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      CERTIFICATE
        OF DESIGNATION OF THE RELATIVE RIGHTS AND PREFERENCES

      OF
        THE

      SERIES
        A CONVERTIBLE PREFERRED STOCK

      OF

      JPAK
        GROUP, INC. 

       

      The
        undersigned, the Chief Executive Officer of Jpak Group, Inc., a Nevada
        corporation (f/k/a Rx Staffing, Inc., the "Company"), in accordance with
        the
        provisions of the Nevada Revised Statutes, does hereby certify that, pursuant
        to
        the authority conferred upon the Board of Directors by the Articles of
        Incorporation of the Company, as amended, the following resolution creating
        a
        series of preferred stock, designated as Series A Convertible Preferred Stock,
        was duly adopted on August 9, 2007, as follows:

      

      RESOLVED,
        that pursuant to the authority expressly granted to and vested in the Board
        of
        Directors of the Company by provisions of the Articles of Incorporation of
        the
        Company, (as amended, the "Articles of Incorporation"), there hereby is created
        out of the shares of the Company’s preferred stock, par value $0.001 per share,
        of the Company authorized in Article Five of the Articles of Incorporation
        (the
        "Preferred Stock"), a series of Preferred Stock of the Company, to be named
        "Series A Convertible Preferred Stock," consisting of Five Million Eight
        Hundred
        Thousand (5,800,000) shares, which series shall have the following designations,
        powers, preferences and relative and other special rights and the following
        qualifications, limitations and restrictions:

      

      1. Designation
        and Rank.
        The
        designation of such series of the Preferred Stock shall be the Series A
        Convertible Preferred Stock, par value $0.001 per share (the "Series A Preferred
        Stock"). The maximum number of shares of Series A Preferred Stock shall be
        Five
        Million Eight Hundred Thousand (5,800,000) shares. The Series A Preferred
        Stock
        shall rank senior to the Company’s common stock, par value $0.001 per share (the
        "Common Stock"), and to all other classes and series of equity securities
        of the
        Company which by their terms do not rank senior to the Series A Preferred
        Stock
        ("Junior Stock"). The Series A Preferred Stock shall be subordinate to and
        rank
        junior to all indebtedness of the Company now or hereafter outstanding. For
        purposes of this Certificate of Designation, the term “Original Series A Issue
        Price” shall mean an amount equal to $1.00 per share.

      

      2. Dividends.
        Whenever the Board of Directors declares a dividend on the Common Stock,
        each
        holder of record of a share of Series A Preferred Stock, or any fraction
        of a
        share of Series A Preferred Stock, on the date set by the Board of Directors
        to
        determine the owners of the Common Stock of record entitled to receive such
        dividend (the "Record Date"), shall be entitled to receive, out of any assets
        at
        the time legally available therefore, an amount equal to such dividend declared
        on one share of Common Stock multiplied by the number of shares of Common
        Stock
        into which such share, or such fraction of a share, of Series A Preferred
        Stock could be converted on the Record Date. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      3. Voting
        Rights.

      

      (a) Class
        Voting Rights.
         The
        Series A Preferred Stock shall have the following class voting rights (in
        addition to the voting rights set forth in Section 3(b) hereof). So long
        as any
        shares of the Series A Preferred Stock remain outstanding, the Company shall
        not, without the affirmative vote or consent of the holders of at least a
        majority of the shares of the Series A Preferred Stock outstanding at the
        time,
        given in person or by proxy, either in writing or at a meeting, in which
        the
        holders of the Series A Preferred Stock vote separately as a class: (i) amend,
        alter or repeal the provisions of the Series A Preferred Stock, whether by
        merger, consolidation or otherwise, so as to adversely affect any right,
        preference, privilege or voting power of the Series A Preferred Stock;
provided,
        however,
        that
        any creation and issuance of (A) a series of Preferred Stock with liquidation
        preferences ranking senior to the Series A Preferred Stock or (B) a series
        of
        Junior Stock shall not be deemed to adversely affect such rights, preferences,
        privileges or voting powers; and (ii) amend the Articles of Incorporation
        or
        By-Laws of the Company so as to affect materially and adversely any right,
        preference, privilege or voting power of the Series A Preferred Stock;
provided,
        however,
        that
        any creation and issuance of (A) a series of Preferred Stock with liquidation
        preferences ranking senior to the Series A Preferred Stock or (B) a series
        of
        Junior Stock shall not be deemed to adversely affect such rights, preferences,
        privileges or voting powers.

      

      (b) General
        Voting Rights.
        

      

      (i) Each
        holder of Series A Preferred Stock shall be entitled to vote on all matters,
        together with the holders of Common Stock, on an as converted basis up to
        9.99%
        of (A) the Common Stock issuable upon conversion of the Series A Preferred
        Stock
        held by such holder, plus (B) all other shares of Common Stock beneficially
        owned by the holder at such time.  

       

      (ii) Except
        (A) with respect to transactions upon which the Series A Preferred Stock
        shall
        be entitled to vote separately as a class pursuant to Section 3(a) above,
        (B)
        with respect to the general voting rights granted pursuant to Section 3(b)(i)
        above and (iii) as otherwise required by Nevada law, the Series A Preferred
        Stock shall have no voting rights. 

       

      (iii) The
        Common Stock into which the Series A Preferred Stock is convertible shall,
        upon
        issuance, have all of the same voting rights as other issued and outstanding
        Common Stock of the Company, and none of the rights of the Preferred
        Stock.

      

      4. Liquidation
        Preference.
        The
        holders of record of shares of Series A Preferred Stock shall not be entitled
        to
        receive any liquidation preference in the event of the liquidation, dissolution
        or winding up of the affairs of the Company, whether voluntary or
        involuntary.

      

      5. Conversion.
        The
        holders of record of shares of Series A Preferred Stock shall have the following
        conversion rights (the "Conversion Rights"):

      

      (a) Right
        to Convert.
        At any
        time on or after the Issuance Date, the holder of any such shares of Series
        A
        Preferred Stock may, at such holder's option, subject to the limitations
        set
        forth in Section 7 herein, elect to convert (a "Voluntary Conversion") all
        or
        any portion of the shares of Series A Preferred Stock held by such person
        into a
        number of fully paid and nonassessable shares of Common Stock equal to the
        quotient of (i) the Original Series A Issue Price divided by (ii) the Conversion
        Price (as defined in Section 5(d) below) then in effect as of the date of
        the
        delivery by such holder of its notice of election to convert. In the event
        of a
        Mandatory Redemption pursuant to Section 8 hereof, the Conversion Rights
        of the
        shares designated for redemption shall terminate at the close of business
        on the
        last full day preceding the date fixed for redemption, unless the Mandatory
        Redemption Price is not paid on such date of Mandatory Redemption, in which
        case
        the Conversion Rights for such shares shall continue until such Mandatory
        Redemption Price is paid in full. 

      
        
          
          

        

        
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      (b) Mechanics
        of Voluntary Conversion.
        The
        Voluntary Conversion of Series A Preferred Stock shall be conducted in the
        following manner:

      

      (i) Holder's
        Delivery Requirements.
        To
        convert Series A Preferred Stock into full shares of Common Stock on any
        date
        (the "Conversion Date"), the holder thereof shall transmit by facsimile (or
        otherwise deliver), for receipt on or prior to 5:00 p.m., New York time on
        such
        date, a copy of a fully executed notice of conversion in the form attached
        hereto as Exhibit
        I
        (the
        "Conversion Notice"), to the Company at (532) 8463 0586, Attention: Chief
        Financial Officer. As soon as practicable following such Conversion Date,
        the
        holder shall surrender to a common carrier for delivery to the Company the
        original certificates representing the shares of Series A Preferred Stock
        being
        converted (or an indemnification undertaking with respect to such shares
        in the
        case of their loss, theft or destruction) (the "Preferred Stock Certificates")
        and the originally executed Conversion Notice.

      

      (ii) Company's
        Response.
        Upon
        receipt by the Company of a facsimile copy of a Conversion Notice, the Company
        shall immediately send, via facsimile, a confirmation of receipt of such
        Conversion Notice to such holder. Upon receipt by the Company of a copy of
        the
        fully executed Conversion Notice, the Company or its designated transfer
        agent
        (the "Transfer Agent"), as applicable, shall, within three (3) business days
        following the date of receipt by the Company of the fully executed Conversion
        Notice, issue and deliver to the Depository Trust Company (“DTC”) account on the
        Holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”) as
        specified in the Conversion Notice, registered in the name of the holder
        or its
        designee, for the number of shares of Common Stock to which the holder shall
        be
        entitled.
        Notwithstanding the foregoing to the contrary, the Company or its Transfer
        Agent
        shall only be obligated to issue and deliver the shares to the DTC on a Holder’s
        behalf via DWAC if (i) such conversion is in connection with a sale, (ii)
        the
        shares of Common Stock may be issued without restrictive legends and (iii)
        the
        Company and the Transfer Agent are participating in DTC through the DWAC
        system.
        If all
        of the conditions set forth in clauses (i), (ii) and (iii) above are not
        satisfied, the Transfer Agent shall deliver physical certificates representing
        the shares of Common Stock to such Holder. If the number of shares of Preferred
        Stock represented by the Preferred Stock Certificate(s) submitted for conversion
        is greater than the number of shares of Series A Preferred Stock being
        converted, then the Company shall, as soon as practicable and in no event
        later
        than three (3) business days after receipt of the Preferred Stock Certificate(s)
        and at the Company's expense, issue and deliver to the holder a new Preferred
        Stock Certificate representing the number of shares of Series A Preferred
        Stock
        not converted.

      
        
          
          

        

        
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      (iii) Dispute
        Resolution.
        In the
        case of a dispute as to the arithmetic calculation of the number of shares
        of
        Common Stock to be issued upon conversion, the Company shall cause its Transfer
        Agent to promptly issue to the holder the number of shares of Common Stock
        that
        is not disputed and shall submit the arithmetic calculations to the holder
        via
        facsimile as soon as possible, but in no event later than two (2) business
        days
        after receipt of such holder's Conversion Notice. If such holder and the
        Company
        are unable to agree upon the arithmetic calculation of the number of shares
        of
        Common Stock to be issued upon such conversion within one (1) business day
        of
        such disputed arithmetic calculation being submitted to the holder, then
        the
        Company shall within one (1) business day submit via facsimile the disputed
        arithmetic calculation of the number of shares of Common Stock to be issued
        upon
        such conversion to the Company’s independent, outside accountant. The Company
        shall cause the accountant to perform the calculations and notify the Company
        and the holder of the results no later than seventy-two (72) hours from the
        time
        it receives the disputed calculations. Such accountant's calculation shall
        be
        binding upon all parties absent manifest error. The reasonable expenses of
        such
        accountant in making such determination shall be paid by the Company, in
        the
        event the holder's calculation was correct, or by the holder, in the event
        the
        Company's calculation was correct, or equally by the Company and the holder
        in
        the event that neither the Company's or the holder's calculation was correct.
        The period of time in which the Company is required to effect conversions
        under
        this Certificate of Designation shall be tolled with respect to the subject
        conversion pending resolution of any dispute by the Company made in good
        faith
        and in accordance with this Section 5(b)(iii).

      

      (iv) Record
        Holder.
        The
        person or persons entitled to receive the shares of Common Stock issuable
        upon a
        conversion of the Series A Preferred Stock shall be treated for all purposes
        as
        the record holder or holders of such shares of Common Stock on the Conversion
        Date.

      

      (v) Company's
        Failure to Timely Convert.
        If
        within five (5) business days of the Company's receipt of an executed copy
        of
        the Conversion Notice (so long as the applicable Preferred Stock Certificates
        and original Conversion Notice are received by the Company on or before such
        fifth business day), the Transfer Agent shall fail to issue and deliver to
        a
        holder the number of shares of Common Stock to which such holder is entitled
        upon such holder's conversion of the Series A Preferred Stock or to issue
        a new
        Preferred Stock Certificate representing the number of shares of Series A
        Preferred Stock to which such holder is entitled pursuant to Section 5(b)(ii)
        (a
        "Conversion Failure"), in addition to all other available remedies which
        such
        holder may pursue hereunder and under any other agreements entered into in
        connection with the issuance of the Series A Preferred Stock (including any
        indemnification provisions contained therein), the Company shall pay additional
        damages to such holder on each business day after such fifth (5th)
        business day that such conversion is not timely effected in an amount equal
        0.5%
        of the product of (A) the sum of the number of shares of Common Stock not
        issued
        to the holder on a timely basis pursuant to Section 5(b)(ii) and to which
        such
        holder is entitled and, in the event the Company has failed to deliver a
        Preferred Stock Certificate to the holder on a timely basis pursuant to Section
        5(b)(ii), the number of shares of Common Stock issuable upon conversion of
        the
        shares of Series A Preferred Stock represented by such Preferred Stock
        Certificate, as of the last possible date which the Company could have issued
        such Preferred Stock Certificate to such holder without violating Section
        5(b)(ii) and (B) the Closing Bid Price (as defined below) of the Common Stock
        on
        the last possible date which the Company could have issued such Common Stock
        and
        such Preferred Stock Certificate, as the case may be, to such holder without
        violating Section 5(b)(ii). If the Company fails to pay the additional damages
        set forth in this Section 5(b)(v) within seven (7) business days of the date
        incurred, then such payment shall bear interest at the rate of 2.0% per month
        (pro rated for partial months) until such payments are made. The term "Closing
        Bid Price" shall mean, for any security as of any date, the last closing
        bid
        price of such security on the OTC Bulletin Board or other principal exchange
        on
        which such security is traded as reported by Bloomberg, or, if no closing
        bid
        price is reported for such security by Bloomberg, the last closing trade
        price
        of such security as reported by Bloomberg, or, if no last closing trade price
        is
        reported for such security by Bloomberg, the average of the bid prices of
        any
        market makers for such security as reported in the "pink sheets" by the National
        Quotation Bureau, Inc. If the Closing Bid Price cannot be calculated for
        such
        security on such date on any of the foregoing bases, the Closing Bid Price
        of
        such security on such date shall be the fair market value as mutually determined
        by the Company and the holders of a majority of the outstanding shares of
        Series
        A Preferred Stock 

      
        
          
          

        

        
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      (vi) Buy-In
        Rights.
        In
        addition to any other rights available to the holders of Series A Preferred
        Stock, if within three (3) business days of the Company's receipt of an executed
        copy of the Conversion Notice (so long as the applicable Preferred Stock
        Certificates are received by the Company on or before such third business
        day),
        the Transfer Agent shall fail to issue and deliver to a holder the number
        of
        shares of Common Stock to which such holder is entitled upon such holder's
        conversion of the Series A Preferred Stock (a "Conversion Failure"), and
        if
        after such date the holder is required by its broker to purchase (in an open
        market transaction or otherwise) shares of Common Stock to deliver in
        satisfaction of a sale by the holder of the shares of Common Stock issuable
        upon
        conversion of Series A Preferred Stock which the holder anticipated receiving
        upon such conversion (a “Buy-In”), then the Company shall (1) pay in cash to the
        holder the amount by which (x) the holder’s total purchase price (including
        brokerage commissions, if any) for the shares of Common Stock so purchased
        exceeds (y) the amount obtained by multiplying (A) the number of shares of
        Common Stock issuable upon conversion of Series A Preferred Stock that the
        Company was required to deliver to the holder in connection with the conversion
        at issue times (B) the price at which the sell order giving rise to such
        purchase obligation was executed, and (2) deliver to the holder the number
        of
        shares of Common Stock that would have been issued had the Company timely
        complied with its conversion and delivery obligations hereunder. For example,
        if
        the holder purchases Common Stock having a total purchase price of $11,000
        to
        cover a Buy-In with respect to an attempted conversion of shares of Common
        Stock
        with an aggregate sale price giving rise to such purchase obligation of $10,000,
        under clause (1) of the immediately preceding sentence the Company shall
        be
        required to pay to the holder $1,000. The holder shall provide the Company
        written notice indicating the amounts payable to the holder in respect of
        the
        Buy-In, together with applicable confirmations and other evidence reasonably
        requested by the Company. Nothing herein shall limit a holder’s right to pursue
        any other remedies available to it hereunder, at law or in equity including,
        without limitation, a decree of specific performance and/or injunctive relief
        with respect to the Company’s failure to timely deliver certificates
        representing shares of Common Stock upon conversion of the Series A Preferred
        Stock as required pursuant to the terms hereof. 

       

      (c) Intentionally
        Omitted.

      

      (d) Conversion
        Price.
        The
        term "Conversion Price" shall mean $0.50, subject to adjustment under Section
        5(e) hereof. Notwithstanding any adjustment hereunder, at no time shall the
        Conversion Price be greater than $0.50 per share except if it is adjusted
        pursuant to Section 5(e)(i). 

      
        
          
          

        

        
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      (e) Adjustments
        of Conversion Price.

      

      (i) Adjustments
        for Stock Splits and Combinations.
        If the
        Company shall at any time or from time to time after the Issuance Date, effect
        a
        stock split of the outstanding Common Stock, the Conversion Price shall be
        proportionately decreased. If the Company shall at any time or from time
        to time
        after the Issuance Date, combine the outstanding shares of Common Stock,
        the
        Conversion Price shall be proportionately increased. Any adjustments under
        this
        Section 5(e)(i) shall be effective at the close of business on the date the
        stock split or combination becomes effective.

      

      (ii) Adjustments
        for Certain Dividends and Distributions.
        If the
        Company shall at any time or from time to time after the Issuance Date, make
        or
        issue or set a record date for the determination of holders of Common Stock
        entitled to receive a dividend or other distribution payable in shares of
        Common
        Stock, then, and in each event, the Conversion Price shall be decreased as
        of
        the time of such issuance or, in the event such record date shall have been
        fixed, as of the close of business on such record date, by multiplying the
        Conversion Price then in effect by a fraction:

      

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

      

      (2) the
        denominator of which shall be the total number of shares of Common Stock
        issued
        and outstanding immediately prior to the time of such issuance or the close
        of
        business on such record date plus the number of shares of Common Stock issuable
        in payment of such dividend or distribution.

      

      (iii) Adjustment
        for Other Dividends and Distributions.
        If the
        Company shall at any time or from time to time after the Issuance Date, make
        or
        issue or set a record date for the determination of holders of Common Stock
        entitled to receive a dividend or other distribution payable in securities
        of
        the Company other than shares of Common Stock, then, and in each event, an
        appropriate revision to the applicable Conversion Price shall be made and
        provision shall be made (by adjustments of the Conversion Price or otherwise)
        so
        that the holders of Series A Preferred Stock shall receive upon conversions
        thereof, in addition to the number of shares of Common Stock receivable thereon,
        the number of securities of the Company which they would have received had
        their
        Series A Preferred Stock been converted into Common Stock on the date of
        such
        event and had thereafter, during the period from the date of such event to
        and
        including the Conversion Date, retained such securities (together with any
        distributions payable thereon during such period), giving application to
        all
        adjustments called for during such period under this Section 5(e)(iii) with
        respect to the rights of the holders of the Series A Preferred Stock;
provided,
        however,
        that if
        such record date shall have been fixed and such dividend is not fully paid
        or if
        such distribution is not fully made on the date fixed therefor, the Conversion
        Price shall be adjusted pursuant to this paragraph as of the time of actual
        payment of such dividends or distributions.

      
        
          
          

        

        
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      (iv) Adjustments
        for Reclassification, Exchange or Substitution.
        If the
        Common Stock issuable upon conversion of the Series A Preferred Stock at
        any
        time or from time to time after the Issuance Date shall be changed to the
        same
        or different number of shares of any class or classes of stock, whether by
        reclassification, exchange, substitution or otherwise (other than by way
        of a
        stock split or combination of shares or stock dividends provided for in Sections
        5(e)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale
        of
        assets provided for in Section 5(e)(v)), then, and in each event, an appropriate
        revision to the Conversion Price shall be made and provisions shall be made
        (by
        adjustments of the Conversion Price or otherwise) so that the holder of each
        share of Series A Preferred Stock shall have the right thereafter to convert
        such share of Series A Preferred Stock into the kind and amount of shares
        of
        stock and other securities receivable upon reclassification, exchange,
        substitution or other change, by holders of the number of shares of Common
        Stock
        into which such share of Series A Preferred Stock might have been converted
        immediately prior to such reclassification, exchange, substitution or other
        change, all subject to further adjustment as provided herein.

      

      (v) Adjustments
        for Reorganization, Merger, Consolidation or Sales of Assets.
        If at
        any time or from time to time after the Issuance Date there shall be a capital
        reorganization of the Company (other than by way of a stock split or combination
        of shares or stock dividends or distributions provided for in Section 5(e)(i),
        (ii) and (iii), or a reclassification, exchange or substitution of shares
        provided for in Section 5(e)(iv)), or a merger or consolidation of the Company
        with or into another corporation where the holders of outstanding voting
        securities prior to such merger or consolidation do not own over 50% of the
        outstanding voting securities of the merged or consolidated entity, immediately
        after such merger or consolidation, or the sale of all or substantially all
        of
        the Company's properties or assets to any other person (an "Organic Change"),
        then as a part of such Organic Change an appropriate revision to the Conversion
        Price shall be made if necessary and provision shall be made if necessary
        (by
        adjustments of the Conversion Price or otherwise) so that the holder of each
        share of Series A Preferred Stock shall have the right thereafter to convert
        such share of Series A Preferred Stock into the kind and amount of shares
        of
        stock and other securities or property of the Company or any successor
        corporation resulting from Organic Change. In any such case, appropriate
        adjustment shall be made in the application of the provisions of this Section
        5(e)(v) with respect to the rights of the holders of the Series A Preferred
        Stock after the Organic Change to the end that the provisions of this Section
        5(e)(v) (including any adjustment in the Conversion Price then in effect
        and the
        number of shares of stock or other securities deliverable upon conversion
        of the
        Series A Preferred Stock) shall be applied after that event in as nearly
        an
        equivalent manner as may be practicable.

      

      (vi) Adjustments
        for Issuance of Additional Shares of Common Stock. 

      

      (A) Commencing
        on the Issuance Date and for a period of one (1) year thereafter, in the
        event
        the Company shall issue or sell any additional shares of Common Stock (otherwise
        than as provided in the foregoing subsections (i) through (v) of this Section
        5(e) or pursuant to Common Stock Equivalents (hereafter defined) granted
        or
        issued on or prior to the Issuance Date) (the "Additional Shares of Common
        Stock"), at a price per share less than the Conversion Price, or without
        consideration, the Conversion Price then in effect upon each such issuance
        shall
        be adjusted to the price equal to the consideration per share paid for such
        Additional Shares of Common Stock.

      
        
          
          

        

        
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      (B) Commencing
        on the date that is one (1) year and one (1) day following the Issuance Date,
        in
        the event the Company shall issue or sell any additional shares of Common
        Stock
        (otherwise than as provided in the foregoing subsections (i) through (v)
        of this
        Section 5(e) or pursuant to Common Stock Equivalents (hereafter defined)
        granted
        or issued on or prior to the Issuance Date) (the "Additional Shares of Common
        Stock"), at a price per share less than the Conversion Price, or without
        consideration, the Conversion Price then in effect upon each such issuance
        shall
        be adjusted to that price (rounded to the nearest cent) determined by
        multiplying the Conversion Price by a fraction:

      

      (1) the
        numerator of which shall be equal to the sum of (A) the number of shares
        of
        Common Stock outstanding immediately prior to the issuance of such Additional
        Shares of Common Stock plus
        (B) the
        number of shares of Common Stock (rounded to the nearest whole share) which
        the
        aggregate consideration for the total number of such Additional Shares of
        Common
        Stock so issued would purchase at a price per share equal to the then Conversion
        Price, and

      

      (2) the
        denominator of which shall be equal to the number of shares of Common Stock
        outstanding immediately after the issuance of such Additional Shares of Common
        Stock;

      

      No
        adjustment of the number of shares of Common Stock shall be made under
        paragraphs (A) and (B) of Section 5(e)(vi) upon the issuance of any Additional
        Shares of Common Stock which are issued pursuant to the exercise of any warrants
        or other subscription or purchase rights or pursuant to the exercise of any
        conversion or exchange rights in any Common Stock Equivalents (as defined
        below), if any such adjustment shall previously have been made upon the issuance
        of such warrants or other rights or upon the issuance of such Common Stock
        Equivalents (or upon the issuance of any warrant or other rights therefore)
        pursuant to Section 5(e)(vii).

      

      (vii) Issuance
        of Common Stock Equivalents.
        The
        provisions of this Section 5(e)(vii) shall apply if (a) the Company, at any
        time
        after the Issuance Date, shall issue any securities convertible into or
        exchangeable for, directly or indirectly, Common Stock ("Convertible
        Securities"), other than the Series A Preferred Stock, or (b) any rights
        or
        warrants or options to purchase any such Common Stock or Convertible Securities
        (collectively, the "Common Stock Equivalents") shall be issued or sold. If
        the
        price per share for which Additional Shares of Common Stock may be issuable
        pursuant to any such Common Stock Equivalent shall be less than the applicable
        Conversion Price then in effect, or if, after any such issuance of Common
        Stock
        Equivalents, the price per share for which Additional Shares of Common Stock
        may
        be issuable thereafter is amended or adjusted, and such price as so amended
        shall be less than the applicable Conversion Price in effect at the time
        of such
        amendment or adjustment, then the applicable Conversion Price upon each such
        issuance or amendment shall be adjusted as provided in subsection (vi) of
        this
        Section 5(e). No adjustment shall be made to the Conversion Price upon the
        issuance of Common Stock pursuant to the exercise, conversion or exchange
        of any
        Convertible Security or Common Stock Equivalent where an adjustment to the
        Conversion Price was made as a result of the issuance or purchase of any
        Convertible Security or Common Stock Equivalent.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      

      (viii) Consideration
        for Stock.
        In case
        any shares of Common Stock or Convertible Securities other than the Series
        A
        Preferred Stock, or any rights or warrants or options to purchase any such
        Common Stock or Convertible Securities, shall be issued or sold:

      

      (1) in
        connection with any merger or consolidation in which the Company is the
        surviving corporation (other than any consolidation or merger in which the
        previously outstanding shares of Common Stock of the Company shall be changed
        to
        or exchanged for the stock or other securities of another corporation), the
        amount of consideration therefore shall be, deemed to be the fair value,
        as
        determined reasonably and in good faith by the Board of Directors of the
        Company, of such portion of the assets and business of the nonsurviving
        corporation as such Board may determine to be attributable to such shares
        of
        Common Stock, Convertible Securities, rights or warrants or options, as the
        case
        may be; or

      

      (2) in
        the
        event of any consolidation or merger of the Company in which the Company
        is not
        the surviving corporation or in which the previously outstanding shares of
        Common Stock of the Company shall be changed into or exchanged for the stock
        or
        other securities of another corporation, or in the event of any sale of all
        or
        substantially all of the assets of the Company for stock or other securities
        of
        any corporation, the Company shall be deemed to have issued a number of shares
        of its Common Stock for stock or securities or other property of the other
        corporation computed on the basis of the actual exchange ratio on which the
        transaction was predicated, and for a consideration equal to the fair market
        value on the date of such transaction of all such stock or securities or
        other
        property of the other corporation. If any such calculation results in adjustment
        of the applicable Conversion Price, or the number of shares of Common Stock
        issuable upon conversion of the Series A Preferred Stock, the determination
        of
        the applicable Conversion Price or the number of shares of Common Stock issuable
        upon conversion of the Series A Preferred Stock immediately prior to such
        merger, consolidation or sale, shall be made after giving effect to such
        adjustment of the number of shares of Common Stock issuable upon conversion
        of
        the Series A Preferred Stock. In the event any consideration received by
        the
        Company for any securities consists of property other than cash, the fair
        market
        value thereof at the time of issuance or as otherwise applicable shall be
        as
        determined in good faith by the Board of Directors of the Company. In the
        event
        Common Stock is issued with other shares or securities or other assets of
        the
        Company for consideration which covers both, the consideration computed as
        provided in this Section (5)(e)(viii) shall be allocated among such securities
        and assets as determined in good faith by the Board of Directors of the
        Company.

      

      (ix) Record
        Date.
        In case
        the Company shall take record of the holders of its Common Stock or any other
        Preferred Stock for the purpose of entitling them to subscribe for or purchase
        Common Stock or Convertible Securities, then the date of the issue or sale
        of
        the shares of Common Stock shall be deemed to be such record date.

      

      (x) Certain
        Issues Excepted.
        Anything herein to the contrary notwithstanding, the Company shall not be
        required to make any adjustment to the Conversion Price upon (i) securities
        issued (other than for cash) in connection with a merger, acquisition, or
        consolidation, (ii) securities issued pursuant to the conversion or exercise
        of
        convertible or exercisable securities issued or outstanding on or prior to
        the
        Issuance Date (so long as the conversion or exercise price in such securities
        are not amended to lower such price and/or adversely affect the holders)
        as set
        forth on Schedule 1.2 to that certain Joinder Agreement executed by the Company
        dated on or about the date hereof, (iii) securities issued in connection
        with
        bona fide strategic license agreements or other partnering arrangements so
        long
        as such issuances are not for the purpose of raising capital, (iv) Common
        Stock
        issued, or the issuance or grants of options to purchase Common Stock, pursuant
        to the Company’s stock option plans and employee stock purchase plans (A)
        outstanding as they exist on the Issuance Date or (B) adopted after the Issuance
        Date provided such plans do not to exceed 3,600,000 shares of Common Stock,
        and
        in each case approved by a majority of the Company’s Board of Directors, (v)
        warrants issued to the holders of the Series A Preferred Stock in connection
        with the transactions relating to the issuance of the Series A Preferred
        Stock,
        and (vi) warrants to purchase up to 990,000 shares of Common Stock issued
        to any
        placement agent and its designees in connection with the transactions relating
        to the issuance of the Series A Preferred Stock. 

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      

      (f) No
        Impairment.
        The
        Company shall not, by amendment of its Articles of Incorporation or through
        any
        reorganization, transfer of assets, consolidation, merger, dissolution, issue
        or
        sale of securities or any other voluntary action, avoid or seek to avoid
        the
        observance or performance of any of the terms to be observed or performed
        hereunder by the Company, but will at all times in good faith assist in the
        carrying out of all the provisions of this Section 5 and in the taking of
        all
        such action as may be necessary or appropriate in order to protect the
        Conversion Rights of the holders of the Series A Preferred Stock against
        impairment. In the event a holder shall elect to convert any shares of Series
        A
        Preferred Stock as provided herein, the Company cannot refuse conversion
        (subject to the limitations set forth in Section 7 herein) based on any claim
        that such holder or any one associated or affiliated with such holder has
        been
        engaged in any violation of law, unless (i) an order from the Securities
        and
        Exchange Commission prohibiting such conversion or (ii) an injunction from
        a
        court, on notice, restraining and/or adjoining conversion of all or of said
        shares of Series A Preferred Stock shall have been issued and the Company
        posts
        a surety bond for the benefit of such holder in an amount equal to 120% of
        the
        Original Series A Issue Price of the Series A Preferred Stock such holder
        has
        elected to convert, 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 in the event it obtains judgment.

      

      (g) Certificates
        as to Adjustments.
        Upon
        occurrence of each adjustment or readjustment of the Conversion Price or
        number
        of shares of Common Stock issuable upon conversion of the Series A Preferred
        Stock pursuant to this Section 5, the Company at its expense shall promptly
        compute such adjustment or readjustment in accordance with the terms hereof
        and
        furnish to each holder of such Series A Preferred Stock a certificate setting
        forth such adjustment and readjustment, showing in detail the facts upon
        which
        such adjustment or readjustment is based. The Company shall, upon written
        request of the holder of such affected Series A Preferred Stock, at any time,
        furnish or cause to be furnished to such holder a like certificate setting
        forth
        such adjustments and readjustments, the Conversion Price in effect at the
        time,
        and the number of shares of Common Stock and the amount, if any, of other
        securities or property which at the time would be received upon the conversion
        of a share of such Series A Preferred Stock. Notwithstanding the foregoing,
        the
        Company shall not be obligated to deliver a certificate unless such certificate
        would reflect an increase or decrease of at least one percent of such adjusted
        amount.

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      

      (h) Issue
        Taxes.
        The
        Company shall pay any and all issue and other taxes, excluding federal, state
        or
        local income taxes, that may be payable in respect of any issue or delivery
        of
        shares of Common Stock on conversion of shares of Series A Preferred Stock
        pursuant hereto; provided,
        however,
        that
        the Company shall not be obligated to pay any transfer taxes resulting from
        any
        transfer requested by any holder in connection with any such
        conversion.

      

      (i) Notices.
        All
        notices and other communications hereunder shall be in writing and shall
        be
        deemed given if delivered personally or by facsimile or e-mail or three (3)
        business days following being mailed by certified or registered mail, postage
        prepaid, return-receipt requested, addressed to the holder of record at its
        address appearing on the books of the Company. The Company will give written
        notice to each holder of Series A Preferred Stock at least twenty (20) days
        prior to the date on which the Company closes its books or takes a record
        (I)
        with respect to any dividend or distribution upon the Common Stock, (II)
        with
        respect to any pro rata subscription offer to holders of Common Stock or
        (III)
        for determining rights to vote with respect to any Organic Change, dissolution,
        liquidation or winding-up and in no event shall such notice be provided to
        such
        holder prior to such information being made known to the public. The Company
        will also give written notice to each holder of Series A Preferred Stock
        at
        least twenty (20) days prior to the date on which any Organic Change,
        dissolution, liquidation or winding-up will take place and in no event shall
        such notice be provided to such holder prior to such information being made
        known to the public.

      

      (j) Fractional
        Shares.
        No
        fractional shares of Common Stock shall be issued upon conversion of the
        Series
        A Preferred Stock. In lieu of any fractional shares to which the holder would
        otherwise be entitled, the Company shall round the number of shares to be
        issued
        upon conversion up to the nearest whole number of shares.

      

      (k) Reservation
        of Common Stock.
        The
        Company shall, so long as any shares of Series A Preferred Stock are
        outstanding, reserve and keep available out of its authorized and unissued
        Common Stock, solely for the purpose of effecting the conversion of the Series
        A
        Preferred Stock, such number of shares of Common Stock equal to at least
        one
        hundred twenty percent (120%) of the aggregate number of shares of Common
        Stock
        as shall from time to time be sufficient to effect the conversion of all
        of the
        Series A Preferred Stock then outstanding. The initial number of shares of
        Common Stock reserved for conversions of the Series A Preferred Stock and
        any
        increase in the number of shares so reserved shall be allocated pro rata
        among
        the holders of the Series A Preferred Stock based on the number of shares
        of
        Series A Preferred Stock held by each holder of record at the time of issuance
        of the Series A Preferred Stock or increase in the number of reserved shares,
        as
        the case may be. In the event a holder shall sell or otherwise transfer any
        of
        such holder's shares of Series A Preferred Stock, each transferee shall be
        allocated a pro rata portion of the number of reserved shares of Common Stock
        reserved for such transferor. Any shares of Common Stock reserved and which
        remain allocated to any person or entity which does not hold any shares of
        Series A Preferred Stock shall be allocated to the remaining holders of Series
        A
        Preferred Stock, pro rata based on the number of shares of Series A Preferred
        Stock then held by such holder. 

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      

      (l) Retirement
        of Series A Preferred Stock.
        Conversion of Series A Preferred Stock shall be deemed to have been effected
        on
        the Conversion Date. Upon conversion of only a portion of the number of shares
        of Series A Preferred Stock represented by a certificate surrendered for
        conversion, the Company shall issue and deliver to such holder at the expense
        of
        the Company, a new certificate covering the number of shares of Series A
        Preferred Stock representing the unconverted portion of the certificate so
        surrendered as required by Section 5(b)(ii).

      

      (m) Regulatory
        Compliance.
        If any
        shares of Common Stock to be reserved for the purpose of conversion of Series
        A
        Preferred Stock require registration or listing with or approval of any
        governmental authority, stock exchange or other regulatory body under any
        federal or state law or regulation or otherwise before such shares may be
        validly issued or delivered upon conversion, the Company shall, at its sole
        cost
        and expense, in good faith and as expeditiously as possible, endeavor to
        secure
        such registration, listing or approval, as the case may be.

      

      6. No
        Preemptive Rights.
        Except
        as provided in Section 5 hereof, no holder of the Series A Preferred Stock
        shall
        be entitled to rights to subscribe for, purchase or receive any part of any
        new
        or additional shares of any class, whether now or hereinafter authorized,
        or of
        bonds or debentures, or other evidences of indebtedness convertible into
        or
        exchangeable for shares of any class, but all such new or additional shares
        of
        any class, or any bond, debentures or other evidences of indebtedness
        convertible into or exchangeable for shares, may be issued and disposed of
        by
        the Board of Directors on such terms and for such consideration (to the extent
        permitted by law), and to such person or persons as the Board of Directors
        in
        their absolute discretion may deem advisable.

      

      7. Conversion
        Restrictions.
        

      

      (a) Notwithstanding
        anything to the contrary set forth in Section 5 of this Certificate of
        Designation, at no time may Vision Opportunity Master Fund, Ltd. (“Vision”)
        convert shares of the Series A Preferred Stock if the number of shares of
        Common
        Stock to be issued pursuant to such conversion would cause the number of
        shares
        of Common Stock owned by Vision at such time to exceed, when aggregated with
        all
        other shares of Common Stock owned by Vision at such time, the number of
        shares
        of Common Stock which would result in Vision beneficially owning (as determined
        in accordance with Section 13(d) of the Securities Exchange Act of 1934,
        as
        amended, and the rules thereunder) in excess of 4.9% of the then issued and
        outstanding shares of Common Stock outstanding at such time; provided,
        however,
        that
        upon Vision providing the Company with sixty-one (61) days notice (pursuant
        to
        Section 5(i) hereof) (the "Waiver Notice") that Vision would like to waive
        Section 7(a) of this Certificate of Designation with regard to any or all
        shares
        of Common Stock issuable upon conversion of Series A Preferred Stock, this
        Section 7(a) shall be of no force or effect with regard to those shares of
        Series A Preferred Stock referenced in the Waiver Notice.

      

      (b) Notwithstanding
        anything to the contrary set forth in Section 5 of this Certificate of
        Designation, at no time may a holder of shares of Series A Preferred Stock
        (other than Vision for purposes of this Section 7(b)) convert shares of the
        Series A Preferred Stock if the number of shares of Common Stock to be issued
        pursuant to such conversion would cause the number of shares of Common Stock
        owned by such holder at such time to exceed, when aggregated with all other
        shares of Common Stock owned by such holder at such time, the number of shares
        of Common Stock which would result in such holder beneficially owning (as
        determined in accordance with Section 13(d) of the Securities Exchange Act
        of
        1934, as amended, and the rules thereunder) in excess of 9.9% of the then
        issued
        and outstanding shares of Common Stock outstanding at such time; provided,
        however,
        that
        upon a holder of Series A Preferred Stock providing the Company with sixty-one
        (61) days notice (pursuant to Section 5(i) hereof) (the "Waiver Notice")
        that
        such holder would like to waive Section 7(b) of this Certificate of Designation
        with regard to any or all shares of Common Stock issuable upon conversion
        of
        Series A Preferred Stock, this Section 7(b) shall be of no force or effect
        with
        regard to those shares of Series A Preferred Stock referenced in the Waiver
        Notice.

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      

      8. Inability
        to Fully Convert.

      

      (a) Holder's
        Option if Company Cannot Fully Convert.
        If,
        upon the Company's receipt of a Conversion Notice, the Company cannot issue
        shares of Common Stock registered for resale under the Registration Statement
        for any reason, including, without limitation, because the Company (w) does
        not
        have a sufficient number of shares of Common Stock authorized and available,
        (x)
        is otherwise prohibited by applicable law or by the rules or regulations
        of any
        stock exchange, interdealer quotation system or other self-regulatory
        organization with jurisdiction over the Company or its securities from issuing
        all of the Common Stock which is to be issued to a holder of Series A Preferred
        Stock pursuant to a Conversion Notice or (y) subsequent to the effective
        date of
        the Registration Statement, fails to have a sufficient number of shares of
        Common Stock registered for resale under the Registration Statement, then
        the
        Company shall issue as many shares of Common Stock as it is able to issue
        in
        accordance with such holder's Conversion Notice and pursuant to Section 5(b)(ii)
        above and, with respect to the unconverted Series A Preferred Stock, the
        holder,
        solely at such holder's option, can elect, within five (5) business days
        after
        receipt of notice from the Company thereof to:

      

      (i) require
        the Company to redeem from such holder those Series A Preferred Stock for
        which
        the Company is unable to issue Common Stock in accordance with such holder's
        Conversion Notice ("Mandatory Redemption") at a price per share equal to
        one
        hundred ten percent (110%) of the Original Series A Issue Price as of such
        Conversion Date (the "Mandatory Redemption Price"); provided that the Company
        shall have the sole option to pay the Mandatory Redemption Price in cash
        or
        shares of Common Stock;

      

      (ii) if
        the
        Company's inability to fully convert Series A Preferred Stock is pursuant
        to
        Section 8(a)(y) above, require the Company to issue restricted shares of
        Common
        Stock in accordance with such holder's Conversion Notice and pursuant to
        Section
        5(b)(ii) above;

      

      (iii) void
        its
        Conversion Notice and retain or have returned, as the case may be, the shares
        of
        Series A Preferred Stock that were to be converted pursuant to such holder's
        Conversion Notice (provided that a holder's voiding its Conversion Notice
        shall
        not effect the Company's obligations to make any payments which have accrued
        prior to the date of such notice); or

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      

      (iv) exercise
        its Buy-In rights pursuant to and in accordance with the terms and provisions
        of
        Section 5(b)(vi) hereof.

      

      (b) Mechanics
        of Fulfilling Holder's Election.
        The
        Company shall immediately send via facsimile to a holder of Series A Preferred
        Stock, upon receipt of a facsimile copy of a Conversion Notice from such
        holder
        which cannot be fully satisfied as described in Section 8(a) above, a notice
        of
        the Company's inability to fully satisfy such holder's Conversion Notice
        (the
        "Inability to Fully Convert Notice"). Such Inability to Fully Convert Notice
        shall indicate (i) the reason why the Company is unable to fully satisfy
        such
        holder's Conversion Notice, (ii) the number of Series A Preferred Stock which
        cannot be converted and (iii) the applicable Mandatory Redemption Price.
        Such
        holder shall notify the Company of its election pursuant to Section 8(a)
        above
        by delivering written notice via facsimile to the Company ("Notice in Response
        to Inability to Convert").

      

      (c) Payment
        of Mandatory Redemption Price.
        If such
        holder shall elect to have its shares redeemed pursuant to Section 8(a)(i)
        above, the Company shall pay the Mandatory Redemption Price to such holder
        within thirty (30) days of the Company's receipt of the holder's Notice in
        Response to Inability to Convert, provided
        that
        prior to the Company's receipt of the holder's Notice in Response to Inability
        to Convert the Company has not delivered a notice to such holder stating,
        to the
        satisfaction of the holder, that the event or condition resulting in the
        Mandatory Redemption has been cured and all Conversion Shares issuable to
        such
        holder can and will be delivered to the holder in accordance with the terms
        hereof. If the Company shall fail to pay the applicable Mandatory Redemption
        Price to such holder on a timely basis as described in this Section 8(c)
        (other
        than pursuant to a good faith dispute of the arithmetic calculation of the
        Mandatory Redemption Price), in addition to any remedy such holder of Series
        A
        Preferred Stock may have under this Certificate of Designation, such unpaid
        amount shall bear interest at the rate of 2.0% per month (prorated for partial
        months) until paid in full. Until the full Mandatory Redemption Price is
        paid in
        full to such holder, such holder may (i) void the Mandatory Redemption with
        respect to those shares of Series A Preferred Stock for which the full Mandatory
        Redemption Price has not been paid, (ii) receive back such shares of Series
        A
        Preferred Stock, and (iii) require that the Conversion Price of such returned
        shares of Series A Preferred Stock be adjusted to the lesser of (A) the
        Conversion Price and (B) the average Closing Bid Price during the five day
        period ending on the date the holder voided the Mandatory Redemption. The
        term
        "Closing Bid Price" shall mean, for any security as of any date, the last
        closing bid price of such security on the OTC Bulletin Board or other principal
        exchange on which such security is traded as reported by Bloomberg, or, if
        no
        closing bid price is reported for such security by Bloomberg, the last closing
        trade price of such security as reported by Bloomberg, or, if no last closing
        trade price is reported for such security by Bloomberg, the average of the
        bid
        prices of any market makers for such security as reported in the "pink sheets"
        by the National Quotation Bureau, Inc. If the Closing Bid Price cannot be
        calculated for such security on such date on any of the foregoing bases,
        the
        Closing Bid Price of such security on such date shall be the fair market
        value
        as mutually determined by the Company and the holders of a majority of the
        outstanding shares of Series A Preferred Stock. 

      

      (d) Pro-rata
        Conversion and Redemption.
        In the
        event the Company receives a Conversion Notice from more than one holder
        of
        Series A Preferred Stock on the same day and the Company can convert and
        redeem
        some, but not all, of the Series A Preferred Stock pursuant to this Section
        8,
        the Company shall convert and redeem from each holder of Series A Preferred
        Stock electing to have Series A Preferred Stock converted and redeemed at
        such
        time an amount equal to such holder's pro-rata amount (based on the number
        shares of Series A Preferred Stock held by such holder relative to the number
        shares of Series A Preferred Stock outstanding) of all shares of Series A
        Preferred Stock being converted and redeemed at such time.

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      

      9. Vote
        to Change the Terms of or Issue Preferred Stock.
        The
        affirmative vote at a meeting duly called for such purpose or the written
        consent without a meeting, of the holders of not less than a majority of
        the
        then outstanding shares of Series A Preferred Stock (in addition to any other
        corporate approvals then required to effect such action), shall be required
        for
        any change to this Certificate of Designation or the Company's Articles of
        Incorporation which would amend, alter, change or repeal any of the powers,
        designations, preferences and rights of the Series A Preferred
        Stock.

      

      10. Lost
        or Stolen Certificates.
        Upon
        receipt by the Company of evidence satisfactory to the Company of the loss,
        theft, destruction or mutilation of any Preferred Stock Certificates
        representing the shares of Series A Preferred Stock, and, in the case of
        loss,
        theft or destruction, of any indemnification undertaking by the holder to
        the
        Company and, in the case of mutilation, upon surrender and cancellation of
        the
        Preferred Stock Certificate(s), the Company shall execute and deliver new
        Preferred Stock Certificate(s) of like tenor and date; provided,
        however,
        the
        Company shall not be obligated to re-issue Preferred Stock Certificates if
        the
        holder contemporaneously requests the Company to convert such shares of Series
        A
        Preferred Stock into Common Stock.

      

      11. Remedies,
        Characterizations, Other Obligations, Breaches and Injunctive
        Relief.
        The
        remedies provided in this Certificate of Designation shall be cumulative
        and in
        addition to all other remedies available under this Certificate of Designation,
        at law or in equity (including a decree of specific performance and/or other
        injunctive relief), no remedy contained herein shall be deemed a waiver of
        compliance with the provisions giving rise to such remedy and nothing herein
        shall limit a holder's right to pursue actual damages for any failure by
        the
        Company to comply with the terms of this Certificate of Designation. Amounts
        set
        forth or provided for herein with respect to payments, conversion and the
        like
        (and the computation thereof) shall be the amounts to be received by the
        holder
        thereof and shall not, except as expressly provided herein, be subject to
        any
        other obligation of the Company (or the performance thereof). The Company
        acknowledges that a breach by it of its obligations hereunder will cause
        irreparable harm to the holders of the Series A Preferred Stock and that
        the
        remedy at law for any such breach may be inadequate. The Company therefore
        agrees that, in the event of any such breach, the holders of the Series A
        Preferred Stock shall be entitled, in addition to all other available remedies,
        to an injunction restraining any breach, without the necessity of showing
        economic loss and without any bond or other security being
        required.

      

      12. Specific
        Shall Not Limit General; Construction.
        No
        specific provision contained in this Certificate of Designation shall limit
        or
        modify any more general provision contained herein. This Certificate of
        Designation shall be deemed to be jointly drafted by the Company and all
        initial
        purchasers of the Series A Preferred Stock and shall not be construed against
        any person as the drafter hereof.

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      

      13. Failure
        or Indulgence Not Waiver.
        No
        failure or delay on the part of a holder of Series A Preferred Stock in the
        exercise of any power, right or privilege hereunder shall operate as a waiver
        thereof, nor shall any single or partial exercise of any such power, right
        or
        privilege preclude other or further exercise thereof or of any other right,
        power or privilege.

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the undersigned has executed and subscribed this Certificate
        and does affirm the foregoing as true this 9th day of August, 2007.

      

      

      
        	 	
                JPAK
                  GROUP, INC.

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	
                 
                  

              
	 	 	
                Name:
                  

              
	 	 	
                Title:
                  

              

      

       

      
 

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

      

      JPAK
        GROUP, INC.

      CONVERSION
        NOTICE

      

      Reference
        is made to the Certificate of Designation of the Relative Rights and Preferences
        of the Series A Preferred Stock of Jpak Group, Inc. (the "Certificate of
        Designation"). In accordance with and pursuant to the Certificate of
        Designation, the undersigned hereby elects to convert the number of shares
        of
        Series A Preferred Stock, par value $0.001 per share (the "Preferred Stock"),
        of
        Jpak Group, Inc., a Nevada corporation (the "Company"), indicated below into
        shares of Common Stock, par value $0.001 per share (the "Common Stock"),
        of the
        Company, by tendering the stock certificate(s) representing the share(s)
        of
        Preferred Stock specified below as of the date specified below.

       

      
        
          	
                  Date
                    of Conversion:

                	 	  

	 	 	 
	
                  Number
                    of Shares of Preferred Stock to be converted: 

                	 	  

	 	 	 
	
                  Stock
                    certificate no(s). of Preferred Stock to be converted:

                	 	  

        

        

        The
          Common Stock to be issued upon conversion have been sold pursuant to an
          effective Registration Statement: YES ____ NO____ 

         

        Please
          confirm the following information:  

         

        
          	
                  Conversion
                    Price:

                	 	 

	 	 	 
	
                  Number
                    of shares of Common Stock

                	 	 
	
                  to
                    be issued:

                	 	 

        

        

        Number
          of
          shares of Common Stock beneficially owned or deemed beneficially owned
          by the
          Holder on the Date of Conversion: _________________________  

         

        Please
          issue the Common Stock into which the shares of Preferred Stock are being
          converted and, if applicable, any check drawn on an account of the Company
          in
          the following name and to the following address:  

         

        

        
          	
                  Issue
                    to:

                	 	  

	 	 	 
	 	 	 
	
                  Facsimile
                    Number:

                	 	 

	 	 	 
	
                  Authorization:

                	 	 

	 	 	
                  By:
                    

                	 

	 	 	
                  Title:
                    

                	 

        

        

        Dated:

        

        

        
          
            
            

          

          
            18CERTIFICATE
      OF DESIGNATION OF THE RELATIVE RIGHTS AND PREFERENCES

    OF
      THE

    SERIES
      B CONVERTIBLE PREFERRED STOCK

    OF

    JPAK
      GROUP, INC. 

     

    The
      undersigned, the Chief Executive Officer of Jpak Group, Inc., a Nevada
      corporation (f/k/a Rx Staffing, Inc., the "Company"), in accordance with the
      provisions of the Nevada Revised Statutes, does hereby certify that, pursuant
      to
      the authority conferred upon the Board of Directors by the Articles of
      Incorporation of the Company, as amended, the following resolution creating
      a
      series of preferred stock, designated as Series B Convertible Preferred Stock,
      was duly adopted on _______ __, 200__, as follows:

    

    RESOLVED,
      that pursuant to the authority expressly granted to and vested in the Board
      of
      Directors of the Company by provisions of the Articles of Incorporation of
      the
      Company, (as amended, the "Articles of Incorporation"), there hereby is created
      out of the shares of the Company’s preferred stock, par value $0.001 per share,
      of the Company authorized in Article Five of the Articles of Incorporation
      (the
      "Preferred Stock"), a series of Preferred Stock of the Company, to be named
      "Series B Convertible Preferred Stock," consisting of Five Million (5,000,000)
      shares, which series shall have the following designations, powers, preferences
      and relative and other special rights and the following qualifications,
      limitations and restrictions:

    

    1. Designation
      and Rank.
      The
      designation of such series of the Preferred Stock shall be the Series B
      Convertible Preferred Stock, par value $0.001 per share (the "Series B Preferred
      Stock"). The maximum number of shares of Series B Preferred Stock shall be
      Five
      Million (5,000,000) shares. The Series B Preferred Stock shall rank senior
      to
      the Company’s common stock, par value $0.001 per share (the "Common Stock"), and
      to all other classes and series of equity securities of the Company which by
      their terms do not rank senior to the Series B Preferred Stock ("Junior Stock").
      The Series B Preferred Stock shall be subordinate to and rank junior to all
      indebtedness of the Company now or hereafter outstanding. For purposes of this
      Certificate of Designation, the term “Original Series B Issue Price” shall mean
      an amount equal to $1.00 per share.

    

    2. Dividends.
      Whenever the Board of Directors declares a dividend on the Common Stock, each
      holder of record of a share of Series B Preferred Stock, or any fraction of
      a
      share of Series B Preferred Stock, on the date set by the Board of Directors
      to
      determine the owners of the Common Stock of record entitled to receive such
      dividend (the "Record Date"), shall be entitled to receive, out of any assets
      at
      the time legally available therefore, an amount equal to such dividend declared
      on one share of Common Stock multiplied by the number of shares of Common Stock
      into which such share, or such fraction of a share, of Series B Preferred
      Stock could be converted on the Record Date. 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    3. Voting
      Rights.

    

    (a) Class
      Voting Rights.
       The
      Series B Preferred Stock shall have the following class voting rights (in
      addition to the voting rights set forth in Section 3(b) hereof). So long as
      any
      shares of the Series B Preferred Stock remain outstanding, the Company shall
      not, without the affirmative vote or consent of the holders of at least a
      majority of the shares of the Series B Preferred Stock outstanding at the time,
      given in person or by proxy, either in writing or at a meeting, in which the
      holders of the Series B Preferred Stock vote separately as a class: (i) amend,
      alter or repeal the provisions of the Series B Preferred Stock, whether by
      merger, consolidation or otherwise, so as to adversely affect any right,
      preference, privilege or voting power of the Series B Preferred Stock;
provided,
      however,
      that
      any creation and issuance of (A) a series of Preferred Stock with liquidation
      preferences ranking senior to the Series B Preferred Stock or (B) a series
      of
      Junior Stock shall not be deemed to adversely affect such rights, preferences,
      privileges or voting powers; and (ii) amend the Articles of Incorporation or
      By-Laws of the Company so as to affect materially and adversely any right,
      preference, privilege or voting power of the Series B Preferred Stock;
provided,
      however,
      that
      any creation and issuance of (A) a series of Preferred Stock with liquidation
      preferences ranking senior to the Series B Preferred Stock or (B) a series
      of
      Junior Stock shall not be deemed to adversely affect such rights, preferences,
      privileges or voting powers.

    

    (b) General
      Voting
      Rights.
      

    

    (i) Each
      holder of Series B Preferred Stock shall be entitled to vote on all matters,
      together with the holders of Common Stock, on an as converted basis up to 9.99%
      of (A) the Common Stock issuable upon conversion of the Series B Preferred
      Stock
      held by such holder, plus (B) all other shares of Common Stock beneficially
      owned by the holder at such time.  

     

    (ii) Except
      (A) with respect to transactions upon which the Series B Preferred Stock shall
      be entitled to vote separately as a class pursuant to Section 3(a) above, (B)
      with respect to the general voting rights granted pursuant to Section 3(b)(i)
      above and (iii) as otherwise required by Nevada law, the Series B Preferred
      Stock shall have no voting rights. 

     

    (iii) The
      Common Stock into which the Series B Preferred Stock is convertible shall,
      upon
      issuance, have all of the same voting rights as other issued and outstanding
      Common Stock of the Company, and none of the rights of the Preferred
      Stock.

    

    4. Liquidation
      Preference.
      The
      holders of record of shares of Series B Preferred Stock shall not be entitled
      to
      receive any liquidation preference in the event of the liquidation, dissolution
      or winding up of the affairs of the Company, whether voluntary or
      involuntary.

    

    5. Conversion.
      The
      holders of record of shares of Series B Preferred Stock shall have the following
      conversion rights (the "Conversion Rights"):

    

    (a) Right
      to Convert.
      At any
      time on or after the Issuance Date, the holder of any such shares of Series
      B
      Preferred Stock may, at such holder's option, subject to the limitations set
      forth in Section 7 herein, elect to convert (a "Voluntary Conversion") all
      or
      any portion of the shares of Series B Preferred Stock held by such person into
      a
      number of fully paid and nonassessable shares of Common Stock equal to the
      quotient of (i) the Original Series B Issue Price divided by (ii) the Conversion
      Price (as defined in Section 5(d) below) then in effect as of the date of the
      delivery by such holder of its notice of election to convert. In the event
      of a
      Mandatory Redemption pursuant to Section 8 hereof, the Conversion Rights of
      the
      shares designated for redemption shall terminate at the close of business on
      the
      last full day preceding the date fixed for redemption, unless the Mandatory
      Redemption Price is not paid on such date of Mandatory Redemption, in which
      case
      the Conversion Rights for such shares shall continue until such Mandatory
      Redemption Price is paid in full. 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    (b) Mechanics
      of Voluntary Conversion.
      The
      Voluntary Conversion of Series B Preferred Stock shall be conducted in the
      following manner:

    

    (i) Holder's
      Delivery Requirements.
      To
      convert Series B Preferred Stock into full shares of Common Stock on any date
      (the "Conversion Date"), the holder thereof shall transmit by facsimile (or
      otherwise deliver), for receipt on or prior to 5:00 p.m., New York time on
      such
      date, a copy of a fully executed notice of conversion in the form attached
      hereto as Exhibit
      I
      (the
      "Conversion Notice"), to the Company at (532) 8463 0586, Attention: Chief
      Financial Officer. As soon as practicable following such Conversion Date, the
      holder shall surrender to a common carrier for delivery to the Company the
      original certificates representing the shares of Series B Preferred Stock being
      converted (or an indemnification undertaking with respect to such shares in
      the
      case of their loss, theft or destruction) (the "Preferred Stock Certificates")
      and the originally executed Conversion Notice.

    

    (ii) Company's
      Response.
      Upon
      receipt by the Company of a facsimile copy of a Conversion Notice, the Company
      shall immediately send, via facsimile, a confirmation of receipt of such
      Conversion Notice to such holder. Upon receipt by the Company of a copy of
      the
      fully executed Conversion Notice, the Company or its designated transfer agent
      (the "Transfer Agent"), as applicable, shall, within three (3) business days
      following the date of receipt by the Company of the fully executed Conversion
      Notice, issue and deliver to the Depository Trust Company (“DTC”) account on the
      Holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”) as
      specified in the Conversion Notice, registered in the name of the holder or
      its
      designee, for the number of shares of Common Stock to which the holder shall
      be
      entitled.
      Notwithstanding the foregoing to the contrary, the Company or its Transfer
      Agent
      shall only be obligated to issue and deliver the shares to the DTC on a Holder’s
      behalf via DWAC if (i) such conversion is in connection with a sale, (ii) the
      shares of Common Stock may be issued without restrictive legends and (iii)
      the
      Company and the Transfer Agent are participating in DTC through the DWAC
      system.
      If all
      of the conditions set forth in clauses (i), (ii) and (iii) above are not
      satisfied, the Transfer Agent shall deliver physical certificates representing
      the shares of Common Stock to such Holder. If the number of shares of Preferred
      Stock represented by the Preferred Stock Certificate(s) submitted for conversion
      is greater than the number of shares of Series B Preferred Stock being
      converted, then the Company shall, as soon as practicable and in no event later
      than three (3) business days after receipt of the Preferred Stock Certificate(s)
      and at the Company's expense, issue and deliver to the holder a new Preferred
      Stock Certificate representing the number of shares of Series B Preferred Stock
      not converted.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (iii) Dispute
      Resolution.
      In the
      case of a dispute as to the arithmetic calculation of the number of shares
      of
      Common Stock to be issued upon conversion, the Company shall cause its Transfer
      Agent to promptly issue to the holder the number of shares of Common Stock
      that
      is not disputed and shall submit the arithmetic calculations to the holder
      via
      facsimile as soon as possible, but in no event later than two (2) business
      days
      after receipt of such holder's Conversion Notice. If such holder and the Company
      are unable to agree upon the arithmetic calculation of the number of shares
      of
      Common Stock to be issued upon such conversion within one (1) business day
      of
      such disputed arithmetic calculation being submitted to the holder, then the
      Company shall within one (1) business day submit via facsimile the disputed
      arithmetic calculation of the number of shares of Common Stock to be issued
      upon
      such conversion to the Company’s independent, outside accountant. The Company
      shall cause the accountant to perform the calculations and notify the Company
      and the holder of the results no later than seventy-two (72) hours from the
      time
      it receives the disputed calculations. Such accountant's calculation shall
      be
      binding upon all parties absent manifest error. The reasonable expenses of
      such
      accountant in making such determination shall be paid by the Company, in the
      event the holder's calculation was correct, or by the holder, in the event
      the
      Company's calculation was correct, or equally by the Company and the holder
      in
      the event that neither the Company's or the holder's calculation was correct.
      The period of time in which the Company is required to effect conversions under
      this Certificate of Designation shall be tolled with respect to the subject
      conversion pending resolution of any dispute by the Company made in good faith
      and in accordance with this Section 5(b)(iii).

    

    (iv) Record
      Holder.
      The
      person or persons entitled to receive the shares of Common Stock issuable upon
      a
      conversion of the Series B Preferred Stock shall be treated for all purposes
      as
      the record holder or holders of such shares of Common Stock on the Conversion
      Date.

    

    (v) Company's
      Failure to Timely Convert.
      If
      within five (5) business days of the Company's receipt of an executed copy
      of
      the Conversion Notice (so long as the applicable Preferred Stock Certificates
      and original Conversion Notice are received by the Company on or before such
      fifth business day), the Transfer Agent shall fail to issue and deliver to
      a
      holder the number of shares of Common Stock to which such holder is entitled
      upon such holder's conversion of the Series B Preferred Stock or to issue a
      new
      Preferred Stock Certificate representing the number of shares of Series B
      Preferred Stock to which such holder is entitled pursuant to Section 5(b)(ii)
      (a
      "Conversion Failure"), in addition to all other available remedies which such
      holder may pursue hereunder and under any other agreements entered into in
      connection with the issuance of the Series B Preferred Stock (including any
      indemnification provisions contained therein), the Company shall pay additional
      damages to such holder on each business day after such fifth (5th)
      business day that such conversion is not timely effected in an amount equal
      0.5%
      of the product of (A) the sum of the number of shares of Common Stock not issued
      to the holder on a timely basis pursuant to Section 5(b)(ii) and to which such
      holder is entitled and, in the event the Company has failed to deliver a
      Preferred Stock Certificate to the holder on a timely basis pursuant to Section
      5(b)(ii), the number of shares of Common Stock issuable upon conversion of
      the
      shares of Series B Preferred Stock represented by such Preferred Stock
      Certificate, as of the last possible date which the Company could have issued
      such Preferred Stock Certificate to such holder without violating Section
      5(b)(ii) and (B) the Closing Bid Price (as defined below) of the Common Stock
      on
      the last possible date which the Company could have issued such Common Stock
      and
      such Preferred Stock Certificate, as the case may be, to such holder without
      violating Section 5(b)(ii). If the Company fails to pay the additional damages
      set forth in this Section 5(b)(v) within seven (7) business days of the date
      incurred, then such payment shall bear interest at the rate of 2.0% per month
      (pro rated for partial months) until such payments are made. The term "Closing
      Bid Price" shall mean, for any security as of any date, the last closing bid
      price of such security on the OTC Bulletin Board or other principal exchange
      on
      which such security is traded as reported by Bloomberg, or, if no closing bid
      price is reported for such security by Bloomberg, the last closing trade price
      of such security as reported by Bloomberg, or, if no last closing trade price
      is
      reported for such security by Bloomberg, the average of the bid prices of any
      market makers for such security as reported in the "pink sheets" by the National
      Quotation Bureau, Inc. If the Closing Bid Price cannot be calculated for such
      security on such date on any of the foregoing bases, the Closing Bid Price
      of
      such security on such date shall be the fair market value as mutually determined
      by the Company and the holders of a majority of the outstanding shares of Series
      B Preferred Stock 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    

    (vi) Buy-In
      Rights.
      In
      addition to any other rights available to the holders of Series B Preferred
      Stock, if within three (3) business days of the Company's receipt of an executed
      copy of the Conversion Notice (so long as the applicable Preferred Stock
      Certificates are received by the Company on or before such third business day),
      the Transfer Agent shall fail to issue and deliver to a holder the number of
      shares of Common Stock to which such holder is entitled upon such holder's
      conversion of the Series B Preferred Stock (a "Conversion Failure"), and if
      after such date the holder is required by its broker to purchase (in an open
      market transaction or otherwise) shares of Common Stock to deliver in
      satisfaction of a sale by the holder of the shares of Common Stock issuable
      upon
      conversion of Series B Preferred Stock which the holder anticipated receiving
      upon such conversion (a “Buy-In”), then the Company shall (1) pay in cash to the
      holder the amount by which (x) the holder’s total purchase price (including
      brokerage commissions, if any) for the shares of Common Stock so purchased
      exceeds (y) the amount obtained by multiplying (A) the number of shares of
      Common Stock issuable upon conversion of Series B Preferred Stock that the
      Company was required to deliver to the holder in connection with the conversion
      at issue times (B) the price at which the sell order giving rise to such
      purchase obligation was executed, and (2) deliver to the holder the number
      of
      shares of Common Stock that would have been issued had the Company timely
      complied with its conversion and delivery obligations hereunder. For example,
      if
      the holder purchases Common Stock having a total purchase price of $11,000
      to
      cover a Buy-In with respect to an attempted conversion of shares of Common
      Stock
      with an aggregate sale price giving rise to such purchase obligation of $10,000,
      under clause (1) of the immediately preceding sentence the Company shall be
      required to pay to the holder $1,000. The holder shall provide the Company
      written notice indicating the amounts payable to the holder in respect of the
      Buy-In, together with applicable confirmations and other evidence reasonably
      requested by the Company. Nothing herein shall limit a holder’s right to pursue
      any other remedies available to it hereunder, at law or in equity including,
      without limitation, a decree of specific performance and/or injunctive relief
      with respect to the Company’s failure to timely deliver certificates
      representing shares of Common Stock upon conversion of the Series B Preferred
      Stock as required pursuant to the terms hereof. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    (c) Intentionally
      Omitted.

    

    (d) Conversion
      Price.
      The
      term "Conversion Price" shall mean $0.60, subject to adjustment under Section
      5(e) hereof. Notwithstanding any adjustment hereunder, at no time shall the
      Conversion Price be greater than $0.60 per share except if it is adjusted
      pursuant to Section 5(e)(i). 

    

    (e) Adjustments
      of Conversion Price.

    

    (i) Adjustments
      for Stock Splits and Combinations.
      If the
      Company shall at any time or from time to time after the Issuance Date, effect
      a
      stock split of the outstanding Common Stock, the Conversion Price shall be
      proportionately decreased. If the Company shall at any time or from time to
      time
      after the Issuance Date, combine the outstanding shares of Common Stock, the
      Conversion Price shall be proportionately increased. Any adjustments under
      this
      Section 5(e)(i) shall be effective at the close of business on the date the
      stock split or combination becomes effective.

    

    (ii) Adjustments
      for Certain Dividends and Distributions.
      If the
      Company shall at any time or from time to time after the Issuance Date, make
      or
      issue or set a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in shares of Common
      Stock, then, and in each event, the Conversion Price shall be decreased as
      of
      the time of such issuance or, in the event such record date shall have been
      fixed, as of the close of business on such record date, by multiplying the
      Conversion Price then in effect by a fraction:

    

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

    

    (2) the
      denominator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date plus the number of shares of Common Stock issuable
      in payment of such dividend or distribution.

    

    (iii) Adjustment
      for Other Dividends and Distributions.
      If the
      Company shall at any time or from time to time after the Issuance Date, make
      or
      issue or set a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in securities
      of
      the Company other than shares of Common Stock, then, and in each event, an
      appropriate revision to the applicable Conversion Price shall be made and
      provision shall be made (by adjustments of the Conversion Price or otherwise)
      so
      that the holders of Series B Preferred Stock shall receive upon conversions
      thereof, in addition to the number of shares of Common Stock receivable thereon,
      the number of securities of the Company which they would have received had
      their
      Series B Preferred Stock been converted into Common Stock on the date of such
      event and had thereafter, during the period from the date of such event to
      and
      including the Conversion Date, retained such securities (together with any
      distributions payable thereon during such period), giving application to all
      adjustments called for during such period under this Section 5(e)(iii) with
      respect to the rights of the holders of the Series B Preferred Stock;
provided,
      however,
      that if
      such record date shall have been fixed and such dividend is not fully paid
      or if
      such distribution is not fully made on the date fixed therefor, the Conversion
      Price shall be adjusted pursuant to this paragraph as of the time of actual
      payment of such dividends or distributions.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    

    (iv) Adjustments
      for Reclassification, Exchange or Substitution.
      If the
      Common Stock issuable upon conversion of the Series B Preferred Stock at any
      time or from time to time after the Issuance Date shall be changed to the same
      or different number of shares of any class or classes of stock, whether by
      reclassification, exchange, substitution or otherwise (other than by way of
      a
      stock split or combination of shares or stock dividends provided for in Sections
      5(e)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale
      of
      assets provided for in Section 5(e)(v)), then, and in each event, an appropriate
      revision to the Conversion Price shall be made and provisions shall be made
      (by
      adjustments of the Conversion Price or otherwise) so that the holder of each
      share of Series B Preferred Stock shall have the right thereafter to convert
      such share of Series B Preferred Stock into the kind and amount of shares of
      stock and other securities receivable upon reclassification, exchange,
      substitution or other change, by holders of the number of shares of Common
      Stock
      into which such share of Series B Preferred Stock might have been converted
      immediately prior to such reclassification, exchange, substitution or other
      change, all subject to further adjustment as provided herein.

    

    (v) Adjustments
      for Reorganization, Merger, Consolidation or Sales of Assets.
      If at
      any time or from time to time after the Issuance Date there shall be a capital
      reorganization of the Company (other than by way of a stock split or combination
      of shares or stock dividends or distributions provided for in Section 5(e)(i),
      (ii) and (iii), or a reclassification, exchange or substitution of shares
      provided for in Section 5(e)(iv)), or a merger or consolidation of the Company
      with or into another corporation where the holders of outstanding voting
      securities prior to such merger or consolidation do not own over 50% of the
      outstanding voting securities of the merged or consolidated entity, immediately
      after such merger or consolidation, or the sale of all or substantially all
      of
      the Company's properties or assets to any other person (an "Organic Change"),
      then as a part of such Organic Change an appropriate revision to the Conversion
      Price shall be made if necessary and provision shall be made if necessary (by
      adjustments of the Conversion Price or otherwise) so that the holder of each
      share of Series B Preferred Stock shall have the right thereafter to convert
      such share of Series B Preferred Stock into the kind and amount of shares of
      stock and other securities or property of the Company or any successor
      corporation resulting from Organic Change. In any such case, appropriate
      adjustment shall be made in the application of the provisions of this Section
      5(e)(v) with respect to the rights of the holders of the Series B Preferred
      Stock after the Organic Change to the end that the provisions of this Section
      5(e)(v) (including any adjustment in the Conversion Price then in effect and
      the
      number of shares of stock or other securities deliverable upon conversion of
      the
      Series B Preferred Stock) shall be applied after that event in as nearly an
      equivalent manner as may be practicable.

    

    (vi) Adjustments
      for Issuance of Additional Shares of Common Stock.
      In the
      event the Company shall issue or sell any additional shares of Common Stock
      (otherwise than as provided in the foregoing subsections (i) through (v) of
      this
      Section 5(e) or pursuant to Common Stock Equivalents (hereafter defined) granted
      or issued on or prior to the Issuance Date) (the "Additional Shares of Common
      Stock"), at a price per share less than the Conversion Price, or without
      consideration, the Conversion Price then in effect upon each such issuance
      shall
      be adjusted to that price (rounded to the nearest cent) determined by
      multiplying the Conversion Price by a fraction:

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    

    (1) the
      numerator of which shall be equal to the sum of (A) the number of shares of
      Common Stock outstanding immediately prior to the issuance of such Additional
      Shares of Common Stock plus
      (B) the
      number of shares of Common Stock (rounded to the nearest whole share) which
      the
      aggregate consideration for the total number of such Additional Shares of Common
      Stock so issued would purchase at a price per share equal to the then Conversion
      Price, and

    

    (2) the
      denominator of which shall be equal to the number of shares of Common Stock
      outstanding immediately after the issuance of such Additional Shares of Common
      Stock;

    

    No
      adjustment of the number of shares of Common Stock shall be made under this
      Section 5(e)(vi) upon the issuance of any Additional Shares of Common Stock
      which are issued pursuant to the exercise of any warrants or other subscription
      or purchase rights or pursuant to the exercise of any conversion or exchange
      rights in any Common Stock Equivalents (as defined below), if any such
      adjustment shall previously have been made upon the issuance of such warrants
      or
      other rights or upon the issuance of such Common Stock Equivalents (or upon
      the
      issuance of any warrant or other rights therefore) pursuant to Section
      5(e)(vii).

    

    (vii) Issuance
      of Common Stock Equivalents.
      The
      provisions of this Section 5(e)(vii) shall apply if (a) the Company, at any
      time
      after the Issuance Date, shall issue any securities convertible into or
      exchangeable for, directly or indirectly, Common Stock ("Convertible
      Securities"), other than the Series B Preferred Stock, or (b) any rights or
      warrants or options to purchase any such Common Stock or Convertible Securities
      (collectively, the "Common Stock Equivalents") shall be issued or sold. If
      the
      price per share for which Additional Shares of Common Stock may be issuable
      pursuant to any such Common Stock Equivalent shall be less than the applicable
      Conversion Price then in effect, or if, after any such issuance of Common Stock
      Equivalents, the price per share for which Additional Shares of Common Stock
      may
      be issuable thereafter is amended or adjusted, and such price as so amended
      shall be less than the applicable Conversion Price in effect at the time of
      such
      amendment or adjustment, then the applicable Conversion Price upon each such
      issuance or amendment shall be adjusted as provided in subsection (vi) of this
      Section 5(e). No adjustment shall be made to the Conversion Price upon the
      issuance of Common Stock pursuant to the exercise, conversion or exchange of
      any
      Convertible Security or Common Stock Equivalent where an adjustment to the
      Conversion Price was made as a result of the issuance or purchase of any
      Convertible Security or Common Stock Equivalent.

    

    (viii) Consideration
      for Stock.
      In case
      any shares of Common Stock or Convertible Securities other than the Series
      B
      Preferred Stock, or any rights or warrants or options to purchase any such
      Common Stock or Convertible Securities, shall be issued or
      sold:

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    

    (1) in
      connection with any merger or consolidation in which the Company is the
      surviving corporation (other than any consolidation or merger in which the
      previously outstanding shares of Common Stock of the Company shall be changed
      to
      or exchanged for the stock or other securities of another corporation), the
      amount of consideration therefore shall be, deemed to be the fair value, as
      determined reasonably and in good faith by the Board of Directors of the
      Company, of such portion of the assets and business of the nonsurviving
      corporation as such Board may determine to be attributable to such shares of
      Common Stock, Convertible Securities, rights or warrants or options, as the
      case
      may be; or

    

    (2) in
      the
      event of any consolidation or merger of the Company in which the Company is
      not
      the surviving corporation or in which the previously outstanding shares of
      Common Stock of the Company shall be changed into or exchanged for the stock
      or
      other securities of another corporation, or in the event of any sale of all
      or
      substantially all of the assets of the Company for stock or other securities
      of
      any corporation, the Company shall be deemed to have issued a number of shares
      of its Common Stock for stock or securities or other property of the other
      corporation computed on the basis of the actual exchange ratio on which the
      transaction was predicated, and for a consideration equal to the fair market
      value on the date of such transaction of all such stock or securities or other
      property of the other corporation. If any such calculation results in adjustment
      of the applicable Conversion Price, or the number of shares of Common Stock
      issuable upon conversion of the Series B Preferred Stock, the determination
      of
      the applicable Conversion Price or the number of shares of Common Stock issuable
      upon conversion of the Series B Preferred Stock immediately prior to such
      merger, consolidation or sale, shall be made after giving effect to such
      adjustment of the number of shares of Common Stock issuable upon conversion
      of
      the Series B Preferred Stock. In the event any consideration received by the
      Company for any securities consists of property other than cash, the fair market
      value thereof at the time of issuance or as otherwise applicable shall be as
      determined in good faith by the Board of Directors of the Company. In the event
      Common Stock is issued with other shares or securities or other assets of the
      Company for consideration which covers both, the consideration computed as
      provided in this Section (5)(e)(viii) shall be allocated among such securities
      and assets as determined in good faith by the Board of Directors of the
      Company.

    

    (ix) Record
      Date.
      In case
      the Company shall take record of the holders of its Common Stock or any other
      Preferred Stock for the purpose of entitling them to subscribe for or purchase
      Common Stock or Convertible Securities, then the date of the issue or sale
      of
      the shares of Common Stock shall be deemed to be such record date.

    

    (x) Certain
      Issues Excepted.
      Anything herein to the contrary notwithstanding, the Company shall not be
      required to make any adjustment to the Conversion Price upon (i) securities
      issued (other than for cash) in connection with a merger, acquisition, or
      consolidation, (ii) securities issued pursuant to the conversion or exercise
      of
      convertible or exercisable securities issued or outstanding on or prior to
      the
      issuance date of shares of the Company’s Series A Convertible Preferred Stock
      (so long as the conversion or exercise price in such securities are not amended
      to lower such price and/or adversely affect the holders) as set forth on
      Schedule 1.2 to that certain Joinder Agreement executed by the Company, (iii)
      securities issued in connection with bona fide strategic license agreements
      or
      other partnering arrangements so long as such issuances are not for the purpose
      of raising capital, (iv) Common Stock issued, or the issuance or grants of
      options to purchase Common Stock, pursuant to the Company’s stock option plans
      and employee stock purchase plans (A) outstanding as they exist on the issuance
      date of shares of the Company’s Series A Convertible Preferred Stock or (B)
      adopted after the issuance date of shares of the Company’s Series A Convertible
      Preferred Stock provided such plans do not exceed 3,600,000 shares of Common
      Stock, and in each case approved by a majority of the Company’s Board of
      Directors, (v) warrants issued to the holders of the Series B Preferred Stock
      in
      connection with the transactions relating to the issuance of the Series B
      Preferred Stock, and (vi) warrants to purchase up to 990,000 shares of Common
      Stock issued to any placement agent and its designees in connection with the
      transactions relating to the issuance of the Series B Preferred
      Stock. 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    

    (f) No
      Impairment.
      The
      Company shall not, by amendment of its Articles of Incorporation or through
      any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms to be observed or performed
      hereunder by the Company, but will at all times in good faith assist in the
      carrying out of all the provisions of this Section 5 and in the taking of all
      such action as may be necessary or appropriate in order to protect the
      Conversion Rights of the holders of the Series B Preferred Stock against
      impairment. In the event a holder shall elect to convert any shares of Series
      B
      Preferred Stock as provided herein, the Company cannot refuse conversion
      (subject to the limitations set forth in Section 7 herein) based on any claim
      that such holder or any one associated or affiliated with such holder has been
      engaged in any violation of law, unless (i) an order from the Securities and
      Exchange Commission prohibiting such conversion or (ii) an injunction from
      a
      court, on notice, restraining and/or adjoining conversion of all or of said
      shares of Series B Preferred Stock shall have been issued and the Company posts
      a surety bond for the benefit of such holder in an amount equal to 120% of
      the
      Original Series B Issue Price of the Series B Preferred Stock such holder has
      elected to convert, 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 in the event it obtains judgment.

    

    (g) Certificates
      as to Adjustments.
      Upon
      occurrence of each adjustment or readjustment of the Conversion Price or number
      of shares of Common Stock issuable upon conversion of the Series B Preferred
      Stock pursuant to this Section 5, the Company at its expense shall promptly
      compute such adjustment or readjustment in accordance with the terms hereof
      and
      furnish to each holder of such Series B Preferred Stock a certificate setting
      forth such adjustment and readjustment, showing in detail the facts upon which
      such adjustment or readjustment is based. The Company shall, upon written
      request of the holder of such affected Series B Preferred Stock, at any time,
      furnish or cause to be furnished to such holder a like certificate setting
      forth
      such adjustments and readjustments, the Conversion Price in effect at the time,
      and the number of shares of Common Stock and the amount, if any, of other
      securities or property which at the time would be received upon the conversion
      of a share of such Series B Preferred Stock. Notwithstanding the foregoing,
      the
      Company shall not be obligated to deliver a certificate unless such certificate
      would reflect an increase or decrease of at least one percent of such adjusted
      amount.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    

    (h) Issue
      Taxes.
      The
      Company shall pay any and all issue and other taxes, excluding federal, state
      or
      local income taxes, that may be payable in respect of any issue or delivery
      of
      shares of Common Stock on conversion of shares of Series B Preferred Stock
      pursuant hereto; provided,
      however,
      that
      the Company shall not be obligated to pay any transfer taxes resulting from
      any
      transfer requested by any holder in connection with any such
      conversion.

    

    (i) Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed given if delivered personally or by facsimile or e-mail or three (3)
      business days following being mailed by certified or registered mail, postage
      prepaid, return-receipt requested, addressed to the holder of record at its
      address appearing on the books of the Company. The Company will give written
      notice to each holder of Series B Preferred Stock at least twenty (20) days
      prior to the date on which the Company closes its books or takes a record (I)
      with respect to any dividend or distribution upon the Common Stock, (II) with
      respect to any pro rata subscription offer to holders of Common Stock or (III)
      for determining rights to vote with respect to any Organic Change, dissolution,
      liquidation or winding-up and in no event shall such notice be provided to
      such
      holder prior to such information being made known to the public. The Company
      will also give written notice to each holder of Series B Preferred Stock at
      least twenty (20) days prior to the date on which any Organic Change,
      dissolution, liquidation or winding-up will take place and in no event shall
      such notice be provided to such holder prior to such information being made
      known to the public.

    

    (j) Fractional
      Shares.
      No
      fractional shares of Common Stock shall be issued upon conversion of the Series
      B Preferred Stock. In lieu of any fractional shares to which the holder would
      otherwise be entitled, the Company shall round the number of shares to be issued
      upon conversion up to the nearest whole number of shares.

    

    (k) Reservation
      of Common Stock.
      The
      Company shall, so long as any shares of Series B Preferred Stock are
      outstanding, reserve and keep available out of its authorized and unissued
      Common Stock, solely for the purpose of effecting the conversion of the Series
      B
      Preferred Stock, such number of shares of Common Stock equal to at least one
      hundred twenty percent (120%) of the aggregate number of shares of Common Stock
      as shall from time to time be sufficient to effect the conversion of all of
      the
      Series B Preferred Stock then outstanding. The initial number of shares of
      Common Stock reserved for conversions of the Series B Preferred Stock and any
      increase in the number of shares so reserved shall be allocated pro rata among
      the holders of the Series B Preferred Stock based on the number of shares of
      Series B Preferred Stock held by each holder of record at the time of issuance
      of the Series B Preferred Stock or increase in the number of reserved shares,
      as
      the case may be. In the event a holder shall sell or otherwise transfer any
      of
      such holder's shares of Series B Preferred Stock, each transferee shall be
      allocated a pro rata portion of the number of reserved shares of Common Stock
      reserved for such transferor. Any shares of Common Stock reserved and which
      remain allocated to any person or entity which does not hold any shares of
      Series B Preferred Stock shall be allocated to the remaining holders of Series
      B
      Preferred Stock, pro rata based on the number of shares of Series B Preferred
      Stock then held by such holder. 

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (l) Retirement
      of Series B Preferred Stock.
      Conversion of Series B Preferred Stock shall be deemed to have been effected
      on
      the Conversion Date. Upon conversion of only a portion of the number of shares
      of Series B Preferred Stock represented by a certificate surrendered for
      conversion, the Company shall issue and deliver to such holder at the expense
      of
      the Company, a new certificate covering the number of shares of Series B
      Preferred Stock representing the unconverted portion of the certificate so
      surrendered as required by Section 5(b)(ii).

    

    (m) Regulatory
      Compliance.
      If any
      shares of Common Stock to be reserved for the purpose of conversion of Series
      B
      Preferred Stock require registration or listing with or approval of any
      governmental authority, stock exchange or other regulatory body under any
      federal or state law or regulation or otherwise before such shares may be
      validly issued or delivered upon conversion, the Company shall, at its sole
      cost
      and expense, in good faith and as expeditiously as possible, endeavor to secure
      such registration, listing or approval, as the case may be.

    

    6. No
      Preemptive Rights.
      Except
      as provided in Section 5 hereof, no holder of the Series B Preferred Stock
      shall
      be entitled to rights to subscribe for, purchase or receive any part of any
      new
      or additional shares of any class, whether now or hereinafter authorized, or
      of
      bonds or debentures, or other evidences of indebtedness convertible into or
      exchangeable for shares of any class, but all such new or additional shares
      of
      any class, or any bond, debentures or other evidences of indebtedness
      convertible into or exchangeable for shares, may be issued and disposed of
      by
      the Board of Directors on such terms and for such consideration (to the extent
      permitted by law), and to such person or persons as the Board of Directors
      in
      their absolute discretion may deem advisable.

    

    7. Conversion
      Restrictions.
      

    

    (a) Notwithstanding
      anything to the contrary set forth in Section 5 of this Certificate of
      Designation, at no time may Vision Opportunity Master Fund, Ltd. (“Vision”)
      convert shares of the Series B Preferred Stock if the number of shares of Common
      Stock to be issued pursuant to such conversion would cause the number of shares
      of Common Stock owned by Vision at such time to exceed, when aggregated with
      all
      other shares of Common Stock owned by Vision at such time, the number of shares
      of Common Stock which would result in Vision beneficially owning (as determined
      in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
      amended, and the rules thereunder) in excess of 4.9% of the then issued and
      outstanding shares of Common Stock outstanding at such time; provided,
      however,
      that
      upon Vision providing the Company with sixty-one (61) days notice (pursuant
      to
      Section 5(i) hereof) (the "Waiver Notice") that Vision would like to waive
      Section 7(a) of this Certificate of Designation with regard to any or all shares
      of Common Stock issuable upon conversion of Series B Preferred Stock, this
      Section 7(a) shall be of no force or effect with regard to those shares of
      Series B Preferred Stock referenced in the Waiver Notice.

    

    (b) Notwithstanding
      anything to the contrary set forth in Section 5 of this Certificate of
      Designation, at no time may a holder of shares of Series B Preferred Stock
      (other than Vision for purposes of this Section 7(b)) convert shares of the
      Series B Preferred Stock if the number of shares of Common Stock to be issued
      pursuant to such conversion would cause the number of shares of Common Stock
      owned by such holder at such time to exceed, when aggregated with all other
      shares of Common Stock owned by such holder at such time, the number of shares
      of Common Stock which would result in such holder beneficially owning (as
      determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and the rules thereunder) in excess of 9.9% of the then issued
      and outstanding shares of Common Stock outstanding at such time; provided,
      however,
      that
      upon a holder of Series B Preferred Stock providing the Company with sixty-one
      (61) days notice (pursuant to Section 5(i) hereof) (the "Waiver Notice") that
      such holder would like to waive Section 7(b) of this Certificate of Designation
      with regard to any or all shares of Common Stock issuable upon conversion of
      Series B Preferred Stock, this Section 7(b) shall be of no force or effect
      with
      regard to those shares of Series B Preferred Stock referenced in the Waiver
      Notice.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    

    8. Inability
      to Fully Convert.

    

    (a) Holder's
      Option if Company Cannot Fully Convert.
      If,
      upon the Company's receipt of a Conversion Notice, the Company cannot issue
      shares of Common Stock registered for resale under the Registration Statement
      for any reason, including, without limitation, because the Company (w) does
      not
      have a sufficient number of shares of Common Stock authorized and available,
      (x)
      is otherwise prohibited by applicable law or by the rules or regulations of
      any
      stock exchange, interdealer quotation system or other self-regulatory
      organization with jurisdiction over the Company or its securities from issuing
      all of the Common Stock which is to be issued to a holder of Series B Preferred
      Stock pursuant to a Conversion Notice or (y) subsequent to the effective date
      of
      the Registration Statement, fails to have a sufficient number of shares of
      Common Stock registered for resale under the Registration Statement, then the
      Company shall issue as many shares of Common Stock as it is able to issue in
      accordance with such holder's Conversion Notice and pursuant to Section 5(b)(ii)
      above and, with respect to the unconverted Series B Preferred Stock, the holder,
      solely at such holder's option, can elect, within five (5) business days after
      receipt of notice from the Company thereof to:

    

    (i) require
      the Company to redeem from such holder those Series B Preferred Stock for which
      the Company is unable to issue Common Stock in accordance with such holder's
      Conversion Notice ("Mandatory Redemption") at a price per share equal to one
      hundred ten percent (110%) of the Original Series B Issue Price as of such
      Conversion Date (the "Mandatory Redemption Price"); provided that the Company
      shall have the sole option to pay the Mandatory Redemption Price in cash or
      shares of Common Stock;

    

    (ii) if
      the
      Company's inability to fully convert Series B Preferred Stock is pursuant to
      Section 8(a)(y) above, require the Company to issue restricted shares of Common
      Stock in accordance with such holder's Conversion Notice and pursuant to Section
      5(b)(ii) above;

    

    (iii) void
      its
      Conversion Notice and retain or have returned, as the case may be, the shares
      of
      Series B Preferred Stock that were to be converted pursuant to such holder's
      Conversion Notice (provided that a holder's voiding its Conversion Notice shall
      not effect the Company's obligations to make any payments which have accrued
      prior to the date of such notice); or

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    (iv) exercise
      its Buy-In rights pursuant to and in accordance with the terms and provisions
      of
      Section 5(b)(vi) hereof.

    

    (b) Mechanics
      of Fulfilling Holder's Election.
      The
      Company shall immediately send via facsimile to a holder of Series B Preferred
      Stock, upon receipt of a facsimile copy of a Conversion Notice from such holder
      which cannot be fully satisfied as described in Section 8(a) above, a notice
      of
      the Company's inability to fully satisfy such holder's Conversion Notice (the
      "Inability to Fully Convert Notice"). Such Inability to Fully Convert Notice
      shall indicate (i) the reason why the Company is unable to fully satisfy such
      holder's Conversion Notice, (ii) the number of Series B Preferred Stock which
      cannot be converted and (iii) the applicable Mandatory Redemption Price. Such
      holder shall notify the Company of its election pursuant to Section 8(a) above
      by delivering written notice via facsimile to the Company ("Notice in Response
      to Inability to Convert").

    

    (c) Payment
      of Mandatory Redemption Price.
      If such
      holder shall elect to have its shares redeemed pursuant to Section 8(a)(i)
      above, the Company shall pay the Mandatory Redemption Price to such holder
      within thirty (30) days of the Company's receipt of the holder's Notice in
      Response to Inability to Convert, provided
      that
      prior to the Company's receipt of the holder's Notice in Response to Inability
      to Convert the Company has not delivered a notice to such holder stating, to
      the
      satisfaction of the holder, that the event or condition resulting in the
      Mandatory Redemption has been cured and all Conversion Shares issuable to such
      holder can and will be delivered to the holder in accordance with the terms
      hereof. If the Company shall fail to pay the applicable Mandatory Redemption
      Price to such holder on a timely basis as described in this Section 8(c) (other
      than pursuant to a good faith dispute of the arithmetic calculation of the
      Mandatory Redemption Price), in addition to any remedy such holder of Series
      B
      Preferred Stock may have under this Certificate of Designation, such unpaid
      amount shall bear interest at the rate of 2.0% per month (prorated for partial
      months) until paid in full. Until the full Mandatory Redemption Price is paid
      in
      full to such holder, such holder may (i) void the Mandatory Redemption with
      respect to those shares of Series B Preferred Stock for which the full Mandatory
      Redemption Price has not been paid, (ii) receive back such shares of Series
      B
      Preferred Stock, and (iii) require that the Conversion Price of such returned
      shares of Series B Preferred Stock be adjusted to the lesser of (A) the
      Conversion Price and (B) the average Closing Bid Price during the five day
      period ending on the date the holder voided the Mandatory Redemption. The term
      "Closing Bid Price" shall mean, for any security as of any date, the last
      closing bid price of such security on the OTC Bulletin Board or other principal
      exchange on which such security is traded as reported by Bloomberg, or, if
      no
      closing bid price is reported for such security by Bloomberg, the last closing
      trade price of such security as reported by Bloomberg, or, if no last closing
      trade price is reported for such security by Bloomberg, the average of the
      bid
      prices of any market makers for such security as reported in the "pink sheets"
      by the National Quotation Bureau, Inc. If the Closing Bid Price cannot be
      calculated for such security on such date on any of the foregoing bases, the
      Closing Bid Price of such security on such date shall be the fair market value
      as mutually determined by the Company and the holders of a majority of the
      outstanding shares of Series B Preferred Stock. 

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    

    (d) Pro-rata
      Conversion and Redemption.
      In the
      event the Company receives a Conversion Notice from more than one holder of
      Series B Preferred Stock on the same day and the Company can convert and redeem
      some, but not all, of the Series B Preferred Stock pursuant to this Section
      8,
      the Company shall convert and redeem from each holder of Series B Preferred
      Stock electing to have Series B Preferred Stock converted and redeemed at such
      time an amount equal to such holder's pro-rata amount (based on the number
      shares of Series B Preferred Stock held by such holder relative to the number
      shares of Series B Preferred Stock outstanding) of all shares of Series B
      Preferred Stock being converted and redeemed at such time.

    

    9. Vote
      to Change the Terms of or Issue Preferred Stock.
      The
      affirmative vote at a meeting duly called for such purpose or the written
      consent without a meeting, of the holders of not less than a majority of the
      then outstanding shares of Series B Preferred Stock (in addition to any other
      corporate approvals then required to effect such action), shall be required
      for
      any change to this Certificate of Designation or the Company's Articles of
      Incorporation which would amend, alter, change or repeal any of the powers,
      designations, preferences and rights of the Series B Preferred
      Stock.

    

    10. Lost
      or Stolen Certificates.
      Upon
      receipt by the Company of evidence satisfactory to the Company of the loss,
      theft, destruction or mutilation of any Preferred Stock Certificates
      representing the shares of Series B Preferred Stock, and, in the case of loss,
      theft or destruction, of any indemnification undertaking by the holder to the
      Company and, in the case of mutilation, upon surrender and cancellation of
      the
      Preferred Stock Certificate(s), the Company shall execute and deliver new
      Preferred Stock Certificate(s) of like tenor and date; provided,
      however,
      the
      Company shall not be obligated to re-issue Preferred Stock Certificates if
      the
      holder contemporaneously requests the Company to convert such shares of Series
      B
      Preferred Stock into Common Stock.

    

    11. Remedies,
      Characterizations, Other Obligations, Breaches and Injunctive Relief.
      The
      remedies provided in this Certificate of Designation shall be cumulative and
      in
      addition to all other remedies available under this Certificate of Designation,
      at law or in equity (including a decree of specific performance and/or other
      injunctive relief), no remedy contained herein shall be deemed a waiver of
      compliance with the provisions giving rise to such remedy and nothing herein
      shall limit a holder's right to pursue actual damages for any failure by the
      Company to comply with the terms of this Certificate of Designation. Amounts
      set
      forth or provided for herein with respect to payments, conversion and the like
      (and the computation thereof) shall be the amounts to be received by the holder
      thereof and shall not, except as expressly provided herein, be subject to any
      other obligation of the Company (or the performance thereof). The Company
      acknowledges that a breach by it of its obligations hereunder will cause
      irreparable harm to the holders of the Series B Preferred Stock and that the
      remedy at law for any such breach may be inadequate. The Company therefore
      agrees that, in the event of any such breach, the holders of the Series B
      Preferred Stock shall be entitled, in addition to all other available remedies,
      to an injunction restraining any breach, without the necessity of showing
      economic loss and without any bond or other security being
      required.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    12. Specific
      Shall Not Limit General; Construction.
      No
      specific provision contained in this Certificate of Designation shall limit
      or
      modify any more general provision contained herein. This Certificate of
      Designation shall be deemed to be jointly drafted by the Company and all initial
      purchasers of the Series B Preferred Stock and shall not be construed against
      any person as the drafter hereof.

    

    13. Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of a holder of Series B Preferred Stock in the
      exercise of any power, right or privilege hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any such power, right
      or
      privilege preclude other or further exercise thereof or of any other right,
      power or privilege.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned has executed and subscribed this Certificate
      and does affirm the foregoing as true this ___ day of _________,
      200__.

     

    
      	 	
              JPAK
                GROUP, INC.

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
               

            
	 	 	
              Name:
                

            
	 	 	
              Title:
                

            

    

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    EXHIBIT
      I

    

    JPAK
      GROUP, INC.

    CONVERSION
      NOTICE

    

    Reference
      is made to the Certificate of Designation of the Relative Rights and Preferences
      of the Series B Preferred Stock of Jpak Group, Inc. (the "Certificate of
      Designation"). In accordance with and pursuant to the Certificate of
      Designation, the undersigned hereby elects to convert the number of shares
      of
      Series B Preferred Stock, par value $0.001 per share (the "Preferred Stock"),
      of
      Jpak Group, Inc., a Nevada corporation (the "Company"), indicated below into
      shares of Common Stock, par value $0.001 per share (the "Common Stock"), of
      the
      Company, by tendering the stock certificate(s) representing the share(s) of
      Preferred Stock specified below as of the date specified below.

    

    
      	
              Date
                of Conversion:

            	 	  

	 	 	 
	
              Number
                of Shares of Preferred Stock to be converted: 

            	 	  

    

    

    Stock
      certificate no(s). of Preferred Stock to be converted:  

    

    The
      Common Stock to be issued upon conversion have been sold pursuant to an
      effective Registration Statement: YES ____ NO____

    

    Please
      confirm the following information:

    

    
      	
              Conversion
                Price:

            	 	  

	 	 	 
	
              Number
                of shares of Common Stock

            	 	 
	
              to
                be issued:

            	 	  

    

    

    Number
      of
      shares of Common Stock beneficially owned or deemed beneficially owned by the
      Holder on the Date of Conversion: _________________________

    

    Please
      issue the Common Stock into which the shares of Preferred Stock are being
      converted and, if applicable, any check drawn on an account of the Company
      in
      the following name and to the following address:

    

    
      	
              Issue
                to:

            	 	 

	 	 	 
	
               

            	 	 
	
              Facsimile
                Number:

            	 	 

	 	 	 
	
              Authorization:

            	 	 

	 	 	
              By:
                

            	   

	 	 	
              Title:
                

            	   

    

    

    Dated:

    

    

    
      
         

      

      
        18

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