Document:

9

                    CERTIFICATE OF THE DESIGNATIONS, POWERS,
                             PREFERENCES AND RIGHTS
                                     OF THE
                     SERIES B 8% CONVERTIBLE PREFERRED STOCK
                           (PAR VALUE $0.01 PER SHARE)

                                       OF

                               CELSION CORPORATION
                            ------------------------
                            (A DELAWARE CORPORATION)

                         PURSUANT TO SECTION 151 OF THE
                GENERAL CORPORATION LAW OF THE STATE OF DELAWARE
                                -----------------

         CELSION  CORPORATION,  a corporation  organized and existing  under the
General  Corporation  Law of the State of Delaware (the  "Corporation"),  by its
President,

         DOES HEREBY CERTIFY:

         FIRST:  That,  pursuant to authority  expressly  vested in the Board of
Directors  of  the   Corporation  by  the  provisions  of  its   Certificate  of
Incorporation,  the Board of  Directors  duly adopted the  following  resolution
providing for the designation and issuance of up to Five Thousand (5,000) shares
of Series B 8% Convertible Preferred Stock, $0.01 par value:

                           RESOLVED,  that this Board of Directors,  pursuant to
                  authority  expressly  vested  in it by the  provisions  of the
                  Certificate  of  Incorporation  of  the  Corporation,   hereby
                  authorizes  the  issue  from  time  to  time  of a  series  of
                  Preferred  Stock  of the  Corporation  and  hereby  fixes  the
                  designation,  preferences,  and the  relative,  participating,
                  optional or other rights, and the qualifications,  limitations
                  or restrictions thereof, in addition to those set forth in the
                  Corporation's  Certificate  of  Incorporation,  to be in their
                  entirety as follows:

         1. Designation, Par Value and Number of Shares.

                  The formal  designation  of the  shares  shall be "Series B 8%
Convertible  Preferred  Stock"  (referred to herein for convenience as "Series B
Preferred  Stock"  or as  "Preferred  B  Shares").  The par  value  of  Series B
Preferred  Stock is $0.01 per share.  The Series B Preferred Stock shall consist

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of Five Thousand (5,000) shares.

         2.       Liquidation Preference and Ranking.

                  (a) Upon any voluntary or involuntary liquidation, dissolution
or winding up of the  business  and affairs of the  Corporation,  and before the
holders of shares of the  Corporation's  common stock, par value $0.01 per share
(the  "Common  Stock") or any other class or series of stock of the  Corporation
ranking junior in liquidation to the Series B Preferred  Stock shall be entitled
to any  payment on account of such  shares,  the  holders of Series B  Preferred
Stock  then  outstanding  shall  be  entitled  to  receive,   as  a  liquidation
preference,  an amount  equal to One  Thousand  Dollars  ($1,000) per share (the
"Original Cost"),  plus any accrued but unpaid dividends (the Original Cost plus
such dividends being referred to as the "Liquidation  Preference") to which such
stockholders  have become  entitled  and which have not  theretofore  been paid.
After the holders of Series B Preferred  Stock shall have  received such payment
of the  Liquidation  Preference  plus all  accrued and unpaid  dividends  in the
course of such liquidation,  dissolution or winding up, they shall have no right
or claim to any of the remaining assets of the Corporation.

                  (b) If, upon any  liquidation,  dissolution or winding up, the
Corporation  shall have  insufficient  funds to permit payment to the holders of
Series B Preferred Stock then outstanding of the entire amount to which they are
entitled as a Liquidation Preference,  then such funds as are available for such
purpose  shall be  distributed  among such holders on the basis of the number of
shares of Series B Preferred  Stock held by each such holder so that,  as nearly
as may be practicable, the amount each such holder shall receive shall represent
the same  proportion of such  available  funds as such holder's total holding of
shares of Series B Preferred  Stock  represents  of the total shares of Series B
Preferred Stock outstanding at the time.

                  (c) For all purposes under this  Certificate of  Designations,
all shares of Series B Preferred Stock shall be of equal rank with each other.

                  (d) For all purposes under this  Certificate of  Designations,
shares of Series B  Preferred  Stock  shall  rank in parity  with  shares of the
Corporation's Series A 10% Convertible Preferred Stock.

         3.       Dividends.

                  (a) The holders of Series B Preferred  Stock shall be entitled
to  receive,  when,  as and  if  declared  by  the  Board  of  Directors  of the
Corporation,  out of capital  surplus or earnings at the time legally  available
therefor,  dividends at the annual rate of eight percent (8%) per share, payable
in fully-paid and non-assessable  shares of Series B Preferred Stock which shall
be  valued,  for this  purpose,  at an  amount  equal to the  Original  Cost (as
adjusted  in a manner  similar  to that  provided  for the  Conversion  Price in
Section 9(a), as applicable).  Dividends shall accrue,  whether or not declared,
unless such  dividends  are then  prohibited  by the  provisions of the Delaware

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General Corporation Law or the Corporation's Certificate of Incorporation.

                  (b)  Dividends  shall  be  cumulative  and  shall  be  payable
semi-annually  on December 31 and on June 30 commencing  with December 31, 2002,
to stockholders of record on the  immediately  preceding  December 15th and June
15th,  respectively,  or such other record date as may be fixed for that purpose
by the Board of Directors; provided, however, that if December 15th or June 15th
shall not be a business  day and the Board of  Directors  shall not fix  another
record  date,  the  record  date  shall be the  next  succeeding  business  day.
Dividends payable with respect to any shares of Series B Preferred Stock for the
initial  dividend  period and for any period less than a full  six-month  period
shall  accrue  from the date of  issuance  of such  shares of Series B Preferred
Stock on which such dividends are payable, and shall be computed and apportioned
on the basis of a 180-day  period  composed  of six  30-day  months.  Holders of
Series B Preferred Stock shall not be entitled to any dividends in excess of the
full dividends  provided for herein,  and no interest or sum of money in lieu of
interest  shall be payable in respect of any  dividend  payment  which may be in
arrears.  No  dividends  shall be payable on any  fractional  or full  shares of
Series B Preferred Stock which shall have been declared,  paid or distributed as
dividends on outstanding Preferred B Shares.

         4.       No Dividends or Distributions to Junior Securities.

                  Except as may be  otherwise  provided in this  Certificate  of
Designations, so long as any shares of Series B Preferred Stock are outstanding,
no dividends  shall be declared or paid or set aside for  payment,  and no other
distribution shall be declared or made, upon any Common Stock of the Corporation
or upon any other  shares of a class or series of stock which is junior in right
and ranking to the Series B Preferred Stock,  unless all amounts then due to the
holders of Series B  Preferred  Stock,  including  the  dividends  provided  for
herein, have been paid.

         5.       Voting Rights.

                  Except as otherwise  expressly  provided herein or as required
by law,  the Series B  Preferred  Stock  shall have no voting  rights.  However,
notwithstanding  the foregoing,  the written consent or affirmative  vote of the
holders of a majority of the  outstanding  shares of Series B Preferred Stock is
required  to  approve  (i)  any  proposed   amendment  to  the   Certificate  of
Incorporation  of the  Corporation  that  would  materially  alter or change the
powers,  preferences, or special rights of the Series B Preferred Stock so as to
affect the holders adversely,  and (ii) any plan of merger or consolidation that
contains  provisions  which,  if  contained  in  a  proposed  amendment  to  the
Certificate of Incorporation of the Corporation, would have entitled the holders
of the Series B Preferred Stock to vote, as a class, on the issue.

         6.       Elective Conversion.

         The holders of shares of Series B Preferred Stock shall have the
following conversion rights:

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<PAGE>

                  (a) Subject to the terms and conditions of this Section 6, the
holder of any share or shares of Series B Preferred  Stock shall have the right,
at such  holder's  option at any time  commencing  with  September  3, 2002,  to
convert  any such  shares  of Series B  Preferred  Stock  (except  that upon any
liquidation of the  Corporation  the right of conversion  shall terminate at the
close  of  business  on the  business  day  fixed  for  payment  of  the  amount
distributable  on the Series B  Preferred  Stock) into such number of fully paid
and nonassessable shares of the Corporation's Common Stock as is obtained by (i)
multiplying  the number of shares of Series B Preferred Stock so to be converted
by One Thousand  Dollars ($1,000) and (ii) dividing the result by the conversion
price of Fifty Cents  ($0.50) per share or, in case an  adjustment of such price
has  taken  place  pursuant  to  the  further  provisions  hereof,  then  by the
conversion  price as last  adjusted  and in effect at the date any such share or
shares of Series B Preferred Stock are  surrendered  for  conversion;  provided,
that, in no event shall such conversion price be less than $0.01 per share (such
price,  or such price as last  adjusted,  being  referred to as the  "Conversion
Price").

                  (b) The conversion  right provided under paragraph (a) of this
Section 6 shall be  exercised by a holder of the  Preferred B Shares  subject to
conversion by delivering to the  Corporation,  during regular business hours, or
to such agent as may be designated by the Corporation,  the original certificate
or  certificates  for the Preferred B Shares to be  converted,  duly endorsed or
assigned either in blank or to the Corporation, accompanied by written notice in
substantially  the form  attached  hereto as Exhibit A,  stating that the holder
elects to convert  such  Preferred  B Shares (or the number of such  Preferred B
Shares as to which the conversion  right is to be exercise) and stating the name
or names (with address and Social  Security or Federal  Taxpayer  Identification
Number) in which the certificate or certificates  for the shares of Common Stock
are to be issued.  Conversion  shall be deemed to have been effected on the date
when the aforesaid delivery is made (the "Conversion Date").

                  (c) As  promptly  as  practicable  after  the  receipt  of the
written notice  referred to in Section 6(b) and surrender of the  certificate or
certificates  for the  share  or  shares  of  Series  B  Preferred  Stock  to be
converted,  the Corporation  shall issue and deliver to such holder (or upon the
written  order  of such  holder)  to the  place  designated  by such  holder,  a
certificate  or  certificates  for the number of shares of Common Stock to which
such holder is  entitled  as a  consequence  of such  conversion.  To the extent
permitted by law, the person in whose name the certificate or  certificates  for
Common  Stock are to be issued shall be deemed to have become a  stockholder  of
record on the  applicable  Conversion  Date  unless  the  transfer  books of the
Corporation  are closed on that date, in which event such person shall be deemed
to have become a stockholder  of record on the next  succeeding  business day on
which the transfer books are open and, at such time, the rights of the holder of
such Preferred B Share or Shares shall cease.

                  (d) All shares of Series B  Preferred  Stock  which shall have
been surrendered for conversion shall no longer be deemed to be outstanding, and
all rights with respect to such shares, including the rights, if any, to receive
notices and to vote,  shall  immediately  cease and terminate on the  Conversion

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Date, with respect to Preferred B Shares which have been converted,  except only
the right of the holders thereof to receive shares of Common Stock in conversion
therefor.  Any shares of Series B Preferred  Stock so converted shall be retired
and canceled and shall not be reissued,  and the  Corporation  (without the need
for stockholder  action) may from time to time take such  appropriate  action as
may be necessary to reduce the authorized number of shares of Series B Preferred
Stock accordingly.

         7.       Mandatory  Redemption. The Corporation shall have the follow-
ing  rights to redeem  shares of Series B  Preferred Stock:

                  (a) Subject to the terms and conditions of this Section 7, the
Corporation shall have the right (the "Redemption  Right"), at its option at any
time (except that, upon any liquidation of the Corporation, the Redemption Right
shall  terminate  at the close of business on the business day fixed for payment
of the amount  distributable  on the Series B  Preferred  Stock),  to redeem and
require  the  conversion  of all or a portion  of the  Preferred  B Shares  then
outstanding for and into such number of fully paid and  nonassessable  shares of
Common  Stock (the  "Redemption  Stock") as is obtained by (i)  multiplying  the
number of shares of Series B Preferred  Stock so to be converted and redeemed by
One Thousand  Dollars  ($1,000) and (ii)  dividing the result by the  Conversion
Price. In the event that the Corporation elects to exercise its Redemption Right
as to fewer than all of the  Preferred  B Shares then  outstanding,  Preferred B
Shares shall be redeemed ratably (based on the number of shares held thereby and
the total  number of  Preferred  B Shares  then  outstanding)  from each  holder
thereof.

                  (b) At  least  twenty  (20)  calendar  days  prior to the date
selected by the Board of Directors as the effective date for the exercise of its
Redemption  Right  pursuant  to  this  Section  7  (a  "Redemption   Date")  the
Corporation  shall give notice (a "Redemption  Notice") to each holder of record
(at the close of business on the  business day next  preceding  the day on which
the Redemption  Notice is given) of shares of Series B Preferred Stock notifying
such holder of the redemption and specifying the Redemption  Date, the number of
shares of Series B Preferred  Stock to be redeemed from such holder,  the number
of shares of Redemption  Stock issuable thereto in respect thereof and the place
where said  Redemption  Price shall be payable.  The Redemption  Notice shall be
addressed to each holder at such holder's address as shown by the records of the
Corporation.

                  (c) For a  period  of ten (10)  calendar  days  following  the
delivery of the Redemption Notice, each holder of Series B Preferred Stock shall
have the right to designate,  by means of a notice  substantially in the form of
Exhibit B hereto, the name or names (with address and Social Security or Federal
Taxpayer Identification Number) in which the certificate or certificates for the
shares of Redemption Stock are to be issued. In the event that any holder shall,
for any reason, fail to make such designation as to some or all of the shares of
Redemption Stock issuable thereto, all shares of Redemption Stock not subject to

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<PAGE>

valid and  timely  designation  shall be issued in the name of the holder of the
Series B Preferred Stock subject to the Redemption Right.

                  (d) From and after the close of business on a Redemption Date,
unless  there shall have been a default in issuance of the  Redemption  Stock as
required  hereby,  all rights of holders of shares of Series B  Preferred  Stock
(except the right to receive the  Redemption  Stock) shall cease with respect to
the shares to be  redeemed on such  Redemption  Date,  and such shares  shall be
retired and canceled and shall not be reissued, and the Corporation (without the
need for stockholder  action) may from time to time take such appropriate action
as may be  necessary  to  reduce  the  authorized  number  of shares of Series B
Preferred Stock accordingly.

         8.       Provisions Applicable to Conversions and Redemptions.

                  (a) No fractional  shares of Common Stock shall be issued upon
conversion  or  redemption  of shares of Series B  Preferred  Stock  into or for
shares of Common Stock or Redemption  Stock,  and the number of shares of Common
Stock or Redemption Stock to be delivered upon such conversion or redemption, in
lieu of delivering any fractional  share,  shall be rounded to the nearest whole
share (with .5 shares  rounded up or down to the even  number of  shares).  Upon
conversion  of only a portion of the number of shares  covered by a  certificate
representing  shares of Series B Preferred  Stock  surrendered for conversion or
upon  the  written  order  of the  holder  of the  certificate  surrendered  for
conversion,  the  Corporation  shall  issue and deliver to such  holder,  at the
expense of the Corporation,  a new certificate  covering the number of shares of
Series B Preferred Stock representing the unconverted portion of the certificate
so  surrendered.  Upon  redemption  of only a  portion  of the  number of shares
covered by a certificate  representing  shares of Series B Preferred  Stock, the
certificate  or  certificates  representing  the  Preferred B Shares so redeemed
shall,  from and after  the  Redemption  Date,  be deemed  for all  purposes  to
represent  that  number of shares of Series B  Preferred  Stock not  subject  to
redemption and such certificate or certificates shall be deemed canceled, and of
no further effect with respect to shares redeemed;  provided,  however, that the
Corporation shall, upon surrender to it or to such agent as may be designated by
the Corporation of the original  certificate or certificates for the Preferred B
Shares to be redeemed or upon the written order of the holder of the certificate
so  surrendered,  issue and  deliver  to the  holder  of any  shares of Series B
Preferred Stock, at the expense of the Corporation,  a new certificate  covering
the number of shares of Series B Preferred  Stock  representing  the  unredeemed
portion of the certificate so surrendered.

                  (b)  The  Corporation  shall,  at  all  times  when  Series  B
Preferred  Stock shall be  outstanding,  reserve and keep  available  out of its
authorized  but  unissued  Common  Stock,  for  the  purpose  of  effecting  the
conversion or redemption  of Series B Preferred  Stock,  such number of its duly
authorized  shares  as shall  from  time to time be  sufficient  to  effect  the
conversion or redemption of all outstanding shares of Series B Preferred Stock.

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<PAGE>

                  (c) All shares of Common Stock  (including  Redemption  Stock)
which may be issued in connection  with the conversion or redemption  provisions
set forth herein will,  upon  issuance by the  Corporation,  be validly  issued,
fully paid and non-assessable.  No adjustment shall be made for dividends on any
share of Series B Preferred Stock which is being  converted or redeemed  (unless
such  dividends  have  been  accrued  and are  unpaid  as of the  Conversion  or
Redemption  Date) or on any share of Common Stock (including  Redemption  Stock)
issued  on  exercise  of  a  holder's  conversion  right  or  the  Corporation's
Redemption Right as provided herein.

                  (d) The  Corporation  shall  pay any and all  issue  and other
taxes that may be payable in respect of any  issuance  or  delivery of shares of
Common Stock  (including  Redemption  Stock) upon  conversion  or  redemption of
shares of Series B Preferred Stock pursuant hereto.  The Corporation  shall not,
however,  be  required  to pay any tax which may be  payable  in  respect of any
transfer  involved  in the  issuance  and  delivery  of shares  of Common  Stock
(including  Redemption  Stock) in a name  other than that in which the shares of
Series B Preferred Stock so converted or redeemed were  registered,  and no such
issuance  or  delivery  shall be made  unless  and  until  the  person or entity
requesting  such issuance has paid to the Corporation the amount of any such tax
or has established,  to the  satisfaction of the Corporation,  that such tax has
been paid.

         9.       Adjustments to Conversion Price.

                  (a) The  Conversion  Price (which is initially  established at
Fifty Cents ($0.50) per share of Common Stock (including  Redemption  Stock)) in
effect from time to time shall be subject to  adjustment  (to the nearest  cent)
from time to time as follows:

                           (i)     If the Corporation, at any time after June 1,
2002 and at any time prior to the  conversion  of a  Preferred  Share shall have
subdivided its outstanding shares of Common Stock by recapitalization,  reclassi
fication or split-up thereof,  or if the Corporation shall have declared a stock
dividend  or  distributed  shares  of  Common  Stock  to its  stockholders,  the
Conversion Price immediately  prior to such conversion shall be  proportionately
increased; and, if the Corporation,  prior to such conversion, shall have at any
time combined the  outstanding  shares of Common Stock by  recapitalization,  re
classification  or  comparable   combination   thereof,   the  Conversion  Price
immediately prior to such conversion shall be proportionately increased.

                           (ii)    In case the Corporation,  after June 1, 2002,
shall  consolidate  with or merge  into  another  corporation  or convey  all or
substantially all of its assets to another  corporation,  then, and in each such
case, the  Conversion  Price shall be adjusted in such manner that the holder of
Preferred  B Shares,  upon the  conversion  or  redemption  thereof as  provided
herein,  at any time after the  consummation  of such  consolidation,  merger or
conveyance,  shall be entitled to receive  the  securities  or property to which
such holder would have been entitled upon such  consummation  if such holder had
exercised  his  right to  convert  such  Preferred  B Shares  immediately  prior
thereto.

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<PAGE>

                  (b)  Any   provision   of  this  Section  9  to  the  contrary
notwithstanding,  no  adjustment  of the  Conversion  Price shall be made if the
amount  of such  adjustment  would  be less  than One Cent  ($0.01)  per  share;
provided,  however,  that any such  adjustment  shall be carried  forward and an
adjustment  with  respect  thereto  shall be made at such time,  if any,  as any
subsequent adjustment(s) together with such carried-forward adjustment(s) result
in an aggregate adjustment of One Cent ($0.01) or more.

                  (c) Upon any adjustment of the Conversion  Price,  then and in
each such case, other than as provided in paragraph (b) above, the Corporation's
chief  financial  officer  shall give written  notice  thereof to each holder of
shares of Series B Preferred Stock at the address of such holder as shown on the
books  of the  Corporation,  which  notice  shall  state  the  Conversion  Price
resulting from such  adjustment,  setting forth in reasonable  detail the method
upon which such calculation is based.

         10.      General.

                  (a) The  Corporation  shall not  amend,  alter or  repeal  the
preferences,  special rights or other powers of the Series B Preferred  Stock so
as to affect adversely the Series B Preferred Stock, without the written consent
or affirmative vote of the holders of a majority of the then outstanding  shares
of  Series  B  Preferred  Stock,  given  in  writing  or by vote  at a  meeting,
consenting or voting (as the case may be)  separately as a class,  in accordance
with  applicable  law.  Without  limiting the generality of the  foregoing,  the
authorization  of any shares of capital  stock with  preference or priority over
the Series B  Preferred  Stock as to the right to receive  either  dividends  or
amounts  distributable  upon  liquidation,  dissolution  or  winding  up of  the
Corporation  shall be deemed to affect  adversely the Series B Preferred  Stock,
and the  authorization  of any shares of capital stock on a parity with Series B
Preferred  Stock  as to  the  right  to  receive  either  dividends  or  amounts
disbributable  upon  liquidation,  dissolution or winding up of the  Corporation
shall not be deemed to affect adversely the Series B Preferred Stock.

                  (b) The  number of  authorized  shares  of Series B  Preferred
Stock may be  increased  (but only for the  purpose of  providing  a  sufficient
number  of  authorized  Preferred  B Shares  for the  payment  of  dividends  on
outstanding Preferred B Shares) or decreased (but not below the number of shares
then outstanding) by the directors of the Corporation.

                  (c) Any of the  rights of the  holders  of Series B  Preferred
Stock set forth herein may be waived by the affirmative vote of the holders of a
majority of the shares of Series B Preferred Stock then outstanding,  which vote
may be taken by written  consent or at a meeting of the  holders of  Preferred B
Shares.

         11.      Notices.

                  (a) Any notices required to be given to any holder of Series B
Preferred Stock shall be deemed properly given if deposited in the United States

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mail, postage prepaid,  or sent by facsimile or by overnight or express delivery
service, or by electronic mail or similar electronic  transmission,  followed by
duplicate  notice via United  States  first class  mail,  postage  prepaid,  and
addressed  to the holder of record at such  holder's  address  appearing  at the
books of the Corporation.

                  (b)  In  case  of  any  (i)  capital   reorganization  of  the
Corporation,   reclassification,  of  the  capital  stock  of  the  Corporation,
consolidation or merger of the Corporation with or into another corporation,  or
conveyance  of all or  substantially  all of the  assets of the  Corporation  to
another corporation;  (ii) voluntary or involuntary dissolution,  liquidation or
winding  up  of  the  Corporation;  or  (iii)  other  event  specified  in  this
Certificate of  Designations  or pursuant to applicable law requiring the taking
of such a record,  then,  and in each such case, the  Corporation  shall mail or
cause to be mailed to each holder of shares of Series B Preferred Stock a notice
specifying,  as the case may be,  the date on which a record  is to be taken for
the  foregoing  purposes and providing the  information  reasonably  required in
order  enable to holders of record of  Preferred B Shares to exercise the rights
conferred by this Certificate of Designations.

                  SECOND:   That   such   determination   of  the   designation,
preferences and the relative,  participating,  optional or other rights, and the
qualifications,  limitations or restrictions thereof,  relating to said Series B
Preferred  Stock,  was duly  made by the  Board  of  Directors  pursuant  to the
provisions  of the  Certificate  of  Incorporation  of the  Corporation,  and in
accordance with the provisions of Section 151 of the General  Corporation Law of
the State of Delaware, as amended.

                                                       [SIGNATURE PAGE FOLLOWS.]

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<PAGE>

         IN WITNESS  WHEREOF,  the  Corporation  has caused this  Certificate of
Designations for its Series B 8% Convertible Preferred Stock to be duly executed
by its President and by its Secretary, respectively, this 28th day of May, 2002.

                             CELSION CORPORATION

                             By:  /s/ Augustine Y. Cheung
                                  -----------------------------------------
                                      Augustine Y. Cheung
                                      President and Chief Executive Officer

ATTEST

/s/ John Mon
    -------------------
    John Mon, Secretary

                                       10
<PAGE>

                                    Exhibit A
                                    ---------

                         CELSION (DELAWARE) CORPORATION
                             NOTICE OF CONVERSION OF
                     SERIES B 8% CONVERTIBLE PREFERRED STOCK

(To be  Executed  by the  Registered  Holder in order to  convert  the  Series B
Preferred Stock)

         The   undersigned   Holder   hereby   irrevocably   elects  to  convert
___________shares of the Series B 8% Convertible  Preferred Stock (the "Series B
Preferred  Stock")  of  Celsion   Corporation,   a  Delaware   corporation  (the
"Corporation")   represented   by  stock   certificate   No(s). ________________
_______________________________ (the "Preferred Stock Certificates") into shares
of common stock ("Common Stock") of the Corporation  according to the conditions
set forth in the Certificate of Designations for Series B Preferred Stock, as of
the date written below. If shares are to be issued in the name of a person other
than the  undersigned,  the undersigned will pay all transfer taxes payable with
respect  thereto and is delivering  herewith such  certificates.  No fee will be
charged to the Holder for any  conversion,  except for transfer taxes, if any. A
copy of each of the Preferred  Stock  Certificates  being  converted is attached
hereto.

Date of Submission:  ___________________________________________________________

Number of Share of Series B 8% Convertible Preferred Stock to be Converted: ____

Name of Holder:_________________________________________________________________

By:_____________________________________________________________________________

Title:__________________________________________________________________________

Address:________________________________________________________________________

Social Security or Federal Taxpayer ID No: _____________________________________

                                    IMPORTANT

No shares of Common Stock will be issued  until the original  Series B Preferred
Stock  Certificates(s) to be converted and the Notice of Conversion are received
by the Corporation.  The Holder shall fax, or otherwise  deliver, a copy of this
completed and fully  executed  Notice of Conversion  to the  Corporation  at the
office of the  Corporation or such other location  designated by the Corporation
and shall deliver, at the same time, the original Preferred Stock Certificate(s)
representing  the Series B Preferred  Stock being  converted,  duly endorsed for
transfer.

                                       11
<PAGE>

                                    Exhibit B
                                    ---------

                         CELSION (DELAWARE) CORPORATION
                          NOTICE OF NAME AND ADDRESS OF
                    TRANSFEREE OF SHARES OF REDEMPTION STOCK

         In accordance  with Section 7 of the Certificate of  Designations,  the
Corporation  has exercised its redemption  right and the  undersigned  holder of
shares of the Corporation's Series B 8% Convertible Preferred Stock (the "Series
B Preferred  Stock") subject to such redemption right desires to have the shares
of Common Stock of the Corporation,  par value $0.01 per share,  issued pursuant
to such  redemption  (the  "Redemption  Shares")  issued in the name of a person
other than the  undersigned.  The  undersigned  desires  to have the  Redemption
Shares issued to the individual or entity identified below. The undersigned will
pay all transfer taxes payable with respect  thereto and is delivering  herewith
such certificates (the "Preferred Stock  Certificates")  representing the shares
of Series B Preferred Stock subject to redemption. No fee will be charged to the
undersigned holder for redemption,  except for transfer taxes, if any. A copy of
each of the Preferred Stock Certificates being redeemed is attached hereto.

Date of Submission:  ___________________________________________________________

Name of Holder:_________________________________________________________________

By:_____________________________________________________________________________

Title:__________________________________________________________________________

Address:________________________________________________________________________

Social Security or Federal Taxpayer ID No: _____________________________________

                                    IMPORTANT

         No shares of Common Stock will be issued  until the  original  Series B
Preferred Stock Certificates(s)  representing the Series B Preferred Stock being
redeemed, duly endorsed for transfer, are received by the Corporation.

                                       12CERTIFICATE OF DESIGNATIONS, POWERS,

                                       of

                  SERIES C JUNIOR PARTICIPATING PREFERRED STOCK

                                       of

                               CELSION CORPORATION

             Pursuant to Section 151 of the General Corporation Law
                            of the State of Delaware

         Celsion  Corporation,  a corporation  organized and existing  under the
General  Corporation  Law of the  State  of  Delaware  (the  "Corporation"),  in
accordance with the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

         That pursuant to the authority vested in the Board of Directors in
accordance with the provisions of the Certificate of  Incorporation  of the said
Corporation, the said Board of Directors on August 6, 2002 adopted the following
resolution  creating a series of 15,000 shares of Preferred Stock  designated as
"Series C Junior Participating Preferred Stock":

                       RESOLVED,  that pursuant to the  authority  vested in the
                Board of Directors of this  Corporation  in accordance  with the
                provisions  of the  Certificate  of  Incorporation,  a series of
                Preferred  Stock,  par value $.01 per share,  of the Corporation
                be, and hereby is, created,  and that the designation and number
                of shares  thereof and the voting and other powers,  preferences
                and  relative,  participating,  optional or other  rights of the
                shares of such series and the  qualifications,  limitations  and
                restrictions thereof are as follows:

             Series C Junior Participating Preferred Stock
             ---------------------------------------------

         1.  Designation and Amount.  There shall be a series of Preferred Stock
that shall be designated as "Series C Junior Participating Preferred Stock," and
the number of shares  constituting  such series shall be 15,000.  Such number of
shares may be increased or decreased by  resolution  of the Board of  Directors;
provided,  however, that no decrease shall reduce the number of shares of Series
C Junior  Participating  Preferred  Stock to less than the number of shares then
issued and  outstanding  plus the number of shares  issuable  upon  exercise  of
outstanding  rights,  options or  warrants  or upon  conversion  of  outstanding
securities issued by the Corporation.

                                       1
<PAGE>

         2. Dividends and Distributions.

            (A) Subject to the prior and  superior  rights of the holders of any
shares  of any class or series  of stock of the  Corporation  ranking  prior and
superior  to the shares of Series C Junior  Participating  Preferred  Stock with
respect to  dividends,  the  holders of shares of Series C Junior  Participating
Preferred  Stock,  in preference to the holders of shares of any class or series
of stock of the Corporation ranking junior to the Series C Junior  Participating
Preferred Stock in respect thereof,  shall be entitled to receive,  when, as and
if declared by the Board of Directors  out of funds  legally  available  for the
purpose,  quarterly  dividends  payable  in cash on the first day of the  first,
fourth,  seventh  and tenth  month in each  calendar  year (each such date being
referred to herein as a "Quarterly  Dividend  Payment Date"),  commencing on the
first  Quarterly  Dividend  Payment Date after the first  issuance of a share or
fraction  of a share of Series C Junior  Participating  Preferred  Stock,  in an
amount per share  (rounded to the nearest cent) equal to the greater of (a) $100
or (b) the  Adjustment  Number (as defined  below) times the aggregate per share
amount of all cash dividends,  and the Adjustment Number times the aggregate per
share amount (payable in kind) of all non-cash dividends or other  distributions
other than a dividend  payable in shares of Common Stock or a subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise),  declared
on the Common Stock,  par value $.01 per share, of the Corporation  (the "Common
Stock") since the immediately  preceding  Quarterly  Dividend  Payment Date, or,
with  respect to the first  Quarterly  Dividend  Payment  Date,  since the first
issuance of any share or  fraction  of a share of Series C Junior  Participating
Preferred Stock. The "Adjustment Number" shall initially be 10,000. In the event
that, after August 6, 2002,  Corporation  shall (i) declare and pay any dividend
on  Common  Stock  payable  in  shares  of  Common  Stock,  (ii)  subdivide  the
outstanding  Common Stock or (iii) combine the  outstanding  Common Stock into a
smaller number of shares, then in each such case the Adjustment Number in effect
immediately prior to such event shall be adjusted by multiplying such Adjustment
Number by a fraction  the  numerator  of which is the number of shares of Common
Stock  outstanding  immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding  immediately prior to
such event.

            (B) The Corporation  shall declare a dividend or distribution on the
Series C Junior Participating Preferred Stock as provided in paragraph (A) above
immediately  after it declares a dividend or  distribution  on the Common  Stock
(other than a dividend payable in shares of Common Stock).

            (C) Dividends shall begin to accrue and be cumulative on outstanding
shares of  Series C Junior  Participating  Preferred  Stock  from the  Quarterly
Dividend  Payment Date next preceding the date of issue of such shares of Series
C Junior Participating  Preferred Stock, unless the date of issue of such shares
is prior to the record date for the first  Quarterly  Dividend  Payment Date, in
which case dividends on such shares shall begin to accrue from the date of issue
of such shares, or unless the date of issue is a Quarterly Dividend Payment Date
or is a date after the record date for the determination of holders of shares of
Series C Junior  Participating  Preferred  Stock entitled to receive a quarterly

                                       2
<PAGE>

dividend and before such  Quarterly  Dividend  Payment  Date, in either of which
events  such  dividends  shall  begin to  accrue  and be  cumulative  from  such
Quarterly  Dividend  Payment Date.  Accrued but unpaid  dividends shall not bear
interest.  Dividends  paid  on the  shares  of  Series  C  Junior  Participating
Preferred Stock in an amount less than the total amount of such dividends at the
time  accrued  and  payable  on such  shares  shall be  allocated  pro rata on a
share-by-share basis among all such shares at the time outstanding. The Board of
Directors  may fix a record date for the  determination  of holders of shares of
Series C Junior  Participating  Preferred Stock entitled to receive payment of a
dividend or distribution  declared  thereon,  which record date shall be no more
than 60 calendar days prior to the date fixed for the payment thereof.

         3.  Voting Rights. The holders of shares of  Series C Junior Participa-
ting Preferred Stock shall have the following voting rights:

            (A) Each  share of  Series C Junior  Participating  Preferred  Stock
shall  entitle the holder  thereof to a number of votes equal to the  Adjustment
Number  on  all  matters  submitted  to  a  vote  of  the  stockholders  of  the
Corporation.

            (B) Except as  required  by law,  by Section  3(C) and by Section 10
hereof,  holders of Series C Junior Participating  Preferred Stock shall have no
special  voting rights and their  consent  shall not be required  (except to the
extent  they are  entitled  to vote with  holders  of Common  Stock as set forth
herein) for taking any corporate action.

            (C) If, at the time of any annual  meeting of  stockholders  for the
election of directors, the equivalent of six quarterly dividends (whether or not
consecutive)  payable  on any share or  shares of Series C Junior  Participating
Preferred Stock are in default,  the number of directors  constituting the Board
of Directors of the Corporation shall be increased by two. In addition to voting
together with the holders of Common Stock for the election of other directors of
the  Corporation,  the  holders of record of the  Series C Junior  Participating
Preferred Stock, voting separately as a class to the exclusion of the holders of
Common  Stock,  shall be entitled at said meeting of  stockholders  (and at each
subsequent annual meeting of  stockholders),  unless all dividends in arrears on
the Series C Junior Participating Preferred Stock have been paid or declared and
set apart for payment prior  thereto,  to vote for the election of two directors
of the Corporation,  the holders of any Series C Junior Participating  Preferred
Stock  being  entitled  to cast a number  of votes  per share of Series C Junior
Participating  Preferred  Stock as is specified in paragraph (A) of this Section
3. Each such  additional  director shall not be a member of Class I, Class II or
Class III of the Board of  Directors of the  Corporation,  but shall serve until
the next annual meeting of stockholders for the election of directors,  or until
his or her  successor  shall be elected and shall  qualify,  or until his or her
right to hold such office terminates  pursuant to the provisions of this Section
3(C).  Until the  default in  payments  of all  dividends  which  permitted  the
election of said  directors  shall cease to exist,  any  director who shall have
been so elected  pursuant to the  provisions of this Section 3(C) may be removed
at any time,  without cause,  only by the affirmative vote of the holders of the

                                       3
<PAGE>

shares of Series C Junior Participating  Preferred Stock at the time entitled to
cast a majority of the votes  entitled  to be cast for the  election of any such
director at a special  meeting of such holders called for that purpose,  and any
vacancy thereby  created may be filled by the vote of such holders.  If and when
such  default  shall  cease  to  exist,  the  holders  of the  Series  C  Junior
Participating  Preferred Stock shall be divested of the foregoing special voting
rights,  subject to  revesting  in the event of each and every  subsequent  like
default in payments of dividends.  Upon the termination of the foregoing special
voting  rights,  the terms of office of all  persons  who may have been  elected
directors pursuant to said special voting rights shall forthwith terminate,  and
the number of directors  constituting the Board of Directors shall be reduced by
two. The voting rights  granted by this Section 3(C) shall be in addition to any
other voting rights granted to the holders of the Series C Junior  Participating
Preferred Stock in this Section 3.

         4. Certain Restrictions.

            (A) Whenever quarterly dividends or other dividends or distributions
payable on the Series C Junior  Participating  Preferred  Stock as  provided  in
Section 2 are in arrears,  thereafter and until all accrued and unpaid dividends
and  distributions,  whether  or not  declared,  on  shares  of  Series C Junior
Participating  Preferred  Stock  outstanding  shall have been paid in full,  the
Corporation shall not:

                (i) declare or pay  dividends  on, make any other  distributions
on, or redeem or purchase or otherwise  acquire for  consideration any shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series C Junior Participating Preferred Stock;

                (ii) declare or pay dividends on or make any other distributions
on any shares of stock  ranking  on a parity  (either  as to  dividends  or upon
liquidation,  dissolution or winding up) with the Series C Junior  Participating
Preferred  Stock,   except  dividends  paid  ratably  on  the  Series  C  Junior
Participating  Preferred  Stock and all such parity stock on which dividends are
payable or in arrears in proportion to the total amounts to which the holders of
all such shares are then entitled; or

                (iii) purchase or otherwise acquire for consideration any shares
of Series C Junior Participating Preferred Stock, or any shares of stock ranking
on a parity with the Series C Junior  Participating  Preferred Stock,  except in
accordance  with  a  purchase  offer  made  in  writing  or by  publication  (as
determined  by the  Board  of  Directors)  to all  holders  of  Series  C Junior
Participating Preferred Stock, or to such holders and holders of any such shares
ranking on a parity therewith, upon such terms as the Board of Directors,  after
consideration of the respective  annual dividend rates and other relative rights
and  preferences of the respective  series and classes,  shall determine in good
faith will result in fair and equitable treatment among the respective series or
classes.

                                       4
<PAGE>

            (B)  The  Corporation   shall  not  permit  any  subsidiary  of  the
Corporation  to purchase or otherwise  acquire for  consideration  any shares of
stock of the Corporation  unless the Corporation  could,  under paragraph (A) of
this Section 4,  purchase or  otherwise  acquire such shares at such time and in
such manner.

         5.  Reacquired  Shares.  Any  shares of  Series C Junior  Participating
Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever  shall be retired  promptly after the acquisition  thereof.  All such
shares shall upon their  retirement  become  authorized  but unissued  shares of
Preferred  Stock and may be reissued as part of a new series of Preferred  Stock
to be created by resolution or resolutions of the Board of Directors, subject to
any conditions and restrictions on issuance set forth herein.

         6.  Liquidation,  Dissolution or Winding Up. (A) Upon any  liquidation,
dissolution  or  winding  up of the  Corporation,  voluntary  or  otherwise,  no
distribution  shall be made to the  holders  of shares of stock  ranking  junior
(either as to dividends or upon  liquidation,  dissolution or winding up) to the
Series C Junior Participating Preferred Stock unless, prior thereto, the holders
of shares of Series C Junior  Participating  Preferred Stock shall have received
an amount per share (the "Series C Liquidation Preference") equal to the greater
of  (i)  $100  plus  an  amount  equal  to  accrued  and  unpaid  dividends  and
distributions thereon,  whether or not declared, to the date of such payment, or
(ii) the  Adjustment  Number  times the per  share  amount of all cash and other
property to be distributed in respect of the Common Stock upon such liquidation,
dissolution or winding up of the Corporation.

            (B) In the  event,  however,  that there are not  sufficient  assets
available to permit  payment in full of the Series C Liquidation  Preference and
the  liquidation  preferences  of all other  classes  and series of stock of the
Corporation,  if any, that rank in parity with the Series C Junior Participating
Preferred  Stock  in  respect  thereof,  then  the  assets  available  for  such
distribution shall be distributed  ratably to the holders of the Series C Junior
Participating  Preferred  Stock  and  the  holders  of  such  parity  shares  in
proportion to their respective liquidation preferences.

            (C) Neither the merger or  consolidation  of the Corporation into or
with another entity nor the merger or  consolidation of any other entity into or
with the Corporation shall be deemed to be a liquidation, dissolution or winding
up of the Corporation within the meaning of this Section 6.

         7. Consolidation, Merger, Etc. In case the Corporation shall enter into
any  consolidation,  merger,  combination  or other  transaction  in  which  the
outstanding shares of Common Stock are exchanged for or changed into other stock
or securities,  cash and/or any other property, then in any such case each share
of  Series C Junior  Participating  Preferred  Stock  shall at the same  time be
similarly  exchanged  or changed in an amount per share equal to the  Adjustment
Number times the aggregate  amount of stock,  securities,  cash and/or any other
property  (payable  in kind),  as the case may be,  into which or for which each
share of Common Stock is changed or exchanged.

                                       5
<PAGE>

         8. No  Redemption.  Shares of Series C Junior  Participating  Preferred
Stock shall not be subject to redemption by the Corporation.

         9. Ranking.  The Series C Junior  Participating  Preferred  Stock shall
rank  junior to all other  series of the  Preferred  Stock as to the  payment of
dividends and as to the distribution of assets upon liquidation,  dissolution or
winding up,  unless the terms of any such series shall  provide  otherwise,  and
shall rank senior to the Common Stock as to such matters.

         10.  Amendment.  At any  time  that  any  shares  of  Series  C  Junior
Participating Preferred Stock are outstanding,  the Certificate of Incorporation
of the  Corporation  shall not be amended in any manner  which would  materially
alter or change the powers, preferences or special rights of the Series C Junior
Participating  Preferred  Stock  so as to  affect  them  adversely  without  the
affirmative  vote of the  holders of  two-thirds  of the  outstanding  shares of
Series C Junior Participating Preferred Stock, voting separately as a class.

         11. Fractional Shares.  Series C Junior  Participating  Preferred Stock
may be  issued in  fractions  of a share  that  shall  entitle  the  holder,  in
proportion  to such  holder's  fractional  shares,  to exercise  voting  rights,
receive  dividends,  participate in distributions and to have the benefit of all
other rights of holders of Series C Junior Participating Preferred Stock.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

         IN WITNESS WHEREOF,  the undersigned has executed this Certificate this
6th day of August, 2002.

                               CELSION CORPORATION

                               By: /s/Augustine Y. Cheung
                               --------------------------------------------
                                      Augustine Y. Cheung
                                      President and Chief Executive Officer

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