    

    10.           Other
Rights.  Except as provided by law, the Series S Preferred
Stock shall not have any designation, preferences, or relative, participating,
optional or other special rights, or qualifications, limitations or restrictions
thereof, other than as set forth herein and in the Certificate of Incorporation
of this Corporation; and

    

    11.           Notices.  Any
notice required to be given to holders of shares of Series S Preferred Stock
shall be deemed given upon deposit in the United States mail, postage prepaid,
addressed to such holder of record at his address appearing on the books of the
Corporation, or upon personal delivery at the aforementioned
address.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, I have
executed and subscribed this Statement of Designation and do affirm the
foregoing as true under penalties of perjury this 7th day of November,
2008.

    

    
      
        	
                ATTEST:

              	 
      
	 
      	 
      
	 
      	 
      
	
                Patrick
      Rooney, ChairmanUnassociated Document

    EXTENSION
      AGREEMENT OUTLINE

    

    

    Dear
      Mr.
      Miller,

    

    On
      various dates Indigo-Energy, Inc. (IDGG) entered into a series of Promissory
      Notes (Notes) with you and Carr Miller Capital for various amounts.

    

    We
      are
      presently in default on a number of those Notes and one of the Notes (Note
      V)
      has a Late Payment Penalty provision incurring monthly charges paid in stock.
      Words cannot adequately express our appreciation for your patience awaiting
      receipt of payment and continued confidence in our Company.

    

    Although
      we continue to develop opportunities on many fronts, we are facing another
      quarter end reporting period and, although our hopes remain high to get you
      paid, we cannot with any certainty project a date for such payment.

    

    Our
      SEC
      reporting requirements as a fully reporting public company includes significant
      additional time and expense accounting for certain provisions of your Note.
      One
      such provision is for a conversion option that we granted with the Note that
      allowed you to convert the Principal and Interest at a 20% discount to market
      into Company stock.

    

    In
      an
      effort to bring order to our obligations and our account current with you,
      we
      are requesting an extension of all of the due dates until 12-31-2008 to give
      the
      Company breathing space to try to structure a payout plan for all the creditors
      and Note holders. This requires your acknowledgement not
      later than September 30, 2008
      per the
      attached Extension Agreement.

    

    

    Under
      the
      terms of this Extension Agreement we will continue to accrue interest on your
      Notes at the stated rate of each Note until paid, and intend to pay this full
      amount including all late charges (except the Late Payment Provision in Note
      V)
      and interest at the first possible opportunity but cannot guaranty when, if
      ever
      this Note will be repaid.

    

    As
      a
      combined “thank you” for your past patience, for granting IDGG an extension on
      your Notes until December 31, 2008, and for cancelling your Conversion Option
      contained in your Notes, and for waiving the Late Payment Provision contained
      in
      Note V, we are granting you 6,104,445 shares (EXTENSION SHARES) in consideration
      of your Notes extension. This calculation is predicated upon paying you a bonus
      of one share for each dollar invested for each 90 day period beyond your due
      date through September 30, 2008. We then took that number and DOUBLED it for
      granting an extension through December 31, 2008. 

    

    This
      will
      accomplish three things-

    	1-  	
            The
              EXTENSION SHARES are yours to keep- even if we pay you prior to December
              31, 2008; it is your payment for granting the
              extension.

          

    	2-  	
            IDGG
              will save a tremendous amount of resources and expense in auditing,
              review, and accounting fees.

          

    	3-  	
            IDGG
              gets to “cure” its default on its Notes to you, thereby improving its
              filing declarations and Company’s status in the eyes of investors and
              shareholders.

          

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    So,
      to be
      clear, by signing and returning the Extension Agreement below, you:

    	o  	
            Accept
              the issuance of TOTAL SHARES in your name to be issued with the usual
              144
              restriction and mailed directly to you from the stock transfer agent
              at
              the address on the appropriate Agreement.
              and:

          

    	§  	
            You
              waive the Conversion Option provision contained in your signed original
              Notes.

          

    	§  	
            You
              hereby agree to extend the Payment Date of the Notes until December
              31,
              2008.

          

    	§  	
            You
              waive the Late Payment Provisions of Note
              V.

          

    	§  	
            You
              agree to the accrual of all interest payments until
              12-31-2008.

          

    

    MUST
      BE RECEIVED BY SEPTEMBER 30, 2008 OR OFFER IS
      WITHDRAWN

    

    PLEASE
      FAX THIS SIGNED AGREEMENT TO: 
702-463-8528

    OR  MAIL
      TO:

    Indigo-Energy,
      Inc.

    701
      N. Green Valley Pkwy

    Suite
      200

    Henderson,
      NV 89074

    

    Upon
      receipt, we will countersign this Settlement or Extension Agreement and return
      a
      copy to you via mail

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PROMISSORY
      NOTE EXTENSION- Carr Miller Capital

    

    Initial
      Notes:

    
      
        	
                Note
                  #

              	
                Date

              	
                Due
                  Date

              	
                Principal

              	
                Extension
                  Bonus (shares)

              
	
                I

              	
                11-19-2007

              	
                5-20-2008

              	
                $300,000

              	
                1,020,000

              
	
                II

              	
                1-21-2008

              	
                7-24-2008

              	
                $380,000

              	
                776,889

              
	
                III

              	
                3-6-2008

              	
                9-10-2008

              	
                $500,000

              	
                1,022,222

              
	
                IV

              	
                4-11-2008

              	
                10-11-2008

              	
                $120,000

              	
                458,667

              
	
                V

              	
                4-24-2008

              	
                8-25-2008

              	
                $500,000

              	
                1,022,222

              
	
                VI

              	
                6-11-2008

              	
                12-11-2008

              	
                $100,000

              	
                246,667

              
	
                VII

              	
                7-11-2008

              	
                1-11-2009

              	
                $400,000

              	
                720,000

              
	
                VIII

              	
                7-22-2008

              	
                1-22-2009

              	
                $500,000

              	
                777,778

              
	
                IX

              	
                9-3-2008

              	
                3-3-2009

              	
                $100,000

              	
                60,000

              
	
                X

              	
                10-1-2008

              	
                4-1-2009

              	
                $150,000

              	 

      

    

    

    Extension
      Terms

    The
      Maker
      hereby agrees to extend the Due Date of the Initial Notes (described above)
      to
      December 31, 2008 (Extension Due Date) for an additional consideration
      of:

    	1-  	
            Six
              Million One Hundred Four Thousand Four Hundred Forty Five (6,104,445)
              additional shares of 144 restricted common stock of the Borrowers,
              said
              stock to be issued within 30 days of signing of this Promissory Note
              Extension.

          

    	2-  	
            Interest
              to be extended to the revised Extension Due Date at
              20%.

          

    	3-  	
            The
              provisions of the Conversion Option feature of the Initial Note is
              terminated.

          

    	4-  	
            The
              Late Payment Penalty Provision of Note V is
              waived.

          

    	5-  	
            The
              interest due will be accrued until
              12-31-2008.

          

    	6-  	
            Except
              as set forth under these Extension Terms, all other terms of the Initial
              Note shall remain unchanged and continue in full force and effect.
              

          

    	7-  	
            The
              Investor has been given access to Indigo’s 10K for the year ended December
              31, 2007 and the 10Q for the quarter ended June 30, 2008 and has had
              the
              opportunity to ask any questions that it desires of Indigo’s President and
              Chief Financial Officer with regard to Indigo’s financial condition. The
              Investor specifically acknowledges that no representations have been
              made
              to him regarding any potential funding for Indigo including, but not
              limited to, the proposed funding agreements with IFC, and BJ Petro
              that
              have been disclosed in Indigo’s public
              filings.

          

    

    Accepted
      by INVESTOR as individuals:    

    

    
      	 	 	 	 
	Everett Miller, Principal,
              Carr
              Miller Capital LLC	 	Date	 

    

     

    
      	 
	Address- where to send the stock certificate
              (PLEASE print)

    

       

    
      	 
	
              City,
                State, ZIP

              Received
                and Acknowledged Indigo-Energy,
                Inc.:

            

    

     

    
      	 	 	 	 
	Signed, Title	 	Date

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